[House Report 115-754]
[From the U.S. Government Publishing Office]


115th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     115-754

======================================================================



 
    JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES FOR SUCCESS ACT
                                _______
                                

 June 13, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Brady of Texas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 5861]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 5861) to amend part A of title IV of the Social 
Security Act, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND..........................................14
          A. Purpose and Summary.................................    14
          B. Background and Need for Legislation.................    14
          C. Legislative History.................................    17
 II. EXPLANATION OF THE BILL.........................................19
          Sections 1, 2, and 3: Short Title, Table of Contents, 
              and References.....................................    19
          Section 4: Re-naming of program........................    19
          Section 5: Helping more Americans enter and remain in 
              the workforce......................................    20
          Section 6: Expecting universal engagement and case 
              management.........................................    23
          Section 7: Promoting accountability by measuring work 
              outcomes...........................................    26
          Section 8: Targeting funds to truly needy families.....    37
          Section 9: Targeting funds to core purposes............    40
          Section 10: Strenghtening program integrity by 
              measuring improper payments........................    42
          Section 11: Prohibition on State diversion of Federal 
              funds to replace State spending....................    43
          Section 12: Inclusion of poverty reduction as a core 
              purpose............................................    43
          Section 13: Welfare for needs not weed.................    44
          Section 14: Strengthening accountability through HHS 
              approval of State plans............................    45
          Section 15: Aligning and improving data reporting......    48
          Section 16: Technical corrections to data exchange 
              standards to improve program coordination..........    50
          Section 17: Set-aside for economic downturns...........    50
          Section 18: Definitions related to use of funds........    51
          Section 19: Elimination of obsolete provisions.........    51
          Section 20: Effective date.............................    52
III. VOTES OF THE COMMITTEE..........................................52
 IV. BUDGET EFFECTS OF THE BILL......................................56
          A. Committee Estimate of Budgetary Effects.............    56
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................    57
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................    57
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......59
          A. Committee Oversight Findings and Recommendations....    59
          B. Statement of General Performance Goals and 
              Objectives.........................................    59
          C. Information Relating to Unfunded Mandates...........    60
          D. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................    60
          E. Duplication of Federal Programs.....................    60
          F. Disclosure of Directed Rule Makings.................    60
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........60
VII. DISSENTING VIEWS...............................................175

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Jobs and Opportunity with Benefits and 
Services for Success Act''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Re-naming of program.
Sec. 5. Helping more Americans enter and remain in the workforce.
Sec. 6. Expecting universal engagement and case management.
Sec. 7. Promoting accountability by measuring work outcomes.
Sec. 8. Targeting funds to truly needy families.
Sec. 9. Targeting funds to core purposes.
Sec. 10. Strengthening program integrity by measuring improper 
payments.
Sec. 11. Prohibition on State diversion of Federal funds to replace 
State spending.
Sec. 12. Inclusion of poverty reduction as a program purpose.
Sec. 13. Welfare for needs not weed.
Sec. 14. Strengthening accountability through HHS approval of State 
plans.
Sec. 15. Aligning and improving data reporting.
Sec. 16. Technical corrections to data exchange standards to improve 
program coordination.
Sec. 17. Set-aside for economic downturns.
Sec. 18. Definitions related to use of funds.
Sec. 19. Elimination of obsolete provisions.
Sec. 20. Effective date.

SEC. 3. REFERENCES.

  Except as otherwise expressly provided, wherever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Social Security Act.

SEC. 4. RE-NAMING OF PROGRAM.

  (a) In General.--The heading for part A of title IV is amended to 
read as follows:

  ``PART A--JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES PROGRAM''.

  (b) Conforming Amendments.--
          (1) The heading for section 403(a)(2)(B) (42 U.S.C. 
        603(a)(2)(B)) is amended by striking ``tanf'' and inserting 
        ``jobs''.
          (2) The heading for section 413(a) (42 U.S.C. 613(a)) is 
        amended by striking ``TANF'' and inserting ``JOBS''.
          (3) The heading for section 471(e)(7)(B)(i) (42 U.S.C. 
        671(e)(7)(B)(i)), as in effect pursuant to the amendment made 
        by section 50711(a)(2) of division E of the Bipartisan Budget 
        Act of 2018 (Public Law 115-123), is amended by striking 
        ``TANF'' and inserting ``JOBS''.

SEC. 5. HELPING MORE AMERICANS ENTER AND REMAIN IN THE WORKFORCE.

  (a) Family Assistance Grants.--Section 403(a)(1) (42 U.S.C. 
603(a)(1)) is amended in each of subparagraphs (A) and (C) by striking 
``2017 and 2018'' and inserting ``2019 through 2023''.
  (b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--
Section 403(a)(2)(D) (42 U.S.C. 603(a)(2)(D)) is amended--
          (1) by striking ``2017 and 2018'' and inserting ``2019 
        through 2023''; and
          (2) by striking ``for fiscal year 2017 or 2018''.
  (c) Tribal Family Assistance Grants.--Section 412(a)(1)(A) (42 U.S.C. 
612(a)(1)(A)) is amended by striking ``2017 and 2018'' and inserting 
``2019 through 2023''.
  (d) Improving Access to Child Care to Support Work.--Section 
418(a)(3) (42 U.S.C. 618(a)(3)) is amended by striking ``$2,917,000,000 
for each of fiscal years 2017 and 2018'' and inserting ``$3,525,000,000 
for each of fiscal years 2019 through 2023''.
  (e) Grants to the Territories.--Section 1108(b)(2) (42 U.S.C. 
1308(b)(2)) is amended by striking ``2017 and 2018'' and inserting 
``2019 through 2023''.

SEC. 6. EXPECTING UNIVERSAL ENGAGEMENT AND CASE MANAGEMENT.

  Section 408(b) (42 U.S.C. 608(b)) is amended to read as follows:
  ``(b) Individual Opportunity Plans.--
          ``(1) Assessment.--The State agency responsible for 
        administering the State program funded under this part shall 
        make an initial assessment of the following for each work-
        eligible individual (as defined in the regulations promulgated 
        pursuant to section 407(i)(1)(A)(i)):
                  ``(A) The education obtained, skills, prior work 
                experience, work readiness, and barriers to work of the 
                individual.
                  ``(B) The well-being of the children in the family of 
                the individual and, where appropriate, activities or 
                services (such as services offered by a program funded 
                under section 511) to improve the well-being of the 
                children.
          ``(2) Contents of plans.--On the basis of the assessment 
        required by paragraph (1) of this subsection, the State agency, 
        in consultation with the individual, shall develop an 
        individual opportunity plan that--
                  ``(A) includes a personal responsibility agreement in 
                which the individual acknowledges receipt of publicly-
                funded benefits and responsibility to comply with 
                program requirements in order to receive the benefits;
                  ``(B) sets forth the obligations of the individual to 
                participate in work activities (as defined in section 
                407(d)), and the number of hours per month for which 
                the individual will so participate pursuant to section 
                407;
                  ``(C) sets forth an employment goal and planned 
                short-, intermediate-, and long-term actions to achieve 
                the goal, and, in the case of an individual who has not 
                attained 24 years of age and is in secondary school or 
                the equivalent, the intermediate action may be 
                completion of secondary school or the equivalent;
                  ``(D) describes the job counseling and other services 
                the State will provide to the individual to enable the 
                individual to obtain and keep employment in the private 
                sector;
                  ``(E) may include referral to appropriate substance 
                abuse or mental health treatment; and
                  ``(F) is signed by the individual.
          ``(3) Timing.--The State agency shall comply with paragraph 
        (1) and (2) with respect to a work-eligible individual--
                  ``(A) within 180 days after the effective date of 
                this subsection, in the case of an individual who, as 
                of such effective date, is a recipient of assistance 
                under the State program funded under this part (as in 
                effect immediately before such effective date); or
                  ``(B) within 60 days after the individual is 
                determined to be eligible for the assistance, in the 
                case of any other individual.
          ``(4) Penalty for noncompliance by individual.--In addition 
        to any other penalties required under the State program funded 
        under this part, the State may reduce, by such amount as the 
        State considers appropriate, the amount of assistance otherwise 
        payable under the State program to a family that includes an 
        individual who fails without good cause to comply with an 
        individual opportunity plan developed pursuant to this 
        subsection, that is signed by the individual.
          ``(5) Periodic review.--The State shall meet with each work-
        eligible individual assessed by the State under paragraph (1), 
        not less frequently than every 90 days, to--
                  ``(A) review the individual opportunity plan 
                developed for the individual;
                  ``(B) discuss with the individual the progress made 
                by the individual in achieving the goals specified in 
                the plan; and
                  ``(C) update the plan, as necessary, to reflect any 
                changes in the circumstances of the individual since 
                the plan was last reviewed.''.

SEC. 7. PROMOTING ACCOUNTABILITY BY MEASURING WORK OUTCOMES.

  (a) In General.--Section 407(a) (42 U.S.C. 607(a)) is amended to read 
as follows:
  ``(a) Performance Accountability and Work Outcomes.--
          ``(1) Purpose.--The purpose of this subsection is to provide 
        for the establishment of performance accountability measures to 
        assess the effectiveness of States in increasing employment, 
        retention, and advancement among families receiving assistance 
        under the State program funded under this part.
          ``(2) In general.--A State to which a grant is made under 
        section 403 for a fiscal year shall achieve the requisite level 
        of performance on an indicator described in paragraph (3)(B) of 
        this subsection for the fiscal year.
          ``(3) Measuring state performance.--
                  ``(A) In general.--Each State, in consultation with 
                the Secretary, shall collect and submit to the 
                Secretary the information necessary to measure the 
                level of performance of the State for each indicator 
                described in subparagraph (B), for fiscal year 2020 and 
                each fiscal year thereafter, and the Secretary shall 
                use the information collected for fiscal year 2020 to 
                establish the baseline level of performance for each 
                State for each such indicator.
                  ``(B) Indicators of performance.--The indicators 
                described in this subparagraph, for a fiscal year, are 
                the following:
                          ``(i) The percentage of individuals who were 
                        work-eligible individuals as of the time of 
                        exit from the program, who are in unsubsidized 
                        employment during the 2nd quarter after the 
                        exit.
                          ``(ii) The percentage of individuals who were 
                        work-eligible individuals who were in 
                        unsubsidized employment in the 2nd quarter 
                        after the exit, who are also in unsubsidized 
                        employment during the 4th quarter after the 
                        exit.
                          ``(iii) The median earnings of individuals 
                        who were work-eligible individuals as of the 
                        time of exit from the program, who are in 
                        unsubsidized employment during the 2nd quarter 
                        after the exit.
                          ``(iv) The percentage of individuals who have 
                        not attained 24 years of age, are attending 
                        high school or enrolled in an equivalency 
                        program, and are work-eligible individuals or 
                        were work-eligible individuals as of the time 
                        of exit from the program, who obtain a high 
                        school degree or its recognized equivalent 
                        while receiving assistance under the State 
                        program funded under this part or within 1 year 
                        after the exit.
                  ``(C) Levels of performance.--
                          ``(i) In general.--For each State submitting 
                        a State plan pursuant to section 402(a), there 
                        shall be established, in accordance with this 
                        subparagraph, levels of performance for each of 
                        the indicators described in subparagraph (B).
                          ``(ii) Weight.--The weight assigned to such 
                        an indicator shall be the following:
                                  ``(I) 40 percent, in the case of the 
                                indicator described in subparagraph 
                                (B)(i).
                                  ``(II) 25 percent, in the case of the 
                                indicator described in subparagraph 
                                (B)(ii).
                                  ``(III) 25 percent, in the case of 
                                the indicator described in subparagraph 
                                (B)(iii).
                                  ``(IV) 10 percent, in the case of the 
                                indicator described in subparagraph 
                                (B)(iv).
                          ``(iii) Agreement on requisite performance 
                        level for each indicator.--
                                  ``(I) In general.--The Secretary and 
                                the State shall negotiate the requisite 
                                level of performance for the State with 
                                respect to each indicator described in 
                                clause (ii), for each of fiscal years 
                                2020 through 2023, and in the case of 
                                each of fiscal years 2021 through 2023, 
                                shall do so before the beginning of the 
                                respective fiscal year.
                                  ``(II) Requirements in establishing 
                                performance levels.--In establishing 
                                the requisite levels of performance, 
                                the State and the Secretary shall--
                                          ``(aa) take into account how 
                                        the levels involved compare 
                                        with the levels established for 
                                        other States;
                                          ``(bb) ensure the levels 
                                        involved are adjusted, using 
                                        the objective statistical model 
                                        referred to in clause (v), 
                                        based on--
                                                  ``(AA) the 
                                                differences among 
                                                States in economic 
                                                conditions, including 
                                                differences in 
                                                unemployment rates or 
                                                employment losses or 
                                                gains in particular 
                                                industries; and
                                                  ``(BB) the 
                                                characteristics of 
                                                participants on entry 
                                                into the program, 
                                                including indicators of 
                                                prior work history, 
                                                lack of educational or 
                                                occupational skills 
                                                attainment, or other 
                                                factors that may affect 
                                                employment and 
                                                earnings; and
                                                  ``(CC) take into 
                                                account the extent to 
                                                which the levels 
                                                involved promote 
                                                continuous improvement 
                                                in performance by each 
                                                State.
                          ``(iv) Revisions based on economic conditions 
                        and individuals receiving assistance during the 
                        fiscal year.--The Secretary shall, in 
                        accordance with the objective statistical model 
                        referred to in clause (v), revise the requisite 
                        levels of performance for a State and a fiscal 
                        year to reflect the economic conditions and 
                        characteristics of the relevant individuals in 
                        the State during the fiscal year.
                          ``(v) Statistical adjustment model.--The 
                        Secretary shall use an objective statistical 
                        model to make adjustments to the requisite 
                        levels of performance for the economic 
                        conditions and characteristics of the relevant 
                        individuals, and shall consult with the 
                        Secretary of Labor to develop a model that is 
                        the same as or similar to the model described 
                        in section 116(b)(3)(A)(viii) of the Workforce 
                        Innovation and Opportunity Act (29 U.S.C. 
                        3141(b)(3)(A)(viii)).
                          ``(vi) Definition of exit.--In this 
                        subsection, the term `exit' means, with respect 
                        to a State program funded under this part, 
                        ceases to a receive a JOBS benefit under the 
                        program.
                  ``(D) State option to establish common exit 
                measures.--Notwithstanding subparagraph (C)(vi) of this 
                paragraph, a State that has not provided the 
                notification under section 121(b)(1)(C)(ii) of the 
                Workforce Innovation and Opportunity Act to exclude the 
                State program funded under this part as a mandatory 
                one-stop partner may adopt an alternative definition of 
                `exit' for the purpose of creating common exit measures 
                to improve alignment with workforce programs operated 
                under title I of such Act.
                  ``(E) Regulations.--In order to ensure nationwide 
                comparability of data, the Secretary, after 
                consultation the Secretary of Labor and with States, 
                shall issue regulations governing the establishment of 
                the performance accountability system under this 
                subsection and a template for performance reports to be 
                used by all States consistent with subsection (b).''.
  (b) Reports on State Performance on HHS Online Dashboard.--Section 
407(b) (42 U.S.C. 607(b)) is amended to read as follows:
  ``(b) Publication of State Performance.--The Secretary shall, 
directly or through the use of grants or contracts, establish and 
operate an Internet website that is accessible to the public, with a 
dashboard that is regularly updated and provides easy-to-understand 
information on the performance of each State program funded under this 
part, including a profile for each such program, expressed by use of a 
template, which shall include--
          ``(1) information on the indicators and requisite performance 
        levels established for the State under subsection (a), 
        including, with respect to each such level, whether the State 
        achieves, exceeds, or fails to achieve the level on an ongoing 
        basis, including--
                  ``(A) information on any adjustments made to the 
                requisite levels using the statistical adjustment model 
                described in subsection (a)(3)(D)(v); and
                  ``(B) a grade based on the overall performance of the 
                State, as determined by the Secretary and in 
                consultation with the State, and the overall 
                performance shall be graded based on the performance 
                indicators and weights for each such indicator as 
                described in subsection (a);
          ``(2) information reported under section 411 on the 
        characteristics and demographics of individuals receiving 
        assistance under the State program, including--
                  ``(A) the number and percentage of child-only cases 
                and reason why the cases are child-only; and
                  ``(B) the average weekly number of hours that each 
                work-eligible individual in the State program 
                participates in work activities, including a separate 
                section showing the number and percentage of the work-
                eligible individuals with zero hours of the 
                participation and the reason for non-participation;
          ``(3) information on the results of improper payments 
        reviews;
          ``(4) a link to the State plan approved under section 402; 
        and
          ``(5) information regarding any penalty imposed, or other 
        corrective action taken, by the Secretary against a State for 
        failing to achieve a requisite performance level or any other 
        requirement imposed by or under this part.''.
  (c) Modification of Rules for Determining Whether an Individual Is 
Engaged in Work.--Section 407(c) (42 U.S.C. 607(c)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A)--
                          (i) by striking ``For purposes of subsection 
                        (b)(1)(B)(i), a'' and inserting ``A''; and
                          (ii) by striking ``, not fewer than'' and all 
                        that follows through ``this subsection''; and
                  (B) in subparagraph (B)--
                          (i) in the matter preceding clause (i), by 
                        striking ``For purposes of subsection 
                        (b)(2)(B), an'' and inserting ``An'';
                          (ii) in clause (i), by striking ``, not fewer 
                        than'' and all that follows through ``this 
                        subsection''; and
                          (iii) in clause (ii), by striking ``, not 
                        fewer than'' and all that follows through 
                        ``subsection (d)''; and
          (2) in paragraph (2)--
                  (A) by striking subparagraphs (A) and (D);
                  (B) in each of subparagraphs (B) and (C), by striking 
                ``For purposes of determining monthly participation 
                rates under subsection (b)(1)(B)(i), a'' and inserting 
                ``A''; and
                  (C) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively.
  (d) Modifications to Allowable Work Activities.--Section 407(d) (42 
U.S.C. 607(d)) is amended--
          (1) in paragraph (5), by inserting ``, including 
        apprenticeship'' before the semicolon;
          (2) in paragraph (8), by striking ``(not to exceed 12 months 
        with respect to any individual)'' and inserting ``, including 
        career technical education'';
          (3) in paragraph (11), by striking ``and'' at the end;
          (4) in paragraph (12), by striking the period and inserting 
        ``; and''; and
          (5) by adding at the end the following:
          ``(13) any other activity that the State determines is 
        necessary to improve the employment, earnings, or other 
        outcomes of a recipient of assistance that are used in 
        determining a level of performance by the State for purposes of 
        subsection (a), as described in the State plan approved under 
        section 402.''.

SEC. 8. TARGETING FUNDS TO TRULY NEEDY FAMILIES.

  (a) Prohibition on Use of Funds for Families With Income Greater Than 
Twice the Poverty Line.--Section 404(k) (42 U.S.C. 604(k)) is amended 
to read as follows:
  ``(k) Prohibitions.--
          ``(1) Use of funds for persons with income greater than twice 
        the poverty line.--A State to which a grant is made under this 
        part shall not use the grant to provide any assistance or 
        services to a family whose monthly income exceeds twice the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 
        9902(2))).''.
  (b) Elimination of Limitation on Use of Funds for Case Management 
Activities.--Section 404(b)(2) (42 U.S.C. 604(b)(2)) is amended to read 
as follows:
          ``(2) Exceptions.--Paragraph (1) of this subsection shall not 
        apply to the use of a grant for--
                  ``(A) information technology and computerization 
                needed for tracking, monitoring, or data collection 
                required by or under this part; or
                  ``(B) case management activities to carry out section 
                408(b).''.
  (c) Prohibition on Use of Funds for Direct Spending on Child Care or 
Child Welfare Services or Activities.--Section 404(k) (42 U.S.C. 
604(k)), as amended by subsection (a) of this section, is amended by 
adding at the end the following:
          ``(2) Direct spending on child care services or activities or 
        child welfare services or activities.--A State to which a grant 
        is made under this part shall not use the grant for direct 
        spending on child care services or activities or direct 
        spending on child welfare services or activities.''.
  (d) Expansion of Authority to Transfer Funds to Other Programs.--
Section 404(d) (42 U.S.C. 604(d)) is amended by striking paragraphs (1) 
through (3) and inserting the following:
          ``(1) In general.--A State may use not more than 50 percent 
        of the grant made to the State under section 403(a)(1) to carry 
        out a State program pursuant to any or all of the following 
        provisions of law:
                  ``(A) The Child Care and Development Block Grant Act 
                of 1990.
                  ``(B) Title I of the Workforce Innovation and 
                Opportunity Act.
                  ``(C) Subpart 1 of part B of this title.
          ``(2) Limitation on amount transferrable to subpart 1 of part 
        b of this title.--
                  ``(A) In general.--A State may use not more than the 
                applicable percentage of the amount of a grant made to 
                the State under section 403(a)(1) to carry out State 
                programs pursuant to subpart 1 of part B.
                  ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage is 10 
                percent.
          ``(3) Applicable rules.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B) of this paragraph, any amount paid to a State under 
                this part that is used to carry out a State program 
                pursuant to a provision of law specified in paragraph 
                (1) shall not be subject to the requirements of this 
                part, but shall be subject to the requirements that 
                apply to Federal funds provided directly under the 
                provision of law to carry out the program, and the 
                expenditure of any amount so used shall not be 
                considered to be an expenditure under this part.
                  ``(B) Funds transferred to the wioa.--In the case of 
                funds transferred under paragraph (1)(B) of this 
                subsection--
                          ``(i) all of the funds will be used to 
                        support families eligible for assistance under 
                        the State program funded under this part; and
                          ``(ii) not more than 15 percent of the funds 
                        will be reserved for statewide workforce 
                        investment activities referred to in section 
                        128(a)(1) of the Workforce Innovation and 
                        Opportunity Act.
          ``(4) Exclusion of states excluding the state jobs program as 
        a mandatory one-stop partner under the wioa.--The authority 
        provided by this subsection may not be exercised by a State 
        that has provided the notification referred to in section 
        407(a)(3)(D).''.

SEC. 9. TARGETING FUNDS TO CORE PURPOSES.

  (a) Requirement That States Reserve 25 Percent of JOBS Grant for 
Spending on Core Activities.--Section 408(a) (42 U.S.C. 608(a)) is 
amended by adding at the end the following:
          ``(13) Requirement that states reserve 25 percent of jobs 
        grant for spending on core activities.--A State to which a 
        grant is made under section 403(a)(1) for a fiscal year shall 
        expend not less than 25 percent of the grant on assistance, 
        case management, work supports and supportive services, work, 
        wage subsidies, work activities (as defined in section 407(d)), 
        and non-recurring short-term benefits.''.
  (b) Requirement That at Least 25 Percent of Qualified State 
Expenditures Be for Core Activities.--Section 408(a) (42 U.S.C. 
608(a)), as amended by subsection (a) of this section, is amended by 
adding at the end the following:
          ``(14) Requirement that at least 25 percent of qualified 
        state expenditures be for core activities.--Not less than 25 
        percent of the qualified State expenditures (as defined in 
        section 409(a)(7)(B)(i)) of a State during the fiscal year 
        shall be for assistance, case management, work supports and 
        supportive services, work, wage subsidies, work activities (as 
        defined in section 407(d)), and non-recurring short-term 
        benefits.''.
  (c) Phase-out of Counting of Third-party Contributions as Qualified 
State Expenditures.--Section 408(a) (42 U.S.C. 608(a)), as amended by 
subsections (a) and (b) of this section, is amended by adding at the 
end the following:
          ``(15) Phase-out of counting of third-party contributions as 
        qualified state expenditures.--
                  ``(A) In general.--The qualified State expenditures 
                (as defined in section 409(a)(7)(B)(i)) of a State for 
                a fiscal year that are attributable to the value of 
                goods and services provided by a source other than a 
                State or local government shall not exceed the 
                applicable percentage of the expenditures for the 
                fiscal year.
                  ``(B) Applicable percentage.--In subparagraph (A), 
                the term `applicable percentage' means, with respect to 
                a fiscal year--
                          ``(i) 75 percent, in the case of fiscal year 
                        2020;
                          ``(ii) 50 percent, in the case of fiscal year 
                        2021;
                          ``(iii) 25 percent, in the case of fiscal 
                        year 2022; and
                          ``(iv) 0 percent, in the case of fiscal year 
                        2023 or any succeeding fiscal year.''.

SEC. 10. STRENGTHENING PROGRAM INTEGRITY BY MEASURING IMPROPER 
                    PAYMENTS.

  Section 404 (42 U.S.C. 604) is amended by adding at the end the 
following:
  ``(l) Applicability of Improper Payments Laws.--
          ``(1) In general.--The Improper Payments Information Act of 
        2002 and the Improper Payments Elimination and Recovery Act of 
        2010 shall apply to a State in respect of the State program 
        funded under this part in the same manner in which such Acts 
        apply to a Federal agency.
          ``(2) Regulations.--Within 2 years after the date of the 
        enactment of this subsection, the Secretary shall prescribe 
        regulations governing how a State reviews and reports improper 
        payments under the State program funded under this part.''.

SEC. 11. PROHIBITION ON STATE DIVERSION OF FEDERAL FUNDS TO REPLACE 
                    STATE SPENDING.

  Section 408(a) (42 U.S.C. 608(a)), as amended by section 9 of this 
Act, is amended by adding at the end the following:
          ``(16) Non-supplantation requirement.--Funds made available 
        to a State under this part shall be used to supplement, not 
        supplant, State general revenue spending on activities 
        described in section 404.''.

SEC. 12. INCLUSION OF POVERTY REDUCTION AS A PROGRAM PURPOSE.

  Section 401(a) (42 U.S.C. 601(a)) is amended--
          (1) by striking ``and'' at the end of paragraph (3);
          (2) by striking the period at the end of paragraph (4) and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(5) reduce child poverty by increasing employment entry, 
        retention, and advancement of needy parents.''.

SEC. 13. WELFARE FOR NEEDS NOT WEED.

  (a) Prohibition.--Section 408(a)(12)(A) (42 U.S.C. 608(a)(12)(A)) is 
amended--
          (1) by striking ``or'' at the end of clause (ii);
          (2) by striking the period at the end of clause (iii) and 
        inserting ``; or''; and
          (3) by adding at the end the following:
                          ``(iv) any establishment that offers 
                        marihuana (as defined in section 102(16) of the 
                        Controlled Substances Act) for sale.''.
  (b) Effective Date.--The amendments made by subsection (a) shall take 
effect on the date that is 2 years after the date of the enactment of 
this Act.

SEC. 14. STRENGTHENING ACCOUNTABILITY THROUGH HHS APPROVAL OF STATE 
                    PLANS.

  (a) In General.--Section 402 (42 U.S.C. 602) is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1), by 
                striking ``found'' and inserting ``approved that''; and
                  (B) in paragraph (1)--
                          (i) in subparagraph (A)--
                                  (I) by striking clauses (ii) and 
                                (iii) and inserting the following:
                          ``(ii) Require work-eligible individuals (as 
                        defined in the regulations promulgated pursuant 
                        to section 407(i)(1)(A)(i)) to engage in work 
                        activities consistent with section 407(c). The 
                        document shall describe any other activity that 
                        the State will consider a work activity under 
                        section 407(c)(13).'';
                                  (II) by redesignating clauses (iv) 
                                through (viii) as clauses (iii) through 
                                (vii), respectively; and
                                  (III) by adding at the end the 
                                following:
                          ``(viii) Describe the case management 
                        practices of the State with respect to the 
                        requirements of section 408(b), provide a copy 
                        of the form or forms that will be used to 
                        assess a work-eligible individual (as so 
                        defined) and prepare an individual opportunity 
                        plan for the individual, describe how the State 
                        will ensure that such a plan is reviewed in 
                        accordance with section 408(b)(5), and describe 
                        how the State will measure progress under the 
                        plan.
                          ``(ix) Propose the requisite levels of 
                        performance for the State for purposes of 
                        section 407(a)(3)(D) for each year in the 2-
                        year period referred to in subsection (d) of 
                        this section, and provide an explanation with 
                        supporting data of why each such level is 
                        appropriate.
                          ``(x) Describe how the State will engage low-
                        income noncustodial parents paying child 
                        support and how such a parent will be provided 
                        with access to work support and other services 
                        under the program to which the parent is 
                        referred to support their employment and 
                        advancement.
                          ``(xi) Describe how the State will comply 
                        with improper payments provisions in section 
                        404(l).
                          ``(xii) Describe coordination with other 
                        programs, including whether the State intends 
                        to exercise authority provided by section 
                        404(d) of this Act to transfer any funds paid 
                        to the State under this part, provide assurance 
                        that, in the case of a transfer to carry out a 
                        program under title I of the Workforce 
                        Innovation and Opportunity Act, the State will 
                        comply with section 404(d)(3)(B) of this Act 
                        and coordinate with the one-stop delivery 
                        system under the Workforce Innovation and 
                        Opportunity Act, and describe how the State 
                        will coordinate with the programs involved to 
                        provide services to families receiving 
                        assistance under the program referred to in 
                        paragraph (1) of this subsection.
                          ``(xiii) Describe how the State will promote 
                        marriage, such as through temporary disregard 
                        of the income of a new spouse when an 
                        individual receiving assistance under the State 
                        program marries so that the couple doesn't 
                        automatically lose benefits due to marriage.
                          ``(xiv) Describe how the State will allow for 
                        a transitional period of benefits, such as 
                        through temporary earned income disregards or a 
                        gradual reduction in the monthly benefit 
                        amount, for an individual receiving assistance 
                        who obtains employment and becomes ineligible 
                        due to an increase in income obtained through 
                        employment or through an increase in wages.''; 
                        and
                          (ii) in subparagraph (B), by striking clauses 
                        (iv) and (v);
          (2) by striking subsection (c) and inserting the following:
  ``(c) Public Availability of State Plans.--The Secretary shall make 
available to the public a link to any plan or plan amendment submitted 
by a State under this subsection.''; and
          (3) by adding at the end the following:
  ``(d) 2-year Plan.--A plan submitted pursuant to this section shall 
be designed to be implemented during a 2-year period.
  ``(e) Combined Plan Allowed.--A State may submit to the Secretary and 
the Secretary of Labor a combined State plan that meets the 
requirements of subsections (a) and (d) and that is for programs and 
activities under the Workforce Innovation and Opportunity Act.
  ``(f) Approval of Plans.--The Secretary shall approve any plan 
submitted pursuant to this section that meets the requirements of 
subsections (a) through (d).''.
  (b) Duties of the Secretary.--
          (1) Coordination of activities; dissemination of 
        information.--Section 416 (42 U.S.C. 616) is amended--
                  (A) by inserting ``(a) In General.--'' before ``The 
                programs''; and
                  (B) by adding at the end the following:
  ``(b) Coordination of Activities.--The Secretary shall coordinate all 
activities of the Department of Health and Human Services relating to 
work activities (as defined in section 407(d)) and requirements and 
measurement of employment outcomes, and, to the maximum extent 
practicable, coordinate the activities of the Department in this regard 
with similar activities of other Federal entities.
  ``(c) Dissemination of Information.--The Secretary shall disseminate, 
for voluntary informational purposes, information on practices that 
scientifically valid research indicates are most successful in 
improving the quality of State and tribal programs funded under this 
part.''.
  (c) Technical Assistance.--
          (1) In general.--Section 406 (42 U.S.C. 606) is amended to 
        read as follows:

``SEC. 406. TECHNICAL ASSISTANCE.

  ``(a) In General.--The Secretary shall provide technical assistance 
to States and Indian tribes (which may include providing technical 
assistance on a reimbursable basis), which shall be provided by 
qualified experts on practices grounded in scientifically valid 
research, where appropriate, to support activities related publication 
of State performance under section 407(b) and to carry out State and 
tribal programs funded under this part.
  ``(b) Reservation of Funds.--The Secretary shall reserve not more 
than 0.25 percent of the amount appropriated by section 403(a)(1)(C) 
for a fiscal year to carry out subsection (a) of this section.''.
          (2) Conforming amendment.--Section 403(a)(1)(B) (42 U.S.C. 
        603(a)(1)(B)) is amended by striking ``percentage specified in 
        section 413(h)(1)'' and inserting ``the sum of the percentages 
        specified in sections 406(b) and 413(h)''.

SEC. 15. ALIGNING AND IMPROVING DATA REPORTING.

  (a) Requirement That States Report Full-population Data.--Section 
411(a)(1) (42 U.S.C. 611(a)(1)) is amended--
          (1) by striking subparagraph (B);
          (2) by striking ``(1) General reporting requirement.--''; and
          (3) by--
                  (A) redesignating--
                          (i) subparagraph (A) as paragraph (1);
                          (ii) clauses (i) through (xvii) of 
                        subparagraph (A) as subparagraphs (A) through 
                        (Q), respectively;
                          (iii) subclauses (I) through (V) of clause 
                        (ii) as clauses (i) through (v), respectively;
                          (iv) subclauses (I) through (VII) of clause 
                        (xi) as clauses (i) through (vii), 
                        respectively; and
                          (v) subclauses (I) through (V) of clause 
                        (xvi) as clauses (i) through (v), respectively; 
                        and
                  (B) moving each such redesignated provision 2 ems to 
                the left.
  (b) Report on Participation in Work Activities.--Section 411(a)(1) 
(42 U.S.C. 611(a)(1)), as amended by subsection (a)(3) of this section, 
is amended by striking subparagraphs (K) and (L) and inserting the 
following:
                  ``(K) The work eligibility status of each individual 
                in the family, and--
                          ``(i) in the case of each work-eligible 
                        individual (as defined in the regulations 
                        promulgated pursuant to section 
                        407(i)(1)(A)(i)) in the family--
                                  ``(I) the number of hours (including 
                                zero hours) per month of participation 
                                in--
                                          ``(aa) work activities (as 
                                        defined in section 407(d)); and
                                          ``(bb) any other activity 
                                        required by the State to remove 
                                        a barrier to employment; and
                          ``(ii) in the case of each individual in the 
                        family who is not a work-eligible individual 
                        (as so defined), the reason for that status.
                  ``(L) For each work-eligible individual (as so 
                defined) and each adult in the family who did not 
                participate in work activities (as so defined) during a 
                month, the reason for the lack of participation.''.
  (c) Reporting of Information on Employment and Earnings Outcomes.--
Section 411(c) (42 U.S.C. 611(c)) is amended to read as follows:
  ``(c) Reporting of Information on Employment and Earnings Outcomes.--
The Secretary, in consultation with the Secretary of Labor, shall 
determine the information that is necessary to compute the employment 
and earnings outcomes and the statistical adjustment model for the 
employment and earnings outcomes required under section 407, and each 
eligible State shall collect and report that information to the 
Secretary.''.

SEC. 16. TECHNICAL CORRECTIONS TO DATA EXCHANGE STANDARDS TO IMPROVE 
                    PROGRAM COORDINATION.

  (a) In General.--Section 411(d) (42 U.S.C. 611(d)) is amended to read 
as follows:
  ``(d) Data Exchange Standards for Improved Interoperability.--
          ``(1) Designation.--The Secretary shall, in consultation with 
        an interagency work group established by the Office of 
        Management and Budget and considering State government 
        perspectives, by rule, designate data exchange standards to 
        govern, under this part--
                  ``(A) necessary categories of information that State 
                agencies operating programs under State plans approved 
                under this part are required under applicable Federal 
                law to electronically exchange with another State 
                agency; and
                  ``(B) Federal reporting and data exchange required 
                under applicable Federal law.
          ``(2) Requirements.--The data exchange standards required by 
        paragraph (1) shall, to the extent practicable--
                  ``(A) incorporate a widely accepted, non-proprietary, 
                searchable, computer-readable format, such as the 
                eXtensible Markup Language;
                  ``(B) contain interoperable standards developed and 
                maintained by intergovernmental partnerships, such as 
                the National Information Exchange Model;
                  ``(C) incorporate interoperable standards developed 
                and maintained by Federal entities with authority over 
                contracting and financial assistance;
                  ``(D) be consistent with and implement applicable 
                accounting principles;
                  ``(E) be implemented in a manner that is cost-
                effective and improves program efficiency and 
                effectiveness; and
                  ``(F) be capable of being continually upgraded as 
                necessary.
          ``(3) Rule of construction.--Nothing in this subsection shall 
        be construed to require a change to existing data exchange 
        standards found to be effective and efficient.''.
  (b) Effective Date.--Not later than the date that is 24 months after 
the date of the enactment of this section, the Secretary of Health and 
Human Services shall issue a proposed rule that--
          (1) identifies federally required data exchanges, include 
        specification and timing of exchanges to be standardized, and 
        address the factors used in determining whether and when to 
        standardize data exchanges; and
          (2) specifies State implementation options and describes 
        future milestones.

SEC. 17. SET-ASIDE FOR ECONOMIC DOWNTURNS.

  Section 404(e) (42 U.S.C. 604(e)) is amended to read as follows:
  ``(e) Deadlines for Obligation and Expenditures of Funds by States.--
          ``(1) In general.--Except as provided in paragraph (2), a 
        State to which funds are paid under section 403(a)(1) shall 
        obligate the funds within 2 years after the date the funds are 
        so paid, and shall expend the funds within 3 years after such 
        date.
          ``(2) Exception for limited amount of funds set aside for 
        future use.--A State to which funds are paid under section 
        403(a)(1) may reserve not more than 15 percent of the funds for 
        future use in the State program funded under this part.''.

SEC. 18. DEFINITIONS RELATED TO USE OF FUNDS.

  Section 419 (42 U.S.C. 619) is amended by adding at the end the 
following:
          ``(6) Assistance.--The term `assistance' means cash, 
        payments, vouchers, and other forms of benefits designed to 
        meet a family's ongoing basic needs (such as for food, 
        clothing, shelter, utilities, household goods, personal care 
        items, and general incidental expenses).
          ``(7) Work supports.--The term `work supports' means 
        assistance and non-assistance transportation benefits (such as 
        the value of allowances, bus tokens, car payments, auto repair, 
        auto insurance reimbursement, and van services provided in 
        order to help families obtain, retain, or advance in 
        employment, participate in work activities (as defined in 
        section 407(d)), or as a non-recurrent, short-term benefit, 
        including goods provided to individuals in order to help them 
        obtain or maintain employment (such as tools, uniforms, fees to 
        obtain special licenses, bonuses, incentives, and work support 
        allowances and expenditures for job access).
          ``(8) Supportive services.--The term `supportive services' 
        means services such as domestic violence services, and mental 
        health, substance abuse and disability services, housing 
        counseling services, and other family supports, except to the 
        extent that the provision of the service would violate section 
        408(a)(6).
          ``(9) JOBS benefit.--The term `JOBS benefit' means--
                  ``(A) assistance; or
                  ``(B) wage subsidies that are paid, with funds 
                provided under section 403(a) or with qualified State 
                expenditures, with respect to a person who--
                          ``(i) was a work-eligible individual (as 
                        defined in the regulations promulgated pursuant 
                        to section 407(i)(1)(A)(i)) at the time of 
                        entry into subsidized employment, such as on-
                        the-job training or apprenticeship; and
                          ``(ii) is not receiving assistance.''.

SEC. 19. ELIMINATION OF OBSOLETE PROVISIONS.

  (a) Elimination of Supplemental Grants to States.--Section 403(a) (42 
U.S.C. 603(a)) is amended by striking paragraph (3).
  (b) Elimination of Bonus to Reward High Performance States.--
          (1) In general.--Section 403(a) (42 U.S.C. 603(a)) is amended 
        by striking paragraph (4).
          (2) Conforming amendment.--Section 1108(a)(2) (42 U.S.C. 
        1308(a)(2)) is amended by striking ``403(a)(4),''.
  (c) Elimination of Welfare-to-work Grants.--
          (1) In general.--Section 403(a) (42 U.S.C. 603(a)) is amended 
        by striking paragraph (5).
          (2) Conforming amendments.--
                  (A) Elimination of exclusion from time limit.--
                Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by 
                striking subparagraph (G).
                  (B) Elimination of penalty for misuse of competitive 
                welfare-to-work funds.--Section 409(a)(1) (42 U.S.C. 
                609(a)(1)) is amended by striking subparagraph (C).
                  (C) Elimination of exclusion from qualified state 
                expenditures of state funds used to match welfare-to-
                work grant funds.--Section 409(a)(7)(B)(iv) (42 U.S.C. 
                609(a)(7)(B)(iv)) is amended in the 1st sentence--
                          (i) by adding ``or'' at the end of subclause 
                        (II); and
                          (ii) by striking subclause (III) and 
                        redesignating subclause (IV) as subclause 
                        (III).
                  (D) Elimination of penalty for failure of state to 
                maintain historic effort during year in which welfare-
                to-work grant is received.--Section 409(a) (42 U.S.C. 
                609(a)) is amended by striking paragraph (13).
                  (E) Elimination of requirements relating to welfare-
                to-work grants in quarterly state reports.--Section 
                411(a) (42 U.S.C. 611(a)), as amended by section 15(a) 
                of this Act, is amended--
                          (i) in paragraph (1), by striking ``(except 
                        for information relating to activities carried 
                        out under section 403(a)(5))''; and
                          (ii) in each of paragraphs (2) through (4), 
                        by striking the comma and all that follows and 
                        inserting a period.
                  (F) Indian tribal programs.--Section 412(a) (42 
                U.S.C. 612(a)) is amended by striking paragraph (3).
                  (G) Elimination of requirement to disclose certain 
                information to private industry council receiving 
                welfare-to-work funds.--Section 454A(f) (42 U.S.C. 
                654a(f)) is amended by striking paragraph (5).
                  (H) Grants to territories.--Section 1108(a)(2) (42 
                U.S.C. 1308(a)(2)) is amended by striking 
                ``403(a)(5),''.
  (d) Elimination of Contingency Fund.--
          (1) In general.--Section 403 (42 U.S.C. 603) is amended by 
        striking all of subsection (b) except paragraph (5).
          (2) Conforming amendments.--
                  (A) Transfer of needy state definition.--
                          (i) In general.--Paragraph (5) of section 
                        403(b) (42 U.S.C. 603(b)(5)) is--
                                  (I) amended--
                                          (aa) in the matter preceding 
                                        subparagraph (A), by striking 
                                        ``paragraph (4)'' and inserting 
                                        ``subparagraph (C)'';
                                          (bb) in each of subparagraphs 
                                        (A) and (B), by redesignating 
                                        clauses (i) and (ii) as 
                                        subclauses (I) and (II), 
                                        respectively;
                                          (cc) by redesignating 
                                        subparagraphs (A) and (B) as 
                                        clauses (i) and (ii), 
                                        respectively;
                                          (dd) by redesignating such 
                                        paragraph as subparagraph (D); 
                                        and
                                          (ee) by moving each provision 
                                        2 ems to the right; and
                                  (II) as so amended, hereby 
                                transferred into section 409(a)(3) (42 
                                U.S.C. 609(a)(3)) and added to the end 
                                of such section.
                          (ii) Conforming amendment.--Section 
                        409(a)(3)(C) (42 U.S.C. 609(a)(3)(C)) is 
                        amended by striking ``(as defined in section 
                        403(b)(5))''.
                  (B) Elimination of penalty for failure of state 
                receiving amounts from contingency fund to maintain 100 
                percent of historic effort.--Section 409(a) (42 U.S.C. 
                609(a)) is amended by striking paragraph (10).
  (e) Conforming Amendments Related to Elimination of Federal Loans for 
State Welfare Programs.--
          (1) Elimination of associated penalty provision.--
                  (A) In general.--Section 409(a) (42 U.S.C. 609(a)) is 
                amended by striking paragraph (6).
                  (B) Conforming amendments.--Section 412(g)(1) (42 
                U.S.C. 612(g)(1)) is amended by striking ``(a)(6),''.
          (2) Elimination of provision providing for tribal 
        eligibility.--Section 412 (42 U.S.C. 612) is amended by 
        striking subsection (f).
          (3) Elimination of disregard of loan in applying limit on 
        payments to the territories.--Section 1108(a)(2) (42 U.S.C. 
        1308(a)(2)) is amended by striking ``406,''.
  (f) Elimination of Limitations on Other State Programs Funded With 
Qualified State Expenditures.--
          (1) The following provisions are each amended by striking 
        ``or any other State program funded with qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i))'':
                  (A) Paragraphs (1) and (2) of section 407(e) (42 
                U.S.C. 607(e)(1) and (2)).
                  (B) Section 411(a)(1) (42 U.S.C. 611(a)(1)), as 
                amended by section 15(a)(3)(A)(i) of this Act.
                  (C) Subsections (d) and (e)(1) of section 413 (42 
                U.S.C. 613(d) and (e)(1)).
          (2) Section 413(a) (42 U.S.C. 613(a)) is amended by striking 
        ``and any other State program funded with qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i))''.
  (g) Conforming Amendments Related to Elimination of Report.--
          (1) In general.--Section 409(a)(2) (42 U.S.C. 609(a)(2)) is 
        amended--
                  (A) in the paragraph heading, by inserting 
                ``quarterly'' before ``report'';
                  (B) in subparagraph (A)(ii), by striking ``clause 
                (i)'' and inserting ``subparagraph (A)'';
                  (C) by striking ``(A) Quarterly reports.--'';
                  (D) by striking subparagraph (B); and
                  (E) by redesignating clauses (i) and (ii) of 
                subparagraph (A) as subparagraphs (A) and (B), 
                respectively (and adjusting the margins accordingly).
          (2) Conforming amendments.--
                  (A) Section 409(b)(2) (42 U.S.C. 609(b)(2)) is 
                amended by striking ``and,'' and all that follows and 
                inserting a period.
                  (B) Section 409(c)(4) (42 U.S.C. 609(c)(4)) is 
                amended by striking ``(2)(B),''.
  (h) Annual Reports to Congress.--Section 411(b)(1)(A) (42 U.S.C. 
611(b)(1)(A)) is amended by striking ``participation rates'' and 
inserting ``outcome measures''.
  (i) Reduction in Force Provisions.--Section 416(a) (42 U.S.C. 
616(a)), as so designated by section 14(b)(1)(A) of this Act, is 
amended by striking ``, and the Secretary'' and all that follows and 
inserting a period.
  (j) Conforming Cross-references.--
          (1) Section 409 (42 U.S.C. 609) is amended--
                  (A) in subsection (a)(7)(B)(i)(III), by striking 
                ``(12)'' and inserting ``(10)'';
                  (B) in subsection (a) (as amended by subsections 
                (c)(2)(D), (d)(2)(B), and (e)(1)(A) of this section), 
                by redesignating paragraphs (7), (8), (9), (11), (12), 
                (14), (15), and (16) as paragraphs (6) through (13), 
                respectively;
                  (C) in subsection (b)(2), by striking ``(8), (10), 
                (12), or (13)'' and inserting ``or (10)''; and
                  (D) in subsection (c)(4), by striking ``(8), (10), 
                (12), (13), or (16)'' and inserting ``(10), or (13)''.
          (2) Section 452 (42 U.S.C. 652) is amended in each of 
        subsections (d)(3)(A)(i) and (g)(1) by striking ``409(a)(8)'' 
        and inserting ``409(a)(7)''.
  (k) Modifications to Maintenance-of-effort Requirement.--Section 
409(a)(6)(B)(i) (42 U.S.C. 609(a)(6)(B)(i)), as redesignated by 
subsection (j)(1)(B) of this section, is amended--
          (1) in subclause (I)--
                  (A) in the matter preceding item (aa), by striking 
                ``all State programs'' and inserting ``the State 
                program funded under this part'';
                  (B) by redesignating items (dd) and (ee) as items 
                (ee) and (ff), respectively, and inserting after item 
                (cc) the following:
                                          ``(dd) Expenditures for a 
                                        purpose described in paragraph 
                                        (3) or (4) of section 
                                        401(a).''; and
                  (C) in item (ee) (as so redesignated), by striking 
                ``and (ee)'' and inserting ``(dd), and (ff)'';
          (2) in subclause (II)(aa), by inserting ``(as in effect just 
        before the effective date of the Jobs and Opportunity with 
        Benefits and Services for Success Act)'' after ``this 
        section'';
          (3) by striking subclause (V); and
          (4) in subclause (IV), by inserting ``, except any of such 
        families whose monthly income exceeds twice the poverty line 
        (as defined by the Office of Management and Budget, and revised 
        annually in accordance with section 673(2) of the Omnibus 
        Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2)))'' before 
        the period.

SEC. 20. EFFECTIVE DATE.

  Except as provided in section 13(b), the amendments made by this Act 
shall take effect on October 1, 2018.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    H.R. 5861, as amended, the ``Jobs and Opportunity with 
Benefits and Services for Success Act,'' as ordered reported by 
the Committee on Ways and Means on May 24, 2018, amends title 
IV-A of the Social Security Act to reauthorize and extend the 
Temporary Assistance for Needy Families (TANF) Program, rename 
the program as the Jobs and Opportunity with Benefits and 
Services (JOBS) Program, and make other revisions to the law.

                 B. Background and Need for Legislation

    TANF is our nation's primary cash assistance and services 
welfare program. In 1996, it was the centerpiece of successful, 
Republican-led welfare reform that for the first time 
introduced work requirements, time limits, and capped funding 
in the form of a block grant. In the early years after 1996, 
the number of families receiving cash assistance under TANF 
fell by more than 50 percent because single mothers went to 
work in record numbers. Poverty among female-headed households 
with children remains lower today than before the 1996 
reforms.\1\
---------------------------------------------------------------------------
    \1\Historical Poverty Tables: People and Families--1959 to 2016, 
U.S. Census Bureau.
---------------------------------------------------------------------------
    Yet over the last two decades the program has lost 
efficacy, both in its focus on work and targeting funds to the 
truly needy. There has been an increasing bipartisan awareness 
that TANF is not living up to expectations set for it in 1996. 
Many states have found loopholes in the law that have allowed 
them to stray from the original intent and have lost sight of 
what the program was intended to do--that is, get more parents 
into the workforce. In 2016, nearly 40 percent of work-eligible 
TANF recipients had zero hours of participation in work or 
training activities.\2\ Only 11 states were required to meet 
the 50 percent work participation rate required in the law.\3\ 
The remaining states had a much lower ``adjusted'' rate using 
provisions of the law needed in 1996, but are less relevant 
today. In fact, 18 states have an adjusted work participation 
rate of zero, meaning those states are not required to engage 
anyone in work activities. States are spending a combined $30 
billion a year through TANF and less than half of those dollars 
are being spent on core activities such as cash assistance, 
work, education, training, or supportive services.\4\ Instead, 
as caseloads have dropped, many states have diverted TANF funds 
to fill budget holes or fund specialty programs that have 
little to do with supporting work.
---------------------------------------------------------------------------
    \2\Work Participation Rates--Fiscal Year 2016, Table 6A, Average 
monthly number of work-eligible individuals with hours of participation 
in work activities, U.S. Department of Health and Human Services.
    \3\Work Participation Rates--Fiscal Year 2016, Table 1A, Combined 
TANF and SSP-MOE Work Participation Rates, U.S. Department of Health 
and Human Services.
    \4\TANF and MOE Spending and Transfers by Activity, FY 2016, U.S. 
Department of Health and Human Services.
---------------------------------------------------------------------------
    The economic context for this legislation is important to 
understand. In December 2017, Congress passed the Tax Cuts and 
Jobs Act (P.L. 115-97). During the first quarter of 2018, the 
labor market added over 200,000 jobs per month and the 
unemployment rate was at its lowest level since the turn of the 
century.5,}6 The number of job openings soared to 
more than 6 million and the number of people filing new 
applications for unemployment benefits fell to the lowest level 
since December 1969.7,}8 From the perspective of 
workers or potential workers, the economy is as strong as it 
has been in years.
---------------------------------------------------------------------------
    \5\``Unemployment Rate Hits 3.9%, a Rare Low, as Job Market Becomes 
More Competitive,'' New York Times, May 4, 2018.
    \6\``Brady Statement on March 2018 Jobs Report,'' Press Release, 
Committee on Ways and Means, U.S. House of Representatives, April 6, 
2018.
    \7\``Job Openings and Labor Turnover--March 2018,'' Bureau of Labor 
Statistics, U.S. Department of Labor, May 8, 2018.
    \8\``U.S. Jobless Claims Hit Lowest Level Since 1969,'' Wall Street 
Journal, March 1, 2018.
---------------------------------------------------------------------------
    Underlying this narrative, has been a pervasive decline in 
labor force participation, particularly among prime-age males, 
exacerbating workforce challenges faced by employers due to 
retirements by the Baby Boom generation. In May 2018, the labor 
force participation rate was at 62.7 percent, one of the lowest 
since 1977.\9\ Many different factors have contributed to this 
problem, including the country's opioid epidemic, which some 
scholars have asserted could account for about 20 percent of 
the observed decline.\10\ The Committee held two hearings in 
2017 examining this issue in detail and found that 7 million 
prime working-age (25-54) men are not participating in the 
labor force. In addition, one in seven 16-24 year olds are not 
in school or working, totaling more than 5.5 million 
``disconnected'' youth nationwide.11,}12
---------------------------------------------------------------------------
    \9\Bureau of Labor Statistics. ``Employment Situation Summary.'' 
Released Friday, June 1, 2018.
    \10\``Where have all the workers gone? An inquiry into the decline 
of the U.S. labor force participation rate,'' Brookings Paper on 
Economic Activity, Alan Kreuger, September 7, 2017.
    \11\``Getting men back to work: Solutions from the right and 
left,'' American Enterprise Institute, Brent Orrell, Harry J. Holzer, 
Robert Doar, April 20, 2017.
    \12\``Zeroing In on Place and Race,'' Measure of America of the 
Social Science Research Council, June 10, 2015.
---------------------------------------------------------------------------
    The number of individuals disconnected from the labor force 
has important implications for TANF and other anti-poverty 
programs. According to the Congressional Budget Office (CBO):

          Changes in labor force participation have significant 
        economic and budgetary implications. A lower labor 
        force participation rate is associated with lower gross 
        domestic product (GDP) and lower tax revenues. It is 
        also associated with larger federal outlays, because 
        people who are not in the labor force are more likely 
        to enroll in certain federal benefit programs.\13\
---------------------------------------------------------------------------
    \13\``Factors Affecting the Labor Force Participation of People 
Ages 25 to 54,'' Congressional Budget Office, February 7, 2018.

    In sum, too many working-age American adults are not 
working and relying on government-funded help.
    The Committee has held three hearings in 2018 to better 
understand the ``jobs gap.'' As displayed in the chart below, 
the jobs gaps reflects the difference between employers' demand 
for workers, shown as the number of job openings, and the 
declining number of individuals in the labor force, shown as 
the labor force participation rate. In these hearings, 
employers from across the country and across industries talked 
about their challenges finding workers. Employers said they 
have good jobs available that do not require a college degree, 
but not enough workers. Many employers have developed training 
and apprenticeship programs, but they just can't find job ready 
and reliable workers. Meanwhile, we have millions of Americans 
on the sidelines, disconnected from the workforce and welfare 
caseloads that have not returned to levels prior to the 2007-
2009 recession.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    This chart reflects the need for more workers to help 
support and promote the current period of economic expansion. 
Increasing work among those in poverty is to the benefit of our 
nation, as well as themselves and their children because we 
know when individuals and parents work full time, the poverty 
rate drops to just 3 percent.\14\ Many welfare programs provide 
benefits only to alleviate immediate need, yet few provide low-
income individuals the tools they need succeed in the workforce 
and move up the economic ladder.
---------------------------------------------------------------------------
    \14\Income and Poverty in the United States, Table 3. People in 
Poverty by Selected Characteristics: 2014 and 2015, U.S. Census Bureau.
---------------------------------------------------------------------------
    Throughout the Committee's hearings, it has learned that 
welfare recipients often have a difficult time transitioning 
from welfare into a job and employers may be reluctant to hire 
individuals who may have limited work experience or other 
barriers. The Committee bill seeks to revitalize the focus on 
work in TANF and re-orient spending towards the kind of work 
supports, case management, and wrap-around services employers 
in our hearings said potential workers need. Reauthorization 
provides an opportunity to re-establish the foundational 
principles that led to TANF's success more than twenty years 
ago.
    TANF expires in September 2018. Since last being 
reauthorized by the Deficit Reduction Act of 2005 (P.L. 109-
171), TANF has been extended in short bursts 26 times, often 
attached to the discretionary appropriations process, even 
though it is a mandatory program whose funding is in the CBO 
baseline, meaning no offsets are needed to extend the 
program.\15\ This is in spite of the fact that there is 
widespread recognition that the program is broken. As one of 
our hearing witnesses put it ``we cannot keep hitting the 
snooze button.'' This Committee takes seriously its 
responsibility to ensure taxpayer dollars are being used for 
their intended purpose and to reauthorize expiring programs, 
providing stability to states and program participants. The 
country's strong economy paired with a worker shortage adds an 
additional sense of urgency to reauthorizing this program for a 
full five-year reauthorization period. Now is the time to make 
meaningful reforms to help more Americans find jobs and climb 
the economic ladder to share in the success created by the Tax 
Cuts and Jobs Act (P.L. 115-97).
---------------------------------------------------------------------------
    \15\``The Temporary Assistance for Needy Families (TANF) Block 
Grant: A Legislative History,'' Congressional Research Service, Gene 
Falk, November 29, 2017. (R44668)
---------------------------------------------------------------------------

                         C. Legislative History


Background

    H.R. 5861, the ``Jobs and Opportunity for Benefits and 
Services (JOBS) for Success Act,'' was introduced on May 17, 
2018 by Human Resources Subcommittee Chairman Adrian Smith and 
cosponsored by Full Committee Chairman Kevin Brady as well as 
Representatives Devin Nunes, Lynn Jenkins, Tom Reed, Jim 
Renacci, Jackie Walorski, Darin LaHood, Mike Bishop, Tom Rice, 
Jason Smith, George Holding, Vern Buchanan, Kenny Marchant, and 
Mike Kelly and was referred to the Committee on Ways and Means. 
The legislation's introduction was preceded by release of a 
discussion draft on May 8, 2018.
    H.R. 5861, as amended, includes several Ways and Means 
Committee Member bills:
           H.R. 5836, the ``Supporting Work through 
        Apprenticeships Act'' by Representative Mike Bishop, 
        co-sponsored by Representatives Adrian Smith, Carlos 
        Curbelo and Jim Renacci includes apprenticeships within 
        the current law definition of on-the-job training.
           H.R. 5835, the ``Improving Access to Child 
        Care Act'' by Representative. Mike Bishop, co-sponsored 
        by Representative Lynn Jenkins--increases the current 
        funding for Child Care Entitlement to States portion of 
        the Child Care Development Fund (CCDF) to $3.5 billion 
        annually from $2.9 billion annually.
           H.R. 5843, ``The Benefits to Employment 
        Act'' by Representative Jason Smith, co-sponsored by 
        Representative Adrian Smith requires all work-eligible 
        individuals receiving assistance to participate in work 
        or work preparation activities for a minimum number of 
        hours per month in exchange for benefits and expects 
        universal engagement and case management to develop and 
        individual opportunity plan.
           H.R. 5838, the ``Improving Access to Work 
        Act'' by Representative Darren LaHood, co-sponsored by 
        Representative Adrian Smith--adds non-supplantation 
        language to prohibit the diversion of federal funds to 
        replace State spending.
           H.R. 5842, the ``Helping Americans Succeed 
        by Measuring Outcomes Act'' by Representative Tom Reed, 
        co-sponsored by Representative Adrian Smith--applies an 
        outcome-based performance accountability system to 
        assess the effectiveness of States in increasing 
        employment, retention, and advancement among families 
        receiving assistance.
           H.R. 5854, the ``Improving Transparency in 
        TANF through Data Act'' by Representative Dave 
        Schweikert, co-sponsored by Representative Adrian 
        Smith--requires reporting of full population data, 
        rather than samples, in order to improve transparency 
        and sub-state analysis and adds reporting to capture 
        the number of hours per month for each work-eligible 
        individual.
           H.R. 5847, the ``Protecting Family Resources 
        and Training Options Act'' by Representative Carlos 
        Curbelo, co-sponsored by Representative Adrian Smith--
        requires program data be subject to improper payment 
        reviews consistent with other programs across 
        government to produce a national error rate for the 
        program, and clarifies that vocational education 
        training includes career technical education and 
        removes the 12-month time limit on such training and 
        education.
           H.R. 5853, the ``Preserving Welfare for 
        Needs Not Weed Act'' by Representative Dave Reichert--
        prohibits the use of an electronic benefit card to get 
        cash at any establishment offering marijuana for sale.
           H.R. 4167, the ``Coordinating Assistance for 
        TANF Recipients Act'' by Representative Jackie 
        Walorski, co-sponsored by Representative Adrian Smith--
        establishes Coordinated Case Management Demonstration 
        Projects to help individuals increase their employment 
        and self-sufficiency.
           H.R. 1352, the ``Preparing More Welfare 
        Recipients for Work Act'' by Representative Jim 
        Renacci, co-sponsored by Representative Adrian Smith--
        eliminates the distinction between core work activities 
        and other specified work activities related to training 
        and education.

Committee hearings

    The Human Resources Subcommittee of the Committee on Ways 
and Means has held seven hearings featuring 31 witnesses during 
the 115th Congress to discuss declining labor force 
participation, the jobs gap, and reauthorization of TANF. These 
hearings included witnesses representing local, employer, and 
federal perspectives on the jobs gap. A legislative hearing on 
a discussion draft for reauthorizing TANF, which immediately 
preceded the Committee markup, included feedback from poverty-
policy and workforce development experts on how TANF 
reauthorization could be used as a building block to help close 
the jobs gap. The Committee bill is a result of what the 
Committee learned from these hearings and feedback received 
from witnesses and numerous outside stakeholders on the May 8, 
2018 discussion draft released by the Committee.
    These hearings included:
           February 15, 2017: Human Resources 
        Subcommittee hearing on ``Geography of Poverty''
           May 17, 2017: Human Resources Subcommittee 
        hearing on ``Opportunities for Youth and Young Adults 
        to Break the Cycle of Poverty''
           September 6, 2017: Human Resources 
        Subcommittee hearing on ``Missing from the Labor Force: 
        Examining Declining Employment among Working-Age Men''
           April 12, 2018: Human Resources Subcommittee 
        hearing on ``Jobs and Opportunity: Local Perspectives 
        on the Jobs Gap''
           April 17, 2018: Full Committee hearing on 
        ``Jobs and Opportunity: Federal Perspectives on the 
        Jobs Gap''
           April 25, 2018: Human Resources Subcommittee 
        hearing on ``Jobs and Opportunity: Employer 
        Perspectives on the Jobs Gap''
           May 9, 2018: Human Resources Subcommittee 
        hearing on ``Jobs and Opportunity: Legislative 
        Perspectives on the Jobs Gap''

Committee action

    On May 8, 2018, Representative Adrian Smith released a 
discussion draft of the JOBS for Success Act. Following the 
release of the discussion draft, on May 9, 2018, the Ways and 
Means Subcommittee on Human Resources held the hearing titled 
``Jobs and Opportunity: Legislative Options to Address the Jobs 
Gap.'' On May 17, 2018, Human Resources Subcommittee Chairman 
Adrian Smith, Full Committee Chairman Kevin Brady, and other 
Members of the Committee on Ways and Means introduced H.R. 
5861, the ``Jobs and Opportunity for Benefits and Services 
(JOBS) for Success Act.'' The Committee on Ways and Means 
considered H.R. 5861 on May 23-24, 2018. On May 24, 2018, the 
bill was ordered favorably reported to the House of 
Representatives, as amended, by a roll call vote of 22 yeas to 
14 nays.

                      II. EXPLANATION OF THE BILL


  Sections 1, 2, and 3: Short Title, Table of Contents, and References


Present law

    No provision.

Explanation of provision

    These sections contain the short title of the bill, the 
Jobs and Opportunity with Benefits and Services (JOBS) for 
Success Act, and the table of contents. The amendments made by 
the bill are to sections of the Social Security Act, unless 
otherwise specified.

Reason for change

    The Committee believes the short title, table of contents, 
and references accurately reflect the policy actions included 
in the legislation.

Effective date

    The provision is effective on October 1, 2018.

                    Section 4: Re-naming of Program


Present law

    Title IV-A of the Social Security Act is titled ``Block 
Grant to States for Temporary Assistance for Needy Families,'' 
commonly known as TANF.

Explanation of provision

    The Committee bill renames Title IV-A as the ``Jobs and 
Opportunity with Benefits and Services for Success Program,'' 
or JOBS program.

Reason for change

    The Committee re-names the program to underscore the 
legislation's goal of refocusing the program on the tangible 
outcome of work.

Effective date

    The provision is effective on October 1, 2018.

  Section 5: Helping More Americans Enter and Remain in the Workforce


Present law

    Authorization and appropriations for the Temporary 
Assistance for Needy Families (TANF) block grant and certain 
related programs expire at the end of Fiscal Year (FY) 2018. 
The related programs include the TANF contingency fund, healthy 
marriage and responsible fatherhood grants, the Child Care 
Entitlement to States, tribal TANF programs, and special 
matching grant to the territories for TANF and Title IV-E 
activities under section 1108(b) of the Social Security Act.

Explanation of provision

    The Committee bill authorizes and funds JOBS and certain 
related programs for FY2019 through FY2023. The JOBS 
appropriation for each of those years is maintained at the 
current level of $16.567 billion. Healthy marriage and 
responsible fatherhood grants are funded at their current level 
($75 million for each set of grants) over that period. The 
appropriation for the Child Care Entitlement to States is 
increased from $2.917 billion in FY2018 to $3.525 billion for 
each of FY2019 through FY2023. The authorities for tribal TANF 
programs and the matching grant for the territories are 
extended through FY2023.

Reason for change

    These funding extensions and the increase in child care 
entitlement funding are intended to help more Americans enter 
and remain in the workforce. A five-year authorization period 
provides states, service providers, and most importantly the 
families served by these programs certainty lacking in the 
program over the last 13 years, during which time there has 
been an average of two short-term extensions each year.
    The Committee strongly believes maintaining the current 
funding level for the program is appropriate because there is a 
recognition TANF is just one of the more than 80 programs 
collectively spending more than $1 trillion annually to provide 
benefits and services to low-income families. Too often 
legislative actions and funding discussions at the federal 
level happen in a vacuum. The nature of Congressional Committee 
jurisdiction and structure creates silos between otherwise 
related programs with similar goals serving the same 
population. For example, nearly all TANF families are also 
receiving Medicaid and benefits from the Supplemental Nutrition 
Assistance Program (SNAP).\16\ Respectively, these programs are 
under the jurisdiction of the Committee on Agriculture and 
Committee on Energy and Commerce. Spending on these programs 
has not returned to pre-recession levels and there are still 
millions of Americans disconnected from work.
---------------------------------------------------------------------------
    \16\Characteristics and Financial Circumstances of TANF Recipients, 
Fiscal Year 2016, Table 11: TANF Families by Public Assistance program, 
U.S. Department of Health and Human Services.
---------------------------------------------------------------------------
    Further, the idea that additional funding is needed to fix 
a program that has essentially become a welfare program for 
states trying to fill budget holes is confounding and overly-
simplistic. This legislation is focused on making meaningful 
reforms to restore accountability and re-claim dollars already 
being spent to delivering meaningful, lasting results that move 
people off of welfare and into the workforce.
    The one exception involving additional funding is for child 
care. The Committee believes the TANF Contingency Fund, which 
was intended to cover increased demands on for the underlying 
block grant during economic downtowns, has become a slush fund 
favoring a limited number of states. The FY 2019 President's 
Budget recommends eliminating the Contingency Fund, saying: 
``Recent experience has demonstrated that the Contingency Fund 
is an ineffective mechanism for providing targeted response to 
economic downturns.''\17\ Prior to that, the Obama 
Administration's budgets called for repurposing the Contingency 
Fund to support work as well. Instead of maintaining the 
current Contingency Fund, the Committee bill would allow States 
to set-aside 15 percent of their block grant as ``rainy-day'' 
funds for periods of increased demand for cash assistance and 
services during economic declines in Section 17. In FY 2016, 
all States except Wyoming qualified for dollars from the 
Contingency Fund, but only 19 States received funds. Among 
those that received funds, 10 States had unemployment rates 
below the national average of 4.9 percent including 3 states 
with unemployment rates lower than 4 percent.
---------------------------------------------------------------------------
    \17\Justification of Estimates for Appropriations Committees, 
Administration for Children and Families, U.S. Department of Health and 
Human Services, FY 2019.
---------------------------------------------------------------------------
    The following states received TANF Contingency Funds in FY 
2016:\18\
---------------------------------------------------------------------------
    \18\TANF Contingency Fund Awards, 2016, U.S. Department of Health 
and Human Services.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    The Committee believes a more effective use of the 
Contingency Fund would be to support employment among low-
income working families by providing expanded access to child 
care for those receiving TANF assistance. The Committee 
strongly believes in promoting two-parent households and 
continued responsibility when a parent is outside the 
household, but also recognizes for many families child care is 
an important work support. It is the Committee's intent to 
ensure spending from already appropriated money is geared 
towards actually moving people off of welfare and into work, 
and the Committee believes shifting the use of these funds will 
help better accomplish that goal.
    Using the more than $600 million per year currently spent 
through the Contingency Fund to increase child care through the 
Child Care Entitlement to States accomplishes two additional 
goals. First, it provides accountability and transparency 
involving the use of funds, including by better identifying the 
number of children being served and ensuring child care 
provided meets basic health and safety protections. Under 
currently law, Contingency Funds are only reported by spending 
category, providing no details about how the dollars are 
actually spent or what families are being served. Second, it 
provides fair access to the funds through the child care 
formula for all states and low-income families across the 
country, rather than a select group of states who have figured 
out how to draw down funds before others.

Effective date

    The provision is effective on October 1, 2018.

     Section 6: Expecting Universal Engagement and Case Management


Present law

    Each state is required to conduct an employability 
assessment for each TANF assistance recipient who: (1) has 
attained 18 year of age, or (2) does not have a high school 
diploma (or equivalent) and is not attending secondary school. 
The state must assess the skills, prior work experience, and 
employability of each recipient.
    Based on the employability assessment, the state, at its 
option, may develop an individual responsibility plan (IRP) for 
the individual. The IRP is designed to move individuals to 
obtain and keep employment in the private sector. The state 
must consult with the individual in the development of the 
plan. The IRP sets forth an employment goal, obligations of the 
individual, and services the state will provide to the 
individual, and may require the individual to undergo 
appropriate substance abuse treatment.
    In addition to any other penalties, the state may reduce 
assistance, by the amount the state considers appropriate, to a 
family with an individual who fails without good cause to 
comply with an IRP. The state has sole discretion in the 
exercise of authority regarding the IRP.

Explanation of provision

    The Committee bill requires states to conduct an assessment 
for each work-eligible individual receiving assistance. The 
definition of who is ``work-eligible'' is the same as the 
definition in existing TANF regulations promulgated by the 
Department of Health and Human Services (HHS). Each work-
eligible individual must have an assessment of her or his 
education, skills, prior work experience, work readiness, and 
barriers to work. Additionally, the assessment is to consider 
the well-being of the children in the individual's family and, 
where appropriate, activities or resources (including those 
funded by the Maternal, Infant, and Early Childhood Home 
Visiting program) to improve the well-being of the children.
    Based on the assessment, states are required to develop an 
Individual Opportunity Plan (IOP). The plan must be developed 
in consultation with the individual and must be signed by the 
individual. The plan must include:
           a personal responsibility agreement, in 
        which the individual acknowledges receipt of publicly-
        funded benefits and responsibility to comply with 
        program requirements in order to receive the benefits;
           the obligations of the individual to 
        participate in work activities, and the number of hours 
        per month for which the individual will so participate, 
        consistent with the hours required by the present law 
        work participation standard (e.g., 20 hours per week 
        for a single parent with a child under the age of six, 
        30 hours for other single parents, and higher hours for 
        two-parent families);
           an employment goal and planned short-, 
        intermediate-, and long-term actions to achieve the 
        goal, which, in the case of an individual who has not 
        attained 24 years of age and is in secondary school or 
        the equivalent, may be completion of secondary school 
        or the equivalent as an intermediate action toward an 
        employment goal; and
           the job counseling and other services the 
        state will provide to the individual to enable the 
        individual to obtain and keep employment in the private 
        sector.
    The IOP may include referral to appropriate substance abuse 
or mental health treatment.
    The assessment and the IOP must be completed within 60 days 
of the individual's becoming eligible for assistance. Further, 
a meeting with the work-eligible individual must occur not less 
frequently than every 90 days to review the IOP, discuss with 
the individual progress made toward meeting the goals of the 
plan, and to update the plan as necessary. For those already 
receiving assistance on the date of enactment, the assessment 
and the plan must be completed within 180 days. The JOBS 
universal engagement provision retains TANF's language 
permitting a state to sanction individuals who fail to comply 
with their IOP.

Reason for change

    Expecting work in exchange for benefits is a foundational 
principle of this Committee's work on welfare reform and a 
pillar of the 1996 reform efforts that created TANF. The 
expectation in current law is that states must engage 50 
percent of individuals in work activities. This legislation 
sets forth the expectation that states engage all work-eligible 
individuals in work activities through universal engagement and 
case management.
    There are two important levels of accountability from which 
to view the structure of the JOBS program. The first is at the 
individual level and the second is at the state level. These 
policies are complementary and inter-related.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Universal engagement and case management are about the 
covenant between the family seeking help and the caseworker, on 
behalf of the government, and that both sides will do their 
part to help each family earn their own success. It places a 
value on case management practices focusing on people, not 
programs, and, while promoting work, acknowledging and 
potentially addressing underlying challenges that could be 
holding a family back.
    Case management is not about checking boxes and pushing 
paper. The human connection is pivotal. One witness at our Jobs 
and Opportunity hearing series, Heather Terenzio, an employer 
from Boulder, Colorado who started the first-ever software 
apprenticeship program, said ``If someone comes alongside that 
disengaged person--coaches them, believes in them--all that 
doubt washes away and they can be successful.''\19\ Another 
witness, Jennifer Meek-Eells, executive director of a workforce 
development board in Canton, Ohio, said ``Case managers need to 
be able to connect and help people set goals, think about the 
future and set small steps that show them they can be 
successful and that there is a path forward. Case management 
means engaging participants in meaningful employment and 
training activities that can help them build lifelong, 
sustainable careers.''\20\
---------------------------------------------------------------------------
    \19\Hearing on Jobs and Opportunity: Local Perspectives on the Jobs 
Gap, Committee on Ways and Means, Subcommittee on Human Resources, 
April 12, 2018.
    \20\Hearing on Jobs and Opportunity: Legislative Perspectives on 
the Jobs Gap, Committee on Ways and Means, Subcommittee on Human 
Resources, May 9, 2018.
---------------------------------------------------------------------------
    Under this section, within 60 days of being approved for 
assistance in the JOBS program, states are to provide each 
work-eligible individual an opportunity to sit down with a case 
manager to develop an individual opportunity plan. For 
individuals who are already receiving assistance as of the 
effective date of this bill, states are provided six months to 
comply with this provision. According to the Congressional 
Research Service, the number of work-eligible individuals 
receiving TANF assistance in FY 2016 was approximately 732,000 
nationwide.\21\ The Committee believes given this relatively 
low number (i.e., estimates suggest that there are between 9.5 
and 11 million work-capable adults receiving SNAP)\22\ this is 
an appropriate timeframe for compliance.
---------------------------------------------------------------------------
    \21\``TANF work-eligible individuals by state,'' Congressional 
Research Service memo from Gene Falk to House Subcommittee on Human 
Resources, May 22, 2018.
    \22\``Employment Requirements in Benefit Programs Needed to Reduce 
Poverty,'' Statement before the House Committee on Education and 
Workforce, Robert Doar Morgridge Fellow in Poverty Studies, American 
Enterprise Institute, March 15, 2018.
---------------------------------------------------------------------------
    This initial meeting should include an up-front, 
transparent discussion of the expectations for that individual 
to continue receiving assistance. Individuals must sign a 
personal responsibility agreement acknowledging and providing 
their consent and understanding of what is expected of them and 
consequences for failing to meet program requirements. This 
includes informing the individual of the number of hours per 
week of work activities they are expected to complete pursuant 
to section 407(c) of the Social Security Act.
    Case managers are then to conduct an assessment to 
determine the education, skill level, and strengths of the 
individual to inform development of the individual opportunity 
plan. The plan should be developed jointly and oriented toward 
consideration of short and intermediate steps the individual 
needs to take toward the ultimate goal of obtaining a job. The 
expectation is that states will document in the plan the 
activities the individual will engage in to meet the minimum 
hourly work requirement pursuant to section 407(d) of the 
Social Security Act. The individual opportunity plan is to be 
reviewed at least every 90 days to re-visit whether such 
activities continue to be appropriate, whether they need to be 
modified, and to determine progress toward goals. This review 
should also include re-verification of client eligibility, 
including household income and assets.
    Development of individual opportunity plans should take 
into account any services needed to support the family 
holistically, including access to child care, or in the case of 
pregnant or new mothers, making connections with the Maternal, 
Infant, and Early Childhood Home Visiting program in Title V of 
the Social Security or other programs aimed at improving birth 
outcomes, reducing risks associated with infant mortality, 
improving the well-being of children, and increasing economic 
self-sufficiency, defined as employment. For individuals who 
are determined to have mental health or substance abuse 
problems, the plan may include appropriate referrals to 
behavioral, mental health, or other professionals that provide 
treatment. For individuals under the age of 24, emphasis should 
be placed on completion of high school or obtaining a GED as an 
important first step toward finding lasting employment.
    The expectations for case managers serving individuals in 
the JOBS program is greater than under current law. High-
quality interactions between caseworkers and clients are the 
linchpin to helping individuals succeed in the workforce. 
States should be purposeful and thoughtful about how they 
transition to more meaningful case management practices 
required under this bill. This may include re-visiting hiring 
processes related to the necessary qualifications of case 
managers, establishing manageable client caseload ratios, and 
providing case managers access to training on topics such as 
how to effectively conduct a needs assessment, coaching, 
family-centered practices, and goal setting. To reiterate a 
theme that will appear throughout this report, the JOBS program 
should be operating collaboratively in conjunction with other 
state, federal, faith-based, private, and charitable 
organizations and programs serving low-income families and 
children. Therefore, case managers need to be experts in their 
local community resources and have an awareness of 
organizations and programs, such as food pantries, health 
clinics, and job centers, that serve families so they can 
appropriately connect individuals to additional services they 
may need.
    In implementing this section, states may choose to take a 
performance-based contracting approach that relies on non-
profit agencies and community-based organizations to provide 
case management for individuals in the JOBS program and holds 
those contractors responsible for the same employment, 
retention and earnings outcomes that the state is responsible 
for meeting. While there are a number of ways states and 
localities will choose to implement this aspect of the program, 
the important thing is case management practices and 
coordination of existing resources is recognized as key to the 
program's success.

Effective date

    These provisions are delayed for an additional six months 
beyond the effective date of October 1, 2018 for funding.

     Section 7: Promoting Accountability by Measuring Work Outcomes


                  A. PERFORMANCE STANDARDS FOR STATES

Present law

    Each state is required to have ``engaged in work'' a 
minimum percentage of its assisted families who include a work-
eligible individual. This percentage is known as the minimum 
work participation rate (WPR). The minimum WPR is a performance 
standard that applies to the state, not directly to work-
eligible individuals. The standard applies to the combined 
number of families in TANF and in separate state programs if 
they have expenditures countable toward the TANF state spending 
(``maintenance of effort'' or MOE) requirement. There are two 
standards a state must meet: one with respect to all families 
and another with respect to two-parent families. For all 
families, the minimum WPR is 50 percent minus the state's 
caseload reduction credit. For two-parent families, the minimum 
WPR is 90 percent minus the state's caseload reduction credit.
    The caseload reduction credit represents a percentage point 
reduction in the statutory minimum percentage of families a 
state must have engaged in work (either 50 or 90 percent) equal 
to the percent change in the caseload from FY 2005 to the prior 
fiscal year. The credit disregards the impact on the caseload 
from changes in state policy since FY 2005. Additionally, HHS 
regulations allow states to count as caseload reduction 
families aided by state MOE funds spent in excess of the 
minimum amount of state spending required under the MOE.
    The actual WPR a state achieves is the (simple) average for 
each month of the fiscal year of the number of families with a 
work-eligible individual determined to be ``engaged in work'' 
during the month divided by the number of families with work-
eligible individuals who are not disregarded from the 
calculation of the WPR. Separate WPRs are computed for all 
families and for two-parent families. States have the option to 
disregard the following families with a work-eligible adult 
from the computation of the WPR:
           Families composed of a single custodial 
        parent caring for a child under the age of 1 year. This 
        disregard is limited to 12 months in a lifetime; and
           Families receiving assistance from a tribal 
        TANF program or tribal work program.
    States are required to disregard families that are subject 
to a sanction for refusing to participate in work activities. 
The disregard is limited to 3 months during the preceding 12 
months.
    A state with a WPR less than its minimum requirement (after 
the application of the caseload reduction credit) is at risk of 
having its TANF grant reduced. The maximum penalty for the 
first failure to meet the work participation standard is a 
reduction of 5 percent of the state's family assistance grant. 
For each subsequent failure, the penalty is increased by a 
maximum of 2 percentage points. HHS may reduce the penalty 
based on the degree of noncompliance, if the state is an 
economically needy state as defined for the contingency fund, 
or because of extraordinary circumstances. Under HHS 
regulations, the penalty for failure to meet the two-parent 
standard is pro-rated to the share of a state's total caseload 
that represents two-parent families. The penalty on the state 
may be waived for good cause. A state that does not meet its 
minimum WPR may also enter into a corrective compliance plan, 
and have the penalty waived if it subsequently met its minimum 
standard.

Explanation of provision

    The Committee bill replaces the minimum WPR with outcome 
measures for purposes of state accountability. However, it 
maintains the current rules for being considered ``engaged in 
work''--in terms of work activities and hours--and applies them 
directly to work-eligible individuals through their Individual 
Opportunity Plan (IOP).
    The Committee bill establishes outcome measures to provide 
accountability for state JOBS programs. It requires HHS to 
establish a system to assess outcomes, based on measures used 
in the Workforce Innovation and Opportunity Act (WIOA) system. 
The Secretary of HHS and each state will jointly establish 
performance levels for the outcome measures, taking into 
account levels in other states, adjusted among the states for 
differences in economic conditions and caseload 
characteristics. The performance levels must also promote 
continuous improvement. The outcome measures are:
          1. The job entry rate, defined as the percent of 
        individuals who were work-eligible individuals at the 
        time of exit and who were in unsubsidized employment in 
        the 2nd quarter after exit;
          2. The job retention rate, defined as the percent of 
        individuals who were work-eligible individuals at the 
        time of exit and who were in unsubsidized employment in 
        both the 2nd and the 4th quarter after exit;
          3. The earnings measure, defined as the median 
        earnings of individuals who were work-eligible 
        individuals at exit and were in unsubsidized employment 
        during the second quarter after exit; and
          4. The high school completion rate, defined as the 
        percent of individuals who were work-eligible 
        individuals at the time of exit, were under the age of 
        24, lacked a high school diploma or equivalent when 
        they entered the program, and received a high school 
        diploma or equivalent while they received JOBS 
        assistance.
    An ``exit'' is defined as ceasing to receive JOBS 
assistance or ceasing to participate in a JOBS-funded 
subsidized job program (including apprenticeships). States in 
which JOBS is a partner in the WIOA ``one-stop'' system have 
the option to establish an alternative definition of ``exit'' 
to align that definition with that in other workforce programs.
    In addition to separate performance measures, a composite 
measure of performance is computed by combining information as 
follows: 40 percent is based on the job entry rate, 25 percent 
is based on the job retention rate, 25 percent is based on the 
earnings measure, and 10 percent is based on the high school 
completion rate. In assessing annual performance, these 
measures are to be statistically adjusted (as in WIOA) for 
changes in economic conditions and caseload characteristics.
    States that fail to meet performance targets for the 
outcome measures described in this section are subject to the 
same penalty outlined at section 409(a)(3) of the Social 
Security Act. As stated above, the maximum penalty for the 
first failure is a reduction of 5 percent of the state's annual 
family assistance grant. For each subsequent failure, the 
penalty is increased by a maximum of 2 percentage points per 
year.

Reason for change

    This section replaces the work participation rate, and 
instead establishes outcome measures as the primary state 
accountability mechanism in the JOBS program. For the first 
time, the federal government will hold states financially 
accountable for achieving actual results helping parents to get 
and keep a job.
    The current work participation rate structure is plagued by 
gaming and loopholes that states have become increasingly adept 
at taking advantage of over the years. This accountability 
mechanism has essentially been vitiated by provisions built 
into the law that had the well-reasoned intent of incentivizing 
states to reduce caseload and invest more of their own state 
funds into the program. These ``credit'' mechanisms have 
allowed 18 states to reduce their required work participation 
rate to zero. Only 11 states actually have an effective work 
participation rate of 50 percent established in current law. 
Because the measure is based on work activity while an 
individual is on the program, states have also gamed the rate 
using what is referred to as ``small checks'' or ``earnings 
supplement programs.'' For example, states use TANF dollars to 
provide ``assistance'' checks in small amounts to individuals 
receiving SNAP who are already working. These states are 
artificially providing a nominal amount of assistance to 
individuals who would not otherwise be on the caseload, for the 
sole purpose of meeting the work participation rate. This 
perverse gaming of program rules is hardly what the authors of 
the 1996 welfare reform law had in mind.
    Further, meeting the work participation rate in many states 
has devolved into a pro-forma exercise where TANF funds are 
used to contract with for-profit providers to create ``work 
experience'' programs, many of which amount to sheltered 
workshops where clients are given menial tasks disconnected 
from the skills needed in the job market. TANF dollars are used 
to pay outside contractors that specialize in developing and 
running these programs for the sake of being able to more 
easily ``count'' recipient hours toward meeting the work 
participation rate with little to no regard for actual 
employment-readiness needs of individual recipients.
    The Committee's conclusion is that the current 
accountability mechanism is not salvageable, nor is it 
consistent with the Committee's desire to hold states 
accountable for whether individuals get a job and keep a job. 
Instead of process measures that focus on taking attendance and 
counting participation in activities, the Committee bill adopts 
outcome measures including job entry, job retention, median 
earnings, and high school completion after an individual ceases 
to receive assistance. These measures establish the goal of 
helping individuals achieve permanent independence from 
assistance, rather than continuously cycling on and off the 
program.
    The four outcome measures adopted in this section are 
similar to those adopted by the workforce system under the 
Workforce Innovation and Opportunity Act (WIOA, P.L. 133-78). 
The four indicators measure whether an individual that formerly 
received a JOBS benefit is: (1) in unsubsidized employment in 
the 2nd quarter after exit (i.e., 6 months after leaving the 
program); (2) in unsubsidized employment in the 2nd and 4th 
quarter after exit (i.e., is employed both 6 months and a year 
after leaving the program, which does not have to be with the 
same employer); (3) median earnings of the individual who is in 
unsubsidized employment in the 2nd quarter after exit (placing 
a value on job quality); and (4) for individuals receiving a 
JOBS benefit who are under 24 years of age, whether they 
complete high school or its equivalency either while continuing 
to receive benefits or within one year after leaving the 
program. The 4th measure, high school completion or equivalency 
(i.e., GED), is particularly important given that nearly 40 
percent of TANF recipients do not have a high school 
diploma.\23\
---------------------------------------------------------------------------
    \23\Characteristics and Financial Circumstances of TANF Recipients: 
TANF Adult Recipients by Educational Attainment, FY 2016, Table 20, 
U.S. Department of Health and Human Services.
---------------------------------------------------------------------------
    The Committee seeks to better align the JOBS program with 
programs that make up the workforce system in order to better 
leverage existing resources and connect individuals receiving 
assistance to employment opportunities. The passage of WIOA in 
2014 made TANF a mandatory partner with American Job Centers 
(formerly one-stops) and prioritized services for low-income 
individuals receiving public assistance and out-of-school 
youth, creating overlap in the populations served. The primary 
purpose of WIOA is to ``increase, for individuals in the United 
States, particularly those individuals with barriers to 
employment, access to opportunities for the employment, 
education, training, and support services they need to succeed 
in the labor market.''\24\ The Committee has embraced similar 
goals in drafting this legislation.
---------------------------------------------------------------------------
    \24\P.L. 113-128.
---------------------------------------------------------------------------
    The WIOA workforce system is run through local Workforce 
Development Boards which act as a broker between employers in 
the community and job seekers and work to promote economic 
growth. Workforce Boards have the express purpose of developing 
expertise in the local labor market and in-demand jobs--by 
developing relationships with businesses in the community in 
order to understand what types of training and skill sets 
employers need. In addition, American Jobs Centers have the 
core principles of one stop service delivery, co-location of 
services, and access to partner organizations, including 
community colleges and career technical centers. All of these 
attributes make WIOA an important partner. Adopting similar 
outcome measures can help facilitate better collaboration. 
Program administrators that have shared goals are more likely 
to share resources and expertise.
    In addition, the bill promotes alignment with the workforce 
system by: (1) allowing states that have included TANF as a 
mandatory one-stop partner (WIOA provides state governors the 
ability to opt out) to adopt common exit measures for the JOBS 
program and other WIOA-funded programs to promote co-
enrollment; and (2) allowing states to transfer funds from the 
JOBS program (up to 50 percent) to WIOA Title 1 employment and 
training programs to better leverage resources across programs. 
States that transfer funds must provide assurances those funds 
will be used to serve JOBS-eligible participants and may 
reserve up to 15 percent for statewide workforce investment 
activities, with the remainder to be distributed to local 
Workforce Development Boards. The intent of the Committee is 
that the expertise and capacity developed in these respective 
programs will be used in coordination to connect individuals 
receiving JOBS benefits (and other forms of public assistance) 
to in-demand jobs in their local communities.
    The advantage of an outcome-based performance system is 
measuring and getting more of the desired outcome--in this 
case, work. The two main criticisms of an outcome-based 
performance measurement system are that it incentivizes 
``creaming'' (i.e., only allowing the most likely to succeed to 
enter your program) and never exiting a person (letting them 
sit on the program indefinitely because states don't think 
they'll show up as a positive in their outcome measures). The 
Committee bill anticipates these policy hazards (in no small 
part through studying what has been learned from implementation 
of the WIOA measures) and seeks to address both.
    First, the bill requires HHS to apply a statistical 
adjustment model when negotiating performance outcomes with 
states. Targets are set based on the characteristics of each 
state's caseload. The model will adjust state targets based on 
the number of barriers to employment reflected in the caseload 
demographics. States that seek to ``cream'' or avoid the 
hardest-to-serve will have higher targets to meet. As for the 
hazard of never ``exiting'' people, this is countered by the 
fact there remains a 5-year federal time limit for receiving 
assistance (in fact 16 states have imposed a stricter time 
limit of 3 years or less).\25\ In addition, states wishing to 
game the system in this manner face a significant opportunity 
cost that includes continuing to pay the family a check every 
month and prolonging the state's responsibility to engage with 
the recipients and monitor the individual opportunity plan 
every 90 days.
---------------------------------------------------------------------------
    \25\``State Welfare Reforms: TANF Time Limits by the Numbers,'' 
Council of State Governments, June 2, 2016.
---------------------------------------------------------------------------
    The intent of the Committee is that HHS will issue 
regulations through notice and comment rulemaking to establish 
the operation of this new performance accountability system 
using the measures and weights described in the bill. HHS is 
provided two years to issue regulations and FY 2020 is 
identified as a baseline year to be used to establish targets 
for each performance measure in succeeding fiscal years. The 
bill does not specify federal benchmarks or targets because 
there is recognition that a ``one size fits all'' approach to 
measurement would fail to take into account state demographic 
and caseload characteristics or changes over time in state 
economies that impact the ability to get people into jobs. 
While variation is allowed among states, the Committee expects 
the benchmarks to account for how the levels compare with other 
states and to promote continuous improvement. In the interim 
period between the effective date of this legislation and FY 
2021, which will be the first year in which states are subject 
to a penalty for not meeting performance benchmarks, the 
Committee expects HHS to suspend any existing corrective 
compliance or penalty determinations related to the work 
participation rate.
    The expectation is HHS will work in close collaboration 
with the Department of Labor (DOL), which oversees WIOA, to 
learn from what has already been done. DOL negotiates 
performance levels for outcome measures in the workforce system 
every three years with all the states. They do this through ten 
regional DOL offices located throughout the country. HHS has 
the same regional office structure that could accommodate this 
process. As part of the negotiating process, states must be 
able to provide sufficient data and justification using 
rigorous analysis of the latest data available to inform 
proposed targets for each of the measures. HHS and DOL should 
work collaboratively to exchange information and, to the extent 
possible, align processes and procedures for negotiating 
performance targets with states.

Effective date

    The provision is effective on October 1, 2020.

                   B. PUBLICATION OF OUTCOME MEASURES

Present law

    HHS is required to submit an annual report to Congress that 
includes the work participation rates states have achieved. (In 
practice, HHS typically posts on its website work participation 
information in advance of the full annual report to Congress.)

Explanation of provision

    The Committee bill requires HHS to operate a website with a 
regularly updated dashboard that profiles each state JOBS 
program, including information on: (1) the established 
performance measures for each state, (2) levels of performance 
achieved by each state, and (3) information on the adjustments 
to the performance measures for caseload characteristics or 
economic conditions for each state. The dashboard will also 
include information for each state's caseload characteristics, 
including information on child-only cases; hours of 
participation in work activities; information from an improper 
payment review; links to JOBS state plans; and any penalties 
assessed on the state.

Reason for change

    The Committee bill maintains current law sanctions for both 
states and individuals, but it also introduces a higher degree 
of transparency and accountability into the $30 billion per 
year program. Currently, only general spending categories are 
reported on the financial reporting form, which makes it 
difficult to understand how spending is associated with 
improved results or better outcomes for individuals. The 
Committee believes increased transparency using an easy to 
understand performance grading system compliments the existing 
penalty process and acts as a strengthened joint accountability 
mechanism.
    Many federal, state, and local government agencies use 
dashboards both for internal organizational management and to 
disseminate performance measures for transparency and 
accountability. A dashboard provides a visual display of the 
more important information needed to assess agency competency 
at achieving objectives, and can be consolidated and tracked 
over time. It also provides the ability to integrate data from 
different sources, including expenditure, administrative, and 
performance data to see how those elements fit together as a 
whole. This makes it easier for the general public, employers, 
and lawmakers to understand otherwise disparate sets of complex 
data, boiled down into coherent information that can help 
inform a range of decisions.
    As indicated in the prototype diagram below, the JOBS 
performance dashboard will include information for each state 
about whether the state met, exceeded, or failed each 
performance measure and an overall grade for aggregate 
performance. It will also show the percent of individuals on 
the caseload with zero hours of participation in work 
activities and reasons for non-activity. Currently, nearly 40 
percent of work-eligible individuals receiving assistance are 
not participating in any hours of work activity. The dashboard 
includes information on the number of child-only cases 
receiving benefits (which have no work requirement or time 
limit) and the reason why a case is child-only. In addition, as 
described in Section 10, the dashboard will include information 
on the results of improper payments case file reviews, 
including types of errors associated with improper payments. It 
also includes a link to the state plan, which includes the 
documentation and justification for policies and procedures, 
including any additional work activities identified by states, 
many of which are the subject of section 14.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    By highlighting these particular data points, the Committee 
intends the dashboard will drive states to seek to improve 
these aspects of the JOBS program as those of the greatest 
importance and strategically excludes those that are not part 
of the program's core purposes. The Committee does not believe 
any additional legislative actions need to be taken at this 
time to impose penalties related to these data elements (apart 
from the outcome measures which are subject to the 5 percent 
penalty in existing law), but does recommend additional 
sanctions be considered in future reauthorizations if 
performance is not at acceptable levels.
    The legislation provides a set-aside of \1/4\ of 1 percent 
of program funds for the Administration for Children and 
Families at HHS to develop and manage the dashboard, with the 
expectation that the agency will use the best evidence 
available given what has been learned from other government 
websites about what works to effectively communicate these 
types of data, including ensuring users can easily navigate the 
dashboard. This also establishes the expectation the dashboard 
is updated to reflect the most current information, and data is 
available to establish a record of performance over time and to 
make historical comparisons.

Effective date

    The provision is effective on October 1, 2018.

                    C. ENGAGEMENT IN WORK ACTIVITIES

Present law

    To be counted toward meeting the state's minimum work 
participation rate (WPR), a work-eligible individual must meet 
the criteria for being ``engaged in work.'' To be considered 
engaged in work, a work-eligible individual must participate 
for a minimum number of hours (discussed below) in one or more 
of the following work activities:
          1. unsubsidized employment;
          2. subsidized private sector employment;
          3. subsidized public sector employment;
          4. work experience;
          5. on-the-job training;
          6. job search and job readiness activities;
          7. community service programs;
          8. vocational educational training (not to exceed 12 
        months);
          9. job skills training directly related to 
        employment;
          10. education directly related to employment for 
        those without a high school degree or equivalent;
          11. satisfactory attendance at a secondary school, 
        for those without a high school degree or equivalent; 
        and
          12. provision of child care services to an individual 
        in a community service program.
    The Deficit Reduction Act of 2005 (P.L. 109-171) required 
HHS to ``define'' each of the listed activities and there is 
currently a regulatory definition for each of these activities.
    There are statutory limitations on counting participation 
in some of these activities toward a state meeting its minimum 
WPR. Specifically, an individual may be counted as ``engaged in 
work'' through job search for up to 6 weeks in a 12-month 
period, or 12 weeks in such a period if the state meets certain 
criteria of high and increasing unemployment and Supplemental 
Nutrition Assistance Program (SNAP) caseloads. Further, an 
individual cannot be counted as participating in job search in 
a week that follows 4 consecutive weeks of job search 
participation. An individual can be considered participating in 
job search for part of a week, 3 or 4 days, only once in a 
fiscal year.
    To be considered ``engaged in work'' for the all-family 
WPR, single-parent families with all children aged 6 and older 
and two-parent families must participate in activities for at 
least 30 hours per week. Of those 30 hours per week, at least 
20 hours per week must be in ``core'' activities: unsubsidized 
employment, subsidized private sector employment, subsidized 
public sector employment, work experience, on-the-job training, 
job search and readiness, community services and vocational 
educational training. A state may deem a single parent caring 
for a child under age 6 ``engaged in work'' if the recipient is 
engaged in activities for at least 20 hours per week. For such 
families, all hours must be in core activities.
    For the two-parent WPR, both parents may combine their 
hours of activities to meet the requirement for being 
considered ``engaged in work.'' For two-parent families who do 
not receive federally-funded child care, the parents must 
participate at least 35 hours per week (with 30 hours per week 
in ``core'' activities); for two-parent families who receive 
federally-funded child care, the parents must participate at 
least 55 hours (with 50 hours in core activities).
    A state is required to reduce the benefit of a family who 
receives TANF assistance if an individual in the family refuses 
to engage in work in accordance with the work participation 
standard. The sanction must be at least a pro-rata reduction in 
the benefit, or a greater reduction, including termination of 
the family's entire benefit, as determined by the state. States 
may not sanction a family if there is good cause (determined by 
the state) or any other exception the state has developed.

Explanation of provision

    While the WPR is eliminated, the Committee bill maintains 
rules for being considered engaged in work. These rules are 
applied to work-eligible individuals through the IOP.
    The Committee bill retains present law's list of activities 
that count toward meeting the work participation requirement, 
with some modifications. It modifies the ``vocational 
educational training'' activity to eliminate its limitation to 
12 months, and renames it ``vocational and career and technical 
education.'' It eliminates the durational limit for job search 
and readiness. It modifies ``on-the-job training'' to add 
``including apprenticeships'' to the activity. The Committee 
bill adds an additional activity--``any other activity that the 
State determines is necessary to improve the employment, 
earnings, or other outcomes of a recipient.''
    The Committee bill retains the total minimum hours per week 
of participation for a recipient to be engaged in work (e.g., 
30 hours per week for single parents, 20 hours if the single 
parent has a child under the age of 6). However, it eliminates 
the requirement that a minimum number of those hours be in 
certain activities. The Committee bill retains the current law 
provision allowing work-eligible individuals who lack a high 
school diploma and are under the age of 20 to be deemed engaged 
in work if they make satisfactory progress toward a high school 
diploma or equivalent or participate in education directly 
related to employment for at least 20 hours per week.
    The Committee bill retains TANF's requirement that a state 
sanction a family of an individual who refuses to work, subject 
to good cause and other exceptions determined by the state.

Reason for change

    The Committee's bill did not change the minimum hourly work 
requirement or the requirement that states sanction individuals 
who fail to comply. Work-eligible individuals receiving 
assistance are still expected to work in exchange for benefits. 
Consistent with the bill's focus on universal engagement and 
case management, the Committee believes it is important to 
provide the necessary tools to caseworkers to assign the proper 
mix of work activities to achieve the measured outcome of work. 
Therefore, the bill allows states to define additional work 
activities, which must be described in their state plan and are 
subject to the approval of HHS. The bill also supplements two 
of the activities in current law to clarify that 
apprenticeships and career technical education are allowable 
activities.
    Under current law, caseworkers are often incentivized to 
manage to a process to meet the work participation rate, which 
is a process measure and not an outcome measure. Understanding 
recipients' dynamic challenges and helping them build a path 
forward is a human-resource-intensive activity. Pre-determined 
limits that require caseworkers to do mathematical gymnastics 
to match countable hours to assigned activities are 
counterproductive and ineffective. For example, a number of 
states have pointed to the rules that distinguish between core 
and non-core activities as being particularly problematic and 
have said such limitations lack the recognition that not all 
family circumstances fit precisely into artificial timeframes 
or one-size-fits-all approaches.\26\
---------------------------------------------------------------------------
    \26\``Center for Employment and Economic Well-Being: TANF at 20--
Time for Rational Changes,'' National Association of State TANF 
Administrators, American Public Human Services Association, November 
2016.
---------------------------------------------------------------------------
    The Committee is cognizant that providing states more 
flexibility in assigning work activities as described in this 
section does not come without risk, and is well aware of the 
findings that promoted work activity changes in the Deficit 
Reduction Act of 2005, P.L. 109-171, such as a report to the 
Committee in August 2005 by the Government Accountability 
Office (GAO).\27\ The Committee is measuring work outcomes and 
therefore expects to see individuals engaged in activities that 
directly promote work--and not bed rest, smoking cessation, or 
other activities that do not have a work focus. It also hopes 
States will have learned their lessons from the last round and 
all will be watching.
---------------------------------------------------------------------------
    \27\Government Accountability Office. ``Welfare Reform: HHS Should 
Exercise Oversight to Help Ensure TANF Work Participation is Measured 
Consistently across States.'' GAO-05-821: August 2005. https://
www.gao.gov/assets/250/247482.pdf.
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    This bill places a high value on case management. A case 
manager sitting across from an individual in a welfare office 
is in the best position to determine what activities, and mix 
of activities over time, are most likely to promote success in 
the workforce--not Congress or the rest of the federal 
government. The Committee believes the federal role is to 
expect results, measure outcomes, and let states and local 
communities find the best way to get there. Further, the bill 
puts in place significant ``checks'' against the risk that 
comes along with additional state flexibility.
    Universal engagement and measuring outcomes are two inter-
related policy provisions that reflect a ``push-pull'' 
accountability mechanism. The ``push'' is the fact the law 
requires states to universally engage and assign 100 percent of 
work-eligible individuals to a minimum number of hours per week 
in work activities. In doing so, the bill also gives states 
flexibility to assign activities that meet an individual's 
needs and are most likely to get them job ready. This 
additional flexibility is primarily checked by the ``pull'' 
policy, which is the bill measures outcomes when a recipient 
leaves the program. States are incentivized, then, to put 
individuals into legitimate, meaningful activities that lead to 
the outcomes being measured getting a job and keeping a job. 
States that fail to achieve these outcomes are subject to 
penalty in the form of loss of federal funds.
    In addition, the Committee bill includes several other 
policies focused on transparency that act as a check on states 
that might abuse this flexibility. These include:
          1. States will be required to list any additional 
        work activities in their state plan, which HHS has 
        approval authority over and will be posted on their 
        state performance dashboard, and the hours individuals 
        are assigned to these activities.
          2. States must comply with the Improper Payments 
        Information Act, which will require them to conduct 
        annual reviews of case files to determine compliance 
        with federal work requirements. Identified errors will 
        be posted on their state performance dashboard.
          3. States will be required to report the percent of 
        their caseload that have reported zero hours of working 
        and reasons why also to be displayed on their 
        dashboard.
    These policies seek to hedge against past abuses and gaming 
that have failed within the current system.

Effective date

    The provision is effective on October 1, 2018.

           Section 8: Targeting Funds to Truly Needy Families


Present law

    A state may use federal TANF grants in ``any manner that is 
reasonably calculated'' to achieve TANF's statutory purpose and 
goals: provide assistance to needy families with children, 
reduce dependence of needy parents on government benefits, 
reduce out-of-wedlock pregnancies, and promote the formation 
and maintenance of two-parent families. Activities in providing 
assistance and reducing dependency must be for ``needy 
families,'' though states determine the financial eligibility 
rules that constitute need. Activities to reduce out-of-wedlock 
pregnancies and promote the formation and maintenance of two-
parent families are available for a state's entire population, 
regardless of family structure and need.
    A state may not expend more than 15 percent of its grant 
award on administrative expenditures. Excluded from this limit 
are funds used for information technology needed for tracking 
or monitoring.
    TANF permits up to 30 percent of the state family 
assistance grant to be transferred to the Child Care and 
Development Block Grant (CCDBG) and the Social Services Block 
Grant (SSBG). This limit is reduced dollar for dollar by any 
TANF funds used as matching funds for reverse commuter grants. 
Within the total transfer amount, the law further limits 
transfers to SSBG to 4.25 percent of the state family 
assistance grant. However, annual appropriation bills have, 
each year, increased this limit to 10 percent of the state 
family assistance grant.
    States are not required to transfer TANF funds to the CCDBG 
in order to provide child care services. States may spend TANF 
dollars on child care directly within state TANF programs or 
via transfers to the SSBG. States may also spend TANF dollars 
on child welfare services and activities, directly within state 
TANF programs or via transfers to the SSBG.
    States are required to expend from their own funds at least 
75 percent (80 percent if a state does not meet its work 
participation standard) of historic state expenditures. 
Historic state expenditures are FY1994 spending in TANF's 
predecessor programs. This is known as the ``maintenance of 
effort'' (MOE) requirement. States may count their own 
expenditures in any state program as long as it meets TANF's 
general requirements regarding the types of benefits, services, 
and activities that may be counted. In addition to state and 
local government expenditures, under general rules of grants 
management, states may count the value of third-party donated 
services as state funds spent toward the MOE.

Explanation of provision

    The Committee bill generally retains existing law, but adds 
certain requirements regarding the use of federal JOBS grants 
and state MOE funds. Principally, it prohibits federal and 
state MOE funds from being used for benefits or services to any 
families with incomes in excess of 200 percent of the Federal 
Poverty Line (FPL).
    The Committee bill retains the limit that no more than 15 
percent of federal grants may be used for administrative 
expenses and retains the exclusion of information technology 
from that cap. It also excludes from this limit case management 
activities to conduct assessments, and to develop, monitor 
progress of recipients under, and revise Individual Opportunity 
Plans.
    The Committee bill prohibits direct spending within the 
JOBS program on child care and child welfare services or 
activities. States may use JOBS funds for these services and 
activities by transferring them to the Child Care and 
Development Block Grant (CCDBG) and to the Stephanie Tubbs 
Jones Child Welfare Services program (CWS, Title IV-B, Subpart 
1), subject to transfer limitations. The state may use 50 
percent of the JOBS grant for combined transfers to CCDBG, 
WIOA, and the CWS program. Transfers to CWS are limited to 10 
percent of the JOBS grant. WIOA transfers are only permitted if 
a state is a partner in the one-stop system (i.e., has not 
opted out of being a partner). WIOA transfers must be spent on 
JOBS-eligible families and no more than 15 percent of the 
transfer may be withheld at the state level. The current 
authority to transfer funds to the Social Services Block Grant 
(SSBG) is eliminated.

Reasons for change

    Proper targeting in social programs is a basic premise of 
effective public policy, particularly for the purpose of 
improving social welfare. The Committee believes a lack of 
targeting in the TANF program has led to abuses over time and 
funds should be focused on the truly needy. Therefore, the bill 
puts a guardrail around the use of funds to limit benefits and 
services to families with incomes under 200 percent of poverty. 
This income eligibility limit applies to all benefits and 
services, not just to those receiving basic assistance. All 
states have lower income eligibility thresholds for families to 
qualify for basic assistance that are significantly below 100 
percent of poverty.\28\ However, only 24 percent of TANF funds 
were spent on basic assistance to families in FY 2016.\29\ For 
the remainder of the dollars, the only accountability mechanism 
is that funds must meet one of the four TANF purposes. The four 
purposes include:
---------------------------------------------------------------------------
    \28\Welfare Rules Data book: State TANF Policies as of July 2015, 
Urban Institute.
    \29\TANF and MOE Spending and Transfers by Activity, FY 2016, U.S. 
Department of Health and Human Services.
---------------------------------------------------------------------------
          (1) Providing assistance to needy families with 
        children;
          (2) Reducing dependence of needy parents on 
        government benefits;
          (3) Reducing out-of-wedlock pregnancies; and
          (4) Promoting the formation and maintenance of two-
        parent families.
    Current law purposes do not provide sufficient 
accountability for state use of funds. There has been an 
increasing awareness that ``meeting a TANF purpose'' is a 
fairly subjective mechanism and has led to abuses as states 
have sought to use TANF funds for programs that are arguably 
only loosely related to one of these purposes. Examples include 
using TANF funds to provide scholarships to middle class 
families to attend private colleges and using TANF funds for 
public education programs like statewide pre-kindergarten. This 
bill affirmatively requires that all funds must be used for 
families under twice the poverty level, regardless of whether 
families are receiving assistance or receiving some other 
supportive service or benefit funded by the program. For the 
same reason, the bill also applies this guardrail to any state 
expenditures that are claimed to meet the MOE requirement.
    With regard to the bill's changes on transferring funds 
from the block grant to other programs, the changes follow a 
basic principle: TANF block grant funds that are used for 
specific purposes in which there are already other federal 
programs designed to meet those purposes must be transferred to 
those respective programs.
    Congress recently reauthorized the Child Care and 
Development Block Grant (CCDBG), which is the nation's primary 
program that provides access to child care for low-income 
working families. The program has strong accountability 
measures in place, including ensuring basic protections for the 
health and safety of children in child care and background 
checks for child care providers. Any TANF dollars a state 
spends on child care that are NOT transferred to CCDBG 
(approximately $1.3 billion in FY 2016) have no such 
protections and there is no data available on the number of 
children served by those funds. The bill would no longer allow 
for this ``direct'' funding of child care outside of the rules 
in CCDBG. That type of practice only acts to further exacerbate 
the already fragmented and duplicative early care and education 
system. GAO published a study last year that found not less 
than nine federal programs support early learning or child care 
and an additional 35 permit funds to be used to pay for child 
care.\30\ This change in the bill is intended to increase 
accountability in use of funds for child care and improve 
alignment within the existing early care and education system.
---------------------------------------------------------------------------
    \30\``Early Learning and Child Care: Agencies Have Helped Address 
Fragmentation and Overlap through Improved Coordination,'' Government 
Accountability Office (GAO-17-463), Jul 13, 2017.
---------------------------------------------------------------------------
    To accommodate this change, the bill raises the cap on the 
percent of TANF dollars that can be transferred to CCDBG from 
30 to 50 percent. Raising the cap, and adding an additional 
$600 million in entitlement funding for child care annually, is 
a reflection of the Committee's recognition that child care is 
a critical work support for low-income families.
    Secondly, this same principle on transferring funds applies 
to using TANF dollars for the provision of child welfare 
services. Again, the Committee believes such funds should be 
used within the framework of programs that Congress has already 
created for funding child welfare. The bill requires any TANF 
funds states wish to use for child welfare be transferred to 
the program authorized under subpart 1 of Title IV-B of the 
Social Security Act. The bill also places a 10 percent limit on 
such transfers. This limit is a reflection of the fact that 
Congress recently enacted the Family First Prevention Services 
Act (P.L. 115-123) to provide foster care prevention funding 
for substance abuse, mental health, and parenting services to 
families with children at-risk of coming into foster care. The 
cap acknowledges that there are existing resources already 
dedicated to child welfare and JOBS program dollars should be 
focused on supporting work.
    Finally, the bill adds authority for states to transfer 
funds to WIOA employment and training programs to promote 
alignment with the workforce system. As discussed earlier in 
this report, WIOA is an important partner in helping 
individuals get and keep a job. The Committee's goal is to 
leverage the strengths of this existing system, particularly 
the local Workforce Development Boards and their link to 
employers and in-demand jobs, to improve employment outcomes 
for families receiving assistance. This policy allows states 
the option to transfer funds to WIOA, up to the 50 percent cap, 
to serve JOBS-eligible families. States may reserve 15 percent 
of any transferred funds for statewide workforce activities and 
the remainder is to be provided to Workforce Development Boards 
to provide access to training and to facilitate job matching 
and connections to the local labor market. The Committee's 
expectation is that JOBS funds transferred to WIOA will be used 
for services through co-enrollment in other workforce programs. 
States have flexibility to place restrictions on what percent 
of funds provided to local Workforce Development Boards can be 
used for administrative activities.

Effective date

    The provision is effective on October 1, 2018.

              Section 9: Targeting Funds to Core Purposes


Present law

    A state may use federal TANF grants in ``any manner that is 
reasonably calculated'' to achieve TANF's statutory purpose and 
goals. Under certain circumstances, a state may use TANF funds 
for activities that were authorized under pre-TANF law even if 
it is an activity that cannot be reasonably calculated to 
achieve TANF's statutory purpose.

Explanation of provision

    The Committee bill continues to permit spending for these 
same purposes. However, it requires that at least 25 percent of 
the state's federal JOBS grant and 25 percent of the state's 
MOE spending be used for ``core activities'' which, under the 
bill, are assistance, case management, work supports and 
supportive services, wage subsidies, work activities and non-
recurring short-term benefits. Work supports are defined as 
transportation benefits, tools, uniforms, fees to obtain 
licenses, and work support allowances.
    The Committee bill also phases out the ability of states to 
count the value of spending from sources other than state or 
local governments toward the JOBS MOE. In FY2020, expenditures 
from sources other than state or local governments can account 
for no more than 75 percent of MOE spending, with this limit 
phasing down to 50 percent in FY2021, 25 percent in FY2022, and 
0 percent in FY2023 and thereafter.

Reason for change

    States are spending a combined $30 billion per year through 
TANF and less than half those dollars are being spent on core 
activities such as cash assistance, work, education, training, 
or supportive services.\31\ Instead, as caseloads have dropped, 
many states have diverted TANF funds to fill budget holes or 
fund specialty programs that have little to do with supporting 
work. The Committee strongly believes the taxpayer investment 
in this program is meant to support work. The provision 
requires at least 25 percent of funds be spent towards this 
core objective--putting in place another guardrail to re-focus 
federal and state dollars on helping welfare recipients move 
into jobs.
---------------------------------------------------------------------------
    \31\TANF and MOE Spending and Transfers by Activity, FY 2016, U.S. 
Department of Health and Human Services.
---------------------------------------------------------------------------
    Current law requires states must spend a certain amount of 
state money (based on past state spending on low-income 
programs) to receive full federal TANF block grant funds, which 
is called the state ``maintenance of effort'' or MOE 
requirement. However, recent reports from the nonpartisan GAO 
indicate a rising number of states appear to be counting non-
state third-party spending as TANF MOE spending.\32\
---------------------------------------------------------------------------
    \32\Government Accountability Office. ``Temporary Assistance for 
Needy Families: Update on States Counting Third-Party Expenditures 
toward Maintenance of Effort Requirements.'' GAO-16-315: Published: Feb 
10, 2016. Publicly Released: Mar 10, 2016. https://www.gao.gov/
products/GAO-16-315.
---------------------------------------------------------------------------
    For example, a number of states now count the supposed 
value of volunteer hours as TANF MOE by multiplying volunteer 
hours by an estimated wage rate and then reporting this as 
``spending'' in the TANF program. This evolution has also 
resulted in some states reporting significant ``excess MOE'' 
spending, which under a 1999 regulation allows states to reduce 
the share of TANF recipients expected to work in exchange for 
TANF benefits. This practice also allows states to reduce their 
state investment in TANF, gaming the intent of the law's 
requirements that states continue to invest in the program as a 
condition of receiving federal funds.
    The Committee believes the true intent of the MOE 
requirement is to ensure there continues to be a contribution 
from state and local government dollars as part of the state's 
responsibility to provide services and support to low-income 
families. Therefore, this provision gradually phases out 
counting of any non-state or local government expenditures 
towards the MOE requirement over a five-year period.

Effective date

    The provision is effective on October 1, 2018.

   Section 10: Strengthening Program Integrity by Measuring Improper 
                                Payments


Present law

    The Improper Payments Elimination and Recovery Act of 2010 
(P.L. 111-204) requires federal agencies to take steps to 
identify and reduce improper payments. Improper payments are 
those that should not have been made or were made in an 
incorrect amount. The Department of Health and Human Services 
has indicated it lacks the authority to require states to 
participate in TANF improper payment measurement.

Explanation of provision

    The Committee bill requires states to apply the Improper 
Payments Elimination and Recovery Act of 2010 to their JOBS 
programs. It requires HHS to issue regulations within 2 years 
to implement this provision.

Reason for change

    Ending a longstanding inequity, HHS will be required to 
report to the Office of Management and Budget an estimate of 
improper payments for the JOBS program as part of the larger 
government-wide effort to improve program integrity and reduce 
waste, fraud, and abuse. HHS has indicated it lacks the 
authority to compute improper payment rates for TANF in 
accordance with the Improper Payments Elimination and Recovery 
Act. The agency has argued that, since states design their own 
programs and make their own rules, there is no way to 
operationalize a national error rate. Yet there are a number of 
state-administered federal programs, such as unemployment 
insurance and the Child Care and Development Fund (CCDF) 
program, which have developed methodologies for complying with 
this Act and reporting improper payments.
    The intent of the Committee is that HHS will regulate 
through notice and comment rulemaking, and in consultation with 
the Office of Child Care in the Administration for Children and 
Families, to develop a process by which states are to conduct 
such reviews including instructions for sample selections 
relative to the size of the state, record and case file 
reviews, development of standardized forms, and other key 
pieces of information states must consider when conducting 
reviews. HHS should also establish regulatory guidelines and 
provide technical assistance to states to ensure improper 
payments reviews are conducted in a similar manner across 
states. HHS may choose to implement these reviews on a rolling 
basis. For example, in the CCDF program the Office of Child 
Care has divided states into three representative groups so 
each state conducts the case file review once every three 
years. The case review process should include reviewing a 
sample of case files to assess whether eligibility was 
appropriately determined according to state rules, benefits 
were issued properly, and work-eligible individuals were 
appropriately assigned work activities in accordance with state 
and federal law, including whether such activities were 
appropriately verified and tracked.

Effective date

    The provision is effective on October 1, 2018.

Section 11: Prohibition on State Diversion of Federal Funds to Replace 
                             State Spending


Present law

    No provision.

Explanation of provision

    The Committee bill requires that federal JOBS grants must 
be used to supplement, not supplant, state general revenue 
spending on the activities supported by state JOBS programs.

Reason for change

    This provision requires that federal JOBS funding must be 
used to supplement, not supplant, state general revenue funds. 
As stated above, over time and as caseloads have declined, many 
states have diverted TANF funds to fill state budget holes. 
During a 2016 mark-up of several TANF bills, one Member 
referred to state governments as being on ``the welfare dole.'' 
There is bipartisan recognition that states have taken 
advantage of the loose rules governing TANF spending. The 
Committee believes that adding this language restores 
accountability by affirmatively stating that states may not use 
federal funds to replace state and local spending on activities 
and services for low-income families. This provision is 
consistent with the bill's efforts to put in place guardrails 
to make sure the dollars already being spent are achieving 
their intended purpose supporting the success of American 
families in work.

Effective date

    The provision is effective on October 1, 2018.

      Section 12: Inclusion of Poverty Reduction as a Core Purpose


Present law

    The purpose of TANF is to increase the flexibility of 
states in operating a program designed to achieve four 
statutory goals. TANF's statutory purpose is both an 
aspirational statement about the goals of the block grant and a 
basis for how states may expend TANF funds. The four statutory 
goals of TANF are to: (1) provide assistance to needy families 
with children so that children can be cared for in their homes 
or in the homes of relatives; (2) end the dependence of needy 
parents on government benefits through work, job preparation, 
and marriage; (3) prevent and reduce the incidence of out-of-
wedlock pregnancies and have states establish annual numerical 
goals for reducing such pregnancies; and (4) encourage the 
formation and maintenance of two-parent families.

Explanation of provision

    The Committee bill adds to the present law purpose a goal 
to reduce child poverty by increasing employment entry, 
retention, and advancement of needy parents.

Reason for change

    While the overall goal of TANF is to help low-income 
individuals and families achieve self-sufficiency and improve 
their lives, the program does not currently have an explicit 
focus on reducing poverty. The Committee bill adds a new 
purpose to TANF to explicitly recognize the best way out of 
poverty is a job. This additional purpose is to reduce child 
poverty by increasing employment entry, retention, and 
advancement of low-income parents. This change will assist in 
the overall purpose of the legislation to ensure states keep 
the focus of the program on promoting work to help families 
move up the economic ladder.

Effective date

    The provision is effective on October 1, 2018.

                 Section 13: Welfare for Needs Not Weed


Present law

    States are required to maintain policies and practices to 
prevent TANF assistance from being accessed in Electronic 
Benefit Transfer (EBT) transactions in liquor stores, casinos, 
or adult entertainment establishments.

Explanation of provision

    The Committee bill retains the current requirements and 
adds establishments selling marijuana to the list of 
establishments in which JOBS assistance cannot be accessed in 
an EBT transaction. The provision is effective two years after 
the date of enactment.

Reason for change

    As of 2012, current law prohibits access to taxpayer-funded 
welfare benefits for either purchases or withdrawals at ATMs in 
strip clubs, liquor stores, and casinos. That common-sense 
change was enacted with bipartisan support in 2012, and states 
nationwide have begun implementing it in the past few years. 
But with the advent of legalized pot sales in several states, a 
``pot shop loophole'' has emerged that currently allows welfare 
recipients to access taxpayer-provided welfare funds 
electronically in stores that sell marijuana.
    This provision does not comment on whether it makes sense 
for states to legalize the sale of pot, as Colorado and 
Washington have done. It simply says that, wherever pot is 
legally sold, welfare recipients shouldn't be able to readily 
access welfare funds to pay for it. This taxpayer money is 
meant to support the basic needs of low-income families with 
children, including reconnecting parents with work--not to 
purchase marijuana.

Effective date

    The provision is effective two years after the date of 
enactment.

Section 14: Strengthening Accountability Through HHS Approval of State 
                                 Plans


                         A. STATE PLAN PROCESS

Present law

    States are required to submit a TANF state plan every three 
years as a condition of receiving block grant funds. Local 
governments and private sector organizations are required to be 
consulted regarding the plan so services are appropriate for 
local populations and those entities are to have at least 45 
days to submit comments. States must submit plan amendments 
within 30 days after a state amends the plan. A summary of the 
state plan must be publically available. States receive block 
grant funds only if the Secretary of HHS certifies the state 
plan is complete. Under the Workforce Innovation and 
Opportunity Act (WIOA), states may submit their TANF plan as 
part of a WIOA combined plan.

Explanation of provision

    The Committee bill requires that the Secretary of HHS 
approve a state's JOBS plan for the state to be eligible for a 
grant. It also provides that a JOBS state plan is implemented 
over a two-year period. It adds explicit language to the JOBS 
statute that JOBS plans may be submitted as part of WIOA 
combined plans.

Reason for change

    The Committee bill establishes the state plan as an 
important accountability mechanism and improves federal 
administration of the program by providing HHS authority to 
approve state plans. The plan also is to be used as the 
mechanism by which states establish targets for the outcome 
measures outlined in the bill and provide justification for 
state policies. In keeping with the desire to create better 
alignment with WIOA, the Committee bill allows states to submit 
their JOBS plan as part of the WIOA combined plan process.

Effective date

    The provision is effective on October 1, 2018.

                         B. STATE PLAN CONTENT

Present law

    The state must submit a written document that outlines how 
a state intends to: operate a program statewide, though not 
necessarily in a uniform manner within the state; require 
parents and caretakers to engage in work (as defined by the 
state) within 24 months of receipt of assistance, consistent 
with the requirement that child care be available; require 
parents and caretakers to engage in TANF work activities (as 
listed in law); take reasonable steps to restrict disclosure of 
information of individuals and families receiving assistance; 
establish goals and take action to reduce out-of-wedlock 
pregnancies; conduct an education program for law enforcement 
individuals on statutory rape; implement policies to prevent 
electronic benefit transactions at certain establishments; and 
ensure recipients of assistance have access to their benefits 
with no or minimal fees and charges.
    The state plan is also to contain a description of whether 
the state intends to provide assistance to noncitizens; whether 
it treats new migrants to the state differently than other 
families; the objective criteria for the delivery of benefits 
and services and determination of eligibility; and whether the 
state intends to assist individuals to train for or seek 
employment in long-term care facilities or providing elder 
care. Unless the state opts out, the state must require 
recipients of assistance to engage in community services after 
receiving assistance for two-months. (The option for a state 
not to require community service had to be taken within 1 year 
of the enactment of the 1996 welfare reform law.)
    The governor of the state must certify the state will 
operate a child support enforcement program; will operate a 
Title IV-E program for foster care, prevention, and permanency; 
will provide equitable access to Indians in state TANF programs 
if they are not eligible for tribal TANF; and has established 
and is enforcing standards and procedures against fraud and 
abuse and procedures concerning nepotism and conflicts of 
interest. States must also certify that they consulted local 
governments and private sector organizations.
    The governor of the state may certify that the state has 
established and is enforcing standards to screen for victims of 
domestic violence, refer victims of domestic violence to 
counseling and supportive services, and waive program 
requirements, such as time limits. Domestic violence is defined 
as physical acts that resulted in, or threatened to result in, 
physical injury; sexual abuse; sexual activity involving a 
dependent child; being forced to engage in nonconsensual sexual 
activities; threats of, or attempts at, physical or sexual 
abuse; mental abuse; neglect; or deprivation of medical care.

Explanation of provision

    This section modifies state plan requirements to reflect 
new policies and changes made by the Committee's bill. It 
replaces the present law provisions related to work with three 
plan elements. The state plan must:
           describe the activities in which the state 
        will require work-eligible individuals to participate 
        in accordance with the JOBS work standard (activities 
        and hours);
           describe its case management practices, 
        including the form used to assess work-eligible 
        individuals and prepare Individual Opportunity Plans 
        (IOPs) and how it will review individual progress under 
        the plan; and
           include the proposed performance outcome 
        targets (job entry, job retention, wages, and 
        completion of high school or equivalent) in the JOBS 
        state plan.
    The Committee bill also requires a JOBS state plan to 
indicate whether the state intends to transfer any funds paid 
to a program operated under WIOA, and shall include assurances 
that all funds transferred will be used to support families 
eligible for assistance and that not more than 15 percent of 
the funds will be reserved for statewide workforce investment 
activities. The state plan must indicate how JOBS will 
coordinate with the one-stop delivery system and how the state 
will coordinate to provide services to recipients of JOBS 
assistance.
    The Committee bill requires the JOBS state plan to describe 
how the state will engage low-income noncustodial parents and 
provide them with work supports. It also requires the JOBS 
state plan to describe how the state allows for transitional 
benefits for those receiving assistance who become employed. 
This could include how the state counts and disregards earnings 
for the purposes of eligibility and benefits in their 
assistance programs. Additionally, the Committee bill adds to 
the JOBS state plan a description of how the state will promote 
marriage, such as through a temporary disregard of the income 
of a new spouse; how the state will engage low-income 
noncustodial parents paying child support and how such parents 
will be provided with access to work supports; and how the 
state will comply with the application of the Improper Payments 
Elimination and Recovery Act to JOBS.

Reason for change

    The Committee bill formalizes development and submission of 
the state JOBS plan and updates this section to fold in new 
changes made by other sections of this bill. The expectation is 
HHS will develop a state plan template to standardize data 
collection across each of these elements and provide guidance 
to states in submission of the plan. HHS should design the 
state plan with an eye toward usability and for purposes of 
enabling the aggregation of data across states to use in 
reporting on the implementation of certain policies, for 
example in the department's annual Report to Congress.
    To improve transparency, a link to the state plan is to be 
included on each state's performance dashboard report, and the 
plan is to be used as the primary mechanism by which HHS will 
jointly negotiate performance targets for the outcome measures 
included in this bill. Further, as described above, states are 
to list any additional work activities in their plan, subject 
to HHS approval, for purposes of the minimum hourly work 
requirement and development of the individual opportunity plan.
    The plan also improves transparency by asking states to 
describe specific policies and procedures in key areas where 
the Committee believes there is a need for targeted policy 
consideration. This includes asking states to describe how they 
will engage non-custodial parents identified by the custodial 
parent through the mandatory cooperation requirement that 
exists in current law. States must describe how such parents 
will be provided access to work support and other services to 
support their employment and advancement. TANF has 
traditionally included a heavy focus on single mothers, but 
TANF purposes speak to the responsibility of both parents--the 
mother and the father. There are 5 million child support cases 
that are not being collected likely because the non-custodial 
parent is not formally working.\33\ Non-custodial parents, 
often fathers, outside the home can receive the same work 
supports through TANF that parents within the home do, but 
there is significantly more that can be done. This plan 
provision will compel states to think through these connections 
and how they can better support both parents in their 
transition to the workforce and strengthen families using JOBS 
funding.
---------------------------------------------------------------------------
    \33\Office of Child Support Enforcement, Administration for 
Children and Families, U.S. Department of Health and Human Services. 
``Preliminary Report FY2017.'' Accessed June 6, 2018: https://
www.acf.hhs.gov/sites/default/files/programs/css/
fy_2017_preliminary_data_report.pdf.
---------------------------------------------------------------------------
    As a way to help more families transition off of 
assistance, the plan also asks states to describe policies they 
have in place to phase-out benefits over time, such as through 
earned income disregards, as a family's income from wages 
increases. Getting incentives right is an important part of 
helping families achieve independence from assistance. 
Anecdotally, some families report turning down a small wage 
increase for fear of losing benefits that phase out as income 
rises. Policies that provide for a transitional period can help 
change this incentive structure and ensure that families that 
choose work, and a pay raise, are better off for making that 
choice.
    Similarly, the plan asks states to describe policies in 
place for when a recipient marries, such as through a temporary 
disregard of the income of a new spouse, so the couple doesn't 
automatically lose benefits due to marriage. Again, the 
Committee's intent is to promote thoughtful state policies that 
include positive incentives aimed at supporting work and 
strengthening families.

Effective date

    The provision is effective on October 1, 2018.

                        C. TECHNICAL ASSISTANCE

Present law

    There is a set aside of 0.33 percent of the TANF 
appropriation for research and technical assistance.

Explanation of provision

    The Committee bill sets aside an additional 0.25 percent of 
the JOBS appropriation to HHS to fund technical assistance to 
the states and tribes. Technical assistance shall be provided 
by qualified experts and grounded in scientifically valid 
research. Technical assistance may also be provided to the 
states and tribes on a reimbursable basis. These funds also 
shall be used to publish the work outcome measures of state 
performance.

Reason for change

    The Committee bill sets aside one quarter of 1 percent of 
the JOBS appropriation to HHS to fund technical assistance to 
the states and tribes, specifically to support development and 
maintenance of the state performance dashboard described in 
Section 7.

Effective date

    The provision is effective on October 1, 2018.

           Section 15: Aligning and Improving Data Reporting


Present law

    A state is required to collect data monthly and report data 
quarterly to HHS on families and individuals receiving 
assistance from TANF or separate state programs. Information is 
also required on those exiting TANF or separate state programs. 
A state has the option to comply with the TANF data collection 
requirements using a sample of families receiving assistance, 
rather than all such families. HHS is required to provide 
states with case sampling plans and data collection procedures.
    The statute specifies a number of data elements required to 
be reported to HHS. The statutory data elements for each family 
are: county of residence; number of family members; whether the 
family received subsidized housing, Medicaid, Supplemental 
Nutrition Assistance Program (SNAP) benefits, or subsidized 
child care; the amount of assistance the family received; and 
number of months the family received each type of assistance 
under the program. The statute requires reporting of benefit 
amounts of SNAP and child care received by the family. The 
statutory data elements for each person in the family are: 
receipt of disability benefits; ages; relationship to the 
family head; race; educational level; unearned income received; 
and citizenship. The statutory data elements for each adult in 
the family are: employment status and earnings; marital status; 
and whether the adult participated in certain activities. In 
addition, the statute says that states must report information 
necessary to compute the TANF work participation rate (WPR).
    The statute gives HHS the authority to regulate the 
definition of the data elements. HHS has added some additional 
data elements regarding the WPR as well as months accrued 
toward the 60-month time limit for adults in the family.

Explanation of provision

    The Committee bill eliminates the state option to comply 
with TANF data collection requirements using a sample of 
families, requiring the state to submit information on each 
family in its caseload. It requires each state to report 
information on participation in work and job preparation 
activities; activities to remove a barrier to employment; and, 
if the work-eligible individual is not engaged in an activity, 
the reason for lack of engagement. HHS is given the authority 
to collect the data needed to compute employment outcomes, and 
to make the statistical adjustment for the new JOBS performance 
measures.

Reason for change

    The Committee bill places a premium on transparency and 
changes in the bill to data reporting reflect this priority. 
Many states, particularly large states, currently submit sample 
data this has the effect of limiting the accuracy of the data 
in the sense of not providing a full and complete picture of 
the number, characteristics, and demographics of individuals 
served. In addition, as part of the implementation of the new 
performance accountability system, this section of the bill 
provides HHS authority to collect necessary data elements to 
measure outcomes specified in section 7. Finally, this section 
provides an affirmative requirement that states report on the 
share of individuals with zero hours of participation--a data 
element to be included on each state's dashboard, further 
promoting transparency and accountability.

Effective date

    The provision is effective on October 1, 2018.

Section 16: Technical Corrections to Data Exchange Standards To Improve 
                          Program Coordination


Present law

    The Department of Health and Human Services, in 
consultation with the Office of Management and Budget, is 
required to designate in regulation data exchange standards for 
any information required to be reported under TANF. The data 
exchange standard must, to the extent practicable, incorporate 
a widely-accepted, nonproprietary, and searchable format; be 
consistent with applicable accounting practices; be capable of 
being upgraded; and incorporate existing nonproprietary 
standards (such as XML).

Explanation of provision

    The Committee bill makes technical corrections to present 
law regarding data exchange standards, to conform the JOBS 
language to that used for other programs.

Reason for change

    The Committee was alerted by the Department of Health and 
Human Services that the original version of this language, 
enacted in 2012, was not consistent with the goal of improving 
federal-to-state and state-to-state data exchanges that are 
important to this state-administered program.

Effective date

    The provision is effective on October 1, 2018.

              Section 17: Set-aside for Economic Downturns


Present law

    States and tribes may reserve unused federal TANF grants 
for use in a later year without fiscal year limit. Reserved 
funds may be used for any TANF benefit or service.

Explanation of provision

    The Committee bill expects federal JOBS funds to be 
obligated by the state within 2 years of the grant award and 
expended within 3 years of the award. An exception to this rule 
is that it allows a state to reserve up to 15 percent of its 
JOBS grants for future use in the JOBS program.

Reason for change

    The Committee believes that adding a guardrail around the 
availability of funds will improve fiscal responsibility and 
support the bill's overall focus on accountability in the 
spending of program funds. Further, allowing up to 15 percent 
of funds to be reserved for periods when there may be an 
increase in the demand for resources, such as during economic 
downturns, is designed to help states accommodate such 
increased demands should these situations arise.

Effective date

    The provision is effective on October 1, 2018.

            Section 18: Definitions Related to Use of Funds


Present law

    TANF has statutory definitions for: adult; minor child; 
fiscal year; Indian, Indian tribe, and tribal organization; and 
State. Some TANF terms are not defined. For example, the TANF 
statute applies most requirements to families receiving 
assistance but it does not define that term. In addition to the 
statutory definitions, HHS defined certain terms in regulations 
and for use in data reporting. HHS defined the term 
``assistance'' in regulation as ongoing economic support to 
meet basic needs. HHS has defined ``work supports'' for the 
purposes of state reports of financial data as transportation 
benefits, tools, uniforms, fees to obtain licenses, and work 
support allowances. HHS regulations and guidance allow states 
to define other terms, such as ``family.''

Explanation of provision

    The Committee bill adds several statutory definitions to 
the JOBS program. It defines assistance and work supports 
similarly to the current usage of those terms in TANF. It adds 
a definition of ``JOBS benefit'' to mean both assistance and 
subsidized employment, including apprenticeships.

Reason for change

    Several of these definitions are consistent with the 
current regulatory definitions used by HHS. The new definition 
of a JOBS benefit clarifies that an individual receiving 
assistance who transitions to subsidized employment, such as 
on-the-job training or apprenticeship, and as a result no 
longer receives assistance, may still be considered as 
receiving a benefit for purposes of making a determination of 
when an individual ``exits'' the program and becomes part of 
the denominator of the state's outcome measures. In this case, 
a state is incentivized to support an individual's continuation 
and success in subsidized employment and apprenticeship 
programs as they transition to independence and unsubsidized 
employment. The Committee's intent is that this definition also 
clarifies ``receipt of a title IV-A benefit'' for purposes of 
categorical eligibility determinations in the Supplemental 
Nutrition and Assistance Program (SNAP).

Effective date

    The provision is effective on October 1, 2018.

             Section 19: Elimination of Obsolete Provisions


Present law

    TANF law includes three grants that have expired and for 
which there is no current funding. These are (1) supplemental 
grants (last funded in FY2011); (2) high performance bonuses 
(last funded in FY2005); and (3) welfare-to-work grants (last 
funded in FY1999).

Explanation of provision

    The Committee bill strikes the three expired grants and 
associated provisions from the statute. It also eliminates the 
TANF loan fund, which has not been accessed since FY2005. The 
fact that this fund was not accessed during or following the 
serious recession of 2007-09 speaks to the obsolescence of this 
loan fund designed to assist states with pressing needs during 
difficult economic times.
    The Committee bill also requires that all maintenance of 
effort (MOE) funds be spent under the rules of the TANF 
program, eliminating the ability of states to count 
expenditures in ``separate state programs'' toward meeting that 
MOE requirement.

Reason for change

    The Committee bill cleans up this section of the Social 
Security Act to eliminate obsolete provisions from the 1996 
law. This section also includes elimination of the TANF 
contingency fund. As described above, those dollars are re-
purposed under the Committee bill as additional Child Care 
Entitlement funds.

Effective date

    The provision is effective on October 1, 2018.

                       Section 20: Effective Date


Present law

    The current authorization of the TANF program expires 
September 30, 2018.

Explanation of provision

    The amendments made by this Act are effective October 1, 
2018. The prohibition on drawing assistance in establishments 
that sell marijuana is effective two years after the date of 
enactment of the JOBS for Success Act.

Reason for change

    The Committee believes it is appropriate to have an 
effective date of October 1, 2018, the start of the next fiscal 
year, following the expiration of the current authorization on 
September 30, 2018. This is intended to provide necessary funds 
to states to prevent any disruption in benefits or services.

                      III. VOTES OF THE COMMITTEE

    In compliance with the Rules of the House of 
Representatives, the following statement is made concerning the 
vote of the Committee on Ways and Means during the markup 
consideration of H.R. 5861, the ``Jobs and Opportunity with 
Benefits and Services (JOBS) for Success Act'' on May 23-24, 
2018.
    An amendment in the nature of a substitute was offered by 
Chairman Brady and adopted by voice vote (with a quorum being 
present).
    The vote on Mr. Reichert's motion to table Mr. Neal's 
appeal of the ruling of the Chair was agreed to by a roll call 
vote of 21 yeas to 14 nays (with a quorum being present). The 
vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady......................        X   ........  .........  Mr. Neal.........  ........        X   .........
Mr. Johnson....................        X   ........  .........  Mr. Levin........  ........        X   .........
Mr. Nunes......................        X   ........  .........  Mr. Lewis........  ........  ........  .........
Mr. Reichert...................        X   ........  .........  Mr. Doggett......  ........        X   .........
Mr. Roskam.....................        X   ........  .........  Mr. Thompson.....  ........        X   .........
Mr. Buchanan...................        X   ........  .........  Mr. Larson.......  ........        X   .........
Mr. Smith (NE).................        X   ........  .........  Mr. Blumenauer...  ........        X   .........
Ms. Jenkins....................        X   ........  .........  Mr. Kind.........  ........        X   .........
Mr. Paulsen....................        X   ........  .........  Mr. Pascrell.....  ........  ........  .........
Mr. Marchant...................        X   ........  .........  Mr. Crowley......  ........        X   .........
Ms. Black......................  ........  ........  .........  Mr. Davis........  ........        X   .........
Mr. Reed.......................        X   ........  .........  Ms. Sanchez......  ........        X   .........
Mr. Kelly......................        X   ........  .........  Mr. Higgins......  ........        X   .........
Mr. Renacci....................        X   ........  .........  Ms. Sewell.......  ........        X   .........
Ms. Noem.......................  ........  ........  .........  Ms. DelBene......  ........        X   .........
Mr. Holding....................        X   ........  .........  Ms. Chu..........  ........        X   .........
Mr. Smith (MO).................        X   ........  .........
Mr. Rice.......................        X   ........  .........
Mr. Schweikert.................        X   ........  .........
Ms. Walorski...................        X   ........  .........
Mr. Curbelo....................        X   ........  .........
Mr. Bishop.....................  ........  ........  .........
Mr. LaHood.....................        X   ........  .........
Mr. Wenstrup...................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Mr. Doggett to the 
amendment in the nature of a substitute to H.R. 5861, which 
would increase the reservation of Federal Funds for certain 
purposes, was not agreed to by a roll call vote of 23 nays to 
11 yeas (with a quorum being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady......................  ........        X   .........  Mr. Neal.........        X   ........  .........
Mr. Johnson....................  ........        X   .........  Mr. Levin........        X   ........  .........
Mr. Nunes......................  ........        X   .........  Mr. Lewis........  ........  ........  .........
Mr. Reichert...................  ........        X   .........  Mr. Doggett......        X   ........  .........
Mr. Roskam.....................  ........        X   .........  Mr. Thompson.....        X   ........  .........
Mr. Buchanan...................  ........        X   .........  Mr. Larson.......  ........        X   .........
Mr. Smith (NE).................  ........        X   .........  Mr. Blumenauer...        X   ........  .........
Ms. Jenkins....................  ........        X   .........  Mr. Kind.........        X   ........  .........
Mr. Paulsen....................  ........        X   .........  Mr. Pascrell.....  ........  ........  .........
Mr. Marchant...................  ........        X   .........  Mr. Crowley......  ........  ........  .........
Ms. Black......................  ........  ........  .........  Mr. Davis........        X   ........  .........
Mr. Reed.......................  ........        X   .........  Ms. Sanchez......        X   ........  .........
Mr. Kelly......................  ........        X   .........  Mr. Higgins......        X   ........  .........
Mr. Renacci....................  ........        X   .........  Ms. Sewell.......        X   ........  .........
Ms. Noem.......................  ........  ........  .........  Ms. DelBene......        X   ........  .........
Mr. Holding....................  ........        X   .........  Ms. Chu..........  ........  ........  .........
Mr. Smith (MO).................  ........        X   .........
Mr. Rice.......................  ........        X   .........
Mr. Schweikert.................  ........        X   .........
Ms. Walorski...................  ........        X   .........
Mr. Curbelo....................  ........        X   .........
Mr. Bishop.....................  ........        X   .........
Mr. LaHood.....................  ........        X   .........
Mr. Wenstrup...................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on Mr. Reichert's motion to table Ms. Sanchez's 
appeal of the ruling of the Chair was agreed to by a roll call 
vote of 21 yeas to 13 nays (with a quorum being present). The 
vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady......................        X   ........  .........  Mr. Neal.........  ........        X   .........
Mr. Johnson....................        X   ........  .........  Mr. Levin........  ........        X   .........
Mr. Nunes......................        X   ........  .........  Mr. Lewis........  ........  ........  .........
Mr. Reichert...................        X   ........  .........  Mr. Doggett......  ........        X   .........
Mr. Roskam.....................        X   ........  .........  Mr. Thompson.....  ........        X   .........
Mr. Buchanan...................        X   ........  .........  Mr. Larson.......  ........        X   .........
Mr. Smith (NE).................        X   ........  .........  Mr. Blumenauer...  ........        X   .........
Ms. Jenkins....................        X   ........  .........  Mr. Kind.........  ........        X   .........
Mr. Paulsen....................        X   ........  .........  Mr. Pascrell.....  ........  ........  .........
Mr. Marchant...................        X   ........  .........  Mr. Crowley......  ........  ........  .........
Ms. Black......................  ........  ........  .........  Mr. Davis........  ........        X   .........
Mr. Reed.......................        X   ........  .........  Ms. Sanchez......  ........        X   .........
Mr. Kelly......................        X   ........  .........  Mr. Higgins......  ........        X   .........
Mr. Renacci....................        X   ........  .........  Ms. Sewell.......  ........        X   .........
Ms. Noem.......................  ........  ........  .........  Ms. DelBene......  ........        X   .........
Mr. Holding....................        X   ........  .........  Ms. Chu..........  ........        X   .........
Mr. Smith (MO).................  ........  ........  .........
Mr. Rice.......................        X   ........  .........
Mr. Schweikert.................        X   ........  .........
Ms. Walorski...................        X   ........  .........
Mr. Curbelo....................        X   ........  .........
Mr. Bishop.....................        X   ........  .........
Mr. LaHood.....................        X   ........  .........
Mr. Wenstrup...................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Mr. Davis to the 
amendment in the nature of a substitute to H.R. 5861, which 
would develop a Federal Interagency Working Group, was not 
agreed to by a roll call vote of 21 nays to 14 yeas (with a 
quorum being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady......................  ........        X   .........  Mr. Neal.........        X   ........  .........
Mr. Johnson....................  ........        X   .........  Mr. Levin........        X   ........  .........
Mr. Nunes......................  ........        X   .........  Mr. Lewis........  ........  ........  .........
Mr. Reichert...................  ........        X   .........  Mr. Doggett......        X   ........  .........
Mr. Roskam.....................  ........        X   .........  Mr. Thompson.....        X   ........  .........
Mr. Buchanan...................  ........        X   .........  Mr. Larson.......        X   ........  .........
Mr. Smith (NE).................  ........        X   .........  Mr. Blumenauer...        X   ........  .........
Ms. Jenkins....................  ........        X   .........  Mr. Kind.........        X   ........  .........
Mr. Paulsen....................  ........        X   .........  Mr. Pascrell.....        X   ........  .........
Mr. Marchant...................  ........        X   .........  Mr. Crowley......  ........  ........  .........
Ms. Black......................  ........  ........  .........  Mr. Davis........        X   ........  .........
Mr. Reed.......................  ........        X   .........  Ms. Sanchez......        X   ........  .........
Mr. Kelly......................  ........        X   .........  Mr. Higgins......        X   ........  .........
Mr. Renacci....................  ........        X   .........  Ms. Sewell.......        X   ........  .........
Ms. Noem.......................  ........  ........  .........  Ms. DelBene......        X   ........  .........
Mr. Holding....................  ........        X   .........  Ms. Chu..........        X   ........  .........
Mr. Smith (MO).................  ........  ........  .........
Mr. Rice.......................  ........        X   .........
Mr. Schweikert.................  ........        X   .........
Ms. Walorski...................  ........        X   .........
Mr. Curbelo....................  ........        X   .........
Mr. Bishop.....................  ........        X   .........
Mr. LaHood.....................  ........        X   .........
Mr. Wenstrup...................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Ms. Sewell to the 
amendment in the nature of a substitute to H.R. 5861, which 
would add certain state performance indicators, was not agreed 
to by a roll call vote of 22 nays to 15 yeas (with a quorum 
being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady......................  ........        X   .........  Mr. Neal.........        X   ........  .........
Mr. Johnson....................  ........        X   .........  Mr. Levin........        X   ........  .........
Mr. Nunes......................  ........        X   .........  Mr. Lewis........  ........  ........  .........
Mr. Reichert...................  ........        X   .........  Mr. Doggett......        X   ........  .........
Mr. Roskam.....................  ........        X   .........  Mr. Thompson.....        X   ........  .........
Mr. Buchanan...................  ........        X   .........  Mr. Larson.......        X   ........  .........
Mr. Smith (NE).................  ........        X   .........  Mr. Blumenauer...        X   ........  .........
Ms. Jenkins....................  ........        X   .........  Mr. Kind.........        X   ........  .........
Mr. Paulsen....................  ........        X   .........  Mr. Pascrell.....        X   ........  .........
Mr. Marchant...................  ........        X   .........  Mr. Crowley......        X   ........  .........
Ms. Black......................  ........  ........  .........  Mr. Davis........        X   ........  .........
Mr. Reed.......................  ........        X   .........  Ms. Sanchez......        X   ........  .........
Mr. Kelly......................  ........        X   .........  Mr. Higgins......        X   ........  .........
Mr. Renacci....................  ........        X   .........  Ms. Sewell.......        X   ........  .........
Ms. Noem.......................  ........  ........  .........  Ms. DelBene......        X   ........  .........
Mr. Holding....................  ........        X   .........  Ms. Chu..........        X   ........  .........
Mr. Smith (MO).................  ........        X   .........
Mr. Rice.......................  ........        X   .........
Mr. Schweikert.................  ........        X   .........
Ms. Walorski...................  ........        X   .........
Mr. Curbelo....................  ........        X   .........
Mr. Bishop.....................  ........        X   .........
Mr. LaHood.....................  ........        X   .........
Mr. Wenstrup...................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on the amendment offered by Ms. Chu to the 
amendment in the nature of a substitute to H.R. 5861, which 
would remove the 50 percent limit on Federal TANF funds that 
can be transferred for child care, was not agreed to by a roll 
call vote of 22 nays to 14 yeas (with a quorum being present). 
The vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady......................  ........        X   .........  Mr. Neal.........        X   ........  .........
Mr. Johnson....................  ........        X   .........  Mr. Levin........        X   ........  .........
Mr. Nunes......................  ........        X   .........  Mr. Lewis........  ........  ........  .........
Mr. Reichert...................  ........        X   .........  Mr. Doggett......        X   ........  .........
Mr. Roskam.....................  ........        X   .........  Mr. Thompson.....  ........  ........  .........
Mr. Buchanan...................  ........        X   .........  Mr. Larson.......        X   ........  .........
Mr. Smith (NE).................  ........        X   .........  Mr. Blumenauer...        X   ........  .........
Ms. Jenkins....................  ........        X   .........  Mr. Kind.........        X   ........  .........
Mr. Paulsen....................  ........        X   .........  Mr. Pascrell.....        X   ........  .........
Mr. Marchant...................  ........        X   .........  Mr. Crowley......        X   ........  .........
Ms. Black......................  ........  ........  .........  Mr. Davis........        X   ........  .........
Mr. Reed.......................  ........        X   .........  Ms. Sanchez......        X   ........  .........
Mr. Kelly......................  ........        X   .........  Mr. Higgins......        X   ........  .........
Mr. Renacci....................  ........        X   .........  Ms. Sewell.......        X   ........  .........
Ms. Noem.......................  ........  ........  .........  Ms. DelBene......        X   ........  .........
Mr. Holding....................  ........        X   .........  Ms. Chu..........        X   ........  .........
Mr. Smith (MO).................  ........        X   .........
Mr. Rice.......................  ........        X   .........
Mr. Schweikert.................  ........        X   .........
Ms. Walorski...................  ........        X   .........
Mr. Curbelo....................  ........        X   .........
Mr. Bishop.....................  ........        X   .........
Mr. LaHood.....................  ........        X   .........
Mr. Wenstrup...................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

    The vote on Mr. Roskam's motion to table Mr. Davis's appeal 
of the ruling of the Chair was agreed to by a roll call vote of 
22 yeas to 14 nays (with a quorum being present). The vote was 
as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady......................        X   ........  .........  Mr. Neal.........  ........        X   .........
Mr. Johnson....................        X   ........  .........  Mr. Levin........  ........        X   .........
Mr. Nunes......................        X   ........  .........  Mr. Lewis........  ........  ........  .........
Mr. Reichert...................        X   ........  .........  Mr. Doggett......  ........        X   .........
Mr. Roskam.....................        X   ........  .........  Mr. Thompson.....  ........  ........  .........
Mr. Buchanan...................        X   ........  .........  Mr. Larson.......  ........        X   .........
Mr. Smith (NE).................        X   ........  .........  Mr. Blumenauer...  ........        X   .........
Ms. Jenkins....................        X   ........  .........  Mr. Kind.........  ........        X   .........
Mr. Paulsen....................        X   ........  .........  Mr. Pascrell.....  ........        X   .........
Mr. Marchant...................        X   ........  .........  Mr. Crowley......  ........        X   .........
Ms. Black......................  ........  ........  .........  Mr. Davis........  ........        X   .........
Mr. Reed.......................        X   ........  .........  Ms. Sanchez......  ........        X   .........
Mr. Kelly......................        X   ........  .........  Mr. Higgins......  ........        X   .........
Mr. Renacci....................        X   ........  .........  Ms. Sewell.......  ........        X   .........
Ms. Noem.......................  ........  ........  .........  Ms. DelBene......  ........        X   .........
Mr. Holding....................        X   ........  .........  Ms. Chu..........  ........        X   .........
Mr. Smith (MO).................        X   ........  .........
Mr. Rice.......................        X   ........  .........
Mr. Schweikert.................        X   ........  .........
Ms. Walorski...................        X   ........  .........
Mr. Curbelo....................        X   ........  .........
Mr. Bishop.....................        X   ........  .........
Mr. LaHood.....................        X   ........  .........
Mr. Wenstrup...................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

    H.R. 5861 was ordered favorably reported to the House of 
Representatives as amended by a roll call vote of 22 yeas to 14 
nays (with a quorum being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady......................        X   ........  .........  Mr. Neal.........  ........        X   .........
Mr. Johnson....................        X   ........  .........  Mr. Levin........  ........        X   .........
Mr. Nunes......................        X   ........  .........  Mr. Lewis........  ........  ........  .........
Mr. Reichert...................        X   ........  .........  Mr. Doggett......  ........        X   .........
Mr. Roskam.....................        X   ........  .........  Mr. Thompson.....  ........  ........  .........
Mr. Buchanan...................        X   ........  .........  Mr. Larson.......  ........        X   .........
Mr. Smith (NE).................        X   ........  .........  Mr. Blumenauer...  ........        X   .........
Ms. Jenkins....................        X   ........  .........  Mr. Kind.........  ........        X   .........
Mr. Paulsen....................        X   ........  .........  Mr. Pascrell.....  ........  ........  .........
Mr. Marchant...................        X   ........  .........  Mr. Crowley......  ........  ........  .........
Ms. Black......................  ........  ........  .........  Mr. Davis........  ........        X   .........
Mr. Reed.......................        X   ........  .........  Ms. Sanchez......  ........        X   .........
Mr. Kelly......................        X   ........  .........  Mr. Higgins......  ........        X   .........
Mr. Renacci....................        X   ........  .........  Ms. Sewell.......  ........        X   .........
Ms. Noem.......................  ........  ........  .........  Ms. DelBene......  ........        X   .........
Mr. Holding....................        X   ........  .........  Ms. Chu..........  ........        X   .........
Mr. Smith (MO).................        X   ........  .........
Mr. Rice.......................        X   ........  .........
Mr. Schweikert.................        X   ........  .........
Ms. Walorski...................        X   ........  .........
Mr. Curbelo....................        X   ........  .........
Mr. Bishop.....................        X   ........  .........
Mr. LaHood.....................        X   ........  .........
Mr. Wenstrup...................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 2792, as 
reported. The Committee agrees with the estimate prepared by 
the Congressional Budget Office (CBO), which is included below.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee states further that the bill involves no new or 
increased tax expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 5, 2018.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5861, the Jobs and 
Opportunity with Benefits and Services for Success Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 5861--Jobs and Opportunity with Benefits and Services for Success 
        Act

    H.R. 5861 would amend title IV of the Social Security Act 
to make various programmatic and financing changes to the 
Temporary Assistance for Needy Families (TANF), child care 
entitlement (CCE), and related programs. Specifically, the bill 
would:
           Extend TANF and the healthy marriage 
        promotion and responsible fatherhood grants through 
        2023 at their 2018 level of funding $16.7 billion;
           Extend CCE through 2023 at $3.5 billion 
        annually, an increase of $608 million over the 2018 
        funding level;
           Eliminate the TANF Contingency Fund--a fund 
        that provides additional grants to states that meet an 
        economic need test--which was funded at $608 million in 
        2018; and
           Change rules about how states may spend 
        their TANF grants, how states contribute their own 
        spending toward the TANF program, and what states must 
        do to engage TANF recipients in work and training.
    Federal costs: Funding for TANF, the healthy marriage 
promotion and fatherhood grants, and CCE is scheduled to expire 
on October 1, 2018. By extending those programs through 2023, 
the bill would provide a total of $20.2 billion in additional 
funding annually. However, CBO already assumes that level of 
funding in its baseline, as required by section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 1985. 
Therefore, the extension of those programs would have no cost 
relative to the baseline.
    H.R. 5861 also would increase funding for CCE by $608 
million while eliminating the TANF contingency fund. Increasing 
funding for CCE would provide additional funding of $608 
million annually through 2023. However, CBO's baseline already 
assumes that level of funding, for the TANF contingency fund, 
in its baseline. CBO estimates that re directing funding from 
the TANF contingency fund to the CCE would have an 
insignificant net effect on spending.
    H.R. 5861 also would change various TANF rules. Some of 
those changes would increase the rate at which states spend 
their TANF grants, while other changes would decrease that 
rate. For example, the bill would require states to spend 85 
percent of their TANF grants within three years. Because some 
states have significant unobligated balances from prior year 
TANF grants, CBO estimates that some states would accelerate 
their spending in order to meet this requirement, increasing 
outlays over the 2019-2028 period. Additionally, the bill would 
require that 25 percent of each state's TANF grant be used only 
for core activities that support work. CBO estimates that while 
most states currently meet this spending requirement, some 
states would need to increase their spending on core activities 
over the 2019-2028 period.
    Other changes to the TANF rules under H.R. 5861 would 
decrease the rate at which states spend their TANF grants, CBO 
estimates. For example, the bill would prohibit states from 
transferring a portion of TANF grants to the Social Services 
Block Grant (SSBG) program. CBO estimates that outlays under 
TANF would decrease as states take time to identity how they 
would otherwise spend funds that they have transferred to SSBG 
in prior years.
    The federal budgetary effects of enacting H.R. 5861 would 
ultimately depend on how states respond to the bill's 
requirements and to what extent they would alter their spending 
patterns under TANF. On balance--recognizing the significant 
uncertainty regarding potential actions by the state--CBO 
estimates that any net effect on direct spending would not be 
significant over the 2019-2028 period.
    Because enacting H.R. 5861 would affect direct spending, 
pay-as-you-go procedures apply. Enacting the bill would not 
affect revenues.
    CBO estimates that enacting H.R. 5861 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    Mandates: For large entitlement grant programs like TANF, 
the Unfunded Mandates Reform Act defines an increase in the 
stringency of conditions on states or localities as an 
intergovernmental mandate if the affected governments lack 
authority to amend their financial or programmatic 
responsibilities while continuing to provide required services. 
Although H.R. 5861 would impose new duties on states, the bill 
does not contain intergovernmental mandates as defined by UMRA 
because states possess extensive flexibility in the 
administration of TANF to offset additional costs.
    Phase-Out of Third-Party Contributions. Under current law, 
states must maintain their historic level of qualified 
expenditures on TANF--their maintenance of effort (MOE) 
requirement--or face reduced federal funding. Currently, states 
may count the value of certain in-kind or cash contributions 
from non-governmental entities toward that MOE level. H.R. 5861 
would phase-out that flexibility and require states to pay all 
qualified expenditures from state or local sources by 2023. The 
bill would not prohibit the use of third-party services, but 
would limit their application to qualified expenditures. This 
change would not constitute a mandate under UMRA because states 
may reduce total TANF expenditures and continue providing 
services required under the program.
    Universal Case Management. Under current law, states may 
require that TANF recipients develop an individual 
responsibility plan. Presently, a majority of states exercise 
this authority. H.R. 5861 would require all states to develop 
individual opportunity plans with TANF recipients who are 
eligible to work, which must include an assessment of their 
education, skills, and work prospects. Those plans also must 
include the plan's effect on the well-being of children in the 
family. The bill would add new requirements for state agencies 
to meet regularly with each recipient to monitor progress 
toward the goals.
    Improper Payments Control. H.R. 5861 would apply the 
provisions of certain federal laws regarding improper payment 
to state TANF programs. In general, federal law requires 
covered agencies to review programs and activities, identify 
areas that are susceptible to improper payments, and estimate 
and report on the magnitude of such improper payments.
    Data and Reporting Requirements. Various provisions in H.R. 
5861 would require states to collect and report certain 
information including indicators on TANF recipients' employment 
status, earnings, and educational progress after exiting the 
program. Additionally, the bill would strike a state option to 
provide monthly data reports using a sample of TANF recipients 
rather than the full population.
    The bill would not impose private-sector mandates. Any 
duties imposed on TANF recipients would be conditions of 
federal aid and not mandates under UMRA.
    The CBO staff contacts for this estimate are Susanne S. 
Mehlman (for federal costs) and Andrew Laughlin (for impacts on 
states). The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee made findings and 
recommendations that are reflected in this report.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, Committee establishes the 
following performance related goals and objectives for this 
legislation: To increase work and self-sufficiency among 
parents under Title IV-A (Temporary Assistance for Needy 
Families) of the Social Security Act.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4). The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

  D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   E. Duplication of Federal Programs

    In compliance with clause 3(c)(5) of Rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                 F. Disclosure of Directed Rule Makings

    In compliance with Sec. 3(i) of H. Res. 5 (115th Congress), 
the following statement is made concerning directed rule 
makings: The Committee advises that the bill requires no 
directed rulemakings within the meaning of such section.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter in 
printed in italic and existing law in which no change is 
proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                          SOCIAL SECURITY ACT



           *       *       *       *       *       *       *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH 
                CHILDREN AND FOR CHILD-WELFARE SERVICES

  PART A--[BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
   FAMILIES] JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES PROGRAM

SEC. 401. PURPOSE.

  (a) In General.--The purpose of this part is to increase the 
flexibility of States in operating a program designed to--
          (1) provide assistance to needy families so that 
        children may be cared for in their own homes or in the 
        homes of relatives;
          (2) end the dependence of needy parents on government 
        benefits by promoting job preparation, work, and 
        marriage;
          (3) prevent and reduce the incidence of out-of-
        wedlock pregnancies and establish annual numerical 
        goals for preventing and reducing the incidence of 
        these pregnancies; [and]
          (4) encourage the formation and maintenance of two-
        parent families[.]; and
          (5) reduce child poverty by increasing employment 
        entry, retention, and advancement of needy parents.
  (b) No Individual Entitlement.--This part shall not be 
interpreted to entitle any individual or family to assistance 
under any State program funded under this part.

SEC. 402. ELIGIBLE STATES; STATE PLAN.

  (a) In General.--As used in this part, the term ``eligible 
State'' means, with respect to a fiscal year, a State that, 
during the 27-month period ending with the close of the 1st 
quarter of the fiscal year, has submitted to the Secretary a 
plan that the Secretary has [found] approved that includes the 
following:
          (1) Outline of family assistance program.--
                  (A) General provisions.--A written document 
                that outlines how the State intends to do the 
                following:
                          (i) Conduct a program, designed to 
                        serve all political subdivisions in the 
                        State (not necessarily in a uniform 
                        manner), that provides assistance to 
                        needy families with (or expecting) 
                        children and provides parents with job 
                        preparation, work, and support services 
                        to enable them to leave the program and 
                        become self-sufficient.
                          [(ii) Require a parent or caretaker 
                        receiving assistance under the program 
                        to engage in work (as defined by the 
                        State) once the State determines the 
                        parent or caretaker is ready to engage 
                        in work, or once the parent or 
                        caretaker has received assistance under 
                        the program for 24 months (whether or 
                        not consecutive), whichever is earlier, 
                        consistent with section 407(e)(2).
                          [(iii) Ensure that parents and 
                        caretakers receiving assistance under 
                        the program engage in work activities 
                        in accordance with section 407.]
                          (ii) Require work-eligible 
                        individuals (as defined in the 
                        regulations promulgated pursuant to 
                        section 407(i)(1)(A)(i)) to engage in 
                        work activities consistent with section 
                        407(c). The document shall describe any 
                        other activity that the State will 
                        consider a work activity under section 
                        407(c)(13).
                          [(iv)] (iii) Take such reasonable 
                        steps as the State deems necessary to 
                        restrict the use and disclosure of 
                        information about individuals and 
                        families receiving assistance under the 
                        program attributable to funds provided 
                        by the Federal Government.
                          [(v)] (iv) Establish goals and take 
                        action to prevent and reduce the 
                        incidence of out-of-wedlock 
                        pregnancies, with special emphasis on 
                        teenage pregnancies, and establish 
                        numerical goals for reducing the 
                        illegitimacy ratio of the State (as 
                        defined in section 403(a)(2)(C)(iii)) 
                        for calendar years 1996 through 2005.
                          [(vi)] (v) Conduct a program, 
                        designed to reach State and local law 
                        enforcement officials, the education 
                        system, and relevant counseling 
                        services, that provides education and 
                        training on the problem of statutory 
                        rape so that teenage pregnancy 
                        prevention programs may be expanded in 
                        scope to include men.
                          [(vii)] (vi) Implement policies and 
                        procedures as necessary to prevent 
                        access to assistance provided under the 
                        State program funded under this part 
                        through any electronic fund transaction 
                        in an automated teller machine or 
                        point-of-sale device located in a place 
                        described in section 408(a)(12), 
                        including a plan to ensure that 
                        recipients of the assistance have 
                        adequate access to their cash 
                        assistance.
                          [(viii)] (vii) Ensure that recipients 
                        of assistance provided under the State 
                        program funded under this part have 
                        access to using or withdrawing 
                        assistance with minimal fees or 
                        charges, including an opportunity to 
                        access assistance with no fee or 
                        charges, and are provided information 
                        on applicable fees and surcharges that 
                        apply to electronic fund transactions 
                        involving the assistance, and that such 
                        information is made publicly available.
                          (viii) Describe the case management 
                        practices of the State with respect to 
                        the requirements of section 408(b), 
                        provide a copy of the form or forms 
                        that will be used to assess a work-
                        eligible individual (as so defined) and 
                        prepare an individual opportunity plan 
                        for the individual, describe how the 
                        State will ensure that such a plan is 
                        reviewed in accordance with section 
                        408(b)(5), and describe how the State 
                        will measure progress under the plan.
                          (ix) Propose the requisite levels of 
                        performance for the State for purposes 
                        of section 407(a)(3)(D) for each year 
                        in the 2-year period referred to in 
                        subsection (d) of this section, and 
                        provide an explanation with supporting 
                        data of why each such level is 
                        appropriate.
                          (x) Describe how the State will 
                        engage low-income noncustodial parents 
                        paying child support and how such a 
                        parent will be provided with access to 
                        work support and other services under 
                        the program to which the parent is 
                        referred to support their employment 
                        and advancement.
                          (xi) Describe how the State will 
                        comply with improper payments 
                        provisions in section 404(l).
                          (xii) Describe coordination with 
                        other programs, including whether the 
                        State intends to exercise authority 
                        provided by section 404(d) of this Act 
                        to transfer any funds paid to the State 
                        under this part, provide assurance 
                        that, in the case of a transfer to 
                        carry out a program under title I of 
                        the Workforce Innovation and 
                        Opportunity Act, the State will comply 
                        with section 404(d)(3)(B) of this Act 
                        and coordinate with the one-stop 
                        delivery system under the Workforce 
                        Innovation and Opportunity Act, and 
                        describe how the State will coordinate 
                        with the programs involved to provide 
                        services to families receiving 
                        assistance under the program referred 
                        to in paragraph (1) of this subsection.
                          (xiii) Describe how the State will 
                        promote marriage, such as through 
                        temporary disregard of the income of a 
                        new spouse when an individual receiving 
                        assistance under the State program 
                        marries so that the couple doesn't 
                        automatically lose benefits due to 
                        marriage.
                          (xiv) Describe how the State will 
                        allow for a transitional period of 
                        benefits, such as through temporary 
                        earned income disregards or a gradual 
                        reduction in the monthly benefit 
                        amount, for an individual receiving 
                        assistance who obtains employment and 
                        becomes ineligible due to an increase 
                        in income obtained through employment 
                        or through an increase in wages.
                  (B) Special provisions.--
                          (i) The document shall indicate 
                        whether the State intends to treat 
                        families moving into the State from 
                        another State differently than other 
                        families under the program, and if so, 
                        how the State intends to treat such 
                        families under the program.
                          (ii) The document shall indicate 
                        whether the State intends to provide 
                        assistance under the program to 
                        individuals who are not citizens of the 
                        United States, and if so, shall include 
                        an overview of such assistance.
                          (iii) The document shall set forth 
                        objective criteria for the delivery of 
                        benefits and the determination of 
                        eligibility and for fair and equitable 
                        treatment, including an explanation of 
                        how the State will provide 
                        opportunities for recipients who have 
                        been adversely affected to be heard in 
                        a State administrative or appeal 
                        process.
                          [(iv) Not later than 1 year after the 
                        date of enactment of this section, 
                        unless the chief executive officer of 
                        the State opts out of this provision by 
                        notifying the Secretary, a State shall, 
                        consistent with the exception provided 
                        in section 407(e)(2), require a parent 
                        or caretaker receiving assistance under 
                        the program who, after receiving such 
                        assistance for 2 months is not exempt 
                        from work requirements and is not 
                        engaged in work, as determined under 
                        section 407(c), to participate in 
                        community service employment, with 
                        minimum hours per week and tasks to be 
                        determined by the State.
                          [(v) The document shall indicate 
                        whether the State intends to assist 
                        individuals to train for, seek, and 
                        maintain employment--
                                  [(I) providing direct care in 
                                a long-term care facility (as 
                                such terms are defined under 
                                section 2011); or
                                  [(II) in other occupations 
                                related to elder care 
                                determined appropriate by the 
                                State for which the State 
                                identifies an unmet need for 
                                service personnel,
                        and, if so, shall include an overview 
                        of such assistance.]
          (2) Certification that the state will operate a child 
        support enforcement program.--A certification by the 
        chief executive officer of the State that, during the 
        fiscal year, the State will operate a child support 
        enforcement program under the State plan approved under 
        part D.
          (3) Certification that the state will operate a 
        foster care and adoption assistance program.--A 
        certification by the chief executive officer of the 
        State that, during the fiscal year, the State will 
        operate a foster care and adoption assistance program 
        under the State plan approved under part E, and that 
        the State will take such actions as are necessary to 
        ensure that children receiving assistance under such 
        part are eligible for medical assistance under the 
        State plan under title XIX.
          (4) Certification of the administration of the 
        program.--A certification by the chief executive 
        officer of the State specifying which State agency or 
        agencies will administer and supervise the program 
        referred to in paragraph (1) for the fiscal year, which 
        shall include assurances that local governments and 
        private sector organizations--
                  (A) have been consulted regarding the plan 
                and design of welfare services in the State so 
                that services are provided in a manner 
                appropriate to local populations; and
                  (B) have had at least 45 days to submit 
                comments on the plan and the design of such 
                services.
          (5) Certification that the state will provide indians 
        with equitable access to assistance.--A certification 
        by the chief executive officer of the State that, 
        during the fiscal year, the State will provide each 
        member of an Indian tribe, who is domiciled in the 
        State and is not eligible for assistance under a tribal 
        family assistance plan approved under section 412, with 
        equitable access to assistance under the State program 
        funded under this part attributable to funds provided 
        by the Federal Government.
          (6) Certification of standards and procedures to 
        ensure against program fraud and abuse.--A 
        certification by the chief executive officer of the 
        State that the State has established and is enforcing 
        standards and procedures to ensure against program 
        fraud and abuse, including standards and procedures 
        concerning nepotism, conflicts of interest among 
        individuals responsible for the administration and 
        supervision of the State program, kickbacks, and the 
        use of political patronage.
          (7) Optional certification of standards and 
        procedures to ensure that the state will screen for and 
        identify domestic violence.--
                  (A) In general.--At the option of the State, 
                a certification by the chief executive officer 
                of the State that the State has established and 
                is enforcing standards and procedures to--
                          (i) screen and identify individuals 
                        receiving assistance under this part 
                        with a history of domestic violence 
                        while maintaining the confidentiality 
                        of such individuals;
                          (ii) refer such individuals to 
                        counseling and supportive services; and
                          (iii) waive, pursuant to a 
                        determination of good cause, other 
                        program requirements such as time 
                        limits (for so long as necessary) for 
                        individuals receiving assistance, 
                        residency requirements, child support 
                        cooperation requirements, and family 
                        cap provisions, in cases where 
                        compliance with such requirements would 
                        make it more difficult for individuals 
                        receiving assistance under this part to 
                        escape domestic violence or unfairly 
                        penalize such individuals who are or 
                        have been victimized by such violence, 
                        or individuals who are at risk of 
                        further domestic violence.
                  (B) Domestic violence defined.--For purposes 
                of this paragraph, the term ``domestic 
                violence'' has the same meaning as the term 
                ``battered or subjected to extreme cruelty'', 
                as defined in section 408(a)(7)(C)(iii).
  (b) Plan Amendments.--Within 30 days after a State amends a 
plan submitted pursuant to subsection (a), the State shall 
notify the Secretary of the amendment.
  [(c) Public Availability of State Plan Summary.--The State 
shall make available to the public a summary of any plan or 
plan amendment submitted by the State under this section.]
  (c) Public Availability of State Plans.--The Secretary shall 
make available to the public a link to any plan or plan 
amendment submitted by a State under this subsection.
  (d)  2-year Plan.--A plan submitted pursuant to this section 
shall be designed to be implemented during a 2-year period.
  (e) Combined Plan Allowed.--A State may submit to the 
Secretary and the Secretary of Labor a combined State plan that 
meets the requirements of subsections (a) and (d) and that is 
for programs and activities under the Workforce Innovation and 
Opportunity Act.
  (f) Approval of Plans.--The Secretary shall approve any plan 
submitted pursuant to this section that meets the requirements 
of subsections (a) through (d).

SEC. 403. GRANTS TO STATES.

  (a) Grants.--
          (1) Family assistance grant.--
                  (A) In general.--Each eligible State shall be 
                entitled to receive from the Secretary, for 
                each of fiscal years [2017 and 2018] 2019 
                through 2023, a grant in an amount equal to the 
                State family assistance grant.
                  (B) State family assistance grant.--The State 
                family assistance grant payable to a State for 
                a fiscal year shall be the amount that bears 
                the same ratio to the amount specified in 
                subparagraph (C) of this paragraph (as in 
                effect just before the enactment of the Welfare 
                Integrity and Data Improvement Act), reduced by 
                the [percentage specified in section 413(h)(1)] 
                the sum of the percentages specified in 
                sections 406(b) and 413(h) with respect to the 
                fiscal year, as the amount required to be paid 
                to the State under this paragraph (as so in 
                effect) for fiscal year 2002 (determined 
                without regard to any reduction pursuant to 
                section 409 or 412(a)(1)) bears to the total 
                amount required to be paid under this paragraph 
                for fiscal year 2002 (as so determined).
                  (C) Appropriation.--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] 2019 through 
                2023 $16,566,542,000 for grants under this 
                paragraph.
          (2) Healthy marriage promotion and responsible 
        fatherhood grants.--
                  (A) In general.--
                          (i) Use of funds.--Subject to 
                        subparagraphs (B), (C), and (E), the 
                        Secretary may use the funds made 
                        available under subparagraph (D) for 
                        the purpose of conducting and 
                        supporting research and demonstration 
                        projects by public or private entities, 
                        and providing technical assistance to 
                        States, Indian tribes and tribal 
                        organizations, and such other entities 
                        as the Secretary may specify that are 
                        receiving a grant under another 
                        provision of this part.
                          (ii) Limitations.--The Secretary may 
                        not award funds made available under 
                        this paragraph on a noncompetitive 
                        basis, and may not provide any such 
                        funds to an entity for the purpose of 
                        carrying out healthy marriage promotion 
                        activities or for the purpose of 
                        carrying out activities promoting 
                        responsible fatherhood unless the 
                        entity has submitted to the Secretary 
                        an application (or, in the case of an 
                        entity seeking funding to carry out 
                        healthy marriage promotion activities 
                        and activities promoting responsible 
                        fatherhood, a combined application that 
                        contains assurances that the entity 
                        will carry out such activities under 
                        separate programs and shall not combine 
                        any funds awarded to carry out either 
                        such activities) which--
                                  (I) describes--
                                          (aa) how the programs 
                                        or activities proposed 
                                        in the application will 
                                        address, as 
                                        appropriate, issues of 
                                        domestic violence; and
                                          (bb) what the 
                                        applicant will do, to 
                                        the extent relevant, to 
                                        ensure that 
                                        participation in the 
                                        programs or activities 
                                        is voluntary, and to 
                                        inform potential 
                                        participants that their 
                                        participation is 
                                        voluntary; and
                                  (II) contains a commitment by 
                                the entity--
                                          (aa) to not use the 
                                        funds for any other 
                                        purpose; and
                                          (bb) to consult with 
                                        experts in domestic 
                                        violence or relevant 
                                        community domestic 
                                        violence coalitions in 
                                        developing the programs 
                                        and activities.
                          (iii) Healthy marriage promotion 
                        activities.--In clause (ii), the term 
                        ``healthy marriage promotion 
                        activities'' means the following:
                                  (I) Public advertising 
                                campaigns on the value of 
                                marriage and the skills needed 
                                to increase marital stability 
                                and health.
                                  (II) Education in high 
                                schools on the value of 
                                marriage, relationship skills, 
                                and budgeting.
                                  (III) Marriage education, 
                                marriage skills, and 
                                relationship skills programs, 
                                that may include parenting 
                                skills, financial management, 
                                conflict resolution, and job 
                                and career advancement.
                                  (IV) Pre-marital education 
                                and marriage skills training 
                                for engaged couples and for 
                                couples or individuals 
                                interested in marriage.
                                  (V) Marriage enhancement and 
                                marriage skills training 
                                programs for married couples.
                                  (VI) Divorce reduction 
                                programs that teach 
                                relationship skills.
                                  (VII) Marriage mentoring 
                                programs which use married 
                                couples as role models and 
                                mentors in at-risk communities.
                                  (VIII) Programs to reduce the 
                                disincentives to marriage in 
                                means-tested aid programs, if 
                                offered in conjunction with any 
                                activity described in this 
                                subparagraph.
                  (B) Limitation on use of funds for 
                demonstration projects for coordination of 
                provision of child welfare and [tanf] jobs 
                services to tribal families at risk of child 
                abuse or neglect.--
                          (i) In general.--Of the amounts made 
                        available under subparagraph (D) for a 
                        fiscal year, the Secretary may not 
                        award more than $2,000,000 on a 
                        competitive basis to fund demonstration 
                        projects designed to test the 
                        effectiveness of tribal governments or 
                        tribal consortia in coordinating the 
                        provision to tribal families at risk of 
                        child abuse or neglect of child welfare 
                        services and services under tribal 
                        programs funded under this part.
                          (ii) Limitation on use of funds.--A 
                        grant made pursuant to clause (i) to 
                        such a project shall not be used for 
                        any purpose other than--
                                  (I) to improve case 
                                management for families 
                                eligible for assistance from 
                                such a tribal program;
                                  (II) for supportive services 
                                and assistance to tribal 
                                children in out-of-home 
                                placements and the tribal 
                                families caring for such 
                                children, including families 
                                who adopt such children; and
                                  (III) for prevention services 
                                and assistance to tribal 
                                families at risk of child abuse 
                                and neglect.
                          (iii) Reports.--The Secretary may 
                        require a recipient of funds awarded 
                        under this subparagraph to provide the 
                        Secretary with such information as the 
                        Secretary deems relevant to enable the 
                        Secretary to facilitate and oversee the 
                        administration of any project for which 
                        funds are provided under this 
                        subparagraph.
                  (C) Limitation on use of funds for activities 
                promoting responsible fatherhood.--
                          (i) In general.--Of the amounts made 
                        available under subparagraph (D) for a 
                        fiscal year, the Secretary may not 
                        award more than $75,000,000 on a 
                        competitive basis to States, 
                        territories, Indian tribes and tribal 
                        organizations, and public and nonprofit 
                        community entities, including religious 
                        organizations, for activities promoting 
                        responsible fatherhood.
                          (ii) Activities promoting responsible 
                        fatherhood.--In this paragraph, the 
                        term ``activities promoting responsible 
                        fatherhood'' means the following:
                                  (I) Activities to promote 
                                marriage or sustain marriage 
                                through activities such as 
                                counseling, mentoring, 
                                disseminating information about 
                                the benefits of marriage and 2-
                                parent involvement for 
                                children, enhancing 
                                relationship skills, education 
                                regarding how to control 
                                aggressive behavior, 
                                disseminating information on 
                                the causes of domestic violence 
                                and child abuse, marriage 
                                preparation programs, 
                                premarital counseling, marital 
                                inventories, skills-based 
                                marriage education, financial 
                                planning seminars, including 
                                improving a family's ability to 
                                effectively manage family 
                                business affairs by means such 
                                as education, counseling, or 
                                mentoring on matters related to 
                                family finances, including 
                                household management, 
                                budgeting, banking, and 
                                handling of financial 
                                transactions and home 
                                maintenance, and divorce 
                                education and reduction 
                                programs, including mediation 
                                and counseling.
                                  (II) Activities to promote 
                                responsible parenting through 
                                activities such as counseling, 
                                mentoring, and mediation, 
                                disseminating information about 
                                good parenting practices, 
                                skills-based parenting 
                                education, encouraging child 
                                support payments, and other 
                                methods.
                                  (III) Activities to foster 
                                economic stability by helping 
                                fathers improve their economic 
                                status by providing activities 
                                such as work first services, 
                                job search, job training, 
                                subsidized employment, job 
                                retention, job enhancement, and 
                                encouraging education, 
                                including career-advancing 
                                education, dissemination of 
                                employment materials, 
                                coordination with existing 
                                employment services such as 
                                welfare-to-work programs, 
                                referrals to local employment 
                                training initiatives, and other 
                                methods.
                                  (IV) Activities to promote 
                                responsible fatherhood that are 
                                conducted through a contract 
                                with a nationally recognized, 
                                nonprofit fatherhood promotion 
                                organization, such as the 
                                development, promotion, and 
                                distribution of a media 
                                campaign to encourage the 
                                appropriate involvement of 
                                parents in the life of any 
                                child and specifically the 
                                issue of responsible 
                                fatherhood, and the development 
                                of a national clearinghouse to 
                                assist States and communities 
                                in efforts to promote and 
                                support marriage and 
                                responsible fatherhood.
                  (D) Appropriation.--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] 2019 through 
                2023 for expenditure in accordance with this 
                paragraph--
                          (i) $75,000,000 for awarding funds 
                        for the purpose of carrying out healthy 
                        marriage promotion activities; and
                          (ii) $75,000,000 for awarding funds 
                        for the purpose of carrying out 
                        activities promoting responsible 
                        fatherhood.
                If the Secretary makes an award under 
                subparagraph (B)(i) [for fiscal year 2017 or 
                2018], the funds for such award shall be taken 
                in equal portion from the amounts appropriated 
                under clauses (i) and (ii).
                  (E) Preference.--In awarding funds under this 
                paragraph for fiscal year 2011, the Secretary 
                shall give preference to entities that were 
                awarded funds under this paragraph for any 
                prior fiscal year and that have demonstrated 
                the ability to successfully carry out the 
                programs funded under this paragraph.
          [(3) Supplemental grant for population increases in 
        certain states.--
                  [(A) In general.--Each qualifying State 
                shall, subject to subparagraph (F), be entitled 
                to receive from the Secretary--
                          [(i) for fiscal year 1998 a grant in 
                        an amount equal to 2.5 percent of the 
                        total amount required to be paid to the 
                        State under former section 403 (as in 
                        effect during fiscal year 1994) for 
                        fiscal year 1994; and
                          [(ii) for each of fiscal years 1999, 
                        2000, and 2001, a grant in an amount 
                        equal to the sum of--
                                  [(I) the amount (if any) 
                                required to be paid to the 
                                State under this paragraph for 
                                the immediately preceding 
                                fiscal year; and
                                  [(II) 2.5 percent of the sum 
                                of--
                                          [(aa) the total 
                                        amount required to be 
                                        paid to the State under 
                                        former section 403 (as 
                                        in effect during fiscal 
                                        year 1994) for fiscal 
                                        year 1994; and
                                          [(bb) the amount (if 
                                        any) required to be 
                                        paid to the State under 
                                        this paragraph for the 
                                        fiscal year preceding 
                                        the fiscal year for 
                                        which the grant is to 
                                        be made.
                  [(B) Preservation of grant without increases 
                for states failing to remain qualifying 
                states.--Each State that is not a qualifying 
                State for a fiscal year specified in 
                subparagraph (A)(ii) but was a qualifying State 
                for a prior fiscal year shall, subject to 
                subparagraph (F), be entitled to receive from 
                the Secretary for the specified fiscal year, a 
                grant in an amount equal to the amount required 
                to be paid to the State under this paragraph 
                for the most recent fiscal year for which the 
                State was a qualifying State.
                  [(C) Qualifying state.--
                          [(i) In general.--For purposes of 
                        this paragraph, a State is a qualifying 
                        State for a fiscal year if--
                                  [(I) the level of welfare 
                                spending per poor person by the 
                                State for the immediately 
                                preceding fiscal year is less 
                                than the national average level 
                                of State welfare spending per 
                                poor person for such preceding 
                                fiscal year; and
                                  [(II) the population growth 
                                rate of the State (as 
                                determined by the Bureau of the 
                                Census) for the most recent 
                                fiscal year for which 
                                information is available 
                                exceeds the average population 
                                growth rate for all States (as 
                                so determined) for such most 
                                recent fiscal year.
                          [(ii) State must qualify in fiscal 
                        year 1998.--Notwithstanding clause (i), 
                        a State shall not be a qualifying State 
                        for any fiscal year after 1998 by 
                        reason of clause (i) if the State is 
                        not a qualifying State for fiscal year 
                        1998 by reason of clause (i).
                          [(iii) Certain states deemed 
                        qualifying states.--For purposes of 
                        this paragraph, a State is deemed to be 
                        a qualifying State for fiscal years 
                        1998, 1999, 2000, and 2001 if--
                                  [(I) the level of welfare 
                                spending per poor person by the 
                                State for fiscal year 1994 is 
                                less than 35 percent of the 
                                national average level of State 
                                welfare spending per poor 
                                person for fiscal year 1994; or
                                  [(II) the population of the 
                                State increased by more than 10 
                                percent from April 1, 1990 to 
                                July 1, 1994, according to the 
                                population estimates in 
                                publication CB94-204 of the 
                                Bureau of the Census.
                  [(D) Definitions.--As used in this paragraph:
                          [(i) Level of welfare spending per 
                        poor person.--The term ``level of State 
                        welfare spending per poor person'' 
                        means, with respect to a State and a 
                        fiscal year--
                                  [(I) the sum of--
                                          [(aa) the total 
                                        amount required to be 
                                        paid to the State under 
                                        former section 403 (as 
                                        in effect during fiscal 
                                        year 1994) for fiscal 
                                        year 1994; and
                                          [(bb) the amount (if 
                                        any) paid to the State 
                                        under this paragraph 
                                        for the immediately 
                                        preceding fiscal year; 
                                        divided by
                                  [(II) the number of 
                                individuals, according to the 
                                1990 decennial census, who were 
                                residents of the State and 
                                whose income was below the 
                                poverty line.
                          [(ii) National average level of state 
                        welfare spending per poor person.--The 
                        term ``national average level of State 
                        welfare spending per poor person'' 
                        means, with respect to a fiscal year, 
                        an amount equal to--
                                  [(I) the total amount 
                                required to be paid to the 
                                States under former section 403 
                                (as in effect during fiscal 
                                year 1994) for fiscal year 
                                1994; divided by
                                  [(II) the number of 
                                individuals, according to the 
                                1990 decennial census, who were 
                                residents of any State and 
                                whose income was below the 
                                poverty line.
                          [(iii) State.--The term ``State'' 
                        means each of the 50 States of the 
                        United States and the District of 
                        Columbia.
                  [(E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal 
                years 1998, 1999, 2000, and 2001 such sums as 
                are necessary for grants under this paragraph, 
                in a total amount not to exceed $800,000,000.
                  [(F) Grants reduced pro rata if insufficient 
                appropriations.--If the amount appropriated 
                pursuant to this paragraph for a fiscal year 
                (or portion of a fiscal year) is less than the 
                total amount of payments otherwise required to 
                be made under this paragraph for the fiscal 
                year (or portion of the fiscal year), then the 
                amount otherwise payable to any State for the 
                fiscal year (or portion of the fiscal year) 
                under this paragraph shall be reduced by a 
                percentage equal to the amount so appropriated 
                divided by such total amount.
                  [(G) Budget scoring.--Notwithstanding section 
                257(b)(2) of the Balanced Budget and Emergency 
                Deficit Control Act of 1985, the baseline shall 
                assume that no grant shall be made under this 
                paragraph after fiscal year 2001.
                  [(H) Reauthorization.--Notwithstanding any 
                other provision of this paragraph--
                          [(i) any State that was a qualifying 
                        State under this paragraph for fiscal 
                        year 2001 or any prior fiscal year 
                        shall be entitled to receive from the 
                        Secretary for each of fiscal years 2002 
                        and 2003 a grant in an amount equal to 
                        the amount required to be paid to the 
                        State under this paragraph for the most 
                        recent fiscal year in which the State 
                        was a qualifying State;
                          [(ii) subparagraph (G) shall be 
                        applied as if ``fiscal year 2011'' were 
                        substituted for ``fiscal year 2001'';
                          [(iii) out of any money in the 
                        Treasury of the United States not 
                        otherwise appropriated, there are 
                        appropriated for each of fiscal years 
                        2002 and 2003 such sums as are 
                        necessary for grants under this 
                        subparagraph.
          [(4) Bonus to reward high performance states.--
                  [(A) In general.--The Secretary shall make a 
                grant pursuant to this paragraph to each State 
                for each bonus year for which the State is a 
                high performing State.
                  [(B) Amount of grant.--
                          [(i) In general.--Subject to clause 
                        (ii) of this subparagraph, the 
                        Secretary shall determine the amount of 
                        the grant payable under this paragraph 
                        to a high performing State for a bonus 
                        year, which shall be based on the score 
                        assigned to the State under 
                        subparagraph (D)(i) for the fiscal year 
                        that immediately precedes the bonus 
                        year.
                          [(ii) Limitation.--The amount payable 
                        to a State under this paragraph for a 
                        bonus year shall not exceed 5 percent 
                        of the State family assistance grant.
                  [(C) Formula for measuring state 
                performance.--Not later than 1 year after the 
                date of the enactment of the Personal 
                Responsibility and Work Opportunity 
                Reconciliation Act of 1996, the Secretary, in 
                consultation with the National Governors' 
                Association and the American Public Welfare 
                Association, shall develop a formula for 
                measuring State performance in operating the 
                State program funded under this part so as to 
                achieve the goals set forth in section 401(a).
                  [(D) Scoring of state performance; setting of 
                performance thresholds.--For each bonus year, 
                the Secretary shall--
                          [(i) use the formula developed under 
                        subparagraph (C) to assign a score to 
                        each eligible State for the fiscal year 
                        that immediately precedes the bonus 
                        year; and
                          [(ii) prescribe a performance 
                        threshold in such a manner so as to 
                        ensure that--
                                  [(I) the average annual total 
                                amount of grants to be made 
                                under this paragraph for each 
                                bonus year equals $200,000,000; 
                                and
                                  [(II) the total amount of 
                                grants to be made under this 
                                paragraph for all bonus years 
                                equals $1,000,000,000.
                  [(E) Definitions.--As used in this paragraph:
                          [(i) Bonus year.--The term ``bonus 
                        year'' means fiscal years 1999, 2000, 
                        2001, 2002, and 2003.
                          [(ii) High performing state.--The 
                        term ``high performing State'' means, 
                        with respect to a bonus year, an 
                        eligible State whose score assigned 
                        pursuant to subparagraph (D)(i) for the 
                        fiscal year immediately preceding the 
                        bonus year equals or exceeds the 
                        performance threshold prescribed under 
                        subparagraph (D)(ii) for such preceding 
                        fiscal year.
                  [(F) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal 
                years 1999 through 2003 $1,000,000,000 for 
                grants under this paragraph.
          [(5) Welfare-to-work grants.--
                  [(A) Formula grants.--
                          [(i) Entitlement.--A State shall be 
                        entitled to receive from the Secretary 
                        of Labor a grant for each fiscal year 
                        specified in subparagraph (H) of this 
                        paragraph for which the State is a 
                        welfare-to-work State, in an amount 
                        that does not exceed the lesser of--
                                  [(I) 2 times the total of the 
                                expenditures by the State 
                                (excluding qualified State 
                                expenditures (as defined in 
                                section 409(a)(7)(B)(i)) and 
                                any expenditure described in 
                                subclause (I), (II), or (IV) of 
                                section 409(a)(7)(B)(iv)) 
                                during the period permitted 
                                under subparagraph (C)(vii) of 
                                this paragraph for the 
                                expenditure of funds under the 
                                grant for activities described 
                                in subparagraph (C)(i) of this 
                                paragraph; or
                                  [(II) the allotment of the 
                                State under clause (iii) of 
                                this subparagraph for the 
                                fiscal year.
                          [(ii) Welfare-to-work state.--A State 
                        shall be considered a welfare-to-work 
                        State for a fiscal year for purposes of 
                        this paragraph if the Secretary of 
                        Labor determines that the State meets 
                        the following requirements:
                                  [(I) The State has submitted 
                                to the Secretary of Labor and 
                                the Secretary of Health and 
                                Human Services (in the form of 
                                an addendum to the State plan 
                                submitted under section 402) a 
                                plan which--
                                          [(aa) describes how, 
                                        consistent with this 
                                        subparagraph, the State 
                                        will use any funds 
                                        provided under this 
                                        subparagraph during the 
                                        fiscal year;
                                          [(bb) specifies the 
                                        formula to be used 
                                        pursuant to clause (vi) 
                                        to distribute funds in 
                                        the State, and 
                                        describes the process 
                                        by which the formula 
                                        was developed;
                                          [(cc) contains 
                                        evidence that the plan 
                                        was developed in 
                                        consultation and 
                                        coordination with 
                                        appropriate entitites 
                                        in sub-State areas;
                                          [(dd) contains 
                                        assurances by the 
                                        Governor of the State 
                                        that the private 
                                        industry council (and 
                                        any alternate agency 
                                        designated by the 
                                        Governor under item 
                                        (ee)) for a service 
                                        delivery area in the 
                                        State will coordinate 
                                        the expenditure of any 
                                        funds provided under 
                                        this subparagraph for 
                                        the benefit of the 
                                        service delivery area 
                                        with the expenditure of 
                                        the funds provided to 
                                        the State under section 
                                        403(a)(1);
                                          [(ee) if the Governor 
                                        of the State desires to 
                                        have an agency other 
                                        than a private industry 
                                        council administer the 
                                        funds provided under 
                                        this subparagraph for 
                                        the benefit of 1 or 
                                        more service delivery 
                                        areas in the State, 
                                        contains an application 
                                        to the Secretary of 
                                        Labor for a waiver of 
                                        clause (vii)(I) with 
                                        respect to the area or 
                                        areas in order to 
                                        permit an alternate 
                                        agency designated by 
                                        the Governor to so 
                                        administer the funds; 
                                        and
                                          [(ff) describes how 
                                        the State will ensure 
                                        that a private industry 
                                        council to which 
                                        information is 
                                        disclosed pursuant to 
                                        section 403(a)(5)(K) or 
                                        454A(f)(5) has 
                                        procedures for 
                                        safeguarding the 
                                        information and for 
                                        ensuring that the 
                                        information is used 
                                        solely for the purpose 
                                        described in that 
                                        section.
                                  [(II) The State has provided 
                                to the Secretary of Labor an 
                                estimate of the amount that the 
                                State intends to expend during 
                                the period permitted under 
                                subparagraph (C)(vii) of this 
                                paragraph for the expenditure 
                                of funds under the grant 
                                (excluding expenditures 
                                described in section 
                                409(a)(7)(B)(iv) (other than 
                                subclause (III) thereof)) 
                                pursuant to this paragraph.
                                  [(III) The State has agreed 
                                to negotiate in good faith with 
                                the Secretary of Health and 
                                Human Services with respect to 
                                the substance and funding of 
                                any evaluation under section 
                                413(j), and to cooperate with 
                                the conduct of any such 
                                evaluation.
                                  [(IV) The State is an 
                                eligible State for the fiscal 
                                year.
                                  [(V) The State certifies that 
                                qualified State expenditures 
                                (within the meaning of section 
                                409(a)(7)) for the fiscal year 
                                will be not less than the 
                                applicable percentage of 
                                historic State expenditures 
                                (within the meaning of section 
                                409(a)(7)) with respect to the 
                                fiscal year.
                          [(iii) Allotments to welfare-to-work 
                        states.--
                                  [(I) In general.--Subject to 
                                this clause, the allotment of a 
                                welfare-to-work State for a 
                                fiscal year shall be the 
                                available amount for the fiscal 
                                year, multiplied by the State 
                                percentage for the fiscal year.
                                  [(II) Minimum allotment.--The 
                                allotment of a welfare-to-work 
                                State (other than Guam, the 
                                Virgin Islands, or American 
                                Samoa) for a fiscal year shall 
                                not be less than 0.25 percent 
                                of the available amount for the 
                                fiscal year.
                                  [(III) Pro rata reduction.--
                                Subject to subclause (II), the 
                                Secretary of Labor shall make 
                                pro rata reductions in the 
                                allotments to States under this 
                                clause for a fiscal year as 
                                necessary to ensure that the 
                                total of the allotments does 
                                not exceed the available amount 
                                for the fiscal year.
                          [(iv) Available amount.--As used in 
                        this subparagraph, the term ``available 
                        amount'' means, for a fiscal year, the 
                        sum of--
                                  [(I) 75 percent of the sum 
                                of--
                                          [(aa) the amount 
                                        specified in 
                                        subparagraph (H) for 
                                        the fiscal year, minus 
                                        the total of the 
                                        amounts reserved 
                                        pursuant to 
                                        subparagraphs (E), (F), 
                                        and (G) for the fiscal 
                                        year; and
                                          [(bb) any amount 
                                        reserved pursuant to 
                                        subparagraph (E) for 
                                        the immediately 
                                        preceding fiscal year 
                                        that has not been 
                                        obligated; and
                                  [(II) any available amount 
                                for the immediately preceding 
                                fiscal year that has not been 
                                obligated by a State, other 
                                than funds reserved by the 
                                State for distribution under 
                                clause (vi)(III) and funds 
                                distributed pursuant to clause 
                                (vi)(I) in any State in which 
                                the service delivery area is 
                                the State.
                          [(v) State percentage.--As used in 
                        clause (iii), the term ``State 
                        percentage'' means, with respect to a 
                        fiscal year, \1/2\ of the sum of--
                                  [(I) the percentage 
                                represented by the number of 
                                individuals in the State whose 
                                income is less than the poverty 
                                line divided by the number of 
                                such individuals in the United 
                                States; and
                                  [(II) the percentage 
                                represented by the number of 
                                adults who are recipients of 
                                assistance under the State 
                                program funded under this part 
                                divided by the number of adults 
                                in the United States who are 
                                recipients of assistance under 
                                any State program funded under 
                                this part.
                          [(vi) Procedure for distribution of 
                        funds within states.--
                                  [(I) Allocation formula.--A 
                                State to which a grant is made 
                                under this subparagraph shall 
                                devise a formula for allocating 
                                not less than 85 percent of the 
                                amount of the grant among the 
                                service delivery areas in the 
                                State, which--
                                          [(aa) determines the 
                                        amount to be allocated 
                                        for the benefit of a 
                                        service delivery area 
                                        in proportion to the 
                                        number (if any) by 
                                        which the population of 
                                        the area with an income 
                                        that is less than the 
                                        poverty line exceeds 
                                        7.5 percent of the 
                                        total population of the 
                                        area, relative to such 
                                        number for all such 
                                        areas in the State with 
                                        such an excess, and 
                                        accords a weight of not 
                                        less than 50 percent to 
                                        this factor;
                                          [(bb) may determine 
                                        the amount to be 
                                        allocated for the 
                                        benefit of such an area 
                                        in proportion to the 
                                        number of adults 
                                        residing in the area 
                                        who have been 
                                        recipients of 
                                        assistance under the 
                                        State program funded 
                                        under this part 
                                        (whether in effect 
                                        before or after the 
                                        amendments made by 
                                        section 103(a) of the 
                                        Personal Responsibility 
                                        and Work Opportunity 
                                        Reconciliation Act of 
                                        1996 first applied to 
                                        the State) for at least 
                                        30 months (whether or 
                                        not consecutive) 
                                        relative to the number 
                                        of such adults residing 
                                        in the State; and
                                          [(cc) may determine 
                                        the amount to be 
                                        allocated for the 
                                        benefit of such an area 
                                        in proportion to the 
                                        number of unemployed 
                                        individuals residing in 
                                        the area relative to 
                                        the number of such 
                                        individuals residing in 
                                        the State.
                                  [(II) Distribution of 
                                funds.--
                                          [(aa) In general.--If 
                                        the amount allocated by 
                                        the formula to a 
                                        service delivery area 
                                        is at least $100,000, 
                                        the State shall 
                                        distribute the amount 
                                        to the entity 
                                        administering the grant 
                                        in the area.
                                          [(bb) Special rule.--
                                        If the amount allocated 
                                        by the formula to a 
                                        service delivery area 
                                        is less than $100,000, 
                                        the sum shall be 
                                        available for 
                                        distribution in the 
                                        State under subclause 
                                        (III) during the fiscal 
                                        year.
                                  [(III) Projects to help long-
                                term recipients of assistance 
                                enter unsubsidized jobs.--The 
                                Governor of a State to which a 
                                grant is made under this 
                                subparagraph may distribute not 
                                more than 15 percent of the 
                                grant funds (plus any amount 
                                required to be distributed 
                                under this subclause by reason 
                                of subclause (II)(bb)) to 
                                projects that appear likely to 
                                help long-term recipients of 
                                assistance under the State 
                                program funded under this part 
                                (whether in effect before or 
                                after the amendments made by 
                                section 103(a) of the Personal 
                                Responsibility and Work 
                                Opportunity Reconciliation Act 
                                of 1996 first applied to the 
                                State) enter unsubsidized 
                                employment.
                          [(vii) Administration.--
                                  [(I) Private industry 
                                councils.--The private industry 
                                council for a service delivery 
                                area in a State shall have sole 
                                authority, in coordination with 
                                the chief elected official (as 
                                defined in section 3 of the 
                                Workforce Innovation and 
                                Opportunity Act) of the area, 
                                to expend the amounts 
                                distributed under clause 
                                (vi)(II)(aa) for the benefit of 
                                the service delivery area, in 
                                accordance with the assurances 
                                described in clause (ii)(I)(dd) 
                                provided by the Governor of the 
                                State.
                                  [(II) Enforcement of 
                                coordination of expenditures 
                                with other expenditures under 
                                this part.--Notwithstanding 
                                subclause (I) of this clause, 
                                on a determination by the 
                                Governor of a State that a 
                                private industry council (or an 
                                alternate agency described in 
                                clause (ii)(I)(dd)) has used 
                                funds provided under this 
                                subparagraph in a manner 
                                inconsistent with the 
                                assurances described in clause 
                                (ii)(I)(dd)--
                                          [(aa) the private 
                                        industry council (or 
                                        such alternate agency) 
                                        shall remit the funds 
                                        to the Governor; and
                                          [(bb) the Governor 
                                        shall apply to the 
                                        Secretary of Labor for 
                                        a waiver of subclause 
                                        (I) of this clause with 
                                        respect to the service 
                                        delivery area or areas 
                                        involved in order to 
                                        permit an alternate 
                                        agency designated by 
                                        the Governor to 
                                        administer the funds in 
                                        accordance with the 
                                        assurances.
                                  [(III) Authority to permit 
                                use of alternate administering 
                                agency.--The Secretary of Labor 
                                shall approve an application 
                                submitted under clause 
                                (ii)(I)(ee) or subclause 
                                (II)(bb) of this clause to 
                                waive subclause (I) of this 
                                clause with respect to 1 or 
                                more service delivery areas if 
                                the Secretary determines that 
                                the alternate agency designated 
                                in the application would 
                                improve the effectiveness or 
                                efficiency of the 
                                administration of amounts 
                                distributed under clause 
                                (vi)(II)(aa) for the benefit of 
                                the area or areas.
                          [(viii) Data to be used in 
                        determining the number of adult tanf 
                        recipients.--For purposes of this 
                        subparagraph, the number of adult 
                        recipients of assistance under a State 
                        program funded under this part for a 
                        fiscal year shall be determined using 
                        data for the most recent 12-month 
                        period for which such data is available 
                        before the beginning of the fiscal 
                        year.
                          [(ix) Reversion of unallotted formula 
                        funds.--If at the end of any fiscal 
                        year any funds available under this 
                        subparagraph have not been allotted due 
                        to a determination by the Secretary 
                        that any State has not met the 
                        requirements of clause (ii), such funds 
                        shall be transferred to the General 
                        Fund of the Treasury of the United 
                        States.
                  [(B) Competitive grants.--
                          [(i) In general.--The Secretary of 
                        Labor shall award grants in accordance 
                        with this subparagraph, in fiscal years 
                        1998 and 1999, for projects proposed by 
                        eligible applicants, based on the 
                        following:
                                  [(I) The effectiveness of the 
                                proposal in--
                                          [(aa) expanding the 
                                        base of knowledge about 
                                        programs aimed at 
                                        moving recipients of 
                                        assistance under State 
                                        programs funded under 
                                        this part who are least 
                                        job ready into 
                                        unsubsidized 
                                        employment.
                                          [(bb) moving 
                                        recipients of 
                                        assistance under State 
                                        programs funded under 
                                        this part who are least 
                                        job ready into 
                                        unsubsidized 
                                        employment; and
                                          [(cc) moving 
                                        recipients of 
                                        assistance under State 
                                        programs funded under 
                                        this part who are least 
                                        job ready into 
                                        unsubsidized 
                                        employment, even in 
                                        labor markets that have 
                                        a shortage of low-skill 
                                        jobs.
                                  [(II) At the discretion of 
                                the Secretary of Labor, any of 
                                the following:
                                          [(aa) The history of 
                                        success of the 
                                        applicant in moving 
                                        individuals with 
                                        multiple barriers into 
                                        work.
                                          [(bb) Evidence of the 
                                        applicant's ability to 
                                        leverage private, 
                                        State, and local 
                                        resources.
                                          [(cc) Use by the 
                                        applicant of State and 
                                        local resources beyond 
                                        those required by 
                                        subparagraph (A).
                                          [(dd) Plans of the 
                                        applicant to coordinate 
                                        with other 
                                        organizations at the 
                                        local and State level.
                                          [(ee) Use by the 
                                        applicant of current or 
                                        former recipients of 
                                        assistance under a 
                                        State program funded 
                                        under this part as 
                                        mentors, case managers, 
                                        or service providers.
                          [(ii) Eligible applicants.--As used 
                        in clause (i), the term ``eligible 
                        applicant'' means a private industry 
                        council for a service delivery area in 
                        a State, a political subdivision of a 
                        State, or a private entity applying in 
                        conjunction with the private industry 
                        council for such a service delivery 
                        area or with such a political 
                        subdivision, that submits a proposal 
                        developed in consultation with the 
                        Governor of the State.
                          [(iii) Determination of grant 
                        amount.--In determining the amount of a 
                        grant to be made under this 
                        subparagraph for a project proposed by 
                        an applicant, the Secretary of Labor 
                        shall provide the applicant with an 
                        amount sufficient to ensure that the 
                        project has a reasonable opportunity to 
                        be successful, taking into account the 
                        number of long-term recipients of 
                        assistance under a State program funded 
                        under this part, the level of 
                        unemployment, the job opportunities and 
                        job growth, the poverty rate, and such 
                        other factors as the Secretary of Labor 
                        deems appropriate, in the area to be 
                        served by the project.
                          [(iv) Consideration of needs of rural 
                        areas and cities with large 
                        concentrations of poverty.--In making 
                        grants under this subparagraph, the 
                        Secretary of Labor shall consider the 
                        needs of rural areas and cities with 
                        large concentrations of residents with 
                        an income that is less than the poverty 
                        line.
                          [(v) Funding.--For grants under this 
                        subparagraph for each fiscal year 
                        specified in subparagraph (H), there 
                        shall be available to the Secretary of 
                        Labor an amount equal to the sum of--
                                  [(I) 25 percent of the sum 
                                of--
                                          [(aa) the amount 
                                        specified in 
                                        subparagraph (H) for 
                                        the fiscal year, minus 
                                        the total of the 
                                        amounts reserved 
                                        pursuant to 
                                        subparagraphs (E), (F), 
                                        and (G) for the fiscal 
                                        year; and
                                          [(bb) any amount 
                                        reserved pursuant to 
                                        subparagraph (E) for 
                                        the immediately 
                                        preceding fiscal year 
                                        that has not been 
                                        obligated; and
                                  [(II) any amount available 
                                for grants under this 
                                subparagraph for the 
                                immediately preceding fiscal 
                                year that has not been 
                                obligated.
                  [(C) Limitations on use of funds.--
                          [(i) Allowable activities.--An entity 
                        to which funds are provided under this 
                        paragraph shall use the funds to move 
                        individuals into and keep individuals 
                        in lasting unsubsidized employment by 
                        means of any of the following:
                                  [(I) The conduct and 
                                administration of community 
                                service or work experience 
                                programs.
                                  [(II) Job creation through 
                                public or private sector 
                                employment wage subsidies.
                                  [(III) On-the-job training.
                                  [(IV) Contracts with public 
                                or private providers of 
                                readiness, placement, and post-
                                employment services, or if the 
                                entity is not a private 
                                industry council or workforce 
                                investment board, the direct 
                                provision of such services.
                                  [(V) Job vouchers for 
                                placement, readiness, and 
                                postemployment services.
                                  [(VI) Job retention or 
                                support services if such 
                                services are not otherwise 
                                available.
                                  [(VII) Not more than 6 months 
                                of vocational educational or 
                                job training.
                        Contracts or vouchers for job placement 
                        services supported by such funds must 
                        require that at least \1/2\ of the 
                        payment occur after an eligible 
                        individual placed into the workforce 
                        has been in the workforce for 6 months.
                          [(ii) General eligibility.--An entity 
                        that operates a project with funds 
                        provided under this paragraph may 
                        expend funds provided to the project 
                        for the benefit of recipients of 
                        assistance under the program funded 
                        under this part of the State in which 
                        the entity is located who--
                                  [(I) has received assistance 
                                under the State program funded 
                                under this part (whether in 
                                effect before or after the 
                                amendments made by section 103 
                                of the Personal Responsibility 
                                and Work Opportunity 
                                Reconciliation Act of 1996 
                                first apply to the State) for 
                                at least 30 months (whether or 
                                not consecutive); or
                                  [(II) within 12 months, will 
                                become ineligible for 
                                assistance under the State 
                                program funded under this part 
                                by reason of a durational limit 
                                on such assistance, without 
                                regard to any exemption 
                                provided pursuant to section 
                                408(a)(7)(C) that may apply to 
                                the individual.
                          [(iii) Noncustodial parents.--An 
                        entity that operates a project with 
                        funds provided under this paragraph may 
                        use the funds to provide services in a 
                        form described in clause (i) to 
                        noncustodial parents with respect to 
                        whom the requirements of the following 
                        subclauses are met:
                                  [(I) The noncustodial parent 
                                is unemployed, underemployed, 
                                or having difficulty in paying 
                                child support obligations.
                                  [(II) At least 1 of the 
                                following applies to a minor 
                                child of the noncustodial 
                                parent (with preference in the 
                                determination of the 
                                noncustodial parents to be 
                                provided services under this 
                                paragraph to be provided by the 
                                entity to those noncustodial 
                                parents with minor children who 
                                meet, or who have custodial 
                                parents who meet, the 
                                requirements of item (aa)):
                                          [(aa) The minor child 
                                        or the custodial parent 
                                        of the minor child 
                                        meets the requirements 
                                        of subclause (I) or 
                                        (II) of clause (ii).
                                          [(bb) The minor child 
                                        is eligible for, or is 
                                        receiving, benefits 
                                        under the program 
                                        funded under this part.
                                          [(cc) The minor child 
                                        received benefits under 
                                        the program funded 
                                        under this part in the 
                                        12-month period 
                                        preceding the date of 
                                        the determination but 
                                        no longer receives such 
                                        benefits.
                                          [(dd) The minor child 
                                        is eligible for, or is 
                                        receiving, assistance 
                                        under the Food and 
                                        Nutrition Act of 2008, 
                                        benefits under the 
                                        supplemental security 
                                        income program under 
                                        title XVI of this Act, 
                                        medical assistance 
                                        under title XIX of this 
                                        Act, or child health 
                                        assistance under title 
                                        XXI of this Act.
                                  [(III) In the case of a 
                                noncustodial parent who becomes 
                                enrolled in the project on or 
                                after the date of the enactment 
                                of this clause, the 
                                noncustodial parent is in 
                                compliance with the terms of an 
                                oral or written personal 
                                responsibility contract entered 
                                into among the noncustodial 
                                parent, the entity, and (unless 
                                the entity demonstrates to the 
                                Secretary that the entity is 
                                not capable of coordinating 
                                with such agency) the agency 
                                responsible for administering 
                                the State plan under part D, 
                                which was developed taking into 
                                account the employment and 
                                child support status of the 
                                noncustodial parent, which was 
                                entered into not later than 30 
                                (or, at the option of the 
                                entity, not later than 90) days 
                                after the noncustodial parent 
                                was enrolled in the project, 
                                and which, at a minimum, 
                                includes the following:
                                          [(aa) A commitment by 
                                        the noncustodial parent 
                                        to cooperate, at the 
                                        earliest opportunity, 
                                        in the establishment of 
                                        the paternity of the 
                                        minor child, through 
                                        voluntary 
                                        acknowledgement or 
                                        other procedures, and 
                                        in the establishment of 
                                        a child support order.
                                          [(bb) A commitment by 
                                        the noncustodial parent 
                                        to cooperate in the 
                                        payment of child 
                                        support for the minor 
                                        child, which may 
                                        include a modification 
                                        of an existing support 
                                        order to take into 
                                        account the ability of 
                                        the noncustodial parent 
                                        to pay such support and 
                                        the participation of 
                                        such parent in the 
                                        project.
                                          [(cc) A commitment by 
                                        the noncustodial parent 
                                        to participate in 
                                        employment or related 
                                        activities that will 
                                        enable the noncustodial 
                                        parent to make regular 
                                        child support payments, 
                                        and if the noncustodial 
                                        parent has not attained 
                                        20 years of age, such 
                                        related activities may 
                                        include completion of 
                                        high school, a general 
                                        equivalency degree, or 
                                        other education 
                                        directly related to 
                                        employment.
                                          [(dd) A description 
                                        of the services to be 
                                        provided under this 
                                        paragraph, and a 
                                        commitment by the 
                                        noncustodial parent to 
                                        participate in such 
                                        services, that are 
                                        designed to assist the 
                                        noncustodial parent 
                                        obtain and retain 
                                        employment, increase 
                                        earnings, and enhance 
                                        the financial and 
                                        emotional contributions 
                                        to the well-being of 
                                        the minor child.
                                In order to protect custodial 
                                parents and children who may be 
                                at risk of domestic violence, 
                                the preceding provisions of 
                                this subclause shall not be 
                                construed to affect any other 
                                provision of law requiring a 
                                custodial parent to cooperate 
                                in establishing the paternity 
                                of a child or establishing or 
                                enforcing a support order with 
                                respect to a child, or 
                                entitling a custodial parent to 
                                refuse, for good cause, to 
                                provide such cooperation as a 
                                condition of assistance or 
                                benefit under any program, 
                                shall not be construed to 
                                require such cooperation by the 
                                custodial parent as a condition 
                                of participation of either 
                                parent in the program 
                                authorized under this 
                                paragraph, and shall not be 
                                construed to require a 
                                custodial parent to cooperate 
                                with or participate in any 
                                activity under this clause. The 
                                entity operating a project 
                                under this clause with funds 
                                provided under this paragraph 
                                shall consult with domestic 
                                violence prevention and 
                                intervention organizations in 
                                the development of the project.
                          [(iv) Targeting of hard to employ 
                        individuals with characteristics 
                        associated with long-term welfare 
                        dependence.--An entity that operates a 
                        project with funds provided under this 
                        paragraph may expend not more than 30 
                        percent of all funds provided to the 
                        project for programs that provide 
                        assistance in a form described in 
                        clause (i)--
                                  [(I) to recipients of 
                                assistance under the program 
                                funded under this part of the 
                                State in which the entity is 
                                located who have 
                                characteristics associated with 
                                long-term welfare dependence 
                                (such as school dropout, teen 
                                pregnancy, or poor work 
                                history), including, at the 
                                option of the State, by 
                                providing assistance in such 
                                form as a condition of 
                                receiving assistance under the 
                                State program funded under this 
                                part;
                                  [(II) to children--
                                          [(aa) who have 
                                        attained 18 years of 
                                        age but not 25 years of 
                                        age; and
                                          [(bb) who, before 
                                        attaining 18 years of 
                                        age, were recipients of 
                                        foster care maintenance 
                                        payments (as defined in 
                                        section 475(4)) under 
                                        part E or were in 
                                        foster care under the 
                                        responsibility of a 
                                        State;
                                  [(III) to recipients of 
                                assistance under the State 
                                program funded under this part, 
                                determined to have significant 
                                barriers to self-sufficiency, 
                                pursuant to criteria 
                                established by the local 
                                private industry council; or
                                  [(IV) to custodial parents 
                                with incomes below 100 percent 
                                of 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).
                        To the extent that the entity does not 
                        expend such funds in accordance with 
                        the preceding sentence, the entity 
                        shall expend such funds in accordance 
                        with clauses (ii) and (iii) and, as 
                        appropriate, clause (v).
                          [(v) Authority to provide work-
                        related services to individuals who 
                        have reached the 5 year limit.--An 
                        entity that operates a project with 
                        funds provided under this paragraph may 
                        use the funds to provide assistance in 
                        a form described in clause (i) of this 
                        subparagraph to, or for the benefit of, 
                        individuals who (but for section 
                        408(a)(7)) would be eligible for 
                        assistance under the program funded 
                        under this part of the State in which 
                        the entity is located.
                          [(vi) Relationship to other 
                        provisions of this part.--
                                  [(I) Rules governing use of 
                                funds.--The rules of section 
                                404, other than subsections 
                                (b), (f), and (h) of section 
                                404, shall not apply to a grant 
                                made under this paragraph.
                                  [(II) Rules governing 
                                payments to states.--The 
                                Secretary of Labor shall carry 
                                out the functions otherwise 
                                assigned by section 405 to the 
                                Secretary of Health and Human 
                                Services with respect to the 
                                grants payable under this 
                                paragraph.
                                  [(III) Administration.--
                                Section 416 shall not apply to 
                                the programs under this 
                                paragraph.
                          [(vii) Prohibition against use of 
                        grant funds for any other fund matching 
                        requirement.--An entity to which funds 
                        are provided under this paragraph shall 
                        not use any part of the funds, nor any 
                        part of State expenditures made to 
                        match the funds, to fulfill any 
                        obligation of any State, political 
                        subdivision, or private industry 
                        council to contribute funds under 
                        section 403(b) or 418 or any other 
                        provision of this Act or other Federal 
                        law.
                          [(viii) Deadline for expenditure.--An 
                        entity to which funds are provided 
                        under this paragraph shall remit to the 
                        Secretary of Labor any part of the 
                        funds that are not expended within 5 
                        years after the date the funds are so 
                        provided.
                          [(ix) Regulations.--Within 90 days 
                        after the date of the enactment of this 
                        paragraph, the Secretary of Labor, 
                        after consultation with the Secretary 
                        of Health and Human Services and the 
                        Secretary of Housing and Urban 
                        Development, shall prescribe such 
                        regulations as may be necessary to 
                        implement this paragraph.
                          [(x) Reporting requirements.--The 
                        Secretary of Labor, in consultation 
                        with the Secretary of Health and Human 
                        Services, States, and organizations 
                        that represent State or local 
                        governments, shall establish 
                        requirements for the collection and 
                        maintenance of financial and 
                        participant information and the 
                        reporting of such information by 
                        entities carrying out activities under 
                        this paragraph.
                  [(D) Definitions.--
                          [(i) Individuals with income less 
                        than the poverty line.--For purposes of 
                        this paragraph, the number of 
                        individuals with an income that is less 
                        than the poverty line shall be 
                        determined for a fiscal year--
                                  [(I) based on the methodology 
                                used by the Bureau of the 
                                Census to produce and publish 
                                intercensal poverty data for 
                                States and counties (or, in the 
                                case of Puerto Rico, the Virgin 
                                Islands, Guam, and American 
                                Samoa, other poverty data 
                                selected by the Secretary of 
                                Labor); and
                                  [(II) using data for the most 
                                recent year for which such data 
                                is available before the 
                                beginning of the fiscal year.
                          [(ii) Private industry council.--As 
                        used in this paragraph, the term 
                        ``private industry council'' means, 
                        with respect to a service delivery 
                        area, the private industry council or 
                        local workforce development board 
                        established for the local workforce 
                        development area pursuant to title I of 
                        the Workforce Innovation and 
                        Opportunity Act, as appropriate.
                          [(iii) Service delivery area.--As 
                        used in this paragraph, the term 
                        ``service delivery area'' shall have 
                        the meaning given such term for 
                        purposes of the Job Training 
                        Partnership Act or.
                  [(E) Funding for indian tribes.--1 percent of 
                the amount specified in subparagraph (H) for 
                fiscal year 1998 and $15,000,000 of the amount 
                so specified for fiscal year 1999 shall be 
                reserved for grants to Indian tribes under 
                section 412(a)(3).
                  [(F) Funding for evaluations of welfare-to-
                work programs.--0.6 percent of the amount 
                specified in subparagraph (H) for fiscal year 
                1998 and $9,000,000 of the amount so specified 
                for fiscal year 1999 shall be reserved for use 
                by the Secretary to carry out section 413(j).
                  [(G) Funding for evaluation of abstinence 
                education programs.--
                          [(i) In general.--0.2 percent of the 
                        amount specified in subparagraph (H) 
                        for fiscal year 1998 and $3,000,000 of 
                        the amount so specified for fiscal year 
                        1999 shall be reserved for use by the 
                        Secretary to evaluate programs under 
                        section 510, directly or through 
                        grants, contracts, or interagency 
                        agreements.
                          [(ii) Authority to use funds for 
                        evaluations of welfare-to-work 
                        programs.--Any such amount not required 
                        for such evaluations shall be available 
                        for use by the Secretary to carry out 
                        section 413(j).
                          [(iii) Deadline for outlays.--Outlays 
                        from funds used pursuant to clause (i) 
                        for evaluation of programs under 
                        section 510 shall not be made after 
                        fiscal year 2005.
                          [(iv) Interim report.--Not later than 
                        January 1, 2002, the Secretary shall 
                        submit to the Congress an interim 
                        report on the evaluations referred to 
                        in clause (i).
                  [(H) Appropriations.--
                          [(i) In general.--Out of any money in 
                        the Treasury of the United States not 
                        otherwise appropriated, there are 
                        appropriated for grants under this 
                        paragraph--
                                  [(I) $1,500,000,000 for 
                                fiscal year 1998; and
                                  [(II) $1,400,000,000 for 
                                fiscal year 1999.
                          [(ii) Availability.--The amounts made 
                        available pursuant to clause (i) shall 
                        remain available for such period as is 
                        necessary to make the grants provided 
                        for in this paragraph.
                  [(I) Worker protections.--
                          [(i) Nondisplacement in work 
                        activities.--
                                  [(I) General prohibition.--
                                Subject to this clause, an 
                                adult in a family receiving 
                                assistance attributable to 
                                funds provided under this 
                                paragraph may fill a vacant 
                                employment position in order to 
                                engage in a work activity.
                                  [(II) Prohibition against 
                                violation of contracts.--A work 
                                activity engaged in under a 
                                program operated with funds 
                                provided under this paragraph 
                                shall not violate an existing 
                                contract for services or a 
                                collective bargaining 
                                agreement, and such a work 
                                activity that would violate a 
                                collective bargaining agreement 
                                shall not be undertaken without 
                                the written concurrence of the 
                                labor organization and employer 
                                concerned.
                                  [(III) Other prohibitions.--
                                An adult participant in a work 
                                activity engaged in under a 
                                program operated with funds 
                                provided under this paragraph 
                                shall not be employed or 
                                assigned--
                                          [(aa) when any other 
                                        individual is on layoff 
                                        from the same or any 
                                        substantially 
                                        equivalent job;
                                          [(bb) if the employer 
                                        has terminated the 
                                        employment of any 
                                        regular employee or 
                                        otherwise caused an 
                                        involuntary reduction 
                                        in its workforce with 
                                        the intention of 
                                        filling the vacancy so 
                                        created with the 
                                        participant; or
                                          [(cc) if the employer 
                                        has caused an 
                                        involuntary reduction 
                                        to less than full time 
                                        in hours of any 
                                        employee in the same or 
                                        a substantially 
                                        equivalent job.
                          [(ii) Health and safety.--Health and 
                        safety standards established under 
                        Federal and State law otherwise 
                        applicable to working conditions of 
                        employees shall be equally applicable 
                        to working conditions of other 
                        participants engaged in a work activity 
                        under a program operated with funds 
                        provided under this paragraph.
                          [(iii) Nondiscrimination.--In 
                        addition to the protections provided 
                        under the provisions of law specified 
                        in section 408(c), an individual may 
                        not be discriminated against by reason 
                        of gender with respect to participation 
                        in work activities engaged in under a 
                        program operated with funds provided 
                        under this paragraph.
                          [(iv) Grievance procedure.--
                                  [(I) In general.--Each State 
                                to which a grant is made under 
                                this paragraph shall establish 
                                and maintain a procedure for 
                                grievances or complaints from 
                                employees alleging violations 
                                of clause (i) and participants 
                                in work activities alleging 
                                violations of clause (i), (ii), 
                                or (iii).
                                  [(II) Hearing.--The procedure 
                                shall include an opportunity 
                                for a hearing.
                                  [(III) Remedies.--The 
                                procedure shall include 
                                remedies for violation of 
                                clause (i), (ii), or (iii), 
                                which may continue during the 
                                pendency of the procedure, and 
                                which may include--
                                          [(aa) suspension or 
                                        termination of payments 
                                        from funds provided 
                                        under this paragraph;
                                          [(bb) prohibition of 
                                        placement of a 
                                        participant with an 
                                        employer that has 
                                        violated clause (i), 
                                        (ii), or (iii);
                                          [(cc) where 
                                        applicable, 
                                        reinstatement of an 
                                        employee, payment of 
                                        lost wages and 
                                        benefits, and 
                                        reestablishment of 
                                        other relevant terms, 
                                        conditions and 
                                        privileges of 
                                        employment; and
                                          [(dd) where 
                                        appropriate, other 
                                        equitable relief.
                                  [(IV) Appeals.--
                                          [(aa) Filing.--Not 
                                        later than 30 days 
                                        after a grievant or 
                                        complainant receives an 
                                        adverse decision under 
                                        the procedure 
                                        established pursuant to 
                                        subclause (I), the 
                                        grievant or complainant 
                                        may appeal the decision 
                                        to a State agency 
                                        designated by the State 
                                        which shall be 
                                        independent of the 
                                        State or local agency 
                                        that is administering 
                                        the programs operated 
                                        with funds provided 
                                        under this paragraph 
                                        and the State agency 
                                        administering, or 
                                        supervising the 
                                        administration of, the 
                                        State program funded 
                                        under this part.
                                          [(bb) Final 
                                        determination.--Not 
                                        later than 120 days 
                                        after the State agency 
                                        designated under item 
                                        (aa) receives a 
                                        grievance or complaint 
                                        made under the 
                                        procedure established 
                                        by a State pursuant to 
                                        subclause (I), the 
                                        State agency shall make 
                                        a final determination 
                                        on the appeal.
                          [(v) Rule of interpretation.--This 
                        subparagraph shall not be construed to 
                        affect the authority of a State to 
                        provide or require workers' 
                        compensation.
                          [(vi) Nonpreemption of state law.--
                        The provisions of this subparagraph 
                        shall not be construed to preempt any 
                        provision of State law that affords 
                        greater protections to employees or to 
                        other participants engaged in work 
                        activities under a program funded under 
                        this part than is afforded by such 
                        provisions of this subparagraph.
                  [(J) Information disclosure.--If a State to 
                which a grant is made under section 403 
                establishes safeguards against the use or 
                disclosure of information about applicants or 
                recipients of assistance under the State 
                program funded under this part, the safeguards 
                shall not prevent the State agency 
                administering the program from furnishing to a 
                private industry council the names, addresses, 
                telephone numbers, and identifying case number 
                information in the State program funded under 
                this part, of noncustodial parents residing in 
                the service delivery area of the private 
                industry council, for the purpose of 
                identifying and contacting noncustodial parents 
                regarding participation in the program under 
                this paragraph.]
  [(b) Contingency Fund.--
          [(1) Establishment.--There is hereby established in 
        the Treasury of the United States a fund which shall be 
        known as the ``Contingency Fund for State Welfare 
        Programs'' (in this section 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 fiscal year 
        2018 such sums as are necessary for payment to the Fund 
        in a total amount not to exceed $608,000,000.
          [(3) Grants.--
                  [(A) Provisional payments.--If an eligible 
                State submits to the Secretary a request for 
                funds under this paragraph during an eligible 
                month, the Secretary shall, subject to this 
                paragraph, pay to the State, from amounts 
                appropriated pursuant to paragraph (2), an 
                amount equal to the amount of funds so 
                requested.
                  [(B) Payment priority.--The Secretary shall 
                make payments under subparagraph (A) in the 
                order in which the Secretary receives requests 
                for such payments.
                  [(C) Limitations.--
                          [(i) Monthly payment to a state.--The 
                        total amount paid to a single State 
                        under subparagraph (A) during a month 
                        shall not exceed \1/12\ of 20 percent 
                        of the State family assistance grant.
                          [(ii) Payments to all states.--The 
                        total amount paid to all States under 
                        subparagraph (A) during fiscal year 
                        2011 and 2012, respectively, shall not 
                        exceed the total amount appropriated 
                        pursuant to paragraph (2) for each such 
                        fiscal year.
          [(4) Eligible month.--As used in paragraph (3)(A), 
        the term ``eligible month'' means, with respect to a 
        State, a month in the 2-month period that begins with 
        any month for which the State is a needy State.
          [(6) Annual reconciliation.--
                  [(A) In general.--Notwithstanding paragraph 
                (3), if the Secretary makes a payment to a 
                State under this subsection in a fiscal year, 
                then the State shall remit to the Secretary, 
                within 1 year after the end of the first 
                subsequent period of 3 consecutive months for 
                which the State is not a needy State, an amount 
                equal to the amount (if any) by which--
                          [(i) the total amount paid to the 
                        State under paragraph (3) of this 
                        subsection in the fiscal year; exceeds
                          [(ii) the product of--
                                  [(I) the Federal medical 
                                assistance percentage for the 
                                State (as defined in section 
                                1905(b), as such section was in 
                                effect on September 30, 1995);
                                  [(II) the State's 
                                reimbursable expenditures for 
                                the fiscal year; and
                                  [(III) \1/12\ times the 
                                number of months during the 
                                fiscal year for which the 
                                Secretary made a payment to the 
                                State under such paragraph (3).
                  [(B) Definitions.--As used in subparagraph 
                (A):
                          [(i) Reimbursable expenditures.--The 
                        term ``reimbursable expenditures'' 
                        means, with respect to a State and a 
                        fiscal year, the amount (if any) by 
                        which--
                                  [(I) countable State 
                                expenditures for the fiscal 
                                year; exceeds
                                  [(II) historic State 
                                expenditures (as defined in 
                                section 409(a)(7)(B)(iii)), 
                                excluding any amount expended 
                                by the State for child care 
                                under subsection (g) or (i) of 
                                section 402 (as in effect 
                                during fiscal year 1994) for 
                                fiscal year 1994.
                          [(ii) Countable state expenditures.--
                        The term ``countable expenditures'' 
                        means, with respect to a State and a 
                        fiscal year--
                                  [(I) the qualified State 
                                expenditures (as defined in 
                                section 409(a)(7)(B)(i) (other 
                                than the expenditures described 
                                in subclause (I)(bb) of such 
                                section)) under the State 
                                program funded under this part 
                                for the fiscal year; plus
                                  [(II) any amount paid to the 
                                State under paragraph (3) 
                                during the fiscal year that is 
                                expended by the State under the 
                                State program funded under this 
                                part.
                  [(C) Adjustment of state remittances.--
                          [(i) In general.--The amount 
                        otherwise required by subparagraph (A) 
                        to be remitted by a State for a fiscal 
                        year shall be increased by the lesser 
                        of--
                                  [(I) the total adjustment for 
                                the fiscal year, multiplied by 
                                the adjustment percentage for 
                                the State for the fiscal year; 
                                or
                                  [(II) the unadjusted net 
                                payment to the State for the 
                                fiscal year.
                          [(ii) Total adjustment.--As used in 
                        clause (i), the term ``total 
                        adjustment'' means--
                                  [(I) in the case of fiscal 
                                year 1998, $2,000,000;
                                  [(II) in the case of fiscal 
                                year 1999, $9,000,000;
                                  [(III) in the case of fiscal 
                                year 2000, $16,000,000; and
                                  [(IV) in the case of fiscal 
                                year 2001, $13,000,000.
                          [(iii) Adjustment percentage.--As 
                        used in clause (i), the term 
                        ``adjustment percentage'' means, with 
                        respect to a State and a fiscal year--
                                  [(I) the unadjusted net 
                                payment to the State for the 
                                fiscal year; divided by
                                  [(II) the sum of the 
                                unadjusted net payments to all 
                                States for the fiscal year.
                          [(iv) Unadjusted net payment.--As 
                        used in this subparagraph, the term, 
                        ``unadjusted net payment'' means with 
                        respect to a State and a fiscal year--
                                  [(I) the total amount paid to 
                                the State under paragraph (3) 
                                in the fiscal year; minus
                                  [(II) the amount that, in the 
                                absence of this subparagraph, 
                                would be required by 
                                subparagraph (A) or by section 
                                409(a)(10) to be remitted by 
                                the State in respect of the 
                                payment.
          [(7) State defined.--As used in this subsection, the 
        term ``State'' means each of the 50 States and the 
        District of Columbia.
          [(8) Annual reports.--The Secretary shall annually 
        report to the Congress on the status of the Fund.]

SEC. 404. USE OF GRANTS.

  (a) General Rules.--Subject to this part, a State to which a 
grant is made under section 403 may use the grant--
          (1) in any manner that is reasonably calculated to 
        accomplish the purpose of this part, including to 
        provide low income households with assistance in 
        meeting home heating and cooling costs; or
          (2) in any manner that the State was authorized to 
        use amounts received under part A or F, as such parts 
        were in effect on September 30, 1995, or (at the option 
        of the State) August 21, 1996.
  (b) Limitation on Use of Grant for Administrative Purposes.--
          (1) Limitation.--A State to which a grant is made 
        under section 403 shall not expend more than 15 percent 
        of the grant for administrative purposes.
          [(2) Exception.--Paragraph (1) shall not apply to the 
        use of a grant for information technology and 
        computerization needed for tracking or monitoring 
        required by or under this part.]
          (2) Exceptions.--Paragraph (1) of this subsection 
        shall not apply to the use of a grant for--
                  (A) information technology and 
                computerization needed for tracking, 
                monitoring, or data collection required by or 
                under this part; or
                  (B) case management activities to carry out 
                section 408(b).
  (c) Authority To Treat Interstate Immigrants Under Rules of 
Former State.--A State operating a program funded under this 
part may apply to a family the rules (including benefit 
amounts) of the program funded under this part of another State 
if the family has moved to the State from the other State and 
has resided in the State for less than 12 months.
  (d) Authority To Use Portion of Grant for Other Purposes.--
          [(1) In general.--Subject to paragraph (2), a State 
        may use not more than 30 percent of the amount of any 
        grant made to the State under section 403(a) for a 
        fiscal year to carry out a State program pursuant to 
        any or all of the following provisions of law:
                  [(A) Subtitle A of title XX of this Act.
                  [(B) The Child Care and Development Block 
                Grant Act of 1990.
          [(2) Limitation on amount transferable to subtitle 1 
        of title xx programs.--
                  [(A) In general.--A State may use not more 
                than the applicable percent of the amount of 
                any grant made to the State under section 
                403(a) for a fiscal year to carry out State 
                programs pursuant to subtitle 1 of title XX.
                  [(B) Applicable percent.--For purposes of 
                subparagraph (A), the applicable percent is 
                4.25 percent in the case of fiscal year 2001 
                and each succeeding fiscal year.
          [(3) Applicable rules.--
                  [(A) In general.--Except as provided in 
                subparagraph (B) of this paragraph, any amount 
                paid to a State under this part that is used to 
                carry out a State program pursuant to a 
                provision of law specified in paragraph (1) 
                shall not be subject to the requirements of 
                this part, but shall be subject to the 
                requirements that apply to Federal funds 
                provided directly under the provision of law to 
                carry out the program, and the expenditure of 
                any amount so used shall not be considered to 
                be an expenditure under this part.
                  [(B) Exception relating to subtitle 1 of 
                title xx programs.--All amounts paid to a State 
                under this part that are used to carry out 
                State programs pursuant to subtitle 1 of title 
                XX shall be used only for programs and services 
                to children or their families whose income is 
                less than 200 percent of the income official 
                poverty line (as defined by the Office of 
                Management and Budget, and revised annually in 
                accordance with section 673(2) of the Omnibus 
                Budget Reconciliation Act of 1981) applicable 
                to a family of the size involved.]
          (1) In general.--A State may use not more than 50 
        percent of the grant made to the State under section 
        403(a)(1) to carry out a State program pursuant to any 
        or all of the following provisions of law:
                  (A) The Child Care and Development Block 
                Grant Act of 1990.
                  (B) Title I of the Workforce Innovation and 
                Opportunity Act.
                  (C) Subpart 1 of part B of this title.
          (2) Limitation on amount transferrable to subpart 1 
        of part b of this title.--
                  (A) In general.--A State may use not more 
                than the applicable percentage of the amount of 
                a grant made to the State under section 
                403(a)(1) to carry out State programs pursuant 
                to subpart 1 of part B.
                  (B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage is 
                10 percent.
          (3) Applicable rules.--
                  (A) In general.--Except as provided in 
                subparagraph (B) of this paragraph, any amount 
                paid to a State under this part that is used to 
                carry out a State program pursuant to a 
                provision of law specified in paragraph (1) 
                shall not be subject to the requirements of 
                this part, but shall be subject to the 
                requirements that apply to Federal funds 
                provided directly under the provision of law to 
                carry out the program, and the expenditure of 
                any amount so used shall not be considered to 
                be an expenditure under this part.
                  (B) Funds transferred to the wioa.--In the 
                case of funds transferred under paragraph 
                (1)(B) of this subsection--
                          (i) all of the funds will be used to 
                        support families eligible for 
                        assistance under the State program 
                        funded under this part; and
                          (ii) not more than 15 percent of the 
                        funds will be reserved for statewide 
                        workforce investment activities 
                        referred to in section 128(a)(1) of the 
                        Workforce Innovation and Opportunity 
                        Act.
          (4) Exclusion of states excluding the state jobs 
        program as a mandatory one-stop partner under the 
        wioa.--The authority provided by this subsection may 
        not be exercised by a State that has provided the 
        notification referred to in section 407(a)(3)(D).
  [(e) Authority to Carry Over Certain Amounts for Benefits or 
Services or for Future Contingencies.--A State or tribe may use 
a grant made to the State or tribe under this part for any 
fiscal year to provide, without fiscal year limitation, any 
benefit or service that may be provided under the State or 
tribal program funded under this part.]
  (e) Deadlines for Obligation and Expenditures of Funds by 
States.--
          (1) In general.--Except as provided in paragraph (2), 
        a State to which funds are paid under section 403(a)(1) 
        shall obligate the funds within 2 years after the date 
        the funds are so paid, and shall expend the funds 
        within 3 years after such date.
          (2) Exception for limited amount of funds set aside 
        for future use.--A State to which funds are paid under 
        section 403(a)(1) may reserve not more than 15 percent 
        of the funds for future use in the State program funded 
        under this part.
  (f) Authority to Operate Employment Placement Program.--A 
State to which a grant is made under section 403 may use the 
grant to make payments (or provide job placement vouchers) to 
State-approved public and private job placement agencies that 
provide employment placement services to individuals who 
receive assistance under the State program funded under this 
part.
  (g) Implementation of Electronic Benefit Transfer System.--A 
State to which a grant is made under section 403 is encouraged 
to implement an electronic benefit transfer system for 
providing assistance under the State program funded under this 
part, and may use the grant for such purpose.
  (h) Use of Funds for Individual Development Accounts.--
          (1) In general.--A State to which a grant is made 
        under section 403 may use the grant to carry out a 
        program to fund individual development accounts (as 
        defined in paragraph (2)) established by individuals 
        eligible for assistance under the State program funded 
        under this part.
          (2) Individual development accounts.--
                  (A) Establishment.--Under a State program 
                carried out under paragraph (1), an individual 
                development account may be established by or on 
                behalf of an individual eligible for assistance 
                under the State program operated under this 
                part for the purpose of enabling the individual 
                to accumulate funds for a qualified purpose 
                described in subparagraph (B).
                  (B) Qualified purpose.--A qualified purpose 
                described in this subparagraph is 1 or more of 
                the following, as provided by the qualified 
                entity providing assistance to the individual 
                under this subsection:
                          (i) Postsecondary educational 
                        expenses.--Postsecondary educational 
                        expenses paid from an individual 
                        development account directly to an 
                        eligible educational institution.
                          (ii) First home purchase.--Qualified 
                        acquisition costs with respect to a 
                        qualified principal residence for a 
                        qualified first-time homebuyer, if paid 
                        from an individual development account 
                        directly to the persons to whom the 
                        amounts are due.
                          (iii) Business capitalization.--
                        Amounts paid from an individual 
                        development account directly to a 
                        business capitalization account which 
                        is established in a federally insured 
                        financial institution and is restricted 
                        to use solely for qualified business 
                        capitalization expenses.
                  (C) Contributions to be from earned income.--
                An individual may only contribute to an 
                individual development account such amounts as 
                are derived from earned income, as defined in 
                section 911(d)(2) of the Internal Revenue Code 
                of 1986.
                  (D) Withdrawal of funds.--The Secretary shall 
                establish such regulations as may be necessary 
                to ensure that funds held in an individual 
                development account are not withdrawn except 
                for 1 or more of the qualified purposes 
                described in subparagraph (B).
          (3) Requirements.--
                  (A) In general.--An individual development 
                account established under this subsection shall 
                be a trust created or organized in the United 
                States and funded through periodic 
                contributions by the establishing individual 
                and matched by or through a qualified entity 
                for a qualified purpose (as described in 
                paragraph (2)(B)).
                  (B) Qualified entity.--As used in this 
                subsection, the term ``qualified entity'' 
                means--
                          (i) a not-for-profit organization 
                        described in section 501(c)(3) of the 
                        Internal Revenue Code of 1986 and 
                        exempt from taxation under section 
                        501(a) of such Code; or
                          (ii) a State or local government 
                        agency acting in cooperation with an 
                        organization described in clause (i).
          (4) No reduction in benefits.--Notwithstanding any 
        other provision of Federal law (other than the Internal 
        Revenue Code of 1986) that requires consideration of 1 
        or more financial circumstances of an individual, for 
        the purpose of determining eligibility to receive, or 
        the amount of, any assistance or benefit authorized by 
        such law to be provided to or for the benefit of such 
        individual, funds (including interest accruing) in an 
        individual development account under this subsection 
        shall be disregarded for such purpose with respect to 
        any period during which such individual maintains or 
        makes contributions into such an account.
          (5) Definitions.--As used in this subsection--
                  (A) Eligible educational institution.--The 
                term ``eligible educational institution'' means 
                the following:
                          (i) An institution described in 
                        section 481(a)(1) or 1201(a) of the 
                        Higher Education Act of 1965 (20 U.S.C. 
                        1088(a)(1) or 1141(a)), as such 
                        sections are in effect on the date of 
                        the enactment of this subsection.
                          (ii) An area vocational education 
                        school (as defined in subparagraph (C) 
                        or (D) of section 521(4) of the Carl D. 
                        Perkins Vocational and Applied 
                        Technology Education Act (20 U.S.C. 
                        2471(4))) which is in any State (as 
                        defined in section 521(33) of such 
                        Act), as such sections are in effect on 
                        the date of the enactment of this 
                        subsection.
                  (B) Post-secondary educational expenses.--The 
                term ``post-secondary educational expenses'' 
                means--
                          (i) tuition and fees required for the 
                        enrollment or attendance of a student 
                        at an eligible educational institution, 
                        and
                          (ii) fees, books, supplies, and 
                        equipment required for courses of 
                        instruction at an eligible educational 
                        institution.
                  (C) Qualified acquisition costs.--The term 
                ``qualified acquisition costs'' means the costs 
                of acquiring, constructing, or reconstructing a 
                residence. The term includes any usual or 
                reasonable settlement, financing, or other 
                closing costs.
                  (D) Qualified business.--The term ``qualified 
                business'' means any business that does not 
                contravene any law or public policy (as 
                determined by the Secretary).
                  (E) Qualified business capitalization 
                expenses.--The term ``qualified business 
                capitalization expenses'' means qualified 
                expenditures for the capitalization of a 
                qualified business pursuant to a qualified 
                plan.
                  (F) Qualified expenditures.--The term 
                ``qualified expenditures'' means expenditures 
                included in a qualified plan, including 
                capital, plant, equipment, working capital, and 
                inventory expenses.
                  (G) Qualified first-time homebuyer.--
                          (i) In general.--The term ``qualified 
                        first-time homebuyer'' means a taxpayer 
                        (and, if married, the taxpayer's 
                        spouse) who has no present ownership 
                        interest in a principal residence 
                        during the 3-year period ending on the 
                        date of acquisition of the principal 
                        residence to which this subsection 
                        applies.
                          (ii) Date of acquisition.--The term 
                        ``date of acquisition'' means the date 
                        on which a binding contract to acquire, 
                        construct, or reconstruct the principal 
                        residence to which this subparagraph 
                        applies is entered into.
                  (H) Qualified plan.--The term ``qualified 
                plan'' means a business plan which--
                          (i) is approved by a financial 
                        institution, or by a nonprofit loan 
                        fund having demonstrated fiduciary 
                        integrity,
                          (ii) includes a description of 
                        services or goods to be sold, a 
                        marketing plan, and projected financial 
                        statements, and
                          (iii) may require the eligible 
                        individual to obtain the assistance of 
                        an experienced entrepreneurial advisor.
                  (I) Qualified principal residence.--The term 
                ``qualified principal residence'' means a 
                principal residence (within the meaning of 
                section 1034 of the Internal Revenue Code of 
                1986), the qualified acquisition costs of which 
                do not exceed 100 percent of the average area 
                purchase price applicable to such residence 
                (determined in accordance with paragraphs (2) 
                and (3) of section 143(e) of such Code).
  (i) Sanction Welfare Recipients for Failing To Ensure That 
Minor Dependent Children Attend School.--A State to which a 
grant is made under section 403 shall not be prohibited from 
sanctioning a family that includes an adult who has received 
assistance under any State program funded under this part 
attributable to funds provided by the Federal Government or 
under the supplemental nutrition assistance program, as defined 
in section 3(l) of the Food and Nutrition Act of 2008, if such 
adult fails to ensure that the minor dependent children of such 
adult attend school as required by the law of the State in 
which the minor children reside.
  (j) Requirement for High School Diploma or Equivalent.--A 
State to which a grant is made under section 403 shall not be 
prohibited from sanctioning a family that includes an adult who 
is older than age 20 and younger than age 51 and who has 
received assistance under any State program funded under this 
part attributable to funds provided by the Federal Government 
or under the supplemental nutrition assistance program, as 
defined in section 3(l) of the Food and Nutrition Act of 2008, 
if such adult does not have, or is not working toward 
attaining, a secondary school diploma or its recognized 
equivalent unless such adult has been determined in the 
judgment of medical, psychiatric, or other appropriate 
professionals to lack the requisite capacity to complete 
successfully a course of study that would lead to a secondary 
school diploma or its recognized equivalent.
  [(k) Limitations on Use of Grant for Matching Under Certain 
Federal Transportation Program.--
          [(1) Use limitations.--A State to which a grant is 
        made under section 403 may not use any part of the 
        grant to match funds made available under section 3037 
        of the Transportation Equity Act for the 21st Century, 
        unless--
                  [(A) the grant is used for new or expanded 
                transportation services (and not for 
                construction) that benefit individuals 
                described in subparagraph (C), and not to 
                subsidize current operating costs;
                  [(B) the grant is used to supplement and not 
                supplant other State expenditures on 
                transportation;
                  [(C) the preponderance of the benefits 
                derived from such use of the grant accrues to 
                individuals who are--
                          [(i) recipients of assistance under 
                        the State program funded under this 
                        part;
                          [(ii) former recipients of such 
                        assistance;
                          [(iii) noncustodial parents who are 
                        described in section 403(a)(5)(C)(iii); 
                        and
                          [(iv) low-income individuals who are 
                        at risk of qualifying for such 
                        assistance; and
                  [(D) the services provided through such use 
                of the grant promote the ability of such 
                recipients to engage in work activities (as 
                defined in section 407(d)).
          [(2) Amount limitation.--From a grant made to a State 
        under section 403(a), the amount that a State uses to 
        match funds described in paragraph (1) of this 
        subsection shall not exceed the amount (if any) by 
        which 30 percent of the total amount of the grant 
        exceeds the amount (if any) of the grant that is used 
        by the State to carry out any State program described 
        in subsection (d)(1) of this section.
          [(3) Rule of interpretation.--The provision by a 
        State of a transportation benefit under a program 
        conducted under section 3037 of the Transportation 
        Equity Act for the 21st Century, to an individual who 
        is not otherwise a recipient of assistance under the 
        State program funded under this part, using funds from 
        a grant made under section 403(a) of this Act, shall 
        not be considered to be the provision of assistance to 
        the individual under the State program funded under 
        this part.]
  (k) Prohibitions.--
          (1) Use of funds for persons with income greater than 
        twice the poverty line.--A State to which a grant is 
        made under this part shall not use the grant to provide 
        any assistance or services to a family whose monthly 
        income exceeds twice the poverty line (as defined by 
        the Office of Management and Budget, and revised 
        annually in accordance with section 673(2) of the 
        Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 
        9902(2))).
          (2) Direct spending on child care services or 
        activities or child welfare services or activities.--A 
        State to which a grant is made under this part shall 
        not use the grant for direct spending on child care 
        services or activities or direct spending on child 
        welfare services or activities.
  (l) Applicability of Improper Payments Laws.--
          (1) In general.--The Improper Payments Information 
        Act of 2002 and the Improper Payments Elimination and 
        Recovery Act of 2010 shall apply to a State in respect 
        of the State program funded under this part in the same 
        manner in which such Acts apply to a Federal agency.
          (2) Regulations.--Within 2 years after the date of 
        the enactment of this subsection, the Secretary shall 
        prescribe regulations governing how a State reviews and 
        reports improper payments under the State program 
        funded under this part.

           *       *       *       *       *       *       *


[SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.

  [(a) Loan Authority.--
          [(1) In general.--The Secretary shall make loans to 
        any loan-eligible State, for a period to maturity of 
        not more than 3 years.
          [(2) Loan-eligible state.--As used in paragraph (1), 
        the term ``loan-eligible State'' means a State against 
        which a penalty has not been imposed under section 
        409(a)(1).
  [(b) Rate of Interest.--The Secretary shall charge and 
collect interest on any loan made under this section at a rate 
equal to the current average market yield on outstanding 
marketable obligations of the United States with remaining 
periods to maturity comparable to the period to maturity of the 
loan.
  [(c) Use of Loan.--A State shall use a loan made to the State 
under this section only for any purpose for which grant amounts 
received by the State under section 403(a) may be used, 
including--
          [(1) welfare anti-fraud activities; and
          [(2) the provision of assistance under the State 
        program to Indian families that have moved from the 
        service area of an Indian tribe with a tribal family 
        assistance plan approved under section 412.
  [(d) Limitation on Total Amount of Loans to a State.--The 
cumulative dollar amount of all loans made to a State under 
this section during fiscal years 1997 through 2003 shall not 
exceed 10 percent of the State family assistance grant.
  [(e) Limitation on Total Amount of Outstanding Loans.--The 
total dollar amount of loans outstanding under this section may 
not exceed $1,700,000,000.
  [(f) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there are 
appropriated such sums as may be necessary for the cost of 
loans under this section.]

SEC. 406. TECHNICAL ASSISTANCE.

  (a) In General.--The Secretary shall provide technical 
assistance to States and Indian tribes (which may include 
providing technical assistance on a reimbursable basis), which 
shall be provided by qualified experts on practices grounded in 
scientifically valid research, where appropriate, to support 
activities related publication of State performance under 
section 407(b) and to carry out State and tribal programs 
funded under this part.
  (b) Reservation of Funds.--The Secretary shall reserve not 
more than 0.25 percent of the amount appropriated by section 
403(a)(1)(C) for a fiscal year to carry out subsection (a) of 
this section.

SEC. 407. MANDATORY WORK REQUIREMENTS.

  [(a) Participation Rate Requirements.--
          [(1) All families.--A State to which a grant is made 
        under section 403 for a fiscal year shall achieve the 
        minimum participation rate specified in the following 
        table for the fiscal year with respect to all families 
        receiving 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)):

                                                             The minimum
                                                           participation
        [If the fiscal year is:                                 rate is:
            1997........................................              25
            1998........................................              30
            1999........................................              35
            2000........................................              40
            2001........................................              45
            2002 or thereafter..........................             50.

          [(2)  2-parent families.--A State to which a grant is 
        made under section 403 for a fiscal year shall achieve 
        the minimum participation rate specified in the 
        following table for the fiscal year with respect to 2-
        parent families receiving 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)):

                                                             The minimum
                                                           participation
        [If the fiscal year is:                                 rate is:
            1997........................................              75
            1998........................................              75
            1999 or thereafter..........................             90.

  [(b) Calculation of Participation Rates.--
          [(1) All families.--
                  [(A) Average monthly rate.--For purposes of 
                subsection (a)(1), the participation rate for 
                all families of a State for a fiscal year is 
                the average of the participation rates for all 
                families of the State for each month in the 
                fiscal year.
                  [(B) Monthly participation rates.--The 
                participation rate of a State for all families 
                of the State for a month, expressed as a 
                percentage, is--
                          [(i) the number of families receiving 
                        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)) that include 
                        an adult or a minor child head of 
                        household who is engaged in work for 
                        the month; divided by
                          [(ii) the amount by which--
                                  [(I) the number of families 
                                receiving such assistance 
                                during the month that include 
                                an adult or a minor child head 
                                of household receiving such 
                                assistance; exceeds
                                  [(II) the number of families 
                                receiving such assistance that 
                                are subject in such month to a 
                                penalty described in subsection 
                                (e)(1) but have not been 
                                subject to such penalty for 
                                more than 3 months within the 
                                preceding 12-month period 
                                (whether or not consecutive).
          [(2)  2-parent families.--
                  [(A) Average monthly rate.--For purposes of 
                subsection (a)(2), the participation rate for 
                2-parent families of a State for a fiscal year 
                is the average of the participation rates for 
                2-parent families of the State for each month 
                in the fiscal year.
                  [(B) Monthly participation rates.--The 
                participation rate of a State for 2-parent 
                families of the State for a month shall be 
                calculated by use of the formula set forth in 
                paragraph (1)(B), except that in the formula 
                the term ``number of 2-parent families'' shall 
                be substituted for the term ``number of 
                families'' each place such latter term appears.
                  [(C) Family with a disabled parent not 
                treated as a 2-parent family.--A family that 
                includes a disabled parent shall not be 
                considered a 2-parent family for purposes of 
                subsections (a) and (b) of this section.
          [(3) Pro rata reduction of participation rate due to 
        caseload reductions not required by federal law and not 
        resulting from changes in state eligibility criteria.--
                  [(A) In general.--The Secretary shall 
                prescribe regulations for reducing the minimum 
                participation rate otherwise required by this 
                section for a fiscal year by the number of 
                percentage points equal to the number of 
                percentage points (if any) by which--
                          [(i) the average monthly number of 
                        families receiving assistance during 
                        the immediately preceding fiscal year 
                        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)) is less than
                          [(ii) the average monthly number of 
                        families that received assistance under 
                        any State program referred to in clause 
                        (i) during fiscal year 2005.
                The minimum participation rate shall not be 
                reduced to the extent that the Secretary 
                determines that the reduction in the number of 
                families receiving such assistance is required 
                by Federal law.
                  [(B) Eligibility changes not counted.--The 
                regulations required by subparagraph (A) shall 
                not take into account families that are 
                diverted from a State program funded under this 
                part as a result of differences in eligibility 
                criteria under a State program funded under 
                this part and the eligibility criteria in 
                effect during fiscal year 2005. Such 
                regulations shall place the burden on the 
                Secretary to prove that such families were 
                diverted as a direct result of differences in 
                such eligibility criteria.
          [(4) State option to include individuals receiving 
        assistance under a tribal family assistance plan or 
        tribal work program.--For purposes of paragraphs (1)(B) 
        and (2)(B), a State may, at its option, include 
        families in the State that are receiving assistance 
        under a tribal family assistance plan approved under 
        section 412 or under a tribal work program to which 
        funds are provided under this part.
          [(5) State option for participation requirement 
        exemptions.--For any fiscal year, a State may, at its 
        option, not require an individual who is a single 
        custodial parent caring for a child who has not 
        attained 12 months of age to engage in work, and may 
        disregard such an individual in determining the 
        participation rates under subsection (a) for not more 
        than 12 months.]
  (a) Performance Accountability and Work Outcomes.--
          (1) Purpose.--The purpose of this subsection is to 
        provide for the establishment of performance 
        accountability measures to assess the effectiveness of 
        States in increasing employment, retention, and 
        advancement among families receiving assistance under 
        the State program funded under this part.
          (2) In general.--A State to which a grant is made 
        under section 403 for a fiscal year shall achieve the 
        requisite level of performance on an indicator 
        described in paragraph (3)(B) of this subsection for 
        the fiscal year.
          (3) Measuring state performance.--
                  (A) In general.--Each State, in consultation 
                with the Secretary, shall collect and submit to 
                the Secretary the information necessary to 
                measure the level of performance of the State 
                for each indicator described in subparagraph 
                (B), for fiscal year 2020 and each fiscal year 
                thereafter, and the Secretary shall use the 
                information collected for fiscal year 2020 to 
                establish the baseline level of performance for 
                each State for each such indicator.
                  (B) Indicators of performance.--The 
                indicators described in this subparagraph, for 
                a fiscal year, are the following:
                          (i) The percentage of individuals who 
                        were work-eligible individuals as of 
                        the time of exit from the program, who 
                        are in unsubsidized employment during 
                        the 2nd quarter after the exit.
                          (ii) The percentage of individuals 
                        who were work-eligible individuals who 
                        were in unsubsidized employment in the 
                        2nd quarter after the exit, who are 
                        also in unsubsidized employment during 
                        the 4th quarter after the exit.
                          (iii) The median earnings of 
                        individuals who were work-eligible 
                        individuals as of the time of exit from 
                        the program, who are in unsubsidized 
                        employment during the 2nd quarter after 
                        the exit.
                          (iv) The percentage of individuals 
                        who have not attained 24 years of age, 
                        are attending high school or enrolled 
                        in an equivalency program, and are 
                        work-eligible individuals or were work-
                        eligible individuals as of the time of 
                        exit from the program, who obtain a 
                        high school degree or its recognized 
                        equivalent while receiving assistance 
                        under the State program funded under 
                        this part or within 1 year after the 
                        exit.
                  (C) Levels of performance.--
                          (i) In general.--For each State 
                        submitting a State plan pursuant to 
                        section 402(a), there shall be 
                        established, in accordance with this 
                        subparagraph, levels of performance for 
                        each of the indicators described in 
                        subparagraph (B).
                          (ii) Weight.--The weight assigned to 
                        such an indicator shall be the 
                        following:
                                  (I) 40 percent, in the case 
                                of the indicator described in 
                                subparagraph (B)(i).
                                  (II) 25 percent, in the case 
                                of the indicator described in 
                                subparagraph (B)(ii).
                                  (III) 25 percent, in the case 
                                of the indicator described in 
                                subparagraph (B)(iii).
                                  (IV) 10 percent, in the case 
                                of the indicator described in 
                                subparagraph (B)(iv).
                          (iii) Agreement on requisite 
                        performance level for each indicator.--
                                  (I) In general.--The 
                                Secretary and the State shall 
                                negotiate the requisite level 
                                of performance for the State 
                                with respect to each indicator 
                                described in clause (ii), for 
                                each of fiscal years 2020 
                                through 2023, and in the case 
                                of each of fiscal years 2021 
                                through 2023, shall do so 
                                before the beginning of the 
                                respective fiscal year.
                                  (II) Requirements in 
                                establishing performance 
                                levels.--In establishing the 
                                requisite levels of 
                                performance, the State and the 
                                Secretary shall--
                                          (aa) take into 
                                        account how the levels 
                                        involved compare with 
                                        the levels established 
                                        for other States;
                                          (bb) ensure the 
                                        levels involved are 
                                        adjusted, using the 
                                        objective statistical 
                                        model referred to in 
                                        clause (v), based on--
                                                  (AA) the 
                                                differences 
                                                among States in 
                                                economic 
                                                conditions, 
                                                including 
                                                differences in 
                                                unemployment 
                                                rates or 
                                                employment 
                                                losses or gains 
                                                in particular 
                                                industries; and
                                                  (BB) the 
                                                characteristics 
                                                of participants 
                                                on entry into 
                                                the program, 
                                                including 
                                                indicators of 
                                                prior work 
                                                history, lack 
                                                of educational 
                                                or occupational 
                                                skills 
                                                attainment, or 
                                                other factors 
                                                that may affect 
                                                employment and 
                                                earnings; and
                                                  (CC) take 
                                                into account 
                                                the extent to 
                                                which the 
                                                levels involved 
                                                promote 
                                                continuous 
                                                improvement in 
                                                performance by 
                                                each State.
                          (iv) Revisions based on economic 
                        conditions and individuals receiving 
                        assistance during the fiscal year.--The 
                        Secretary shall, in accordance with the 
                        objective statistical model referred to 
                        in clause (v), revise the requisite 
                        levels of performance for a State and a 
                        fiscal year to reflect the economic 
                        conditions and characteristics of the 
                        relevant individuals in the State 
                        during the fiscal year.
                          (v) Statistical adjustment model.--
                        The Secretary shall use an objective 
                        statistical model to make adjustments 
                        to the requisite levels of performance 
                        for the economic conditions and 
                        characteristics of the relevant 
                        individuals, and shall consult with the 
                        Secretary of Labor to develop a model 
                        that is the same as or similar to the 
                        model described in section 
                        116(b)(3)(A)(viii) of the Workforce 
                        Innovation and Opportunity Act (29 
                        U.S.C. 3141(b)(3)(A)(viii)).
                          (vi) Definition of exit.--In this 
                        subsection, the term ``exit'' means, 
                        with respect to a State program funded 
                        under this part, ceases to a receive a 
                        JOBS benefit under the program.
                  (D) State option to establish common exit 
                measures.--Notwithstanding subparagraph (C)(vi) 
                of this paragraph, a State that has not 
                provided the notification under section 
                121(b)(1)(C)(ii) of the Workforce Innovation 
                and Opportunity Act to exclude the State 
                program funded under this part as a mandatory 
                one-stop partner may adopt an alternative 
                definition of ``exit'' for the purpose of 
                creating common exit measures to improve 
                alignment with workforce programs operated 
                under title I of such Act.
                  (E) Regulations.--In order to ensure 
                nationwide comparability of data, the 
                Secretary, after consultation the Secretary of 
                Labor and with States, shall issue regulations 
                governing the establishment of the performance 
                accountability system under this subsection and 
                a template for performance reports to be used 
                by all States consistent with subsection (b).
  (b) Publication of State Performance.--The Secretary shall, 
directly or through the use of grants or contracts, establish 
and operate an Internet website that is accessible to the 
public, with a dashboard that is regularly updated and provides 
easy-to-understand information on the performance of each State 
program funded under this part, including a profile for each 
such program, expressed by use of a template, which shall 
include--
          (1) information on the indicators and requisite 
        performance levels established for the State under 
        subsection (a), including, with respect to each such 
        level, whether the State achieves, exceeds, or fails to 
        achieve the level on an ongoing basis, including--
                  (A) information on any adjustments made to 
                the requisite levels using the statistical 
                adjustment model described in subsection 
                (a)(3)(D)(v); and
                  (B) a grade based on the overall performance 
                of the State, as determined by the Secretary 
                and in consultation with the State, and the 
                overall performance shall be graded based on 
                the performance indicators and weights for each 
                such indicator as described in subsection (a);
          (2) information reported under section 411 on the 
        characteristics and demographics of individuals 
        receiving assistance under the State program, 
        including--
                  (A) the number and percentage of child-only 
                cases and reason why the cases are child-only; 
                and
                  (B) the average weekly number of hours that 
                each work-eligible individual in the State 
                program participates in work activities, 
                including a separate section showing the number 
                and percentage of the work-eligible individuals 
                with zero hours of the participation and the 
                reason for non-participation;
          (3) information on the results of improper payments 
        reviews;
          (4) a link to the State plan approved under section 
        402; and
          (5) information regarding any penalty imposed, or 
        other corrective action taken, by the Secretary against 
        a State for failing to achieve a requisite performance 
        level or any other requirement imposed by or under this 
        part.
  (c) Engaged in Work.--
          (1) General rules.--
                  (A) All families.--[For purposes of 
                subsection (b)(1)(B)(i), a] A recipient is 
                engaged in work for a month in a fiscal year if 
                the recipient is participating in work 
                activities for at least the minimum average 
                number of hours per week specified in the 
                following table during the month[, not fewer 
                than 20 hours per week of which are 
                attributable to an activity described in 
                paragraph (1), (2), (3), (4), (5), (6), (7), 
                (8), or (12) of subsection (d), subject to this 
                subsection]:

                                                             The minimum
          If the month is                              average number of
        in fiscal year:                               hours per week is:
            1997........................................              20
            1998........................................              20
            1999........................................              25
            2000 or thereafter..........................             30.

                  (B)  2-parent families.--[For purposes of 
                subsection (b)(2)(B), an] An individual is 
                engaged in work for a month in a fiscal year 
                if--
                          (i) the individual and the other 
                        parent in the family are participating 
                        in work activities for a total of at 
                        least 35 hours per week during the 
                        month[, not fewer than 30 hours per 
                        week of which are attributable to an 
                        activity described in paragraph (1), 
                        (2), (3), (4), (5), (6), (7), (8), or 
                        (12) of subsection (d), subject to this 
                        subsection]; and
                          (ii) if the family of the individual 
                        receives federally-funded child care 
                        assistance and an adult in the family 
                        is not disabled or caring for a 
                        severely disabled child, the individual 
                        and the other parent in the family are 
                        participating in work activities for a 
                        total of at least 55 hours per week 
                        during the month[, not fewer than 50 
                        hours per week of which are 
                        attributable to an activity described 
                        in paragraph (1), (2), (3), (4), (5), 
                        (6), (7), (8), or (12) of subsection 
                        (d)].
          (2) Limitations and special rules.--
                  [(A) Number of weeks for which job search 
                counts as work.--
                          [(i) Limitation.--Notwithstanding 
                        paragraph (1) of this subsection, an 
                        individual shall not be considered to 
                        be engaged in work by virtue of 
                        participation in an activity described 
                        in subsection (d)(6) of a 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)), after the 
                        individual has participated in such an 
                        activity for 6 weeks (or, if the 
                        unemployment rate of the State is at 
                        least 50 percent greater than the 
                        unemployment rate of the United States 
                        or the State is a needy State (within 
                        the meaning of section 403(b)(5)), 12 
                        weeks), or if the participation is for 
                        a week that immediately follows 4 
                        consecutive weeks of such 
                        participation.
                          [(ii) Limited authority to count less 
                        than full week of participation.--For 
                        purposes of clause (i) of this 
                        subparagraph, on not more than 1 
                        occasion per individual, the State 
                        shall consider participation of the 
                        individual in an activity described in 
                        subsection (d)(6) for 3 or 4 days 
                        during a week as a week of 
                        participation in the activity by the 
                        individual.
                  [(B)] (A) Single parent or relative with 
                child under age 6 deemed to be meeting work 
                participation requirements if parent or 
                relative is engaged in work for 20 hours per 
                week.--[For purposes of determining monthly 
                participation rates under subsection 
                (b)(1)(B)(i), a] A recipient who is the only 
                parent or caretaker relative in the family of a 
                child who has not attained 6 years of age is 
                deemed to be engaged in work for a month if the 
                recipient is engaged in work for an average of 
                at least 20 hours per week during the month.
                  [(C)] (B) Single teen head of household or 
                married teen who maintains satisfactory school 
                attendance deemed to be meeting work 
                participation requirements.--[For purposes of 
                determining monthly participation rates under 
                subsection (b)(1)(B)(i), a] A recipient who is 
                married or a head of household and has not 
                attained 20 years of age is deemed to be 
                engaged in work for a month in a fiscal year if 
                the recipient--
                          (i) maintains satisfactory attendance 
                        at secondary school or the equivalent 
                        during the month; or
                          (ii) participates in education 
                        directly related to employment for an 
                        average of at least 20 hours per week 
                        during the month.
                  [(D) Limitation on number of persons who may 
                be treated as engaged in work by reason of 
                participation in educational activities.--For 
                purposes of determining monthly participation 
                rates under paragraphs (1)(B)(i) and (2)(B) of 
                subsection (b), not more than 30 percent of the 
                number of individuals in all families and in 2-
                parent families, respectively, in a State who 
                are treated as engaged in work for a month may 
                consist of individuals who are determined to be 
                engaged in work for the month by reason of 
                participation in vocational educational 
                training, or (if the month is in fiscal year 
                2000 or thereafter) deemed to be engaged in 
                work for the month by reason of subparagraph 
                (C) of this paragraph.]
  (d) Work Activities Defined.--As used in this section, the 
term ``work activities'' means--
          (1) unsubsidized employment;
          (2) subsidized private sector employment;
          (3) subsidized public sector employment;
          (4) work experience (including work associated with 
        the refurbishing of publicly assisted housing) if 
        sufficient private sector employment is not available;
          (5) on-the-job training, including apprenticeship;
          (6) job search and job readiness assistance;
          (7) community service programs;
          (8) vocational educational training [(not to exceed 
        12 months with respect to any individual)], including 
        career technical education;
          (9) job skills training directly related to 
        employment;
          (10) education directly related to employment, in the 
        case of a recipient who has not received a high school 
        diploma or a certificate of high school equivalency;
          (11) satisfactory attendance at secondary school or 
        in a course of study leading to a certificate of 
        general equivalence, in the case of a recipient who has 
        not completed secondary school or received such a 
        certificate; [and]
          (12) the provision of child care services to an 
        individual who is participating in a community service 
        program[.]; and
          (13) any other activity that the State determines is 
        necessary to improve the employment, earnings, or other 
        outcomes of a recipient of assistance that are used in 
        determining a level of performance by the State for 
        purposes of subsection (a), as described in the State 
        plan approved under section 402.
  (e) Penalties Against Individuals.--
          (1) In general.--Except as provided in paragraph (2), 
        if an individual in a family receiving 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))] refuses to 
        engage in work required in accordance with this 
        section, the State shall--
                  (A) reduce the amount of assistance otherwise 
                payable to the family pro rata (or more, at the 
                option of the State) with respect to any period 
                during a month in which the individual so 
                refuses; or
                  (B) terminate such assistance,
        subject to such good cause and other exceptions as the 
        State may establish.
          (2) Exception.--Notwithstanding paragraph (1), a 
        State may not reduce or terminate 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))] based on a 
        refusal of an individual to engage in work required in 
        accordance with this section if the individual is a 
        single custodial parent caring for a child who has not 
        attained 6 years of age, and the individual proves that 
        the individual has a demonstrated inability (as 
        determined by the State) to obtain needed child care, 
        for 1 or more of the following reasons:
                  (A) Unavailability of appropriate child care 
                within a reasonable distance from the 
                individual's home or work site.
                  (B) Unavailability or unsuitability of 
                informal child care by a relative or under 
                other arrangements.
                  (C) Unavailability of appropriate and 
                affordable formal child care arrangements.
  (f) Nondisplacement in Work Activities.--
          (1) In general.--Subject to paragraph (2), an adult 
        in a family receiving assistance under a State program 
        funded under this part attributable to funds provided 
        by the Federal Government may fill a vacant employment 
        position in order to engage in a work activity 
        described in subsection (d).
          (2) No filling of certain vacancies.--No adult in a 
        work activity described in subsection (d) which is 
        funded, in whole or in part, by funds provided by the 
        Federal Government shall be employed or assigned--
                  (A) when any other individual is on layoff 
                from the same or any substantially equivalent 
                job; or
                  (B) if the employer has terminated the 
                employment of any regular employee or otherwise 
                caused an involuntary reduction of its 
                workforce in order to fill the vacancy so 
                created with an adult described in paragraph 
                (1).
          (3) Grievance procedure.--A State with a program 
        funded under this part shall establish and maintain a 
        grievance procedure for resolving complaints of alleged 
        violations of paragraph (2).
          (4) No preemption.--Nothing in this subsection shall 
        preempt or supersede any provision of State or local 
        law that provides greater protection for employees from 
        displacement.
  (g) Sense of the Congress.--It is the sense of the Congress 
that in complying with this section, each State that operates a 
program funded under this part is encouraged to assign the 
highest priority to requiring adults in 2-parent families and 
adults in single-parent families that include older preschool 
or school-age children to be engaged in work activities.
  (h) Sense of the Congress That States Should Impose Certain 
Requirements on Noncustodial, Nonsupporting Minor Parents.--It 
is the sense of the Congress that the States should require 
noncustodial, nonsupporting parents who have not attained 18 
years of age to fulfill community work obligations and attend 
appropriate parenting or money management classes after school.
  (i) Verification of Work and Work-Eligible Individuals in 
Order To Implement Reforms.--
          (1) Secretarial direction and oversight.--
                  (A) Regulations for determining whether 
                activities may be counted as ``work 
                activities'', how to count and verify reported 
                hours of work, and determining who is a work-
                eligible individual.--
                          (i) In general.--Not later than June 
                        30, 2006, the Secretary shall 
                        promulgate regulations to ensure 
                        consistent measurement of work 
                        participation rates under State 
                        programs funded under this part and 
                        State programs funded with qualified 
                        State expenditures (as defined in 
                        section 409(a)(7)(B)(i)), which shall 
                        include information with respect to--
                                  (I) determining whether an 
                                activity of a recipient of 
                                assistance may be treated as a 
                                work activity under subsection 
                                (d);
                                  (II) uniform methods for 
                                reporting hours of work by a 
                                recipient of assistance;
                                  (III) the type of 
                                documentation needed to verify 
                                reported hours of work by a 
                                recipient of assistance; and
                                  (IV) the circumstances under 
                                which a parent who resides with 
                                a child who is a recipient of 
                                assistance should be included 
                                in the work participation 
                                rates.
                          (ii) Issuance of regulations on an 
                        interim final basis.--The regulations 
                        referred to in clause (i) may be 
                        effective and final immediately on an 
                        interim basis as of the date of 
                        publication of the regulations. If the 
                        Secretary provides for an interim final 
                        regulation, the Secretary shall provide 
                        for a period of public comment on the 
                        regulation after the date of 
                        publication. The Secretary may change 
                        or revise the regulation after the 
                        public comment period.
                  (B) Oversight of state procedures.--The 
                Secretary shall review the State procedures 
                established in accordance with paragraph (2) to 
                ensure that such procedures are consistent with 
                the regulations promulgated under subparagraph 
                (A) and are adequate to ensure an accurate 
                measurement of work participation under the 
                State programs funded under this part and any 
                other State programs funded with qualified 
                State expenditures (as so defined).
          (2) Requirement for states to establish and maintain 
        work participation verification procedures.--Not later 
        than September 30, 2006, a State to which a grant is 
        made under section 403 shall establish procedures for 
        determining, with respect to recipients of assistance 
        under the State program funded under this part or under 
        any State programs funded with qualified State 
        expenditures (as so defined), whether activities may be 
        counted as work activities, how to count and verify 
        reported hours of work, and who is a work-eligible 
        individual, in accordance with the regulations 
        promulgated pursuant to paragraph (1)(A)(i) and shall 
        establish internal controls to ensure compliance with 
        the procedures.

SEC. 408. PROHIBITIONS; REQUIREMENTS.

  (a) In General.--
          (1) No assistance for families without a minor 
        child.--A State to which a grant is made under section 
        403 shall not use any part of the grant to provide 
        assistance to a family, unless the family includes a 
        minor child who resides with the family (consistent 
        with paragraph (10)) or a pregnant individual.
          (2) Reduction or elimination of assistance for 
        noncooperation in establishing paternity or obtaining 
        child support.--If the agency responsible for 
        administering the State plan approved under part D 
        determines that an individual is not cooperating with 
        the State in establishing paternity or in establishing, 
        modifying, or enforcing a support order with respect to 
        a child of the individual, and the individual does not 
        qualify for any good cause or other exception 
        established by the State pursuant to section 454(29), 
        then the State--
                  (A) shall deduct from the assistance that 
                would otherwise be provided to the family of 
                the individual under the State program funded 
                under this part an amount equal to not less 
                than 25 percent of the amount of such 
                assistance; and
                  (B) may deny the family any assistance under 
                the State program.
          (3) No assistance for families not assigning certain 
        support rights to the state.--A State to which a grant 
        is made under section 403 shall require, as a condition 
        of paying assistance to a family under the State 
        program funded under this part, that a member of the 
        family assign to the State any right the family member 
        may have (on behalf of the family member or of any 
        other person for whom the family member has applied for 
        or is receiving such assistance) to support from any 
        other person, not exceeding the total amount of 
        assistance so paid to the family, which accrues during 
        the period that the family receives assistance under 
        the program.
          (4) No assistance for teenage parents who do not 
        attend high school or other equivalent training 
        program.--A State to which a grant is made under 
        section 403 shall not use any part of the grant to 
        provide assistance to an individual who has not 
        attained 18 years of age, is not married, has a minor 
        child at least 12 weeks of age in his or her care, and 
        has not successfully completed a high-school education 
        (or its equivalent), if the individual does not 
        participate in--
                  (A) educational activities directed toward 
                the attainment of a high school diploma or its 
                equivalent; or
                  (B) an alternative educational or training 
                program that has been approved by the State.
          (5) No assistance for teenage parents not living in 
        adult-supervised settings.--
                  (A) In general.--
                          (i) Requirement.--Except as provided 
                        in subparagraph (B), a State to which a 
                        grant is made under section 403 shall 
                        not use any part of the grant to 
                        provide assistance to an individual 
                        described in clause (ii) of this 
                        subparagraph if the individual and the 
                        minor child referred to in clause 
                        (ii)(II) do not reside in a place of 
                        residence maintained by a parent, legal 
                        guardian, or other adult relative of 
                        the individual as such parent's, 
                        guardian's, or adult relative's own 
                        home.
                          (ii) Individual described.--For 
                        purposes of clause (i), an individual 
                        described in this clause is an 
                        individual who--
                                  (I) has not attained 18 years 
                                of age; and
                                  (II) is not married, and has 
                                a minor child in his or her 
                                care.
                  (B) Exception.--
                          (i) Provision of, or assistance in 
                        locating, adult-supervised living 
                        arrangement.--In the case of an 
                        individual who is described in clause 
                        (ii), the State agency referred to in 
                        section 402(a)(4) shall provide, or 
                        assist the individual in locating, a 
                        second chance home, maternity home, or 
                        other appropriate adult-supervised 
                        supportive living arrangement, taking 
                        into consideration the needs and 
                        concerns of the individual, unless the 
                        State agency determines that the 
                        individual's current living arrangement 
                        is appropriate, and thereafter shall 
                        require that the individual and the 
                        minor child referred to in subparagraph 
                        (A)(ii)(II) reside in such living 
                        arrangement as a condition of the 
                        continued receipt of assistance under 
                        the State program funded under this 
                        part attributable to funds provided by 
                        the Federal Government (or in an 
                        alternative appropriate arrangement, 
                        should circumstances change and the 
                        current arrangement cease to be 
                        appropriate).
                          (ii) Individual described.--For 
                        purposes of clause (i), an individual 
                        is described in this clause if the 
                        individual is described in subparagraph 
                        (A)(ii), and--
                                  (I) the individual has no 
                                parent, legal guardian, or 
                                other appropriate adult 
                                relative described in subclause 
                                (II) of his or her own who is 
                                living or whose whereabouts are 
                                known;
                                  (II) no living parent, legal 
                                guardian, or other appropriate 
                                adult relative, who would 
                                otherwise meet applicable State 
                                criteria to act as the 
                                individual's legal guardian, of 
                                such individual allows the 
                                individual to live in the home 
                                of such parent, guardian, or 
                                relative;
                                  (III) the State agency 
                                determines that--
                                          (aa) the individual 
                                        or the minor child 
                                        referred to in 
                                        subparagraph 
                                        (A)(ii)(II) is being or 
                                        has been subjected to 
                                        serious physical or 
                                        emotional harm, sexual 
                                        abuse, or exploitation 
                                        in the residence of the 
                                        individual's own parent 
                                        or legal guardian; or
                                          (bb) substantial 
                                        evidence exists of an 
                                        act or failure to act 
                                        that presents an 
                                        imminent or serious 
                                        harm if the individual 
                                        and the minor child 
                                        lived in the same 
                                        residence with the 
                                        individual's own parent 
                                        or legal guardian; or
                                  (IV) the State agency 
                                otherwise determines that it is 
                                in the best interest of the 
                                minor child to waive the 
                                requirement of subparagraph (A) 
                                with respect to the individual 
                                or the minor child.
                          (iii) Second-chance home.--For 
                        purposes of this subparagraph, the term 
                        ``second-chance home'' means an entity 
                        that provides individuals described in 
                        clause (ii) with a supportive and 
                        supervised living arrangement in which 
                        such individuals are required to learn 
                        parenting skills, including child 
                        development, family budgeting, health 
                        and nutrition, and other skills to 
                        promote their long-term economic 
                        independence and the well-being of 
                        their children.
          (6) No medical services.--
                  (A) In general.--A State to which a grant is 
                made under section 403 shall not use any part 
                of the grant to provide medical services.
                  (B) Exception for prepregnancy family 
                planning services.--As used in subparagraph 
                (A), the term ``medical services'' does not 
                include prepregnancy family planning services.
          (7) No assistance for more than 5 years.--
                  (A) In general.--A State to which a grant is 
                made under section 403 shall not use any part 
                of the grant to provide assistance to a family 
                that includes an adult who has received 
                assistance under any State program funded under 
                this part attributable to funds provided by the 
                Federal Government, for 60 months (whether or 
                not consecutive) after the date the State 
                program funded under this part commences, 
                subject to this paragraph.
                  (B) Minor child exception.--In determining 
                the number of months for which an individual 
                who is a parent or pregnant has received 
                assistance under the State program funded under 
                this part, the State shall disregard any month 
                for which such assistance was provided with 
                respect to the individual and during which the 
                individual was--
                          (i) a minor child; and
                          (ii) not the head of a household or 
                        married to the head of a household.
                  (C) Hardship exception.--
                          (i) In general.--The State may exempt 
                        a family from the application of 
                        subparagraph (A) by reason of hardship 
                        or if the family includes an individual 
                        who has been battered or subjected to 
                        extreme cruelty.
                          (ii) Limitation.--The average monthly 
                        number of families with respect to 
                        which an exemption made by a State 
                        under clause (i) is in effect for a 
                        fiscal year shall not exceed 20 percent 
                        of the average monthly number of 
                        families to which assistance is 
                        provided under the State program funded 
                        under this part during the fiscal year 
                        or the immediately preceding fiscal 
                        year (but not both), as the State may 
                        elect.
                          (iii) Battered or subject to extreme 
                        cruelty defined.--For purposes of 
                        clause (i), an individual has been 
                        battered or subjected to extreme 
                        cruelty if the individual has been 
                        subjected to--
                                  (I) physical acts that 
                                resulted in, or threatened to 
                                result in, physical injury to 
                                the individual;
                                  (II) sexual abuse;
                                  (III) sexual activity 
                                involving a dependent child;
                                  (IV) being forced as the 
                                caretaker relative of a 
                                dependent child to engage in 
                                nonconsensual sexual acts or 
                                activities;
                                  (V) threats of, or attempts 
                                at, physical or sexual abuse;
                                  (VI) mental abuse; or
                                  (VII) neglect or deprivation 
                                of medical care.
                  (D) Disregard of months of assistance 
                received by adult while living in indian 
                country or an alaskan native village with 50 
                percent unemployment.--
                          (i) In general.--In determining the 
                        number of months for which an adult has 
                        received assistance under a State or 
                        tribal program funded under this part, 
                        the State or tribe shall disregard any 
                        month during which the adult lived in 
                        Indian country or an Alaskan Native 
                        village if the most reliable data 
                        available with respect to the month (or 
                        a period including the month) indicate 
                        that at least 50 percent of the adults 
                        living in Indian country or in the 
                        village were not employed.
                          (ii) Indian country defined.--As used 
                        in clause (i), the term ``Indian 
                        country'' has the meaning given such 
                        term in section 1151 of title 18, 
                        United States Code.
                  (E) Rule of interpretation.--Subparagraph (A) 
                shall not be interpreted to require any State 
                to provide assistance to any individual for any 
                period of time under the State program funded 
                under this part.
                  (F) Rule of interpretation.--This part shall 
                not be interpreted to prohibit any State from 
                expending State funds not originating with the 
                Federal Government on benefits for children or 
                families that have become ineligible for 
                assistance under the State program funded under 
                this part by reason of subparagraph (A).
                  [(G) Inapplicability to welfare-to-work 
                grants and assistance.--For purposes of 
                subparagraph (A) of this paragraph, a grant 
                made under section 403(a)(5) shall not be 
                considered a grant made under section 403, and 
                noncash assistance from funds provided under 
                section 403(a)(5) shall not be considered 
                assistance.]
          (8) Denial of assistance for 10 years to a person 
        found to have fraudulently misrepresented residence in 
        order to obtain assistance in 2 or more states.--A 
        State to which a grant is made under section 403 shall 
        not use any part of the grant to provide cash 
        assistance to an individual during the 10-year period 
        that begins on the date the individual is convicted in 
        Federal or State court of having made a fraudulent 
        statement or representation with respect to the place 
        of residence of the individual in order to receive 
        assistance simultaneously from 2 or more States under 
        programs that are funded under this title, title XIX, 
        or the Food and Nutrition Act of 2008, or benefits in 2 
        or more States under the supplemental security income 
        program under title XVI. The preceding sentence shall 
        not apply with respect to a conviction of an 
        individual, for any month beginning after the President 
        of the United States grants a pardon with respect to 
        the conduct which was the subject of the conviction.
          (9) Denial of assistance for fugitive felons and 
        probation and parole violators.--
                  (A) In general.--A State to which a grant is 
                made under section 403 shall not use any part 
                of the grant to provide assistance to any 
                individual who is--
                          (i) fleeing to avoid prosecution, or 
                        custody or confinement after 
                        conviction, under the laws of the place 
                        from which the individual flees, for a 
                        crime, or an attempt to commit a crime, 
                        which is a felony under the laws of the 
                        place from which the individual flees, 
                        or which, in the case of the State of 
                        New Jersey, is a high misdemeanor under 
                        the laws of such State; or
                          (ii) violating a condition of 
                        probation or parole imposed under 
                        Federal or State law.
                The preceding sentence shall not apply with 
                respect to conduct of an individual, for any 
                month beginning after the President of the 
                United States grants a pardon with respect to 
                the conduct.
                  (B) Exchange of information with law 
                enforcement agencies.--If a State to which a 
                grant is made under section 403 establishes 
                safeguards against the use or disclosure of 
                information about applicants or recipients of 
                assistance under the State program funded under 
                this part, the safeguards shall not prevent the 
                State agency administering the program from 
                furnishing a Federal, State, or local law 
                enforcement officer, upon the request of the 
                officer, with the current address of any 
                recipient if the officer furnishes the agency 
                with the name of the recipient and notifies the 
                agency that--
                          (i) the recipient--
                                  (I) is described in 
                                subparagraph (A); or
                                  (II) has information that is 
                                necessary for the officer to 
                                conduct the official duties of 
                                the officer; and
                          (ii) the location or apprehension of 
                        the recipient is within such official 
                        duties.
          (10) Denial of assistance for minor children who are 
        absent from the home for a significant period.--
                  (A) In general.--A State to which a grant is 
                made under section 403 shall not use any part 
                of the grant to provide assistance for a minor 
                child who has been, or is expected by a parent 
                (or other caretaker relative) of the child to 
                be, absent from the home for a period of 45 
                consecutive days or, at the option of the 
                State, such period of not less than 30 and not 
                more than 180 consecutive days as the State may 
                provide for in the State plan submitted 
                pursuant to section 402.
                  (B) State authority to establish good cause 
                exceptions.--The State may establish such good 
                cause exceptions to subparagraph (A) as the 
                State considers appropriate if such exceptions 
                are provided for in the State plan submitted 
                pursuant to section 402.
                  (C) Denial of assistance for relative who 
                fails to notify state agency of absence of 
                child.--A State to which a grant is made under 
                section 403 shall not use any part of the grant 
                to provide assistance for an individual who is 
                a parent (or other caretaker relative) of a 
                minor child and who fails to notify the agency 
                administering the State program funded under 
                this part of the absence of the minor child 
                from the home for the period specified in or 
                provided for pursuant to subparagraph (A), by 
                the end of the 5-day period that begins with 
                the date that it becomes clear to the parent 
                (or relative) that the minor child will be 
                absent for such period so specified or provided 
                for.
          (11) Medical assistance required to be provided for 
        certain families having earnings from employment or 
        child support.--
                  (A) Earnings from employment.--A State to 
                which a grant is made under section 403 and 
                which has a State plan approved under title XIX 
                shall provide that in the case of a family that 
                is treated (under section 1931(b)(1)(A) for 
                purposes of title XIX) as receiving aid under a 
                State plan approved under this part (as in 
                effect on July 16, 1996), that would become 
                ineligible for such aid because of hours of or 
                income from employment of the caretaker 
                relative (as defined under this part as in 
                effect on such date) or because of section 
                402(a)(8)(B)(ii)(II) (as so in effect), and 
                that was so treated as receiving such aid in at 
                least 3 of the 6 months immediately preceding 
                the month in which such ineligibility begins, 
                the family shall remain eligible for medical 
                assistance under the State's plan approved 
                under title XIX for an extended period or 
                periods as provided in section 1925 or 
                1902(e)(1) (as applicable), and that the family 
                will be appropriately notified of such 
                extension as required by section 1925(a)(2).
                  (B) Child support.--A State to which a grant 
                is made under section 403 and which has a State 
                plan approved under title XIX shall provide 
                that in the case of a family that is treated 
                (under section 1931(b)(1)(A) for purposes of 
                title XIX) as receiving aid under a State plan 
                approved under this part (as in effect on July 
                16, 1996), that would become ineligible for 
                such aid as a result (wholly or partly) of the 
                collection of child or spousal support under 
                part D and that was so treated as receiving 
                such aid in at least 3 of the 6 months 
                immediately preceding the month in which such 
                ineligibility begins, the family shall remain 
                eligible for medical assistance under the 
                State's plan approved under title XIX for an 
                extended period or periods as provided in 
                section 1931(c)(1).
          (12) State requirement to prevent unauthorized 
        spending of benefits.--
                  (A) In general.--A State to which a grant is 
                made under section 403 shall maintain policies 
                and practices as necessary to prevent 
                assistance provided under the State program 
                funded under this part from being used in any 
                electronic benefit transfer transaction in--
                          (i) any liquor store;
                          (ii) any casino, gambling casino, or 
                        gaming establishment; [or]
                          (iii) any retail establishment which 
                        provides adult-oriented entertainment 
                        in which performers disrobe or perform 
                        in an unclothed state for 
                        entertainment[.]; or
                          (iv) any establishment that offers 
                        marihuana (as defined in section 
                        102(16) of the Controlled Substances 
                        Act) for sale.
                  (B) Definitions.--For purposes of 
                subparagraph (A)--
                          (i) Liquor store.--The term ``liquor 
                        store'' means any retail establishment 
                        which sells exclusively or primarily 
                        intoxicating liquor. Such term does not 
                        include a grocery store which sells 
                        both intoxicating liquor and groceries 
                        including staple foods (within the 
                        meaning of section 3(r) of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 
                        2012(r))).
                          (ii) Casino, gambling casino, or 
                        gaming establishment.--The terms 
                        ``casino'', ``gambling casino'', and 
                        ``gaming establishment'' do not 
                        include--
                                  (I) a grocery store which 
                                sells groceries including such 
                                staple foods and which also 
                                offers, or is located within 
                                the same building or complex 
                                as, casino, gambling, or gaming 
                                activities; or
                                  (II) any other establishment 
                                that offers casino, gambling, 
                                or gaming activities incidental 
                                to the principal purpose of the 
                                business.
                          (iii) Electronic benefit transfer 
                        transaction.--The term ``electronic 
                        benefit transfer transaction'' means 
                        the use of a credit or debit card 
                        service, automated teller machine, 
                        point-of-sale terminal, or access to an 
                        online system for the withdrawal of 
                        funds or the processing of a payment 
                        for merchandise or a service.
          (13) Requirement that states reserve 25 percent of 
        jobs grant for spending on core activities.--A State to 
        which a grant is made under section 403(a)(1) for a 
        fiscal year shall expend not less than 25 percent of 
        the grant on assistance, case management, work supports 
        and supportive services, work, wage subsidies, work 
        activities (as defined in section 407(d)), and non-
        recurring short-term benefits.
          (14) Requirement that at least 25 percent of 
        qualified state expenditures be for core activities.--
        Not less than 25 percent of the qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i)) of 
        a State during the fiscal year shall be for assistance, 
        case management, work supports and supportive services, 
        work, wage subsidies, work activities (as defined in 
        section 407(d)), and non-recurring short-term benefits.
          (15) Phase-out of counting of third-party 
        contributions as qualified state expenditures.--
                  (A) In general.--The qualified State 
                expenditures (as defined in section 
                409(a)(7)(B)(i)) of a State for a fiscal year 
                that are attributable to the value of goods and 
                services provided by a source other than a 
                State or local government shall not exceed the 
                applicable percentage of the expenditures for 
                the fiscal year.
                  (B) Applicable percentage.--In subparagraph 
                (A), the term ``applicable percentage'' means, 
                with respect to a fiscal year--
                          (i) 75 percent, in the case of fiscal 
                        year 2020;
                          (ii) 50 percent, in the case of 
                        fiscal year 2021;
                          (iii) 25 percent, in the case of 
                        fiscal year 2022; and
                          (iv) 0 percent, in the case of fiscal 
                        year 2023 or any succeeding fiscal 
                        year.
          (16) Non-supplantation requirement.--Funds made 
        available to a State under this part shall be used to 
        supplement, not supplant, State general revenue 
        spending on activities described in section 404.
  [(b) Individual Responsibility Plans.--
          [(1) Assessment.--The State agency responsible for 
        administering the State program funded under this part 
        shall make an initial assessment of the skills, prior 
        work experience, and employability of each recipient of 
        assistance under the program who--
                  [(A) has attained 18 years of age; or
                  [(B) has not completed high school or 
                obtained a certificate of high school 
                equivalency, and is not attending secondary 
                school.
          [(2) Contents of plans.--
                  [(A) In general.--On the basis of the 
                assessment made under subsection (a) with 
                respect to an individual, the State agency, in 
                consultation with the individual, may develop 
                an individual responsibility plan for the 
                individual, which--
                          [(i) sets forth an employment goal 
                        for the individual and a plan for 
                        moving the individual immediately into 
                        private sector employment;
                          [(ii) sets forth the obligations of 
                        the individual, which may include a 
                        requirement that the individual attend 
                        school, maintain certain grades and 
                        attendance, keep school age children of 
                        the individual in school, immunize 
                        children, attend parenting and money 
                        management classes, or do other things 
                        that will help the individual become 
                        and remain employed in the private 
                        sector;
                          [(iii) to the greatest extent 
                        possible is designed to move the 
                        individual into whatever private sector 
                        employment the individual is capable of 
                        handling as quickly as possible, and to 
                        increase the responsibility and amount 
                        of work the individual is to handle 
                        over time;
                          [(iv) describes the services the 
                        State will provide the individual so 
                        that the individual will be able to 
                        obtain and keep employment in the 
                        private sector, and describe the job 
                        counseling and other services that will 
                        be provided by the State; and
                          [(v) may require the individual to 
                        undergo appropriate substance abuse 
                        treatment.
                  [(B) Timing.--The State agency may comply 
                with paragraph (1) with respect to an 
                individual--
                          [(i) within 90 days (or, at the 
                        option of the State, 180 days) after 
                        the effective date of this part, in the 
                        case of an individual who, as of such 
                        effective date, is a recipient of aid 
                        under the State plan approved under 
                        part A (as in effect immediately before 
                        such effective date); or
                          [(ii) within 30 days (or, at the 
                        option of the State, 90 days) after the 
                        individual is determined to be eligible 
                        for such assistance, in the case of any 
                        other individual.
          [(3) Penalty for noncompliance by individual.--In 
        addition to any other penalties required under the 
        State program funded under this part, the State may 
        reduce, by such amount as the State considers 
        appropriate, the amount of assistance otherwise payable 
        under the State program to a family that includes an 
        individual who fails without good cause to comply with 
        an individual responsibility plan signed by the 
        individual.
          [(4) State discretion.--The exercise of the authority 
        of this subsection shall be within the sole discretion 
        of the State.]
  (b) Individual Opportunity Plans.--
          (1) Assessment.--The State agency responsible for 
        administering the State program funded under this part 
        shall make an initial assessment of the following for 
        each work-eligible individual (as defined in the 
        regulations promulgated pursuant to section 
        407(i)(1)(A)(i)):
                  (A) The education obtained, skills, prior 
                work experience, work readiness, and barriers 
                to work of the individual.
                  (B) The well-being of the children in the 
                family of the individual and, where 
                appropriate, activities or services (such as 
                services offered by a program funded under 
                section 511) to improve the well-being of the 
                children.
          (2) Contents of plans.--On the basis of the 
        assessment required by paragraph (1) of this 
        subsection, the State agency, in consultation with the 
        individual, shall develop an individual opportunity 
        plan that--
                  (A) includes a personal responsibility 
                agreement in which the individual acknowledges 
                receipt of publicly-funded benefits and 
                responsibility to comply with program 
                requirements in order to receive the benefits;
                  (B) sets forth the obligations of the 
                individual to participate in work activities 
                (as defined in section 407(d)), and the number 
                of hours per month for which the individual 
                will so participate pursuant to section 407;
                  (C) sets forth an employment goal and planned 
                short-, intermediate-, and long-term actions to 
                achieve the goal, and, in the case of an 
                individual who has not attained 24 years of age 
                and is in secondary school or the equivalent, 
                the intermediate action may be completion of 
                secondary school or the equivalent;
                  (D) describes the job counseling and other 
                services the State will provide to the 
                individual to enable the individual to obtain 
                and keep employment in the private sector;
                  (E) may include referral to appropriate 
                substance abuse or mental health treatment; and
                  (F) is signed by the individual.
          (3) Timing.--The State agency shall comply with 
        paragraph (1) and (2) with respect to a work-eligible 
        individual--
                  (A) within 180 days after the effective date 
                of this subsection, in the case of an 
                individual who, as of such effective date, is a 
                recipient of assistance under the State program 
                funded under this part (as in effect 
                immediately before such effective date); or
                  (B) within 60 days after the individual is 
                determined to be eligible for the assistance, 
                in the case of any other individual.
          (4) Penalty for noncompliance by individual.--In 
        addition to any other penalties required under the 
        State program funded under this part, the State may 
        reduce, by such amount as the State considers 
        appropriate, the amount of assistance otherwise payable 
        under the State program to a family that includes an 
        individual who fails without good cause to comply with 
        an individual opportunity plan developed pursuant to 
        this subsection, that is signed by the individual.
          (5) Periodic review.--The State shall meet with each 
        work-eligible individual assessed by the State under 
        paragraph (1), not less frequently than every 90 days, 
        to--
                  (A) review the individual opportunity plan 
                developed for the individual;
                  (B) discuss with the individual the progress 
                made by the individual in achieving the goals 
                specified in the plan; and
                  (C) update the plan, as necessary, to reflect 
                any changes in the circumstances of the 
                individual since the plan was last reviewed.
  (c) Sanctions Against Recipients Not Considered Wage 
Reductions.--A penalty imposed by a State against the family of 
an individual by reason of the failure of the individual to 
comply with a requirement under the State program funded under 
this part shall not be construed to be a reduction in any wage 
paid to the individual.
  (d) Nondiscrimination Provisions.--The following provisions 
of law shall apply to any program or activity which receives 
funds provided under this part:
          (1) The Age Discrimination Act of 1975 (42 U.S.C. 
        6101 et seq.).
          (2) Section 504 of the Rehabilitation Act of 1973 (29 
        U.S.C. 794).
          (3) The Americans with Disabilities Act of 1990 (42 
        U.S.C. 12101 et seq.).
          (4) Title VI of the Civil Rights Act of 1964 (42 
        U.S.C. 2000d et seq.).
  (e) Special Rules Relating to Treatment of Certain Aliens.--
For special rules relating to the treatment of certain aliens, 
see title IV of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996.
  (f) Special Rules Relating to the Treatment of Non-213A 
Aliens.--The following rules shall apply if a State elects to 
take the income or resources of any sponsor of a non-213A alien 
into account in determining whether the alien is eligible for 
assistance under the State program funded under this part, or 
in determining the amount or types of such assistance to be 
provided to the alien:
          (1) Deeming of sponsor's income and resources.--For a 
        period of 3 years after a non-213A alien enters the 
        United States:
                  (A) Income deeming rule.--The income of any 
                sponsor of the alien and of any spouse of the 
                sponsor is deemed to be income of the alien, to 
                the extent that the total amount of the income 
                exceeds the sum of--
                          (i) the lesser of--
                                  (I) 20 percent of the total 
                                of any amounts received by the 
                                sponsor or any such spouse in 
                                the month as wages or salary or 
                                as net earnings from self-
                                employment, plus the full 
                                amount of any costs incurred by 
                                the sponsor and any such spouse 
                                in producing self-employment 
                                income in such month; or
                                  (II) $175;
                          (ii) the cash needs standard 
                        established by the State for purposes 
                        of determining eligibility for 
                        assistance under the State program 
                        funded under this part for a family of 
                        the same size and composition as the 
                        sponsor and any other individuals 
                        living in the same household as the 
                        sponsor who are claimed by the sponsor 
                        as dependents for purposes of 
                        determining the sponsor's Federal 
                        personal income tax liability but whose 
                        needs are not taken into account in 
                        determining whether the sponsor's 
                        family has met the cash needs standard;
                          (iii) any amounts paid by the sponsor 
                        or any such spouse to individuals not 
                        living in the household who are claimed 
                        by the sponsor as dependents for 
                        purposes of determining the sponsor's 
                        Federal personal income tax liability; 
                        and
                          (iv) any payments of alimony or child 
                        support with respect to individuals not 
                        living in the household.
                  (B) Resource deeming rule.--The resources of 
                a sponsor of the alien and of any spouse of the 
                sponsor are deemed to be resources of the alien 
                to the extent that the aggregate value of the 
                resources exceeds $1,500.
                  (C) Sponsors of multiple non-213a aliens.--If 
                a person is a sponsor of 2 or more non-213A 
                aliens who are living in the same home, the 
                income and resources of the sponsor and any 
                spouse of the sponsor that would be deemed 
                income and resources of any such alien under 
                subparagraph (A) shall be divided into a number 
                of equal shares equal to the number of such 
                aliens, and the State shall deem the income and 
                resources of each such alien to include 1 such 
                share.
          (2) Ineligibility of non-213a aliens sponsored by 
        agencies; exception.--A non-213A alien whose sponsor is 
        or was a public or private agency shall be ineligible 
        for assistance under a State program funded under this 
        part, during a period of 3 years after the alien enters 
        the United States, unless the State agency 
        administering the program determines that the sponsor 
        either no longer exists or has become unable to meet 
        the alien's needs.
          (3) Information provisions.--
                  (A) Duties of non-213a aliens.--A non-213A 
                alien, as a condition of eligibility for 
                assistance under a State program funded under 
                this part during the period of 3 years after 
                the alien enters the United States, shall be 
                required to provide to the State agency 
                administering the program--
                          (i) such information and 
                        documentation with respect to the 
                        alien's sponsor as may be necessary in 
                        order for the State agency to make any 
                        determination required under this 
                        subsection, and to obtain any 
                        cooperation from the sponsor necessary 
                        for any such determination; and
                          (ii) such information and 
                        documentation as the State agency may 
                        request and which the alien or the 
                        alien's sponsor provided in support of 
                        the alien's immigration application.
                  (B) Duties of federal agencies.--The 
                Secretary shall enter into agreements with the 
                Secretary of State and the Attorney General 
                under which any information available to them 
                and required in order to make any determination 
                under this subsection will be provided by them 
                to the Secretary (who may, in turn, make the 
                information available, upon request, to a 
                concerned State agency).
          (4) Non-213a alien defined.--An alien is a non-213A 
        alien for purposes of this subsection if the affidavit 
        of support or similar agreement with respect to the 
        alien that was executed by the sponsor of the alien's 
        entry into the United States was executed other than 
        pursuant to section 213A of the Immigration and 
        Nationality Act.
          (5) Inapplicability to alien minor sponsored by a 
        parent.--This subsection shall not apply to an alien 
        who is a minor child if the sponsor of the alien or any 
        spouse of the sponsor is a parent of the alien.
          (6) Inapplicability to certain categories of 
        aliens.--This subsection shall not apply to an alien 
        who is--
                  (A) admitted to the United States as a 
                refugee under section 207 of the Immigration 
                and Nationality Act;
                  (B) paroled into the United States under 
                section 212(d)(5) of such Act for a period of 
                at least 1 year; or
                  (C) granted political asylum by the Attorney 
                General under section 208 of such Act.
  (g) State Required To Provide Certain Information.--Each 
State to which a grant is made under section 403 shall, at 
least 4 times annually and upon request of the Immigration and 
Naturalization Service, furnish the Immigration and 
Naturalization Service with the name and address of, and other 
identifying information on, any individual who the State knows 
is not lawfully present in the United States.

SEC. 409. PENALTIES.

  (a) In General.--Subject to this section:
          (1) Use of grant in violation of this part.--
                  (A) General penalty.--If an audit conducted 
                under chapter 75 of title 31, United States 
                Code, finds that an amount paid to a State 
                under section 403 for a fiscal year has been 
                used in violation of this part, the Secretary 
                shall reduce the grant payable to the State 
                under section 403(a)(1) for the immediately 
                succeeding fiscal year quarter by the amount so 
                used.
                  (B) Enhanced penalty for intentional 
                violations.--If the State does not prove to the 
                satisfaction of the Secretary that the State 
                did not intend to use the amount in violation 
                of this part, the Secretary shall further 
                reduce the grant payable to the State under 
                section 403(a)(1) for the immediately 
                succeeding fiscal year quarter by an amount 
                equal to 5 percent of the State family 
                assistance grant.
                  [(C) Penalty for misuse of competitive 
                welfare-to-work funds.--If the Secretary of 
                Labor finds that an amount paid to an entity 
                under section 403(a)(5)(B) has been used in 
                violation of subparagraph (B) or (C) of section 
                403(a)(5), the entity shall remit to the 
                Secretary of Labor an amount equal to the 
                amount so used.]
          (2) Failure to submit required quarterly report.--
                  [(A) Quarterly reports.--]
                  [(i)] (A) In general.--If the Secretary 
                determines that a State has not, within 45 days 
                after the end of a fiscal quarter, submitted 
                the report required by section 411(a) for the 
                quarter, 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 4 percent of the State 
                family assistance grant.
                  [(ii)] (B) Rescission of penalty.--The 
                Secretary shall rescind a penalty imposed on a 
                State under [clause (i)] subparagraph (A) with 
                respect to a report if the State submits the 
                report before the end of the fiscal quarter 
                that immediately succeeds the fiscal quarter 
                for which the report was required.
                  [(B) Report on engagement in additional work 
                activities and expenditures for other benefits 
                and services.--
                          [(i) In general.--If the Secretary 
                        determines that a State has not 
                        submitted the report required by 
                        section 411(c)(1)(A)(i) by May 31, 
                        2011, or the report required by section 
                        411(c)(1)(A)(ii) by August 31, 2011, 
                        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 not more than 4 percent of the 
                        State family assistance grant.
                          [(ii) Rescission of penalty.--The 
                        Secretary shall rescind a penalty 
                        imposed on a State under clause (i) 
                        with respect to a report required by 
                        section 411(c)(1)(A) if the State 
                        submits the report not later than--
                                  [(I) in the case of the 
                                report required under section 
                                411(c)(1)(A)(i), June 15, 2011; 
                                and
                                  [(II) in the case of the 
                                report required under section 
                                411(c)(1)(A)(ii), September 15, 
                                2011.
                          [(iii) Penalty based on severity of 
                        failure.--The Secretary shall impose a 
                        reduction under clause (i) with respect 
                        to a fiscal year based on the degree of 
                        noncompliance.]
          (3) Failure to satisfy minimum participation rates.--
                  (A) In general.--If the Secretary determines 
                that a State to which a grant is made under 
                section 403 for a fiscal year has failed to 
                comply with section 407(a) for the 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 the applicable percentage of the State 
                family assistance grant.
                  (B) Applicable percentage defined.--As used 
                in subparagraph (A), the term ``applicable 
                percentage'' means, with respect to a State--
                          (i) if a penalty was not imposed on 
                        the State under subparagraph (A) for 
                        the immediately preceding fiscal year, 
                        5 percent; or
                          (ii) if a penalty was imposed on the 
                        State under subparagraph (A) for the 
                        immediately preceding fiscal year, the 
                        lesser of--
                                  (I) the percentage by which 
                                the grant payable to the State 
                                under section 403(a)(1) was 
                                reduced for such preceding 
                                fiscal year, increased by 2 
                                percentage points; or
                                  (II) 21 percent.
                  (C) Penalty based on severity of failure.--
                The Secretary shall impose reductions under 
                subparagraph (A) with respect to a fiscal year 
                based on the degree of noncompliance, and may 
                reduce the penalty if the noncompliance is due 
                to circumstances that caused the State to 
                become a needy State [(as defined in section 
                403(b)(5))] during the fiscal year or if the 
                noncompliance is due to extraordinary 
                circumstances such as a natural disaster or 
                regional recession. The Secretary shall provide 
                a written report to Congress to justify any 
                waiver or penalty reduction due to such 
                extraordinary circumstances.
                  [(5)] (D) Needy state.--For purposes of 
                [paragraph (4)] subparagraph (C), a State is a 
                needy State for a month if--
                          [(A)] (i) the average rate of--
                                  [(i)] (I) 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
                                  [(ii)] (II) 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
                          [(B)] (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--
                                  [(i)] (I) 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
                                  [(ii)] (II) 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.
          (4) Failure to participate in the income and 
        eligibility verification system.--If the Secretary 
        determines that a State program funded under this part 
        is not participating during a fiscal year in the income 
        and eligibility verification system required by section 
        1137, 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 not more 
        than 2 percent of the State family assistance grant.
          (5) Failure to comply with paternity establishment 
        and child support enforcement requirements under part 
        d.--Notwithstanding any other provision of this Act, if 
        the Secretary determines that the State agency that 
        administers a program funded under this part does not 
        enforce the penalties requested by the agency 
        administering part D against recipients of assistance 
        under the State program who fail to cooperate in 
        establishing paternity or in establishing, modifying, 
        or enforcing a child support order in accordance with 
        such part and who do not qualify for any good cause or 
        other exception established by the State under section 
        454(29), the Secretary shall reduce the grant payable 
        to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year (without regard to 
        this section) by not more than 5 percent.
          [(6) Failure to timely repay a federal loan fund for 
        state welfare programs.--If the Secretary determines 
        that a State has failed to repay any amount borrowed 
        from the Federal Loan Fund for State Welfare Programs 
        established under section 406 within the period of 
        maturity applicable to the loan, plus any interest owed 
        on the loan, the Secretary shall reduce the grant 
        payable to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year quarter (without 
        regard to this section) by the outstanding loan amount, 
        plus the interest owed on the outstanding amount. The 
        Secretary shall not forgive any outstanding loan amount 
        or interest owed on the outstanding amount.
          [(7)] (6) Failure of any state to maintain certain 
        level of historic effort.--
                  (A) In general.--The Secretary shall reduce 
                the grant payable to the State under section 
                403(a)(1) for a fiscal year by the amount (if 
                any) by which qualified State expenditures for 
                the then immediately preceding fiscal year are 
                less than the applicable percentage of historic 
                State expenditures with respect to such 
                preceding fiscal year.
                  (B) Definitions.--As used in this paragraph:
                          (i) Qualified state expenditures.--
                                  (I) In general.--The term 
                                ``qualified State 
                                expenditures'' means, with 
                                respect to a State and a fiscal 
                                year, the total expenditures by 
                                the State during the fiscal 
                                year, under [all State 
                                programs] the State program 
                                funded under this part, for any 
                                of the following with respect 
                                to eligible families:
                                          (aa) Cash assistance, 
                                        including any amount 
                                        collected by the State 
                                        as support pursuant to 
                                        a plan approved under 
                                        part D, on behalf of a 
                                        family receiving 
                                        assistance under the 
                                        State program funded 
                                        under this part, that 
                                        is distributed to the 
                                        family under section 
                                        457(a)(1)(B) and 
                                        disregarded in 
                                        determining the 
                                        eligibility of the 
                                        family for, and the 
                                        amount of, such 
                                        assistance.
                                          (bb) Child care 
                                        assistance.
                                          (cc) Educational 
                                        activities designed to 
                                        increase self-
                                        sufficiency, job 
                                        training, and work, 
                                        excluding any 
                                        expenditure for public 
                                        education in the State 
                                        except expenditures 
                                        which involve the 
                                        provision of services 
                                        or assistance to a 
                                        member of an eligible 
                                        family which is not 
                                        generally available to 
                                        persons who are not 
                                        members of an eligible 
                                        family.
                                          (dd) Expenditures for 
                                        a purpose described in 
                                        paragraph (3) or (4) of 
                                        section 401(a).
                                          [(dd)] (ee) 
                                        Administrative costs in 
                                        connection with the 
                                        matters described in 
                                        items (aa), (bb), (cc), 
                                        [and (ee)] (dd), and 
                                        (ff), but only to the 
                                        extent that such costs 
                                        do not exceed 15 
                                        percent of the total 
                                        amount of qualified 
                                        State expenditures for 
                                        the fiscal year.
                                          [(ee)] (ff) Any other 
                                        use of funds allowable 
                                        under section 
                                        404(a)(1).
                                  (II) Exclusion of transfers 
                                from other state and local 
                                programs.--Such term does not 
                                include expenditures under any 
                                State or local program during a 
                                fiscal year, except to the 
                                extent that--
                                          (aa) the expenditures 
                                        exceed the amount 
                                        expended under the 
                                        State or local program 
                                        in the fiscal year most 
                                        recently ending before 
                                        the date of the 
                                        enactment of this 
                                        section (as in effect 
                                        just before the 
                                        effective date of the 
                                        Jobs and Opportunity 
                                        with Benefits and 
                                        Services for Success 
                                        Act); or
                                          (bb) the State is 
                                        entitled to a payment 
                                        under former section 
                                        403 (as in effect 
                                        immediately before such 
                                        date of enactment) with 
                                        respect to the 
                                        expenditures.
                                  (III) Exclusion of amounts 
                                expended to replace penalty 
                                grant reductions.--Such term 
                                does not include any amount 
                                expended in order to comply 
                                with paragraph [(12)] (10).
                                  (IV) Eligible families.--As 
                                used in subclause (I), the term 
                                ``eligible families'' means 
                                families eligible for 
                                assistance under the State 
                                program funded under this part, 
                                families that would be eligible 
                                for such assistance but for the 
                                application of section 
                                408(a)(7) of this Act, and 
                                families of aliens lawfully 
                                present in the United States 
                                that would be eligible for such 
                                assistance but for the 
                                application of title IV of the 
                                Personal Responsibility and 
                                Work Opportunity Reconciliation 
                                Act of 1996, except any of such 
                                families whose monthly income 
                                exceeds twice the poverty line 
                                (as defined by the Office of 
                                Management and Budget, and 
                                revised annually in accordance 
                                with section 673(2) of the 
                                Omnibus Budget Reconciliation 
                                Act of 1981 (42 U.S.C. 
                                9902(2))).
                                  [(V) Counting of spending on 
                                certain pro-family 
                                activities.--The term 
                                ``qualified State 
                                expenditures'' includes the 
                                total expenditures by the State 
                                during the fiscal year under 
                                all State programs for a 
                                purpose described in paragraph 
                                (3) or (4) of section 401(a).]
                          (ii) Applicable percentage.--The term 
                        ``applicable percentage'' means 80 
                        percent (or, if the State meets the 
                        requirements of section 407(a), 75 
                        percent).
                          (iii) Historic state expenditures.--
                        The term ``historic State 
                        expenditures'' means, with respect to a 
                        State, the lesser of--
                                  (I) the expenditures by the 
                                State under parts A and F (as 
                                in effect during fiscal year 
                                1994) for fiscal year 1994; or
                                  (II) the amount which bears 
                                the same ratio to the amount 
                                described in subclause (I) as--
                                          (aa) the State family 
                                        assistance grant, plus 
                                        the total amount 
                                        required to be paid to 
                                        the State under former 
                                        section 403 for fiscal 
                                        year 1994 with respect 
                                        to amounts expended by 
                                        the State for child 
                                        care under subsection 
                                        (g) or (i) of section 
                                        402 (as in effect 
                                        during fiscal year 
                                        1994); bears to
                                          (bb) the total amount 
                                        required to be paid to 
                                        the State under former 
                                        section 403 (as in 
                                        effect during fiscal 
                                        year 1994) for fiscal 
                                        year 1994.
                        Such term does not include any 
                        expenditures under the State plan 
                        approved under part A (as so in effect) 
                        on behalf of individuals covered by a 
                        tribal family assistance plan approved 
                        under section 412, as determined by the 
                        Secretary.
                          (iv) Expenditures by the state.--The 
                        term ``expenditures by the State'' does 
                        not include--
                                  (I) any expenditure from 
                                amounts made available by the 
                                Federal Government;
                                  (II) any State funds expended 
                                for the medicaid program under 
                                title XIX; or
                                  [(III) any State funds which 
                                are used to match Federal funds 
                                provided under section 
                                403(a)(5); or
                                  [(IV)] (III) any State funds 
                                which are expended as a 
                                condition of receiving Federal 
                                funds other than under this 
                                part.
                        Notwithstanding subclause (IV) of the 
                        preceding sentence, such term includes 
                        expenditures by a State for child care 
                        in a fiscal year to the extent that the 
                        total amount of the expenditures does 
                        not exceed the amount of State 
                        expenditures in fiscal year 1994 or 
                        1995 (whichever is the greater) that 
                        equal the non-Federal share for the 
                        programs described in section 
                        418(a)(1)(A).
                          (v) Source of data.--In determining 
                        expenditures by a State for fiscal 
                        years 1994 and 1995, the Secretary 
                        shall use information which was 
                        reported by the State on ACF Form 231 
                        or (in the case of expenditures under 
                        part F) ACF Form 331, available as of 
                        the dates specified in clauses (ii) and 
                        (iii) of section 403(a)(1)(D).
          [(8)] (7) Noncompliance of state child support 
        enforcement program with requirements of part d.--
                  (A) In general.--If the Secretary finds, with 
                respect to a State's program under part D, in a 
                fiscal year beginning on or after October 1, 
                1997--
                          (i)(I) on the basis of data submitted 
                        by a State pursuant to section 
                        454(15)(B), or on the basis of the 
                        results of a review conducted under 
                        section 452(a)(4), that the State 
                        program failed to achieve the paternity 
                        establishment percentages (as defined 
                        in section 452(g)(2)), or to meet other 
                        performance measures that may be 
                        established by the Secretary;
                          (II) on the basis of the results of 
                        an audit or audits conducted under 
                        section 452(a)(4)(C)(i) that the State 
                        data submitted pursuant to section 
                        454(15)(B) is incomplete or unreliable; 
                        or
                          (III) on the basis of the results of 
                        an audit or audits conducted under 
                        section 452(a)(4)(C) that a State 
                        failed to substantially comply with 1 
                        or more of the requirements of part D 
                        (other than paragraph (24), or 
                        subparagraph (A) or (B)(i) of paragraph 
                        (27), of section 454); and
                          (ii) that, with respect to the 
                        succeeding fiscal year--
                                  (I) the State failed to take 
                                sufficient corrective action to 
                                achieve the appropriate 
                                performance levels or 
                                compliance as described in 
                                subparagraph (A)(i); or
                                  (II) the data submitted by 
                                the State pursuant to section 
                                454(15)(B) is incomplete or 
                                unreliable;
                the amounts otherwise payable to the State 
                under this part for quarters following the end 
                of such succeeding fiscal year, prior to 
                quarters following the end of the first quarter 
                throughout which the State program has achieved 
                the paternity establishment percentages or 
                other performance measures as described in 
                subparagraph (A)(i)(I), or is in substantial 
                compliance with 1 or more of the requirements 
                of part D as described in subparagraph 
                (A)(i)(III), as appropriate, shall be reduced 
                by the percentage specified in subparagraph 
                (B).
                  (B) Amount of reductions.--The reductions 
                required under subparagraph (A) shall be--
                          (i) not less than 1 nor more than 2 
                        percent;
                          (ii) not less than 2 nor more than 3 
                        percent, if the finding is the 2nd 
                        consecutive finding made pursuant to 
                        subparagraph (A); or
                          (iii) not less than 3 nor more than 5 
                        percent, if the finding is the 3rd or a 
                        subsequent consecutive such finding.
                  (C) Disregard of noncompliance which is of a 
                technical nature.--For purposes of this section 
                and section 452(a)(4), a State determined as a 
                result of an audit--
                          (i) to have failed to have 
                        substantially complied with 1 or more 
                        of the requirements of part D shall be 
                        determined to have achieved substantial 
                        compliance only if the Secretary 
                        determines that the extent of the 
                        noncompliance is of a technical nature 
                        which does not adversely affect the 
                        performance of the State's program 
                        under part D; or
                          (ii) to have submitted incomplete or 
                        unreliable data pursuant to section 
                        454(15)(B) shall be determined to have 
                        submitted adequate data only if the 
                        Secretary determines that the extent of 
                        the incompleteness or unreliability of 
                        the data is of a technical nature which 
                        does not adversely affect the 
                        determination of the level of the 
                        State's paternity establishment 
                        percentages (as defined under section 
                        452(g)(2)) or other performance 
                        measures that may be established by the 
                        Secretary.
          [(9)] (8) Failure to comply with 5-year limit on 
        assistance.--If the Secretary determines that a State 
        has not complied with section 408(a)(7) 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.
          [(10) Failure of state receiving amounts from 
        contingency fund to maintain 100 percent of historic 
        effort.--If, at the end of any fiscal year during which 
        amounts from the Contingency Fund for State Welfare 
        Programs have been paid to a State, the Secretary finds 
        that the qualified State expenditures (as defined in 
        paragraph (7)(B)(i) (other than the expenditures 
        described in subclause (I)(bb) of that paragraph)) 
        under the State program funded under this part for the 
        fiscal year are less than 100 percent of historic State 
        expenditures (as defined in paragraph (7)(B)(iii) of 
        this subsection), excluding any amount expended by the 
        State for child care under subsection (g) or (i) of 
        section 402 (as in effect during fiscal year 1994) for 
        fiscal year 1994, the Secretary shall reduce the grant 
        payable to the State under section 403(a)(1) for the 
        immediately succeeding fiscal year by the total of the 
        amounts so paid to the State that the State has not 
        remitted under section 403(b)(6).
          [(11)] (9) Failure to maintain assistance to adult 
        single custodial parent who cannot obtain child care 
        for child under age 6.--
                  (A) In general.--If the Secretary determines 
                that a State to which a grant is made under 
                section 403 for a fiscal year has violated 
                section 407(e)(2) during the 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 not more than 5 percent of the State 
                family assistance grant.
                  (B) Penalty based on severity of failure.--
                The Secretary shall impose reductions under 
                subparagraph (A) with respect to a fiscal year 
                based on the degree of noncompliance.
          [(12)] (10) Requirement to expend additional state 
        funds to replace grant reductions; penalty for failure 
        to do so.--If the grant payable to a State under 
        section 403(a)(1) for a fiscal year is reduced by 
        reason of this subsection, the State shall, during the 
        immediately succeeding fiscal year, expend under the 
        State program funded under this part an amount equal to 
        the total amount of such reductions. If the State fails 
        during such succeeding fiscal year to make the 
        expenditure required by the preceding sentence from its 
        own funds, the Secretary may reduce the grant payable 
        to the State under section 403(a)(1) for the fiscal 
        year that follows such succeeding fiscal year by an 
        amount equal to the sum of--
                  (A) not more than 2 percent of the State 
                family assistance grant; and
                  (B) the amount of the expenditure required by 
                the preceding sentence.
          [(13) Penalty for failure of state to maintain 
        historic effort during year in which welfare-to-work 
        grant is received.--If a grant is made to a State under 
        section 403(a)(5)(A) for a fiscal year and paragraph 
        (7) of this subsection requires the grant payable to 
        the State under section 403(a)(1) to be reduced for the 
        immediately succeeding fiscal year, then the Secretary 
        shall reduce the grant payable to the State under 
        section 403(a)(1) for such succeeding fiscal year by 
        the amount of the grant made to the State under section 
        403(a)(5)(A) for the fiscal year.
          [(14)] (11) Penalty for failure to reduce assistance 
        for recipients refusing without good cause to work.--
                  (A) In general.--If the Secretary determines 
                that a State to which a grant is made under 
                section 403 in a fiscal year has violated 
                section 407(e) during the 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 not less than 1 percent and not more 
                than 5 percent of the State family assistance 
                grant.
                  (B) Penalty based on severity of failure.--
                The Secretary shall impose reductions under 
                subparagraph (A) with respect to a fiscal year 
                based on the degree of noncompliance.
          [(15)] (12) Penalty for failure to establish or 
        comply with work participation verification 
        procedures.--
                  (A) In general.--If the Secretary determines 
                that a State to which a grant is made under 
                section 403 in a fiscal year has violated 
                section 407(i)(2) during the 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 not less than 1 percent and not more 
                than 5 percent of the State family assistance 
                grant.
                  (B) Penalty based on severity of failure.--
                The Secretary shall impose reductions under 
                subparagraph (A) with respect to a fiscal year 
                based on the degree of noncompliance.
          [(16)] (13) Penalty for failure to enforce spending 
        policies.--
                  (A) In general.--If, within 2 years after the 
                date of the enactment of this paragraph, any 
                State has not reported to the Secretary on such 
                State's implementation of the policies and 
                practices required by section 408(a)(12), or 
                the Secretary determines, based on the 
                information provided in State reports, that any 
                State has not implemented and maintained such 
                policies and practices, the Secretary shall 
                reduce, by an amount equal to 5 percent of the 
                State family assistance grant, the grant 
                payable to such State under section 403(a)(1) 
                for--
                          (i) the fiscal year immediately 
                        succeeding the year in which such 2-
                        year period ends; and
                          (ii) each succeeding fiscal year in 
                        which the State does not demonstrate 
                        that such State has implemented and 
                        maintained such policies and practices.
                  (B) Reduction of applicable penalty.--The 
                Secretary may reduce the amount of the 
                reduction required under subparagraph (A) based 
                on the degree of noncompliance of the State.
                  (C) State not responsible for individual 
                violations.--Fraudulent activity by any 
                individual in an attempt to circumvent the 
                policies and practices required by section 
                408(a)(12) shall not trigger a State penalty 
                under subparagraph (A).
  (b) Reasonable Cause Exception.--
          (1) In general.--The Secretary may not impose a 
        penalty on a State under subsection (a) with respect to 
        a requirement if the Secretary determines that the 
        State has reasonable cause for failing to comply with 
        the requirement.
          (2) Exception.--Paragraph (1) of this subsection 
        shall not apply to any penalty under paragraph (6), 
        (7), [(8), (10), (12), or (13)] or (10) of subsection 
        (a) [and, with respect to the penalty under paragraph 
        (2)(B) of subsection (a), shall only apply to the 
        extent the Secretary determines that the reasonable 
        cause for failure to comply with a requirement of that 
        paragraph is as a result of a one-time, unexpected 
        event, such as a widespread data system failure or a 
        natural or man-made disaster.].
  (c) Corrective Compliance Plan.--
          (1) In general.--
                  (A) Notification of violation.--Before 
                imposing a penalty against a State under 
                subsection (a) with respect to a violation of 
                this part, the Secretary shall notify the State 
                of the violation and allow the State the 
                opportunity to enter into a corrective 
                compliance plan in accordance with this 
                subsection which outlines how the State will 
                correct or discontinue, as appropriate, the 
                violation and how the State will insure 
                continuing compliance with this part.
                  (B)  60-day period to propose a corrective 
                compliance plan.--During the 60-day period that 
                begins on the date the State receives a notice 
                provided under subparagraph (A) with respect to 
                a violation, the State may submit to the 
                Federal Government a corrective compliance plan 
                to correct or discontinue, as appropriate, the 
                violation.
                  (C) Consultation about modifications.--During 
                the 60-day period that begins with the date the 
                Secretary receives a corrective compliance plan 
                submitted by a State in accordance with 
                subparagraph (B), the Secretary may consult 
                with the State on modifications to the plan.
                  (D) Acceptance of plan.--A corrective 
                compliance plan submitted by a State in 
                accordance with subparagraph (B) is deemed to 
                be accepted by the Secretary if the Secretary 
                does not accept or reject the plan during 60-
                day period that begins on the date the plan is 
                submitted.
          (2) Effect of correcting or discontinuing 
        violation.--The Secretary may not impose any penalty 
        under subsection (a) with respect to any violation 
        covered by a State corrective compliance plan accepted 
        by the Secretary if the State corrects or discontinues, 
        as appropriate, the violation pursuant to the plan.
          (3) Effect of failing to correct or discontinue 
        violation.--The Secretary shall assess some or all of a 
        penalty imposed on a State under subsection (a) with 
        respect to a violation if the State does not, in a 
        timely manner, correct or discontinue, as appropriate, 
        the violation pursuant to a State corrective compliance 
        plan accepted by the Secretary.
          (4) Inapplicability to certain penalties.--This 
        subsection shall not apply to the imposition of a 
        penalty against a State under paragraph [(2)(B),] (6), 
        (7), [(8), (10), (12), (13), or (16)] (10), or (13) of 
        subsection (a).
  (d) Limitation on Amount of Penalties.--
          (1) In general.--In imposing the penalties described 
        in subsection (a), the Secretary shall not reduce any 
        quarterly payment to a State by more than 25 percent.
          (2) Carryforward of unrecovered penalties.--To the 
        extent that paragraph (1) of this subsection prevents 
        the Secretary from recovering during a fiscal year the 
        full amount of penalties imposed on a State under 
        subsection (a) of this section for a prior fiscal year, 
        the Secretary shall apply any remaining amount of such 
        penalties to the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal 
        year.

           *       *       *       *       *       *       *


SEC. 411. DATA COLLECTION AND REPORTING.

  (a) Quarterly Reports by States.--
          [(1) General reporting requirement.--]
          [(A)] (1) Contents of report.--Each eligible State 
        shall collect on a monthly basis, and report to the 
        Secretary on a quarterly basis, the following 
        disaggregated case record information on the families 
        receiving assistance under the State program funded 
        under this part [(except for information relating to 
        activities carried out under section 403(a)(5)) or any 
        other State program funded with qualified State 
        expenditures (as defined in section 409(a)(7)(B)(i))]:
                  [(i)] (A) The county of residence of the 
                family.
                  [(ii)] (B) Whether a child receiving such 
                assistance or an adult in the family is 
                receiving--
                          [(I)] (i) Federal disability 
                        insurance benefits;
                          [(II)] (ii) benefits based on Federal 
                        disability status;
                          [(III)] (iii) aid under a State plan 
                        approved under title XIV (as in effect 
                        without regard to the amendment made by 
                        section 301 of the Social Security 
                        Amendments of 1972);
                          [(IV)] (iv) aid or assistance under a 
                        State plan approved under title XVI (as 
                        in effect without regard to such 
                        amendment) by reason of being 
                        permanently and totally disabled; or
                          [(V)] (v) supplemental security 
                        income benefits under title XVI (as in 
                        effect pursuant to such amendment) by 
                        reason of disability.
                  [(iii)] (C) The ages of the members of such 
                families.
                  [(iv)] (D) The number of individuals in the 
                family, and the relation of each family member 
                to the head of the family.
                  [(v)] (E) The employment status and earnings 
                of the employed adult in the family.
                  [(vi)] (F) The marital status of the adults 
                in the family, including whether such adults 
                have never married, are widowed, or are 
                divorced.
                  [(vii)] (G) The race and educational level of 
                each adult in the family.
                  [(viii)] (H) The race and educational level 
                of each child in the family.
                  [(ix)] (I) Whether the family received 
                subsidized housing, medical assistance under 
                the State plan approved under title XIX, 
                supplemental nutrition assistance program 
                benefits, or subsidized child care, and if the 
                latter 2, the amount received.
                  [(x)] (J) The number of months that the 
                family has received each type of assistance 
                under the program.
                  [(xi) If the adults participated in, and the 
                number of hours per week of participation in, 
                the following activities:
                          [(I) Education.
                          [(II) Subsidized private sector 
                        employment.
                          [(III) Unsubsidized employment.
                          [(IV) Public sector employment, work 
                        experience, or community service.
                          [(V) Job search.
                          [(VI) Job skills training or on-the-
                        job training.
                          [(VII) Vocational education.
                  [(xii) Information necessary to calculate 
                participation rates under section 407.]
                  (K) The work eligibility status of each 
                individual in the family, and--
                          (i) in the case of each work-eligible 
                        individual (as defined in the 
                        regulations promulgated pursuant to 
                        section 407(i)(1)(A)(i)) in the 
                        family--
                                  (I) the number of hours 
                                (including zero hours) per 
                                month of participation in--
                                          (aa) work activities 
                                        (as defined in section 
                                        407(d)); and
                                          (bb) any other 
                                        activity required by 
                                        the State to remove a 
                                        barrier to employment; 
                                        and
                          (ii) in the case of each individual 
                        in the family who is not a work-
                        eligible individual (as so defined), 
                        the reason for that status.
                  (L) For each work-eligible individual (as so 
                defined) and each adult in the family who did 
                not participate in work activities (as so 
                defined) during a month, the reason for the 
                lack of participation.
                  [(xiii)] (M) The type and amount of 
                assistance received under the program, 
                including the amount of and reason for any 
                reduction of assistance (including sanctions).
                  [(xiv)] (N) Any amount of unearned income 
                received by any member of the family.
                  [(xv) ] (O) The citizenship of the members of 
                the family.
                  [(xvi)] (P) From a sample of closed cases, 
                whether the family left the program, and if so, 
                whether the family left due to--
                          [(I)] (i) employment;
                          [(II)] (ii) marriage;
                          [(III)] (iii) the prohibition set 
                        forth in section 408(a)(7);
                          [(IV)] (iv) sanction; or
                          [(V)] (v) State policy.
                  [(xvii)] (Q) With respect to each individual 
                in the family who has not attained 20 years of 
                age, whether the individual is a parent of a 
                child in the family.
                  [(B) Use of samples.--
                          [(i) Authority.--A State may comply 
                        with subparagraph (A) by submitting 
                        disaggregated case record information 
                        on a sample of families selected 
                        through the use of scientifically 
                        acceptable sampling methods approved by 
                        the Secretary.
                          [(ii) Sampling and other methods.--
                        The Secretary shall provide the States 
                        with such case sampling plans and data 
                        collection procedures as the Secretary 
                        deems necessary to produce 
                        statistically valid estimates of the 
                        performance of State programs funded 
                        under this part and any other State 
                        programs funded with qualified State 
                        expenditures (as defined in section 
                        409(a)(7)(B)(i)). The Secretary may 
                        develop and implement procedures for 
                        verifying the quality of data submitted 
                        by the States.]
          (2) Report on use of federal funds to cover 
        administrative costs and overhead.--The report required 
        by paragraph (1) for a fiscal quarter shall include a 
        statement of the percentage of the funds paid to the 
        State under this part for the quarter that are used to 
        cover administrative costs or overhead[, with a 
        separate statement of the percentage of such funds that 
        are used to cover administrative costs or overhead 
        incurred for programs operated with funds provided 
        under section 403(a)(5).].
          (3) Report on state expenditures on programs for 
        needy families.--The report required by paragraph (1) 
        for a fiscal quarter shall include a statement of the 
        total amount expended by the State during the quarter 
        on programs for needy families[, with a separate 
        statement of the total amount expended by the State 
        during the quarter on programs operated with funds 
        provided under section 403(a)(5).].
          (4) Report on noncustodial parents participating in 
        work activities.--The report required by paragraph (1) 
        for a fiscal quarter shall include the number of 
        noncustodial parents in the State who participated in 
        work activities (as defined in section 407(d)) during 
        the quarter[, with a separate statement of the number 
        of such parents who participated in programs operated 
        with funds provided under section 403(a)(5).].
          (5) Report on transitional services.--The report 
        required by paragraph (1) for a fiscal quarter shall 
        include the total amount expended by the State during 
        the quarter to provide transitional services to a 
        family that has ceased to receive assistance under this 
        part because of employment, along with a description of 
        such services.
          (6) Report on families receiving assistance.--The 
        report required by paragraph (1) for a fiscal quarter 
        shall include for each month in the quarter--
                  (A) the number of families and individuals 
                receiving assistance under the State program 
                funded under this part (including the number of 
                2-parent and 1-parent families);
                  (B) the total dollar value of such assistance 
                received by all families; and
                  (C) with respect to families and individuals 
                participating in a program operated with funds 
                provided under section 403(a)(5)--
                          (i) the total number of such families 
                        and individuals; and
                          (ii) the number of such families and 
                        individuals whose participation in such 
                        a program was terminated during a 
                        month.
          (7) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to define the data 
        elements with respect to which reports are required by 
        this subsection, and shall consult with the Secretary 
        of Labor in defining the data elements with respect to 
        programs operated with funds provided under section 
        403(a)(5).
  (b) Annual Reports to the Congress by the Secretary.--Not 
later than 6 months after the end of fiscal year 1997, and each 
fiscal year thereafter, the Secretary shall transmit to the 
Congress a report describing--
          (1) whether the States are meeting--
                  (A) the [participation rates] outcome 
                measures described in section 407(a); and
                  (B) the objectives of--
                          (i) increasing employment and 
                        earnings of needy families, and child 
                        support collections; and
                          (ii) decreasing out-of-wedlock 
                        pregnancies and child poverty;
          (2) the demographic and financial characteristics of 
        families applying for assistance, families receiving 
        assistance, and families that become ineligible to 
        receive assistance;
          (3) the characteristics of each State program funded 
        under this part; and
          (4) the trends in employment and earnings of needy 
        families with minor children living at home.
  [(c) Pre-reauthorization State-by-state Reports on Engagement 
in Additional Work Activities and Expenditures for Other 
Benefits and Services.--
          [(1) State reporting requirements.--
                  [(A) Reporting periods and deadlines.--Each 
                eligible State shall submit to the Secretary 
                the following reports:
                          [(i) March 2011 report.--Not later 
                        than May 31, 2011, a report for the 
                        period that begins on March 1, 2011, 
                        and ends on March 31, 2011, that 
                        contains the information specified in 
                        subparagraphs (B) and (C).
                          [(ii) April-june, 2011 report.--Not 
                        later than August 31, 2011, a report 
                        for the period that begins on April 1, 
                        2011, and ends on June 30, 2011, that 
                        contains with respect to the 3 months 
                        that occur during that period--
                                  [(I) the average monthly 
                                numbers for the information 
                                specified in subparagraph (B); 
                                and
                                  [(II) the information 
                                specified in subparagraph (C).
                  [(B) Engagement in additional work 
                activities.--
                          [(i) With respect to each work-
                        eligible individual in a family 
                        receiving assistance during a reporting 
                        period specified in subparagraph (A), 
                        whether the individual engages in any 
                        activities directed toward attaining 
                        self-sufficiency during a month 
                        occurring in a reporting period, and if 
                        so, the specific activities--
                                  [(I) that do not qualify as a 
                                work activity under section 
                                407(d) but that are otherwise 
                                reasonably calculated to help 
                                the family move toward self-
                                sufficiency; or
                                  [(II) that are of a type that 
                                would be counted toward the 
                                State participation rates under 
                                section 407 but for the fact 
                                that--
                                          [(aa) the work-
                                        eligible individual did 
                                        not engage in 
                                        sufficient hours of the 
                                        activity;
                                          [(bb) the work-
                                        eligible individual has 
                                        reached the maximum 
                                        time limit allowed for 
                                        having participation in 
                                        the activity counted 
                                        toward the State's work 
                                        participation rate; or
                                          [(cc) the number of 
                                        work-eligible 
                                        individuals engaged in 
                                        such activity exceeds a 
                                        limitation under such 
                                        section.
                          [(ii) Any other information that the 
                        Secretary determines appropriate with 
                        respect to the information required 
                        under clause (i), including if the 
                        individual has no hours of 
                        participation, the principal reason or 
                        reasons for such non-participation.
                  [(C) Expenditures on other benefits and 
                services.--
                          [(i) Detailed, disaggregated 
                        information regarding the types of, and 
                        amounts of, expenditures made by the 
                        State during a reporting period 
                        specified in subparagraph (A) using--
                                  [(I) Federal funds provided 
                                under section 403 that are (or 
                                will be) reported by the State 
                                on Form ACF-196 (or any 
                                successor form) under the 
                                category of other expenditures 
                                or the category of benefits or 
                                services provided in accordance 
                                with the authority provided 
                                under section 404(a)(2); or
                                  [(II) State funds expended to 
                                meet the requirements of 
                                section 409(a)(7) and reported 
                                by the State in the category of 
                                other expenditures on Form ACF-
                                196 (or any successor form).
                          [(ii) Any other information that the 
                        Secretary determines appropriate with 
                        respect to the information required 
                        under clause (i).
          [(2) Publication of summary and analysis of 
        engagement in additional activities.--Concurrent with 
        the submission of each report required under paragraph 
        (1)(A), an eligible State shall publish on an Internet 
        website maintained by the State agency responsible for 
        administering the State program funded under this part 
        (or such State-maintained website as the Secretary may 
        approve)--
                  [(A) a summary of the information submitted 
                in the report:
                  [(B) an analysis statement regarding the 
                extent to which the information changes 
                measures of total engagement in work activities 
                from what was (or will be) reported by the 
                State in the quarterly report submitted under 
                subsection (a) for the comparable period; and
                  [(C) a narrative describing the most common 
                activities contained in the report that are not 
                countable toward the State participation rates 
                under section 407.
          [(3) Application of authority to use sampling.--
        Subparagraph (B) of subsection (a)(1) shall apply to 
        the reports required under paragraph (1) of this 
        subsection in the same manner as subparagraph (B) of 
        subsection (a)(1) applies to reports required under 
        subparagraph (A) of subsection (a)(1).
          [(4) Secretarial reports to congress.--
                  [(A) March 2011 report.--Not later than June 
                30, 2011, the Secretary shall submit to 
                Congress a report on the information submitted 
                by eligible States for the March 2011 reporting 
                period under paragraph (1)(A)(i). The report 
                shall include a State-by-State summary and 
                analysis of such information, identification of 
                any States with missing or incomplete reports, 
                and recommendations for such administrative or 
                legislative changes as the Secretary determines 
                are necessary to require eligible States to 
                report the information on a recurring basis.
                  [(B) April-june, 2011 report.--Not later than 
                September 30, 2011, the Secretary shall submit 
                to Congress a report on the information 
                submitted by eligible States for the April-June 
                2011 reporting period under paragraph 
                (1)(A)(ii). The report shall include a State-
                by-State summary and analysis of such 
                information, identification of any States with 
                missing or incomplete reports, and 
                recommendations for such administrative or 
                legislative changes as the Secretary determines 
                are necessary to require eligible States to 
                report the information on a recurring basis
          [(5) Authority for expeditious implementation.--The 
        requirements of chapter 5 of title 5, United States 
        Code (commonly referred to as the ``Administrative 
        Procedure Act'') or any other law relating to 
        rulemaking or publication in the Federal Register shall 
        not apply to the issuance of guidance or instructions 
        by the Secretary with respect to the implementation of 
        this subsection to the extent the Secretary determines 
        that compliance with any such requirement would impede 
        the expeditious implementation of this subsection.
  [(d) Data Exchange Standardization for Improved 
Interoperability.--
          [(1) Data exchange standards.--
                  [(A) Designation.--The Secretary, in 
                consultation with an interagency work group 
                which shall be established by the Office of 
                Management and Budget, and considering State 
                and tribal perspectives, shall, by rule, 
                designate a data exchange standard for any 
                category of information required to be reported 
                under this part.
                  [(B) Data exchange standards must be 
                nonproprietary and interoperable.--The data 
                exchange standard designated under subparagraph 
                (A) shall, to the extent practicable, be 
                nonproprietary and interoperable.
                  [(C) Other requirements.--In designating data 
                exchange standards under this section, the 
                Secretary shall, to the extent practicable, 
                incorporate--
                          [(i) interoperable standards 
                        developed and maintained by an 
                        international voluntary consensus 
                        standards body, as defined by the 
                        Office of Management and Budget, such 
                        as the International Organization for 
                        Standardization;
                          [(ii) interoperable standards 
                        developed and maintained by 
                        intergovernmental partnerships, such as 
                        the National Information Exchange 
                        Model; and
                          [(iii) interoperable standards 
                        developed and maintained by Federal 
                        entities with authority over 
                        contracting and financial assistance, 
                        such as the Federal Acquisition 
                        Regulatory Council.
          [(2) Data exchange standards for reporting.--
                  [(A) Designation.--The Secretary, in 
                consultation with an interagency work group 
                established by the Office of Management and 
                Budget, and considering State and tribal 
                perspectives, shall, by rule, designate data 
                exchange standards to govern the data reporting 
                required under this part.
                  [(B) Requirements.--The data exchange 
                standards required by subparagraph (A) shall, 
                to the extent practicable--
                          [(i) incorporate a widely-accepted, 
                        nonproprietary, searchable, computer-
                        readable format;
                          [(ii) be consistent with and 
                        implement applicable accounting 
                        principles; and
                          [(iii) be capable of being 
                        continually upgraded as necessary.
                  [(C) Incorporation of nonproprietary 
                standards.--In designating reporting standards 
                under this paragraph, the Secretary shall, to 
                the extent practicable, incorporate existing 
                nonproprietary standards, such as the 
                eXtensible Markup Language.]
  (c) Reporting of Information on Employment and Earnings 
Outcomes.--The Secretary, in consultation with the Secretary of 
Labor, shall determine the information that is necessary to 
compute the employment and earnings outcomes and the 
statistical adjustment model for the employment and earnings 
outcomes required under section 407, and each eligible State 
shall collect and report that information to the Secretary.
  (d) Data Exchange Standards for Improved Interoperability.--
          (1) Designation.--The Secretary shall, in 
        consultation with an interagency work group established 
        by the Office of Management and Budget and considering 
        State government perspectives, by rule, designate data 
        exchange standards to govern, under this part--
                  (A) necessary categories of information that 
                State agencies operating programs under State 
                plans approved under this part are required 
                under applicable Federal law to electronically 
                exchange with another State agency; and
                  (B) Federal reporting and data exchange 
                required under applicable Federal law.
          (2) Requirements.--The data exchange standards 
        required by paragraph (1) shall, to the extent 
        practicable--
                  (A) incorporate a widely accepted, non-
                proprietary, searchable, computer-readable 
                format, such as the eXtensible Markup Language;
                  (B) contain interoperable standards developed 
                and maintained by intergovernmental 
                partnerships, such as the National Information 
                Exchange Model;
                  (C) incorporate interoperable standards 
                developed and maintained by Federal entities 
                with authority over contracting and financial 
                assistance;
                  (D) be consistent with and implement 
                applicable accounting principles;
                  (E) be implemented in a manner that is cost-
                effective and improves program efficiency and 
                effectiveness; and
                  (F) be capable of being continually upgraded 
                as necessary.
          (3) Rule of construction.--Nothing in this subsection 
        shall be construed to require a change to existing data 
        exchange standards found to be effective and efficient.

           *       *       *       *       *       *       *


SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

  (a) Grants for Indian Tribes.--
          (1) Tribal family assistance grant.--
                  (A) In general.--For each of fiscal years 
                [2017 and 2018] 2019 through 2023, the 
                Secretary shall pay to each Indian tribe that 
                has an approved tribal family assistance plan a 
                tribal family assistance grant for the fiscal 
                year in an amount equal to the amount 
                determined under subparagraph (B), which shall 
                be reduced for a fiscal year, on a pro rata 
                basis for each quarter, in the case of a tribal 
                family assistance plan approved during a fiscal 
                year for which the plan is to be in effect, and 
                shall reduce the grant payable under section 
                403(a)(1) to any State in which lies the 
                service area or areas of the Indian tribe by 
                that portion of the amount so determined that 
                is attributable to expenditures by the State.
                  (B) Amount determined.--
                          (i) In general.--The amount 
                        determined under this subparagraph is 
                        an amount equal to the total amount of 
                        the Federal payments to a State or 
                        States under section 403 (as in effect 
                        during such fiscal year) for fiscal 
                        year 1994 attributable to expenditures 
                        (other than child care expenditures) by 
                        the State or States under parts A and F 
                        (as so in effect) for fiscal year 1994 
                        for Indian families residing in the 
                        service area or areas identified by the 
                        Indian tribe pursuant to subsection 
                        (b)(1)(C) of this section.
                          (ii) Use of state submitted data.--
                                  (I) In general.--The 
                                Secretary shall use State 
                                submitted data to make each 
                                determination under clause (i).
                                  (II) Disagreement with 
                                determination.--If an Indian 
                                tribe or tribal organization 
                                disagrees with State submitted 
                                data described under subclause 
                                (I), the Indian tribe or tribal 
                                organization may submit to the 
                                Secretary such additional 
                                information as may be relevant 
                                to making the determination 
                                under clause (i) and the 
                                Secretary may consider such 
                                information before making such 
                                determination.
          (2) Grants for indian tribes that received jobs 
        funds.--
                  (A) In general.--For each of fiscal years 
                2017 and 2018, the Secretary shall pay to each 
                eligible Indian tribe that proposes to operate 
                a program described in subparagraph (C) a grant 
                in an amount equal to the amount received by 
                the Indian tribe in fiscal year 1994 under 
                section 482(i) (as in effect during fiscal year 
                1994).
                  (B) Eligible indian tribe.--For purposes of 
                subparagraph (A), the term ``eligible Indian 
                tribe'' means an Indian tribe or Alaska Native 
                organization that conducted a job opportunities 
                and basic skills training program in fiscal 
                year 1995 under section 482(i) (as in effect 
                during fiscal year 1995).
                  (C) Use of grant.--Each Indian tribe to which 
                a grant is made under this paragraph shall use 
                the grant for the purpose of operating a 
                program to make work activities available to 
                such population and such service area or areas 
                as the tribe specifies.
                  (D) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated $7,633,287 
                for each fiscal year specified in subparagraph 
                (A) for grants under subparagraph (A).
          [(3) Welfare-to-work grants.--
                  [(A) In general.--The Secretary of Labor 
                shall award a grant in accordance with this 
                paragraph to an Indian tribe for each fiscal 
                year specified in section 403(a)(5)(H) for 
                which the Indian tribe is a welfare-to-work 
                tribe, in such amount as the Secretary of Labor 
                deems appropriate, subject to subparagraph (B) 
                of this paragraph.
                  [(B) Welfare-to-work tribe.--An Indian tribe 
                shall be considered a welfare-to-work tribe for 
                a fiscal year for purposes of this paragraph if 
                the Indian tribe meets the following 
                requirements:
                          [(i) The Indian tribe has submitted 
                        to the Secretary of Labor a plan which 
                        describes how, consistent with section 
                        403(a)(5), the Indian tribe will use 
                        any funds provided under this paragraph 
                        during the fiscal year. If the Indian 
                        tribe has a tribal family assistance 
                        plan, the plan referred to in the 
                        preceding sentence shall be in the form 
                        of an addendum to the tribal family 
                        assistance plan.
                          [(ii) The Indian tribe is operating a 
                        program under a tribal family 
                        assistance plan approved by the 
                        Secretary of Health and Human Services, 
                        a program described in paragraph 
                        (2)(C), or an employment program funded 
                        through other sources under which 
                        substantial services are provided to 
                        recipients of assistance under a 
                        program funded under this part.
                          [(iii) The Indian tribe has provided 
                        the Secretary of Labor with an estimate 
                        of the amount that the Indian tribe 
                        intends to expend during the fiscal 
                        year (excluding tribal expenditures 
                        described in section 409(a)(7)(B)(iv) 
                        (other than subclause (III) thereof)) 
                        pursuant to this paragraph.
                          [(iv) The Indian tribe has agreed to 
                        negotiate in good faith with the 
                        Secretary of Health and Human Services 
                        with respect to the substance and 
                        funding of any evaluation under section 
                        413(j), and to cooperate with the 
                        conduct of any such evaluation.
                  [(C) Limitations on use of funds.--
                          [(i) In general.--Section 
                        403(a)(5)(C) shall apply to funds 
                        provided to Indian tribes under this 
                        paragraph in the same manner in which 
                        such section applies to funds provided 
                        under section 403(a)(5).
                          [(ii) Waiver authority.--The 
                        Secretary of Labor may waive or modify 
                        the application of a provision of 
                        section 403(a)(5)(C) (other than clause 
                        (viii) thereof) with respect to an 
                        Indian tribe to the extent necessary to 
                        enable the Indian tribe to operate a 
                        more efficient or effective program 
                        with the funds provided under this 
                        paragraph.
                          [(iii) Regulations.--Within 90 days 
                        after the date of the enactment of this 
                        paragraph, the Secretary of Labor, 
                        after consultation with the Secretary 
                        of Health and Human Services and the 
                        Secretary of Housing and Urban 
                        Development, shall prescribe such 
                        regulations as may be necessary to 
                        implement this paragraph.]
  (b)  3-Year Tribal Family Assistance Plan.--
          (1) In general.--Any Indian tribe that desires to 
        receive a tribal family assistance grant shall submit 
        to the Secretary a 3-year tribal family assistance plan 
        that--
                  (A) outlines the Indian tribe's approach to 
                providing welfare-related services for the 3-
                year period, consistent with this section;
                  (B) specifies whether the welfare-related 
                services provided under the plan will be 
                provided by the Indian tribe or through 
                agreements, contracts, or compacts with 
                intertribal consortia, States, or other 
                entities;
                  (C) identifies the population and service 
                area or areas to be served by such plan;
                  (D) provides that a family receiving 
                assistance under the plan may not receive 
                duplicative assistance from other State or 
                tribal programs funded under this part;
                  (E) identifies the employment opportunities 
                in or near the service area or areas of the 
                Indian tribe and the manner in which the Indian 
                tribe will cooperate and participate in 
                enhancing such opportunities for recipients of 
                assistance under the plan consistent with any 
                applicable State standards; and
                  (F) applies the fiscal accountability 
                provisions of section 5(f)(1) of the Indian 
                Self-Determination and Education Assistance Act 
                (25 U.S.C. 450c(f)(1)), relating to the 
                submission of a single-agency audit report 
                required by chapter 75 of title 31, United 
                States Code.
          (2) Approval.--The Secretary shall approve each 
        tribal family assistance plan submitted in accordance 
        with paragraph (1).
          (3) Consortium of tribes.--Nothing in this section 
        shall preclude the development and submission of a 
        single tribal family assistance plan by the 
        participating Indian tribes of an intertribal 
        consortium.
  (c) Minimum Work Participation Requirements and Time 
Limits.--The Secretary, with the participation of Indian 
tribes, shall establish for each Indian tribe receiving a grant 
under this section minimum work participation requirements, 
appropriate time limits for receipt of welfare-related services 
under the grant, and penalties against individuals--
          (1) consistent with the purposes of this section;
          (2) consistent with the economic conditions and 
        resources available to each tribe; and
          (3) similar to comparable provisions in section 
        407(e).
  (d) Emergency Assistance.--Nothing in this section shall 
preclude an Indian tribe from seeking emergency assistance from 
any Federal loan program or emergency fund.
  (e) Accountability.--Nothing in this section shall be 
construed to limit the ability of the Secretary to maintain 
program funding accountability consistent with--
          (1) generally accepted accounting principles; and
          (2) the requirements of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 450 et seq.).
  [(f) Eligibility for Federal Loans.--Section 406 shall apply 
to an Indian tribe with an approved tribal assistance plan in 
the same manner as such section applies to a State, except that 
section 406(c) shall be applied by substituting ``section 
412(a)'' for ``section 403(a)''.]
  (g) Penalties.--
          (1) Subsections (a)(1), [(a)(6),] (b), and (c) of 
        section 409, shall apply to an Indian tribe with an 
        approved tribal assistance plan in the same manner as 
        such subsections apply to a State.
          (2) Section 409(a)(3) shall apply to an Indian tribe 
        with an approved tribal assistance plan by substituting 
        ``meet minimum work participation requirements 
        established under section 412(c)'' for ``comply with 
        section 407(a)''.
  (h) Data Collection and Reporting.--Section 411 shall apply 
to an Indian tribe with an approved tribal family assistance 
plan.
  (i) Special Rule for Indian Tribes in Alaska.--
          (1) In general.--Notwithstanding any other provision 
        of this section, and except as provided in paragraph 
        (2), an Indian tribe in the State of Alaska that 
        receives a tribal family assistance grant under this 
        section shall use the grant to operate a program in 
        accordance with requirements comparable to the 
        requirements applicable to the program of the State of 
        Alaska funded under this part. Comparability of 
        programs shall be established on the basis of program 
        criteria developed by the Secretary in consultation 
        with the State of Alaska and such Indian tribes.
          (2) Waiver.--An Indian tribe described in paragraph 
        (1) may apply to the appropriate State authority to 
        receive a waiver of the requirement of paragraph (1).

SEC. 413. EVALUATION OF TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND 
                    RELATED PROGRAMS.

  (a) Evaluation of the Impacts of [TANF] JOBS.--The Secretary 
shall conduct research on the effect of State programs funded 
under this part [and any other State program funded with 
qualified State expenditures (as defined in section 
409(a)(7)(B)(i))] on employment, self-sufficiency, child well-
being, unmarried births, marriage, poverty, economic mobility, 
and other factors as determined by the Secretary.
  (b) Evaluation of Grants to Improve Child Well-being by 
Promoting Healthy Marriage and Responsible Fatherhood.--The 
Secretary shall conduct research to determine the effects of 
the grants made under section 403(a)(2) on child well-being, 
marriage, family stability, economic mobility, poverty, and 
other factors as determined by the Secretary.
  (c) Dissemination of Information.--The Secretary shall, in 
consultation with States receiving funds provided under this 
part, develop methods of disseminating information on any 
research, evaluation, or study conducted under this section, 
including facilitating the sharing of information and best 
practices among States and localities.
  (d) State-Initiated Evaluations.--A State shall be eligible 
to receive funding to evaluate 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))] 
if--
          (1) the State submits to the Secretary a description 
        of the proposed evaluation;
          (2) the Secretary determines that the design and 
        approach of the proposed evaluation is rigorous and is 
        likely to yield information that is credible and will 
        be useful to other States; and
          (3) unless waived by the Secretary, the State 
        contributes to the cost of the evaluation, from non-
        Federal sources, an amount equal to at least 25 percent 
        of the cost of the proposed evaluation.
  (e) Census Bureau Research.--
          (1) The Bureau of the Census shall implement or 
        enhance household surveys of program participation, in 
        consultation with the Secretary and the Bureau of Labor 
        Statistics and made available to interested parties, to 
        allow for the assessment of the outcomes of continued 
        welfare reform on the economic and child well-being of 
        low-income families with children, including those who 
        received assistance or services from a 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))]. The content of the surveys 
        should include such information as may be necessary to 
        examine the issues of unmarried childbearing, marriage, 
        welfare dependency and compliance with work 
        requirements, the beginning and ending of spells of 
        assistance, work, earnings and employment stability, 
        and the well-being of children.
          (2) To carry out the activities specified in 
        paragraph (1), the Bureau of the Census, the Secretary, 
        and the Bureau of Labor Statistics shall consider ways 
        to improve the surveys and data derived from the 
        surveys to--
                  (A) address under reporting of the receipt of 
                means-tested benefits and tax benefits for low-
                income individuals and families;
                  (B) increase understanding of poverty spells 
                and long-term poverty, including by 
                facilitating the matching of information to 
                better understand intergenerational poverty;
                  (C) generate a better geographical 
                understanding of poverty such as through State-
                based estimates and measures of neighborhood 
                poverty;
                  (D) increase understanding of the effects of 
                means-tested benefits and tax benefits on the 
                earnings and incomes of low-income families; 
                and
                  (E) improve how poverty and economic well-
                being are measured, including through the use 
                of consumption measures, material deprivation 
                measures, social exclusion measures, and 
                economic and social mobility measures.
  (f) Research and Evaluation Conducted Under This Section.--
Research and evaluation conducted under this section designed 
to determine the effects of a program or policy (other than 
research conducted under subsection (e)) shall use experimental 
designs using random assignment or other reliable, evidence-
based research methodologies that allow for the strongest 
possible causal inferences when random assignment is not 
feasible.
  (g) Development of What Works Clearinghouse of Proven and 
Promising Approaches to Move Welfare Recipients Into Work.--
          (1) In general.--The Secretary, in consultation with 
        the Secretary of Labor, shall develop a database (which 
        shall be referred to as the ``What Works Clearinghouse 
        of Proven and Promising Projects to Move Welfare 
        Recipients into Work'') of the projects that used a 
        proven approach or a promising approach in moving 
        welfare recipients into work, based on independent, 
        rigorous evaluations of the projects. The database 
        shall include a separate listing of projects that used 
        a developmental approach in delivering services and a 
        further separate listing of the projects with no or 
        negative effects. The Secretary shall add to the What 
        Works Clearinghouse of Proven and Promising Projects to 
        Move Welfare Recipients into Work data about the 
        projects that, based on an independent, well-conducted 
        experimental evaluation of a program or project, using 
        random assignment or other research methodologies that 
        allow for the strongest possible causal inferences, 
        have shown they are proven, promising, developmental, 
        or ineffective approaches.
          (2) Criteria for evidence of effectiveness of 
        approach.--The Secretary, in consultation with the 
        Secretary of Labor and organizations with experience in 
        evaluating research on the effectiveness of various 
        approaches in delivering services to move welfare 
        recipients into work, shall--
                  (A) establish criteria for evidence of 
                effectiveness; and
                  (B) ensure that the process for establishing 
                the criteria--
                          (i) is transparent;
                          (ii) is consistent across agencies;
                          (iii) provides opportunity for public 
                        comment; and
                          (iv) takes into account efforts of 
                        Federal agencies to identify and 
                        publicize effective interventions, 
                        including efforts at the Department of 
                        Health and Human Services, the 
                        Department of Education, and the 
                        Department of Justice.
  (h) Appropriation.--
          (1) In general.--Of the amount appropriated by 
        section 403(a)(1) for each fiscal year, 0.33 percent 
        shall be available for research, technical assistance, 
        and evaluation under this section.
          (2) Allocation.--Of the amount made available under 
        paragraph (1) for each fiscal year, the Secretary shall 
        make available $10,000,000 plus such additional amount 
        as the Secretary deems necessary and appropriate, to 
        carry out subsection (e).
          (3) Baseline.--The baseline established pursuant to 
        section 257 of the Balanced Budget and Deficit Control 
        Act of 1985 (2 U.S.C. 907(b)(2)) for the Temporary 
        Assistance for Needy Families Program shall be recorded 
        by the Office of Management and Budget and the 
        Congressional Budget Office at the level prior to any 
        transfers recorded pursuant to section 413(h) of this 
        Act.

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SEC. 416. ADMINISTRATION.

   (a) In general._The programs under this part and part D 
shall be administered by an Assistant Secretary for Family 
Support within the Department of Health and Human Services, who 
shall be appointed by the President, by and with the advice and 
consent of the Senate, and who shall be in addition to any 
other Assistant Secretary of Health and Human Services provided 
for by law[, and the Secretary shall reduce the Federal 
workforce within the Department of Health and Human Services by 
an amount equal to the sum of 75 percent of the full-time 
equivalent positions at such Department that relate to any 
direct spending program, or any program funded through 
discretionary spending, that has been converted into a block 
grant program under the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 and the amendments made 
by such Act, and by an amount equal to 75 percent of that 
portion of the total full-time equivalent departmental 
management positions at such Department that bears the same 
relationship to the amount appropriated for any direct spending 
program, or any program funded through discretionary spending, 
that has been converted into a block grant program under the 
Personal Responsibility and Work Opportunity Reconciliation Act 
of 1996 and the amendments made by such Act, as such amount 
relates to the total amount appropriated for use by such 
Department, and, notwithstanding any other provision of law, 
the Secretary shall take such actions as may be necessary, 
including reductions in force actions, consistent with sections 
3502 and 3595 of title 5, United States Code, to reduce the 
full-time equivalent positions within the Department of Health 
and Human Services by 245 full-time equivalent positions 
related to the program converted into a block grant under the 
amendments made by section 103 of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996, and by 60 
full-time equivalent managerial positions in the Department.].
  (b) Coordination of Activities.--The Secretary shall 
coordinate all activities of the Department of Health and Human 
Services relating to work activities (as defined in section 
407(d)) and requirements and measurement of employment 
outcomes, and, to the maximum extent practicable, coordinate 
the activities of the Department in this regard with similar 
activities of other Federal entities.
  (c) Dissemination of Information.--The Secretary shall 
disseminate, for voluntary informational purposes, information 
on practices that scientifically valid research indicates are 
most successful in improving the quality of State and tribal 
programs funded under this part.

           *       *       *       *       *       *       *


SEC. 418. FUNDING FOR CHILD CARE.

  (a) General Child Care Entitlement.--
          (1) General entitlement.--Subject to the amount 
        appropriated under paragraph (3), each State shall, for 
        the purpose of providing child care assistance, be 
        entitled to payments under a grant under this 
        subsection for a fiscal year in an amount equal to the 
        greater of--
                  (A) the total amount required to be paid to 
                the State under section 403 for fiscal year 
                1994 or 1995 (whichever is greater) with 
                respect to expenditures for child care under 
                subsections (g) and (i) of section 402 (as in 
                effect before October 1, 1995); or
                  (B) the average of the total amounts required 
                to be paid to the State for fiscal years 1992 
                through 1994 under the subsections referred to 
                in subparagraph (A).
          (2) Remainder.--
                  (A) Grants.--The Secretary shall use any 
                amounts appropriated for a fiscal year under 
                paragraph (3), and remaining after the 
                reservation described in paragraph (4) and 
                after grants are awarded under paragraph (1), 
                to make grants to States under this paragraph.
                  (B) Allotments to states.--The total amount 
                available for payments to States under this 
                paragraph, as determined under subparagraph 
                (A), shall be allotted among the States based 
                on the formula used for determining the amount 
                of Federal payments to each State under section 
                403(n) (as in effect before October 1, 1995).
                  (C) Federal matching of state expenditures 
                exceeding historical expenditures.--The 
                Secretary shall pay to each eligible State for 
                a fiscal year an amount equal to the lesser of 
                the State's allotment under subparagraph (B) or 
                the Federal medical assistance percentage for 
                the State for the fiscal year (as defined in 
                section 1905(b), as such section was in effect 
                on September 30, 1995) of so much of the 
                State's expenditures for child care in that 
                fiscal year as exceed the total amount of 
                expenditures by the State (including 
                expenditures from amounts made available from 
                Federal funds) in fiscal year 1994 or 1995 
                (whichever is greater) for the programs 
                described in paragraph (1)(A).
                  (D) Redistribution.--
                          (i) In general.--With respect to any 
                        fiscal year, if the Secretary 
                        determines (in accordance with clause 
                        (ii)) that any amounts allotted to a 
                        State under this paragraph for such 
                        fiscal year will not be used by such 
                        State during such fiscal year for 
                        carrying out the purpose for which the 
                        such amounts are allotted, the 
                        Secretary shall make such amounts 
                        available in the subsequent fiscal year 
                        for carrying out such purpose to one or 
                        more States which apply for such funds 
                        to the extent the Secretary determines 
                        that such States will be able to use 
                        such additional amounts for carrying 
                        out such purpose. Such available 
                        amounts shall be redistributed to a 
                        State pursuant to section 403(n) (as 
                        such section was in effect before 
                        October 1, 1995) by substituting ``the 
                        number of children residing in all 
                        States applying for such funds'' for 
                        ``the number of children residing in 
                        the United States in the second 
                        preceding fiscal year''.
                          (ii) Time of determination and 
                        distribution.--The determination of the 
                        Secretary under clause (i) for a fiscal 
                        year shall be made not later than the 
                        end of the first quarter of the 
                        subsequent fiscal year. The 
                        redistribution of amounts under clause 
                        (i) shall be made as close as 
                        practicable to the date on which such 
                        determination is made. Any amount made 
                        available to a State from an 
                        appropriation for a fiscal year in 
                        accordance with this subparagraph 
                        shall, for purposes of this part, be 
                        regarded as part of such State's 
                        payment (as determined under this 
                        subsection) for the fiscal year in 
                        which the redistribution is made.
          (3) Appropriation.--For grants under this section, 
        there are appropriated [$2,917,000,000 for each of 
        fiscal years 2017 and 2018] $3,525,000,000 for each of 
        fiscal years 2019 through 2023.
          (4) Indian tribes.--The Secretary shall reserve not 
        less than 1 percent, and not more than 2 percent, of 
        the aggregate amount appropriated to carry out this 
        section in each fiscal year for payments to Indian 
        tribes and tribal organizations.
          (5) Data used to determine state and federal shares 
        of expenditures.--In making the determinations 
        concerning expenditures required under paragraphs (1) 
        and (2)(C), the Secretary shall use information that 
        was reported by the State on ACF Form 231 and available 
        as of the applicable dates specified in clauses (i)(I), 
        (ii), and (iii)(III) of section 403(a)(1)(D).
  (b) Use of Funds.--
          (1) In general.--Amounts received by a State under 
        this section shall only be used to provide child care 
        assistance. Amounts received by a State under a grant 
        under subsection (a)(1) shall be available for use by 
        the State without fiscal year limitation.
          (2) Use for certain populations.--A State shall 
        ensure that not less than 70 percent of the total 
        amount of funds received by the State in a fiscal year 
        under this section are used to provide child care 
        assistance to families who are receiving assistance 
        under a State program under this part, families who are 
        attempting through work activities to transition off of 
        such assistance program, and families who are at risk 
        of becoming dependent on such assistance program.
  (c) Application of Child Care and Development Block Grant Act 
of 1990.--Notwithstanding any other provision of law, amounts 
provided to a State under this section shall be transferred to 
the lead agency under the Child Care and Development Block 
Grant Act of 1990, integrated by the State into the programs 
established by the State under such Act, and be subject to 
requirements and limitations of such Act.
  (d) Definition.--As used in this section, the term ``State'' 
means each of the 50 States and the District of Columbia.

SEC. 419. DEFINITIONS.

   As used in this part:
          (1) Adult.--The term ``adult'' means an individual 
        who is not a minor child.
          (2) Minor child.--The term ``minor child'' means an 
        individual who--
                  (A) has not attained 18 years of age; or
                  (B) has not attained 19 years of age and is a 
                full-time student in a secondary school (or in 
                the equivalent level of vocational or technical 
                training).
          (3) Fiscal year.--The term ``fiscal year'' means any 
        12-month period ending on September 30 of a calendar 
        year.
          (4) Indian, indian tribe, and tribal organization.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the terms ``Indian'', 
                ``Indian tribe'', and ``tribal organization'' 
                have the meaning given such terms by section 4 
                of the Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b).
                  (B) Special rule for indian tribes in 
                alaska.--The term ``Indian tribe'' means, with 
                respect to the State of Alaska, only the 
                Metlakatla Indian Community of the Annette 
                Islands Reserve and the following Alaska Native 
                regional nonprofit corporations:
                          (i) Arctic Slope Native Association.
                          (ii) Kawerak, Inc.
                          (iii) Maniilaq Association.
                          (iv) Association of Village Council 
                        Presidents.
                          (v) Tanana Chiefs Conference.
                          (vi) Cook Inlet Tribal Council.
                          (vii) Bristol Bay Native Association.
                          (viii) Aleutian and Pribilof Island 
                        Association.
                          (ix) Chugachmuit.
                          (x) Tlingit Haida Central Council.
                          (xi) Kodiak Area Native Association.
                          (xii) Copper River Native 
                        Association.
          (5) State.--Except as otherwise specifically 
        provided, the term ``State'' means the 50 States of the 
        United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin 
        Islands, Guam, and American Samoa.
          (6) Assistance.--The term ``assistance'' means cash, 
        payments, vouchers, and other forms of benefits 
        designed to meet a family's ongoing basic needs (such 
        as for food, clothing, shelter, utilities, household 
        goods, personal care items, and general incidental 
        expenses).
          (7) Work supports.--The term ``work supports'' means 
        assistance and non-assistance transportation benefits 
        (such as the value of allowances, bus tokens, car 
        payments, auto repair, auto insurance reimbursement, 
        and van services provided in order to help families 
        obtain, retain, or advance in employment, participate 
        in work activities (as defined in section 407(d)), or 
        as a non-recurrent, short-term benefit, including goods 
        provided to individuals in order to help them obtain or 
        maintain employment (such as tools, uniforms, fees to 
        obtain special licenses, bonuses, incentives, and work 
        support allowances and expenditures for job access).
          (8) Supportive services.--The term ``supportive 
        services'' means services such as domestic violence 
        services, and mental health, substance abuse and 
        disability services, housing counseling services, and 
        other family supports, except to the extent that the 
        provision of the service would violate section 
        408(a)(6).
          (9) JOBS benefit.--The term ``JOBS benefit'' means--
                  (A) assistance; or
                  (B) wage subsidies that are paid, with funds 
                provided under section 403(a) or with qualified 
                State expenditures, with respect to a person 
                who--
                          (i) was a work-eligible individual 
                        (as defined in the regulations 
                        promulgated pursuant to section 
                        407(i)(1)(A)(i)) at the time of entry 
                        into subsidized employment, such as on-
                        the-job training or apprenticeship; and
                          (ii) is not receiving assistance.

           *       *       *       *       *       *       *


Part D--Child Support and Establishment of Paternity

           *       *       *       *       *       *       *


                        DUTIES OF THE SECRETARY

  Sec.  452. (a) The Secretary shall establish, within the 
Department of Health and Human Services a separate 
organizational unit, under the direction of a designee of the 
Secretary, who shall report directly to the Secretary and who 
shall--
          (1) establish such standards for State programs for 
        locating noncustodial parents, establishing paternity, 
        and obtaining child support and support for the spouse 
        (or former spouse) with whom the noncustodial parent's 
        child is living as he determines to be necessary to 
        assure that such programs will be effective;
          (2) establish minimum organizational and staffing 
        requirements for State units engaged in carrying out 
        such programs under plans approved under this part;
          (3) review and approve State plans for such programs;
          (4)(A) review data and calculations transmitted by 
        State agencies pursuant to section 454(15)(B) on State 
        program accomplishments with respect to performance 
        indicators for purposes of subsection (g) of this 
        section and section 458;
          (B) review annual reports submitted pursuant to 
        section 454(15)(A) and, as appropriate, provide to the 
        State comments, recommendations for additional or 
        alternative corrective actions, and technical 
        assistance; and
          (C) conduct audits, in accordance with the Government 
        auditing standards of the Comptroller General of the 
        United States--
                  (i) at least once every 3 years (or more 
                frequently, in the case of a State which fails 
                to meet the requirements of this part 
                concerning performance standards and 
                reliability of program data) to assess the 
                completeness, reliability, and security of the 
                data and the accuracy of the reporting systems 
                used in calculating performance indicators 
                under subsection (g) of this section and 
                section 458;
                  (ii) of the adequacy of financial management 
                of the State program operated under the State 
                plan approved under this part, including 
                assessments of--
                          (I) whether Federal and other funds 
                        made available to carry out the State 
                        program are being appropriately 
                        expended, and are properly and fully 
                        accounted for; and
                          (II) whether collections and 
                        disbursements of support payments are 
                        carried out correctly and are fully 
                        accounted for; and
                  (iii) for such other purposes as the 
                Secretary may find necessary;
          (5) assist States in establishing adequate reporting 
        procedures and maintain records of the operations of 
        programs established pursuant to this part in each 
        State, and establish procedures to be followed by 
        States for collecting and reporting information 
        required to be provided under this part, and establish 
        uniform definitions (including those necessary to 
        enable the measurement of State compliance with the 
        requirements of this part relating to expedited 
        processes) to be applied in following such procedures;
          (6) maintain records of all amounts collected and 
        disbursed under programs established pursuant to the 
        provisions of this part and of the costs incurred in 
        collecting such amounts;
          (7) provide technical assistance to the States to 
        help them establish effective systems for collecting 
        child and spousal support and establishing paternity, 
        and specify the minimum requirements of an affidavit to 
        be used for the voluntary acknowledgment of paternity 
        which shall include the social security number of each 
        parent and, after consultation with the States, other 
        common elements as determined by such designee;
          (8) receive applications from States for permission 
        to utilize the courts of the United States to enforce 
        court orders for support against noncustodial parents 
        and, upon a finding that (A) another State has not 
        undertaken to enforce the court order of the 
        originating State against the noncustodial parent 
        within a reasonable time, and (B) that utilization of 
        the Federal courts is the only reasonable method of 
        enforcing such order, approve such applications;
          (9) operate the Federal Parent Locator Service 
        established by section 453;
          (10) not later than three months after the end of 
        each fiscal year, beginning with the year 1977, submit 
        to the Congress a full and complete report on all 
        activities undertaken pursuant to the provisions of 
        this part, which report shall include, but not be 
        limited to, the following:
                  (A) total program costs and collections set 
                forth in sufficient detail to show the cost to 
                the States and the Federal Government, the 
                distribution of collections to families, State 
                and local governmental units, and the Federal 
                Government; and an identification of the 
                financial impact of the provisions of this 
                part, including--
                          (i) the total amount of child support 
                        payments collected as a result of 
                        services furnished during the fiscal 
                        year to individuals receiving services 
                        under this part;
                          (ii) the cost to the States and to 
                        the Federal Government of so furnishing 
                        the services; and
                          (iii) the number of cases involving 
                        families--
                                  (I) who became ineligible for 
                                assistance under State programs 
                                funded under part A during a 
                                month in the fiscal year; and
                                  (II) with respect to whom a 
                                child support payment was 
                                received in the month;
                  (B) costs and staff associated with the 
                Office of Child Support Enforcement;
                  (C) the following data, separately stated for 
                cases where the child is receiving assistance 
                under a State program funded under part A (or 
                foster care maintenance payments under part E), 
                or formerly received such assistance or 
                payments and the State is continuing to collect 
                support assigned to it pursuant to section 
                408(a)(3) or under section 471(a)(17) or 1912, 
                and for all other cases under this part:
                          (i) the total number of cases in 
                        which a support obligation has been 
                        established in the fiscal year for 
                        which the report is submitted;
                          (ii) the total number of cases in 
                        which a support obligation has been 
                        established;
                          (iii) the number of cases in which 
                        support was collected during the fiscal 
                        year;
                          (iv) the total amount of support 
                        collected during such fiscal year and 
                        distributed as current support;
                          (v) the total amount of support 
                        collected during such fiscal year and 
                        distributed as arrearages;
                          (vi) the total amount of support due 
                        and unpaid for all fiscal years; and
                          (vii) the number of child support 
                        cases filed in each State in such 
                        fiscal year, and the amount of the 
                        collections made in each State in such 
                        fiscal year, on behalf of children 
                        residing in another State or against 
                        parents residing in another State;
                  (D) the status of all State plans under this 
                part as of the end of the fiscal year last 
                ending before the report is submitted, together 
                with an explanation of any problems which are 
                delaying or preventing approval of State plans 
                under this part;
                  (E) data, by State, on the use of the Federal 
                Parent Locator Service, and the number of 
                locate requests submitted without the 
                noncustodial parent's social security account 
                number;
                  (F) the number of cases, by State, in which 
                an applicant for or recipient of assistance 
                under a State program funded under part A has 
                refused to cooperate in identifying and 
                locating the noncustodial parent and the number 
                of cases in which refusal so to cooperate is 
                based on good cause (as determined by the 
                State);
                  (G) data, by State, on use of the Internal 
                Revenue Service for collections, the number of 
                court orders on which collections were made, 
                the number of paternity determinations made and 
                the number of parents located, in sufficient 
                detail to show the cost and benefits to the 
                States and to the Federal Government;
                  (H) the major problems encountered which have 
                delayed or prevented implementation of the 
                provisions of this part during the fiscal year 
                last ending prior to the submission of such 
                report; and
                  (I) compliance, by State, with the standards 
                established pursuant to subsections (h) and 
                (i); and
          (11) not later than October 1, 1996, after consulting 
        with the State directors of programs under this part, 
        promulgate forms to be used by States in interstate 
        cases for--
                  (A) collection of child support through 
                income withholding;
                  (B) imposition of liens; and
                  (C) administrative subpoenas.
  (b) The Secretary shall, upon the request of any State having 
in effect a State plan approved under this part, certify to the 
Secretary of the Treasury for collection pursuant to the 
provisions of section 6305 of the Internal Revenue Code of 1954 
the amount of any child support obligation (including any 
support obligation with respect to the parent who is living 
with the child and receiving assistance under the State program 
funded under part A) which is assigned to such State or is 
undertaken to be collected by such State pursuant to section 
454(4). No amount may be certified for collection under this 
subsection except the amount of the delinquency under a court 
or administrative order for support and upon a showing by the 
State that such State has made diligent and reasonable efforts 
to collect such amounts utilizing its own collection 
mechanisms, and upon an agreement that the State will reimburse 
the Secretary of the Treasury for any costs involved in making 
the collection. All reimbursements shall be credited to the 
appropriation accounts which bore all or part of the costs 
involved in making the collections. The Secretary after 
consultation with the Secretary of the Treasury may, by 
regulation, establish criteria for accepting amounts for 
collection and for making certification under this subsection 
including imposing such limitations on the frequency of making 
such certifications under this subsection.
  (c) The Secretary of the Treasury shall from time to time pay 
to each State for distribution in accordance with the 
provisions of section 457 the amount of each collection made on 
behalf of such State pursuant to subsection (b).
  (d)(1) Except as provided in paragraph (3), the Secretary 
shall not approve the initial and annually updated advance 
automated data processing planning document, referred to in 
section 454(16), unless he finds that such document, when 
implemented, will generally carry out the objectives of the 
management system referred to in such subsection, and such 
document
          (A) provides for the conduct of, and reflects the 
        results of, requirements analysis studies, which 
        include consideration of the program mission, 
        functions, organization, services, constraints, and 
        current support, of, in, or relating to, such system,
          (B) contains a description of the proposed management 
        system referred to in section 454(16), including a 
        description of information flows, input data, and 
        output reports and uses,
          (C) sets forth the security and interface 
        requirements to be employed in such management system,
          (D) describes the projected resource requirements for 
        staff and other needs, and the resources available or 
        expected to be available to meet such requirements,
          (E) contains an implementation plan and backup 
        procedures to handle possible failures,
          (F) contains a summary of proposed improvement of 
        such management system in terms of qualitative and 
        quantitative benefits, and
          (G) provides such other information as the Secretary 
        determines under regulation is necessary.
  (2)(A) The Secretary shall through the separate 
organizational unit established pursuant to subsection (a), on 
a continuing basis, review, assess, and inspect the planning, 
design, and operation of, management information systems 
referred to in section 454(16), with a view to determining 
whether, and to what extent, such systems meet and continue to 
meet requirements imposed under paragraph (1) and the 
conditions specified under section 454(16).
  (B) If the Secretary finds with respect to any statewide 
management information system referred to in section 454(16) 
that there is a failure substantially to comply with criteria, 
requirements, and other undertakings, prescribed by the advance 
automated data processing planning document theretofore 
approved by the Secretary with respect to such system, then the 
Secretary shall suspend his approval of such document until 
there is no longer any such failure of such system to comply 
with such criteria, requirements, and other undertakings so 
prescribed.
  (3) The Secretary may waive any requirement of paragraph (1) 
or any condition specified under section 454(16), and shall 
waive the single statewide system requirement under sections 
454(16) and 454A, with respect to a State if--
          (A) the State demonstrates to the satisfaction of the 
        Secretary that the State has or can develop an 
        alternative system or systems that enable the State--
                  (i) for purposes of section [409(a)(8)] 
                409(a)(7), to achieve the paternity 
                establishment percentages (as defined in 
                section 452(g)(2)) and other performance 
                measures that may be established by the 
                Secretary;
                  (ii) to submit data under section 454(15)(B) 
                that is complete and reliable;
                  (iii) to substantially comply with the 
                requirements of this part; and
                  (iv) in the case of a request to waive the 
                single statewide system requirement, to--
                          (I) meet all functional requirements 
                        of sections 454(16) and 454A;
                          (II) ensure that calculation of 
                        distributions meets the requirements of 
                        section 457 and accounts for 
                        distributions to children in different 
                        families or in 
                        different States or sub-State 
                        jurisdictions, and for distributions to 
                        other States;
                          (III) ensure that there is only one 
                        point of contact in the State which 
                        provides seamless case processing for 
                        all interstate case processing and 
                        coordinated, automated intrastate case 
                        management;
                          (IV) ensure that standardized data 
                        elements, forms, and definitions are 
                        used throughout the State;
                          (V) complete the alternative system 
                        in no more time than it would take to 
                        complete a single statewide system that 
                        meets such requirement; and
                          (VI) process child support cases as 
                        quickly, 
                        efficiently, and effectively as such 
                        cases would be processed through a 
                        single statewide system that meets such 
                        requirement;
          (B)(i) the waiver meets the criteria of paragraphs 
        (1), (2), and (3) of section 1115(c); or
          (ii) the State provides assurances to the Secretary 
        that steps will be taken to otherwise improve the 
        State's child support enforcement program; and
          (C) in the case of a request to waive the single 
        statewide system requirement, the State has submitted 
        to the Secretary separate estimates of the total cost 
        of a single statewide system that meets such 
        requirement, and of any such alternative system or 
        systems, which shall include estimates of the cost of 
        developing and completing the system and of operating 
        and maintaining the system for 5 years, and the 
        Secretary has agreed with the estimates.
  (e) The Secretary shall provide such technical assistance to 
States as he determines necessary to assist States to plan, 
design, develop, or install and provide for the security of, 
the management information systems referred to in section 
454(16).
  (f) The Secretary shall issue regulations to require that 
State agencies administering the child support enforcement 
program under this part enforce medical support included as 
part of a child support order whenever health care coverage is 
available to the noncustodial parent at a reasonable cost. A 
State agency administering the program under this part may 
enforce medical support against a custodial parent if health 
care coverage is available to the custodial parent at a 
reasonable cost, notwithstanding any other provision of this 
part. Such regulation shall also provide for improved 
information exchange between such State agencies and the State 
agencies administering the State medicaid programs under title 
XIX with respect to the availability of health insurance 
coverage. For purposes of this part, the term ``medical 
support'' may include health care coverage, such as coverage 
under a health insurance plan (including payment of costs of 
premiums, co-payments, and deductibles) and payment for medical 
expenses incurred on behalf of a child.
  (g)(1) A State's program under this part shall be found, for 
purposes of section [409(a)(8)] 409(a)(7), not to have complied 
substantially with the requirements of this part unless, for 
any fiscal year beginning on or after October 1, 1994, its 
paternity establishment percentage for such fiscal year is 
based on reliable data and (rounded to the nearest whole 
percentage point) equals or exceeds--
          (A) 90 percent;
          (B) for a State with a paternity establishment 
        percentage of not less than 75 percent but less than 90 
        percent for such fiscal year, the paternity 
        establishment percentage of the State for the 
        immediately preceding fiscal year plus 2 percentage 
        points;
          (C) for a State with a paternity establishment 
        percentage of not less than 50 percent but less than 75 
        percent for such fiscal year, the paternity 
        establishment percentage of the State for the 
        immediately preceding fiscal year plus 3 percentage 
        points;
          (D) for a State with a paternity establishment 
        percentage of not less than 45 percent but less than 50 
        percent for such fiscal year, the paternity 
        establishment percentage of the State for the 
        immediately preceding fiscal year plus 4 percentage 
        points;
          (E) for a State with a paternity establishment 
        percentage of not less than 40 percent but less than 45 
        percent for such fiscal year, the paternity 
        establishment percentage of the State for the 
        immediately preceding fiscal year plus 5 percentage 
        points; or
          (F) for a State with a paternity establishment 
        percentage of less than 40 percent for such fiscal 
        year, the paternity establishment percentage of the 
        State for the immediately preceding fiscal year plus 6 
        percentage points.
In determining compliance under this section, a State may use 
as its paternity establishment percentage either the State's 
IV-D paternity establishment percentage (as defined in 
paragraph (2)(A)) or the State's statewide paternity 
establishment percentage (as defined in paragraph (2)(B)).
  (2) For purposes of this section--
          (A) the term ``IV-D paternity establishment 
        percentage'' means, with respect to a State for a 
        fiscal year, the ratio (expressed as a percentage) that 
        the total number of children--
                  (i) who have been born out of wedlock,
                  (ii)(I) except as provided in the last 
                sentence of this paragraph, with respect to 
                whom assistance is being provided under the 
                State program funded under part A in the fiscal 
                year or, at the option of the State, as of the 
                end of such year, or (II) with respect to whom 
                services are being provided under the State's 
                plan approved under this part in the fiscal 
                year or, at the option of the State, as of the 
                end of such year pursuant to an application 
                submitted under section 454(4)(A)(ii), and
                  (iii) the paternity of whom has been 
                established or acknowledged,
        bears to the total number of children born out of 
        wedlock and (except as provided in such last sentence) 
        with respect to whom assistance was being provided 
        under the State program funded under part A as of the 
        end of the preceding fiscal year or with respect to 
        whom services were being provided under the State's 
        plan approved under this part as of the end of the 
        preceding fiscal year pursuant to an application 
        submitted under section 454(4)(A)(ii);
          (B) the term ``statewide paternity establishment 
        percentage'' means, with respect to a State for a 
        fiscal year, the ratio (expressed as a percentage) that 
        the total number of minor children--
                  (i) who have been born out of wedlock, and
                  (ii) the paternity of whom has been 
                established or acknowledged during the fiscal 
                year,
        bears to the total number of children born out of 
        wedlock during the preceding fiscal year; and
          (C) the term ``reliable data'' means the most recent 
        data available which are found by the Secretary to be 
        reliable for purposes of this section.
For purposes of subparagraphs (A) and (B), the total number of 
children shall not include any child with respect to whom 
assistance is being provided under the State program funded 
under part A by reason of the death of a parent unless 
paternity is established for such child or any child with 
respect to whom an applicant or recipient is found by the State 
to qualify for a good cause or other exception to cooperation 
pursuant to section 454(29).
  (3)(A) The Secretary may modify the requirements of this 
subsection to take into account such additional variables as 
the Secretary identifies (including the percentage of children 
in a State who are born out of wedlock or for whom support has 
not been established) that affect the ability of a State to 
meet the requirements of this subsection.
  (B) The Secretary shall submit an annual report to the 
Congress that sets forth the data upon which the paternity 
establishment percentages for States for a fiscal year are 
based, lists any additional variables the Secretary has 
identified under subparagraph (A), and describes State 
performance in establishing paternity.
  (h) The standards required by subsection (a)(1) shall include 
standards establishing time limits governing the period or 
periods within which a State must accept and respond to 
requests (from States, jurisdictions thereof, or individuals 
who apply for services furnished by the State agency under this 
part or with respect to whom an assignment pursuant to section 
408(a)(3) is in effect) for assistance in establishing and 
enforcing support orders, including requests to locate 
noncustodial parents, establish paternity, and initiate 
proceedings to establish and collect child support awards.
  (i) The standards required by subsection (a)(1) shall include 
standards establishing time limits governing the period or 
periods within which a State must distribute, in accordance 
with section 457, amounts collected as child support pursuant 
to the State's plan approved under this part.
  (j) Out of any money in the Treasury of the United States not 
otherwise appropriated, there is hereby appropriated to the 
Secretary for each fiscal year an amount equal to 1 percent of 
the total amount paid to the Federal Government pursuant to a 
plan approved under this part during the immediately preceding 
fiscal year (as determined on the basis of the most recent 
reliable data available to the Secretary as of the end of the 
third calendar quarter following the end of such preceding 
fiscal year) or the amount appropriated under this paragraph 
for fiscal year 2002, whichever is greater, which shall be 
available for use by the Secretary, either directly or through 
grants, contracts, or interagency agreements, for--
          (1) information dissemination and technical 
        assistance to States, training of State and Federal 
        staff, staffing studies, and related activities needed 
        to improve programs under this part (including 
        technical assistance concerning State automated systems 
        required by this part); and
          (2) research, demonstration, and special projects of 
        regional or national significance relating to the 
        operation of State programs under this part.
The amount appropriated under this subsection shall remain 
available until expended.
  (k)(1) If the Secretary receives a certification by a State 
agency in accordance with the requirements of section 454(31) 
that an individual owes arrearages of child support in an 
amount exceeding $2,500, the Secretary shall transmit such 
certification to the Secretary of State for action (with 
respect to denial, revocation, or limitation of passports) 
pursuant to paragraph (2).
  (2) The Secretary of State shall, upon certification by the 
Secretary transmitted under paragraph (1), refuse to issue a 
passport to such individual, and may revoke, restrict, or limit 
a passport issued previously to such individual.
  (3) The Secretary and the Secretary of State shall not be 
liable to an individual for any action with respect to a 
certification by a State agency under this section.
  (l) The Secretary, through the Federal Parent Locator 
Service, may aid State agencies providing services under State 
programs operated pursuant to this part and financial 
institutions doing business in two or more States in reaching 
agreements regarding the receipt from such institutions, and 
the transfer to the State agencies, of information that may be 
provided pursuant to section 466(a)(17)(A)(i), except that any 
State that, as of the date of the enactment of this subsection, 
is conducting data matches pursuant to section 466(a)(17)(A)(i) 
shall have until January 1, 2000, to allow the Secretary to 
obtain such information from such institutions that are 
operating in the State. For purposes of section 1113(d) of the 
Right to Financial Privacy Act of 1978, a disclosure pursuant 
to this subsection shall be considered a disclosure pursuant to 
a Federal statute.
  (m) Comparisons With Insurance Information.--
          (1) In general.--The Secretary, through the Federal 
        Parent Locator Service, may--
                  (A) compare information concerning 
                individuals owing past-due support with 
                information maintained by insurers (or their 
                agents) concerning insurance claims, 
                settlements, awards, and payments; and
                  (B) furnish information resulting from the 
                data matches to the State agencies responsible 
                for collecting child support from the 
                individuals.
          (2) Liability.--An insurer (including any agent of an 
        insurer) shall not be liable under any Federal or State 
        law to any person for any disclosure provided for under 
        this subsection, or for any other action taken in good 
        faith in accordance with this subsection.
  (n) The Secretary shall use the authorities otherwise 
provided by law to ensure the compliance of the United States 
with any multilateral child support convention to which the 
United States is a party.
  (o) Data Exchange Standards for Improved Interoperability.--
          (1) Designation.--The Secretary shall, in 
        consultation with an interagency work group established 
        by the Office of Management and Budget and considering 
        State government perspectives, by rule, designate data 
        exchange standards to govern, under this part--
                  (A) necessary categories of information that 
                State agencies operating programs under State 
                plans approved under this part are required 
                under applicable Federal law to electronically 
                exchange with another State agency; and
                  (B) Federal reporting and data exchange 
                required under applicable Federal law.
          (2) Requirements.--The data exchange standards 
        required by paragraph (1) shall, to the extent 
        practicable--
                  (A) incorporate a widely accepted, non-
                proprietary, searchable, computer-readable 
                format, such as the eXtensible Markup Language;
                  (B) contain interoperable standards developed 
                and maintained by intergovernmental 
                partnerships, such as the National Information 
                Exchange Model;
                  (C) incorporate interoperable standards 
                developed and maintained by Federal entities 
                with authority over contracting and financial 
                assistance;
                  (D) be consistent with and implement 
                applicable accounting principles;
                  (E) be implemented in a manner that is cost-
                effective and improves program efficiency and 
                effectiveness; and
                  (F) be capable of being continually upgraded 
                as necessary.
          (3) Rule of construction.--Nothing in this subsection 
        shall be construed to require a change to existing data 
        exchange standards found to be effective and efficient.

           *       *       *       *       *       *       *


SEC. 454A. AUTOMATED DATA PROCESSING.

  (a) In General.--In order for a State to meet the 
requirements of this section, the State agency administering 
the State program under this part shall have in operation a 
single statewide automated data processing and information 
retrieval system which has the capability to perform the tasks 
specified in this section with the frequency and in the manner 
required by or under this part.
  (b) Program Management.--The automated system required by 
this section shall perform such functions as the Secretary may 
specify relating to management of the State program under this 
part, including--
          (1) controlling and accounting for use of Federal, 
        State, and local funds in carrying out the program; and
          (2) maintaining the data necessary to meet Federal 
        reporting requirements under this part on a timely 
        basis.
  (c) Calculation of Performance Indicators.--In order to 
enable the Secretary to determine the incentive payments and 
penalty adjustments required by sections 452(g) and 458, the 
State agency shall--
          (1) use the automated system--
                  (A) to maintain the requisite data on State 
                performance with respect to paternity 
                establishment and child support enforcement in 
                the State; and
                  (B) to calculate the paternity establishment 
                percentage for the State for each fiscal year; 
                and
          (2) have in place systems controls to ensure the com-
        pleteness and reliability of, and ready access to, the 
        data described in paragraph (1)(A), and the accuracy of 
        the calculations described in paragraph (1)(B).
  (d) Information Integrity and Security.--The State agency 
shall have in effect safeguards on the integrity, accuracy, and 
completeness of, access to, and use of data in the automated 
system required by this section, which shall include the 
following (in addition to such other safeguards as the 
Secretary may specify in regulations):
          (1) Policies restricting access.--Written policies 
        concerning access to data by State agency personnel, 
        and sharing of data with other persons, which--
                  (A) permit access to and use of data only to 
                the extent necessary to carry out the State 
                program under this part; and
                  (B) specify the data which may be used for 
                particular program purposes, and the personnel 
                permitted access to such data.
          (2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict 
        adherence to the policies described in paragraph (1).
          (3) Monitoring of access.--Routine monitoring of 
        access to and use of the automated system, through 
        methods such as audit trails and feedback mechanisms, 
        to guard against and promptly identify unauthorized 
        access or use.
          (4) Training and information.--Procedures to ensure 
        that all personnel (including State and local agency 
        staff and contractors) who may have access to or be 
        required to use confidential program data are informed 
        of applicable requirements and penalties (including 
        those in section 6103 of the Internal Revenue Code of 
        1986), and are adequately trained in security 
        procedures.
          (5) Penalties.--Administrative penalties (up to and 
        including dismissal from employment) for unauthorized 
        access to, or disclosure or use of, confidential data.
  (e) State Case Registry.--
          (1) Contents.--The automated system required by this 
        section shall include a registry (which shall be known 
        as the ``State case registry'') that contains records 
        with respect to--
                  (A) each case in which services are being 
                provided by the State agency under the State 
                plan approved under this part; and
                  (B) each support order established or 
                modified in the State on or after October 1, 
                1998.
          (2) Linking of local registries.--The State case 
        registry may be established by linking local case 
        registries of support orders through an automated 
        information network, subject to this section.
          (3) Use of standardized data elements.--Such records 
        shall use standardized data elements for both parents 
        (such as names, social security numbers and other 
        uniform identification numbers, dates of birth, and 
        case identification numbers), and contain such other 
        information (such as on case status) as the Secretary 
        may require.
          (4) Payment records.--Each case record in the State 
        case registry with respect to which services are being 
        provided under the State plan approved under this part 
        and with respect to which a support order has been 
        established shall include a record of--
                  (A) the amount of monthly (or other periodic) 
                support owed under the order, and other amounts 
                (including arrearages, interest or late payment 
                penalties, and fees) due or overdue under the 
                order;
                  (B) any amount described in subparagraph (A) 
                that has been collected;
                  (C) the distribution of such collected 
                amounts;
                  (D) the birth date and, beginning not later 
                than October 1, 1999, the social security 
                number, of any child for whom the order 
                requires the provision of support; and
                  (E) the amount of any lien imposed with 
                respect to the order pursuant to section 
                466(a)(4).
          (5) Updating and monitoring.--The State agency 
        operating the automated system required by this section 
        shall promptly establish and update, maintain, and 
        regularly monitor, case records in the State case 
        registry with respect to which services are being 
        provided under the State plan approved under this part, 
        on the basis of--
                  (A) information on administrative actions and 
                administrative and judicial proceedings and 
                orders relating to paternity and support;
                  (B) information obtained from comparison with 
                Federal, State, or local sources of 
                information;
                  (C) information on support collections and 
                distributions; and
                  (D) any other relevant information.
  (f) Information Comparisons and Other Disclosures of 
Information.--The State shall use the automated system required 
by this section to extract information from (at such times, and 
in such standardized format or formats, as may be required by 
the Secretary), to share and compare information with, and to 
receive information from, other data bases and information 
comparison services, in order to obtain (or provide) 
information necessary to enable the State agency (or the 
Secretary or other State or Federal agencies) to carry out this 
part, subject to section 6103 of the Internal Revenue Code of 
1986. Such information comparison activities shall include the 
following:
          (1) Federal case registry of child support orders.--
        Furnishing to the Federal Case Registry of Child 
        Support Orders established under section 453(h) (and 
        update as necessary, with information including notice 
        of expiration of orders) the minimum amount of 
        information on child support cases recorded in the 
        State case registry that is necessary to operate the 
        registry (as specified by the Secretary in 
        regulations).
          (2) Federal parent locator service.--Exchanging 
        information with the Federal Parent Locator Service for 
        the purposes specified in section 453.
          (3) Temporary family assistance and medicaid 
        agencies.--Exchanging information with State agencies 
        (of the State and of other States) administering 
        programs funded under part A, programs operated under a 
        State plan approved under title XIX, and other programs 
        designated by the Secretary, as necessary to perform 
        State agency responsibilities under this part and under 
        such programs.
          (4) Intrastate and interstate information 
        comparisons.--Exchanging information with other 
        agencies of the State, agencies of other States, and 
        interstate information networks, as necessary and 
        appropriate to carry out (or assist other States to 
        carry out) the purposes of this part.
          [(5) Private industry councils receiving welfare-to-
        work grants.--Disclosing to a private industry council 
        (as defined in section 403(a)(5)(D)(ii)) to which funds 
        are provided under section 403(a)(5) the names, 
        addresses, telephone numbers, and identifying case 
        number information in the State program funded under 
        part A, of noncustodial parents residing in the service 
        delivery area of the private industry council, for the 
        purpose of identifying and contacting noncustodial 
        parents regarding participation in the program under 
        section 403(a)(5).]
  (g) Collection and Distribution of Support Payments.--
          (1) In general.--The State shall use the automated 
        system required by this section to assist and 
        facilitate the collection and disbursement of support 
        payments through the State disbursement unit operated 
        under section 454B, through the performance of 
        functions, including, at a minimum--
                  (A) transmission of orders and notices to 
                employers (and other debtors) for the 
                withholding of income--
                          (i) within 2 business days after 
                        receipt of notice of, and the income 
                        source subject to, such withholding 
                        from a court, another State, an 
                        employer, the Federal Parent Locator 
                        Service, or another source recognized 
                        by the State;
                          (ii) using uniform formats prescribed 
                        by the Secretary; and
                          (iii) at the option of the employer, 
                        using the electronic transmission 
                        methods prescribed by the Secretary;
                  (B) ongoing monitoring to promptly identify 
                failures to make timely payment of support; and
                  (C) automatic use of enforcement procedures 
                (including procedures authorized pursuant to 
                section 466(c)) if payments are not timely 
                made.
          (2) Business day defined.--As used in paragraph (1), 
        the term ``business day'' means a day on which State 
        offices are open for regular business.
  (h) Expedited Administrative Procedures.--The automated 
system required by this section shall be used, to the maximum 
extent feasible, to implement the expedited administrative 
procedures required by section 466(c).

           *       *       *       *       *       *       *


PART E--FEDERAL PAYMENTS FOR FOSTER CARE, PREVENTION, AND PERMANENCY

           *       *       *       *       *       *       *


           STATE PLAN FOR FOSTER CARE AND ADOPTION ASSISTANCE

  Sec. 471. (a) In order for a State to be eligible for 
payments under this part, it shall have a plan approved by the 
Secretary which--
          (1) provides for foster care maintenance payments in 
        accordance with section 472 and for adoption assistance 
        in accordance with section 473;
          (2) provides that the State agency responsible for 
        administering the program authorized by subpart 1 of 
        part B of this title shall administer, or supervise the 
        administration of, the program authorized by this part;
          (3) provides that the plan shall be in effect in all 
        political subdivisions of the State, and, if 
        administered by them, be mandatory upon them;
          (4) provides that the State shall assure that the 
        programs at the local level assisted under this part 
        will be coordinated with the programs at the State or 
        local level assisted under parts A and B of this title, 
        under subtitle 1 of title XX of this Act, and under any 
        other appropriate provision of Federal law;
          (5) provides that the State will, in the 
        administration of its programs under this part, use 
        such methods relating to the establishment and 
        maintenance of personnel standards on a merit basis as 
        are found by the Secretary to be necessary for the 
        proper and efficient operation of the programs, except 
        that the Secretary shall exercise no authority with 
        respect to the selection, tenure of office, or 
        compensation of any individual employed in accordance 
        with such methods;
          (6) provides that the State agency referred to in 
        paragraph (2) (hereinafter in this part referred to as 
        the ``State agency'') will make such reports, in such 
        form and containing such information as the Secretary 
        may from time to time require, and comply with such 
        provisions as the Secretary may from time to time find 
        necessary to assure the correctness and verification of 
        such reports;
          (7) provides that the State agency will monitor and 
        conduct periodic evaluations of activities carried out 
        under this part;
          (8) subject to subsection (c), provides safeguards 
        which restrict the use of or disclosure of information 
        concerning individuals assisted under the State plan to 
        purposes directly connected with (A) the administration 
        of the plan of the State approved under this part, the 
        plan or program of the State under part A, B, or D of 
        this title or under title I, V, X, XIV, XVI (as in 
        effect in Puerto Rico, Guam, and the Virgin Islands), 
        XIX, or XX, the program established by title II, or the 
        supplemental security income program established by 
        title XVI, (B) any investigation, prosecution, or 
        criminal or civil proceeding, conducted in connection 
        with the administration of any such plan or program, 
        (C) the administration of any other Federal or 
        federally assisted program which provides assistance, 
        in cash or in kind, or services, directly to 
        individuals on the basis of need, (D) any audit or 
        similar activity conducted in connection with the 
        administration of any such plan or program by any 
        governmental agency which is authorized by law to 
        conduct such audit or activity, and (E) reporting and 
        providing information pursuant to paragraph (9) to 
        appropriate authorities with respect to known or 
        suspected child abuse or neglect; and the safeguards so 
        provided shall prohibit disclosure, to any committee or 
        legislative body (other than an agency referred to in 
        clause (D) with respect to an activity referred to in 
        such clause), of any information which identifies by 
        name or address any such applicant or recipient; except 
        that nothing contained herein shall preclude a State 
        from providing standards which restrict disclosures to 
        purposes more limited than those specified herein, or 
        which, in the case of adoptions, prevent disclosure 
        entirely;
          (9) provides that the State agency will--
                  (A) report to an appropriate agency or 
                official, known or suspected instances of 
                physical or mental injury, sexual abuse or 
                exploitation, or negligent treatment or 
                maltreatment of a child receiving aid under 
                part B or this part under circumstances which 
                indicate that the child's health or welfare is 
                threatened thereby;
                  (B) provide such information with respect to 
                a situation described in subparagraph (A) as 
                the State agency may have; and
                  (C) not later than--
                          (i) 1 year after the date of 
                        enactment of this subparagraph, 
                        demonstrate to the Secretary that the 
                        State agency has developed, in 
                        consultation with State and local law 
                        enforcement, juvenile justice systems, 
                        health care providers, education 
                        agencies, and organizations with 
                        experience in dealing with at-risk 
                        children and youth, policies and 
                        procedures (including relevant training 
                        for caseworkers) for identifying, 
                        documenting in agency records, and 
                        determining appropriate services with 
                        respect to--
                                  (I) any child or youth over 
                                whom the State agency has 
                                responsibility for placement, 
                                care, or supervision and who 
                                the State has reasonable cause 
                                to believe is, or is at risk of 
                                being, a sex trafficking victim 
                                (including children for whom a 
                                State child welfare agency has 
                                an open case file but who have 
                                not been removed from the home, 
                                children who have run away from 
                                foster care and who have not 
                                attained 18 years of age or 
                                such older age as the State has 
                                elected under section 475(8) of 
                                this Act, and youth who are not 
                                in foster care but are 
                                receiving services under 
                                section 477 of this Act); and
                                  (II) at the option of the 
                                State, any individual who has 
                                not attained 26 years of age, 
                                without regard to whether the 
                                individual is or was in foster 
                                care under the responsibility 
                                of the State; and
                          (ii) 2 years after such date of 
                        enactment, demonstrate to the Secretary 
                        that the State agency is implementing 
                        the policies and procedures referred to 
                        in clause (i).
          (10) provides--
                  (A) for the establishment or designation of a 
                State authority or authorities that shall be 
                responsible for establishing and maintaining 
                standards for foster family homes and child 
                care institutions which are reasonably in 
                accord with recommended standards of national 
                organizations concerned with standards for the 
                institutions or homes, including standards 
                related to admission policies, safety, 
                sanitation, and protection of civil rights, and 
                which shall permit use of the reasonable and 
                prudent parenting standard;
                  (B) that the standards established pursuant 
                to subparagraph (A) shall be applied by the 
                State to any foster family home or child care 
                institution receiving funds under this part or 
                part B and shall require, as a condition of 
                each contract entered into by a child care 
                institution to provide foster care, the 
                presence on-site of at least 1 official who, 
                with respect to any child placed at the child 
                care institution, is designated to be the 
                caregiver who is authorized to apply the 
                reasonable and prudent parent standard to 
                decisions involving the participation of the 
                child in age or developmentally-appropriate 
                activities, and who is provided with training 
                in how to use and apply the reasonable and 
                prudent parent standard in the same manner as 
                prospective foster parents are provided the 
                training pursuant to paragraph (24);
                  (C) that the standards established pursuant 
                to subparagraph (A) shall include policies 
                related to the liability of foster parents and 
                private entities under contract by the State 
                involving the application of the reasonable and 
                prudent parent standard, to ensure appropriate 
                liability for caregivers when a child 
                participates in an approved activity and the 
                caregiver approving the activity acts in 
                accordance with the reasonable and prudent 
                parent standard; and
                  (D) that a waiver of any standards 
                established pursuant to subparagraph (A) may be 
                made only on a case-by-case basis for nonsafety 
                standards (as determined by the State) in 
                relative foster family homes for specific 
                children in care;
          (11) provides for periodic review of the standards 
        referred to in the preceding paragraph and amounts paid 
        as foster care maintenance payments and adoption 
        assistance to assure their continuing appropriateness;
          (12) provides for granting an opportunity for a fair 
        hearing before the State agency to any individual whose 
        claim for benefits available pursuant to this part is 
        denied or is not acted upon with reasonable promptness;
          (13) provides that the State shall arrange for a 
        periodic and independently conducted audit of the 
        programs assisted under this part and part B of this 
        title, which shall be conducted no less frequently than 
        once every three years;
          (14) provides (A) specific goals (which shall be 
        established by State law on or before October 1, 1982) 
        for each fiscal year (commencing with the fiscal year 
        which begins on October 1, 1983) as to the maximum 
        number of children (in absolute numbers or as a 
        percentage of all children in foster care with respect 
        to whom assistance under the plan is provided during 
        such year) who, at any time during such year, will 
        remain in foster care after having been in such care 
        for a period in excess of twenty-four months, and (B) a 
        description of the steps which will be taken by the 
        State to achieve such goals;
          (15) provides that--
                  (A) in determining reasonable efforts to be 
                made with respect to a child, as described in 
                this paragraph, and in making such reasonable 
                efforts, the child's health and safety shall be 
                the paramount concern;
                  (B) except as provided in subparagraph (D), 
                reasonable efforts shall be made to preserve 
                and reunify 
                families--
                          (i) prior to the placement of a child 
                        in foster care, to prevent or eliminate 
                        the need for removing the child from 
                        the child's home; and
                          (ii) to make it possible for a child 
                        to safely return to the child's home;
                  (C) if continuation of reasonable efforts of 
                the type described in subparagraph (B) is 
                determined to be inconsistent with the 
                permanency plan for the child, reasonable 
                efforts shall be made to place the child in a 
                timely manner in accordance with the permanency 
                plan (including, if appropriate, through an 
                interstate placement), and to complete whatever 
                steps are necessary to finalize the permanent 
                placement of the child;
                  (D) reasonable efforts of the type described 
                in subparagraph (B) shall not be required to be 
                made with respect to a parent of a child if a 
                court of competent jurisdiction has determined 
                that--
                          (i) the parent has subjected the 
                        child to aggravated circumstances (as 
                        defined in State law, which definition 
                        may include but need not be limited to 
                        abandonment, torture, chronic abuse, 
                        and sexual abuse);
                          (ii) the parent has--
                                  (I) committed murder (which 
                                would have been an offense 
                                under section 1111(a) of title 
                                18, United States Code, if the 
                                offense had occurred in the 
                                special maritime or territorial 
                                jurisdiction of the United 
                                States) of another child of the 
                                parent;
                                  (II) committed voluntary 
                                manslaughter (which would have 
                                been an offense under section 
                                1112(a) of title 18, United 
                                States Code, if the offense had 
                                occurred in the special 
                                maritime or territorial 
                                jurisdiction of the United 
                                States) of another child of the 
                                parent;
                                  (III) aided or abetted, 
                                attempted, conspired, or 
                                solicited to commit such a 
                                murder or such a voluntary 
                                manslaughter; or
                                  (IV) committed a felony 
                                assault that results in serious 
                                bodily injury to the child or 
                                another child of the parent; or
                          (iii) the parental rights of the 
                        parent to a sibling have been 
                        terminated involuntarily;
                  (E) if reasonable efforts of the type 
                described in subparagraph (B) are not made with 
                respect to a child as a result of a 
                determination made by a court of competent 
                jurisdiction in accordance with subparagraph 
                (D)--
                          (i) a permanency hearing (as 
                        described in section 475(5)(C)), which 
                        considers in-State and out-of-State 
                        permanent placement options for the 
                        child, shall be held for the child 
                        within 30 days after the determination; 
                        and
                          (ii) reasonable efforts shall be made 
                        to place the child in a timely manner 
                        in accordance with the permanency plan, 
                        and to complete whatever steps are 
                        necessary to finalize the permanent 
                        placement of the child; and
                  (F) reasonable efforts to place a child for 
                adoption or with a legal guardian, including 
                identifying appropriate in-State and out-of-
                State placements may be made concurrently with 
                reasonable efforts of the type described in 
                subparagraph (B);
          (16) provides for the development of a case plan (as 
        defined in section 475(1) and in accordance with the 
        requirements of section 475A) for each child receiving 
        foster care maintenance payments under the State plan 
        and provides for a case review system which meets the 
        requirements described in sections 475(5) and 475A with 
        respect to each such child;
          (17) provides that, where appropriate, all steps will 
        be taken, including cooperative efforts with the State 
        agencies administering the program funded under part A 
        and plan approved under part D, to secure an assignment 
        to the State of any rights to support on behalf of each 
        child receiving foster care maintenance payments under 
        this part;
          (18) not later than January 1, 1997, provides that 
        neither the State nor any other entity in the State 
        that receives funds from the Federal Government and is 
        involved in adoption or foster care placements may--
                  (A) deny to any person the opportunity to 
                become an adoptive or a foster parent, on the 
                basis of the race, color, or national origin of 
                the person, or of the child, involved; or
                  (B) delay or deny the placement of a child 
                for adoption or into foster care, on the basis 
                of the race, color, or national origin of the 
                adoptive or foster parent, or the child, 
                involved;
          (19) provides that the State shall consider giving 
        preference to an adult relative over a non-related 
        caregiver when determining a placement for a child, 
        provided that the relative caregiver meets all relevant 
        State child protection standards;
          (20)(A) provides procedures for criminal records 
        checks, including fingerprint-based checks of national 
        crime information databases (as defined in section 
        534(e)(3)(A) of title 28, United States Code), for any 
        prospective foster or adoptive parent before the foster 
        or adoptive parent may be finally approved for 
        placement of a child regardless of whether foster care 
        maintenance payments or adoption assistance payments 
        are to be made on behalf of the child under the State 
        plan under this part, including procedures requiring 
        that--
                  (i) in any case involving a child on whose 
                behalf such payments are to be so made in which 
                a record check reveals a felony conviction for 
                child abuse or neglect, for spousal abuse, for 
                a crime against children (including child 
                pornography), or for a crime involving 
                violence, including rape, sexual assault, or 
                homicide, but not including other physical 
                assault or battery, if a State finds that a 
                court of competent jurisdiction has determined 
                that the felony was committed at any time, such 
                final approval shall not be granted; and
                  (ii) in any case involving a child on whose 
                behalf such payments are to be so made in which 
                a record check reveals a felony conviction for 
                physical assault, battery, or a drug-related 
                offense, if a State finds that a court of 
                competent jurisdiction has determined that the 
                felony was committed within the past 5 years, 
                such final approval shall not be granted; and
          (B) provides that the State shall--
                  (i) check any child abuse and neglect 
                registry maintained by the State for 
                information on any prospective foster or 
                adoptive parent and on any other adult living 
                in the home of such a prospective parent, and 
                request any other State in which any such 
                prospective parent or other adult has resided 
                in the preceding 5 years, to enable the State 
                to check any child abuse and neglect registry 
                maintained by such other State for such 
                information, before the prospective foster or 
                adoptive parent may be finally approved for 
                placement of a child, regardless of whether 
                foster care maintenance payments or adoption 
                assistance payments are to be made on behalf of 
                the child under the State plan under this part;
                  (ii) comply with any request described in 
                clause (i) that is received from another State; 
                and
                  (iii) have in place safeguards to prevent the 
                unauthorized disclosure of information in any 
                child abuse and neglect registry maintained by 
                the State, and to prevent any such information 
                obtained pursuant to this subparagraph from 
                being used for a purpose other than the 
                conducting of background checks in foster or 
                adoptive placement cases; and
          (C) provides procedures for criminal records checks, 
        including fingerprint-based checks of national crime 
        information databases (as defined in section 
        534(e)(3)(A) of title 28, United States Code), on any 
        relative guardian, and for checks described in 
        subparagraph (B) of this paragraph on any relative 
        guardian and any other adult living in the home of any 
        relative guardian, before the relative guardian may 
        receive kinship guardianship assistance payments on 
        behalf of the child under the State plan under this 
        part;
          (21) provides for health insurance coverage 
        (including, at State option, through the program under 
        the State plan approved under title XIX) for any child 
        who has been determined to be a child with special 
        needs, for whom there is in effect an adoption 
        assistance agreement (other than an agreement under 
        this part) between the State and an adoptive parent or 
        parents, and who the State has determined cannot be 
        placed with an adoptive parent or parents without 
        medical assistance because such child has special needs 
        for medical, mental health, or rehabilitative care, and 
        that with respect to the provision of such health 
        insurance coverage--
                  (A) such coverage may be provided through 1 
                or more State medical assistance programs;
                  (B) the State, in providing such coverage, 
                shall ensure that the medical benefits, 
                including mental health benefits, provided are 
                of the same type and kind as those that would 
                be provided for children by the State under 
                title XIX;
                  (C) in the event that the State provides such 
                coverage through a State medical assistance 
                program other than the program under title XIX, 
                and the State exceeds its funding for services 
                under such other program, any such child shall 
                be deemed to be receiving aid or assistance 
                under the State plan under this part for 
                purposes of section 1902(a)(10)(A)(i)(I); and
                  (D) in determining cost-sharing requirements, 
                the State shall take into consideration the 
                circumstances of the adopting parent or parents 
                and the needs of the child being adopted 
                consistent, to the extent coverage is provided 
                through a State medical assistance program, 
                with the rules under such program;
          (22) provides that, not later than January 1, 1999, 
        the State shall develop and implement standards to 
        ensure that children in foster care placements in 
        public or private agencies are provided quality 
        services that protect the safety and health of the 
        children;
          (23) provides that the State shall not--
                  (A) deny or delay the placement of a child 
                for adoption when an approved family is 
                available outside of the jurisdiction with 
                responsibility for handling the case of the 
                child; or
                  (B) fail to grant an opportunity for a fair 
                hearing, as described in paragraph (12), to an 
                individual whose allegation of a violation of 
                subparagraph (A) of this paragraph is denied by 
                the State or not acted upon by the State with 
                reasonable promptness;
          (24) includes a certification that, before a child in 
        foster care under the responsibility of the State is 
        placed with prospective foster parents, the prospective 
        foster parents will be prepared adequately with the 
        appropriate knowledge and skills to provide for the 
        needs of the child, that the preparation will be 
        continued, as necessary, after the placement of the 
        child, and that the preparation shall include knowledge 
        and skills relating to the reasonable and prudent 
        parent standard for the participation of the child in 
        age or developmentally-appropriate activities, 
        including knowledge and skills relating to the 
        developmental stages of the cognitive, emotional, 
        physical, and behavioral capacities of a child, and 
        knowledge and skills relating to applying the standard 
        to decisions such as whether to allow the child to 
        engage in social, extracurricular, enrichment, 
        cultural, and social activities, including sports, 
        field trips, and overnight activities lasting 1 or more 
        days, and to decisions involving the signing of 
        permission slips and arranging of transportation for 
        the child to and from extracurricular, enrichment, and 
        social activities;
          (25) provide that the State shall have in effect 
        procedures for the orderly and timely interstate 
        placement of children; and procedures implemented in 
        accordance with an interstate compact, if incorporating 
        with the procedures prescribed by paragraph (26), shall 
        be considered to satisfy the requirement of this 
        paragraph;
          (26) provides that--
                  (A)(i) within 60 days after the State 
                receives from another State a request to 
                conduct a study of a home environment for 
                purposes of assessing the safety and 
                suitability of placing a child in the home, the 
                State shall, directly or by contract--
                          (I) conduct and complete the study; 
                        and
                          (II) return to the other State a 
                        report on the results of the study, 
                        which shall address the extent to which 
                        placement in the home would meet the 
                        needs of the child; and
                  (ii) in the case of a home study begun on or 
                before September 30, 2008, if the State fails 
                to comply with clause (i) within the 60-day 
                period as a result of circumstances beyond the 
                control of the State (such as a failure by a 
                Federal agency to provide the results of a 
                background check, or the failure by any entity 
                to provide completed medical forms, requested 
                by the State at least 45 days before the end of 
                the 60-day period), the State shall have 75 
                days to comply with clause (i) if the State 
                documents the circumstances involved and 
                certifies that completing the home study is in 
                the best interests of the child; except that
                  (iii) this subparagraph shall not be 
                construed to require the State to have 
                completed, within the applicable period, the 
                parts of the home study involving the education 
                and training of the prospective foster or 
                adoptive parents;
                  (B) the State shall treat any report 
                described in subparagraph (A) that is received 
                from another State or an Indian tribe (or from 
                a private agency under contract with another 
                State) as meeting any requirements imposed by 
                the State for the completion of a home study 
                before placing a child in the home, unless, 
                within 14 days after receipt of the report, the 
                State determines, based on grounds that are 
                specific to the content of the report, that 
                making a decision in reliance on the report 
                would be contrary to the welfare of the child; 
                and
                  (C) the State shall not impose any 
                restriction on the ability of a State agency 
                administering, or supervising the 
                administration of, a State program operated 
                under a State plan approved under this part to 
                contract with a private agency for the conduct 
                of a home study described in subparagraph (A);
          (27) provides that, with respect to any child in 
        foster care under the responsibility of the State under 
        this part or part B and without regard to whether 
        foster care maintenance payments are made under section 
        472 on behalf of the child, the State has in effect 
        procedures for verifying the citizenship or immigration 
        status of the child;
          (28) at the option of the State, provides for the 
        State to enter into kinship guardianship assistance 
        agreements to provide kinship guardianship assistance 
        payments on behalf of children to grandparents and 
        other relatives who have assumed legal guardianship of 
        the children for whom they have cared as foster parents 
        and for whom they have committed to care on a permanent 
        basis, as provided in section 473(d);
          (29) provides that, within 30 days after the removal 
        of a child from the custody of the parent or parents of 
        the child, the State shall exercise due diligence to 
        identify and provide notice to the following relatives: 
        all adult grandparents, all parents of a sibling of the 
        child, where such parent has legal custody of such 
        sibling, and other adult relatives of the child 
        (including any other adult relatives suggested by the 
        parents), subject to exceptions due to family or 
        domestic violence, that--
                  (A) specifies that the child has been or is 
                being removed from the custody of the parent or 
                parents of the child;
                  (B) explains the options the relative has 
                under Federal, State, and local law to 
                participate in the care and placement of the 
                child, including any options that may be lost 
                by failing to respond to the notice;
                  (C) describes the requirements under 
                paragraph (10) of this subsection to become a 
                foster family home and the additional services 
                and supports that are available for children 
                placed in such a home; and
                  (D) if the State has elected the option to 
                make kinship guardianship assistance payments 
                under paragraph (28) of this subsection, 
                describes how the relative guardian of the 
                child may subsequently enter into an agreement 
                with the State under section 473(d) to receive 
                the payments;
          (30) provides assurances that each child who has 
        attained the minimum age for compulsory school 
        attendance under State law and with respect to whom 
        there is eligibility for a payment under the State plan 
        is a full-time elementary or secondary school student 
        or has completed secondary school, and for purposes of 
        this paragraph, the term ``elementary or secondary 
        school student'' means, with respect to a child, that 
        the child is--
                  (A) enrolled (or in the process of enrolling) 
                in an institution which provides elementary or 
                secondary education, as determined under the 
                law of the State or other jurisdiction in which 
                the institution is located;
                  (B) instructed in elementary or secondary 
                education at home in accordance with a home 
                school law of the State or other jurisdiction 
                in which the home is located;
                  (C) in an independent study elementary or 
                secondary education program in accordance with 
                the law of the State or other jurisdiction in 
                which the program is located, which is 
                administered by the local school or school 
                district; or
                  (D) incapable of attending school on a full-
                time basis due to the medical condition of the 
                child, which incapability is supported by 
                regularly updated information in the case plan 
                of the child;
          (31) provides that reasonable efforts shall be made--
                  (A) to place siblings removed from their home 
                in the same foster care, kinship guardianship, 
                or adoptive placement, unless the State 
                documents that such a joint placement would be 
                contrary to the safety or well-being of any of 
                the siblings; and
                  (B) in the case of siblings removed from 
                their home who are not so jointly placed, to 
                provide for frequent visitation or other 
                ongoing interaction between the siblings, 
                unless that State documents that frequent 
                visitation or other ongoing interaction would 
                be contrary to the safety or well-being of any 
                of the siblings;
          (32) provides that the State will negotiate in good 
        faith with any Indian tribe, tribal organization or 
        tribal consortium in the State that requests to develop 
        an agreement with the State to administer all or part 
        of the program under this part on behalf of Indian 
        children who are under the authority of the tribe, 
        organization, or consortium, including foster care 
        maintenance payments on behalf of children who are 
        placed in State or tribally licensed foster family 
        homes, adoption assistance payments, and, if the State 
        has elected to provide such payments, kinship 
        guardianship assistance payments under section 473(d), 
        and tribal access to resources for administration, 
        training, and data collection under this part;
          (33) provides that the State will inform any 
        individual who is adopting, or whom the State is made 
        aware is considering adopting, a child who is in foster 
        care under the responsibility of the State of the 
        potential eligibility of the individual for a Federal 
        tax credit under section 23 of the Internal Revenue 
        Code of 1986;
          (34) provides that, for each child or youth described 
        in paragraph (9)(C)(i)(I), the State agency shall--
                  (A) not later than 2 years after the date of 
                the enactment of this paragraph, report 
                immediately, and in no case later than 24 hours 
                after receiving information on children or 
                youth who have been identified as being a sex 
                trafficking victim, to the law enforcement 
                authorities; and
                  (B) not later than 3 years after such date of 
                enactment and annually thereafter, report to 
                the Secretary the total number of children and 
                youth who are sex trafficking victims;
          (35) provides that--
                  (A) not later than 1 year after the date of 
                the enactment of this paragraph, the State 
                shall develop and implement specific protocols 
                for--
                          (i) expeditiously locating any child 
                        missing from foster care;
                          (ii) determining the primary factors 
                        that contributed to the child's running 
                        away or otherwise being absent from 
                        care, and to the extent possible and 
                        appropriate, responding to those 
                        factors in current and subsequent 
                        placements;
                          (iii) determining the child's 
                        experiences while absent from care, 
                        including screening the child to 
                        determine if the child is a possible 
                        sex trafficking victim (as defined in 
                        section 475(9)(A)); and
                          (iv) reporting such related 
                        information as required by the 
                        Secretary; and
                  (B) not later than 2 years after such date of 
                enactment, for each child and youth described 
                in paragraph (9)(C)(i)(I) of this subsection, 
                the State agency shall report immediately, and 
                in no case later than 24 hours after receiving, 
                information on missing or abducted children or 
                youth to the law enforcement authorities for 
                entry into the National Crime Information 
                Center (NCIC) database of the Federal Bureau of 
                Investigation, established pursuant to section 
                534 of title 28, United States Code, and to the 
                National Center for Missing and Exploited 
                Children;
          (36) provides that, not later than April 1, 2019, the 
        State shall submit to the Secretary information 
        addressing--
                  (A) whether the State licensing standards are 
                in accord with model standards identified by 
                the Secretary, and if not, the reason for the 
                specific deviation and a description as to why 
                having a standard that is reasonably in accord 
                with the corresponding national model standards 
                is not appropriate for the State;
                  (B) whether the State has elected to waive 
                standards established in 471(a)(10)(A) for 
                relative foster family homes (pursuant to 
                waiver authority provided by 471(a)(10)(D)), a 
                description of which standards the State most 
                commonly waives, and if the State has not 
                elected to waive the standards, the reason for 
                not waiving these standards;
                  (C) if the State has elected to waive 
                standards specified in subparagraph (B), how 
                caseworkers are trained to use the waiver 
                authority and whether the State has developed a 
                process or provided tools to assist caseworkers 
                in waiving nonsafety standards per the 
                authority provided in 471(a)(10)(D) to quickly 
                place children with relatives; and
                  (D) a description of the steps the State is 
                taking to improve caseworker training or the 
                process, if any; and
  (b) The Secretary shall approve any plan which complies with 
the provisions of subsection (a) of this section.
  (c) Use of Child Welfare Records in State Court 
Proceedings.--Subsection (a)(8) shall not be construed to limit 
the flexibility of a State in determining State policies 
relating to public access to court proceedings to determine 
child abuse and neglect or other court hearings held pursuant 
to part B or this part, except that such policies shall, at a 
minimum, ensure the safety and well-being of the child, 
parents, and family.
  (d) Annual Reports by the Secretary on Number of Children and 
Youth Reported by States To Be Sex Trafficking Victims.--Not 
later than 4 years after the date of the enactment of this 
subsection and annually thereafter, the Secretary shall report 
to the Congress and make available to the public on the 
Internet website of the Department of Health and Human Services 
the number of children and youth reported in accordance with 
subsection (a)(34)(B) of this section to be sex trafficking 
victims (as defined in section 475(9)(A)).
[Effective on October 1, 2018, section 50711(a)(2) of division 
E of Public Law 115-123 amends section 471 by adding at the end 
a new subsection (e). Section 4(b)(3) of H.R. 5861 (as 
reported) provides for an amendment to section 471(e)(7)(B)(i) 
of the Social Security Act ``as in effect pursuant to the 
amendment made by section 50711(a)(2) of division E of the 
Bipartisan Budget Act of 2018 (Public Law 115-123)'' as 
follow:]
  (e) Prevention and Family Services and Programs.--
          (1) * * *

           *       *       *       *       *       *       *

          (7) Maintenance of effort for state foster care 
        prevention expenditures.--
                  (A) In general.--If a State elects to provide 
                services and programs specified in paragraph 
                (1) for a fiscal year, the State foster care 
                prevention expenditures for the fiscal year 
                shall not be less than the amount of the 
                expenditures for fiscal year 2014 (or, at the 
                option of a State described in subparagraph 
                (E), fiscal year 2015 or fiscal year 2016 
                (whichever the State elects)).
                  (B) State foster care prevention 
                expenditures.--The term ``State foster care 
                prevention expenditures'' means the following:
                          (i)  [TANF] JOBS; iv-b; ssbg.--State 
                        expenditures for foster care prevention 
                        services and activities under the State 
                        program funded under part A (including 
                        from amounts made available by the 
                        Federal Government), under the State 
                        plan developed under part B (including 
                        any such amounts), or under the Social 
                        Services Block Grant Programs under 
                        subtitle A of title XX (including any 
                        such amounts).
                          (ii) Other state programs.--State 
                        expenditures for foster care prevention 
                        services and activities under any State 
                        program that is not described in clause 
                        (i) (other than any State expenditures 
                        for foster care prevention services and 
                        activities under the State program 
                        under this part (including under a 
                        waiver of the program)).
                  (C) State expenditures.--The term ``State 
                expenditures'' means all State or local funds 
                that are expended by the State or a local 
                agency including State or local funds that are 
                matched or reimbursed by the Federal Government 
                and State or local funds that are not matched 
                or reimbursed by the Federal Government.
                  (D) Determination of prevention services and 
                activities.--The Secretary shall require each 
                State that elects to provide services and 
                programs specified in paragraph (1) to report 
                the expenditures specified in subparagraph (B) 
                for fiscal year 2014 and for such fiscal years 
                thereafter as are necessary to determine 
                whether the State is complying with the 
                maintenance of effort requirement in 
                subparagraph (A). The Secretary shall specify 
                the specific services and activities under each 
                program referred to in subparagraph (B) that 
                are ``prevention services and activities'' for 
                purposes of the reports.
                  (E) State described.--For purposes of 
                subparagraph (A), a State is described in this 
                subparagraph if the population of children in 
                the State in 2014 was less than 200,000 (as 
                determined by the United States Census Bureau).

           *       *       *       *       *       *       *


     TITLE XI--GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE 
                             SIMPLIFICATION

Part A--General Provisions

           *       *       *       *       *       *       *


SEC. 1108. ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS, GUAM, 
                    AND AMERICAN SAMOA; LIMITATION ON TOTAL PAYMENTS.

  (a) Limitation on Total Payments to Each Territory.--
          (1) In general.--Notwithstanding any other provision 
        of this Act (except for paragraph (2) of this 
        subsection), the total amount certified by the 
        Secretary of Health and Human Services under titles I, 
        X, XIV, and XVI, under parts A and E of title IV, and 
        under subsection (b) of this section, for payment to 
        any territory for a fiscal year shall not exceed the 
        ceiling amount for the territory for the fiscal year.
          (2) Certain payments disregarded.--Paragraph (1) of 
        this subsection shall be applied without regard to any 
        payment made under section 403(a)(2), [403(a)(4), 
        403(a)(5), 406,] or 413(f).
  (b) Entitlement to Matching Grant.--
          (1) In general.--Each territory shall be entitled to 
        receive from the Secretary for each fiscal year a grant 
        in an amount equal to 75 percent of the amount (if any) 
        by which--
                  (A) the total expenditures of the territory 
                during the fiscal year under the territory 
                programs funded under parts A and E of title 
                IV, including any amount paid to the State 
                under part A of title IV that is transferred in 
                accordance with section 404(d) and expended 
                under the program to which transferred; exceeds
                  (B) the sum of--
                          (i) the amount of the family 
                        assistance grant payable to the 
                        territory without regard to section 
                        409; and
                          (ii) the total amount expended by the 
                        territory during fiscal year 1995 
                        pursuant to parts A and F of title IV 
                        (as so in effect), other than for child 
                        care.
          (2) Appropriation.--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] 2019 through 2023, such sums as are necessary for 
        grants under this paragraph.
  (c) Definitions.--As used in this section:
          (1) Territory.--The term ``territory'' means Puerto 
        Rico, the Virgin Islands, Guam, and American Samoa.
          (2) Ceiling amount.--The term ``ceiling amount'' 
        means, with respect to a territory and a fiscal year, 
        the mandatory ceiling amount with respect to the 
        territory, reduced for the fiscal year in accordance 
        with subsection (e), and reduced by the amount of any 
        penalty imposed on the territory under any provision of 
        law specified in subsection (a) during the fiscal year.
          (3) Family assistance grant.--The term ``family 
        assistance grant'' has the meaning given such term by 
        section 403(a)(1)(B).
          (4) Mandatory ceiling amount.--The term ``mandatory 
        ceiling amount'' means--
                  (A) $107,255,000 with respect to Puerto Rico;
                  (B) $4,686,000 with respect to Guam;
                  (C) $3,554,000 with respect to the Virgin 
                Islands; and
                  (D) $1,000,000 with respect to American 
                Samoa.
          (5) Total amount expended by the territory.--The term 
        ``total amount expended by the territory''--
                  (A) does not include expenditures during the 
                fiscal year from amounts made available by the 
                Federal Government; and
                  (B) when used with respect to fiscal year 
                1995, also does not include--
                          (i) expenditures during fiscal year 
                        1995 under subsection (g) or (i) of 
                        section 402 (as in effect on September 
                        30, 1995); or
                          (ii) any expenditures during fiscal 
                        year 1995 for which the territory (but 
                        for section 1108, as in effect on 
                        September 30, 1995) would have received 
                        reimbursement from the Federal 
                        Government.
  (d) Authority To Transfer Funds to Certain Programs.--A 
territory to which an amount is paid under subsection (b) of 
this section may use the amount in accordance with section 
404(d).
  (f) Subject to subsection (g) and section 1935(e)(1)(B), the 
total amount certified by the Secretary under title XIX with 
respect to a fiscal year for payment to--
          (1) Puerto Rico shall not exceed (A) $116,500,000 for 
        fiscal year 1994 and (B) for each succeeding fiscal 
        year the amount provided in this paragraph for the 
        preceding fiscal year increased by the percentage 
        increase in the medical care component of the consumer 
        price index for all urban consumers (as published by 
        the Bureau of Labor Statistics) for the twelve-month 
        period ending in March preceding the beginning of the 
        fiscal year, rounded to the nearest $100,000;
          (2) the Virgin Islands shall not exceed (A) 
        $3,837,500 for fiscal year 1994, and (B) for each 
        succeeding fiscal year the amount provided in this 
        paragraph for the preceding fiscal year increased by 
        the percentage increase referred to in paragraph 
        (1)(B), rounded to the nearest $10,000;
          (3) Guam shall not exceed (A) $3,685,000 for fiscal 
        year 1994, and (B) for each succeeding fiscal year the 
        amount provided in this paragraph for the preceding 
        fiscal year increased by the percentage increase 
        referred to in paragraph (1)(B), rounded to the nearest 
        $10,000;
          (4) Northern Mariana Islands shall not exceed (A) 
        $1,110,000 for fiscal year 1994, and (B) for each 
        succeeding fiscal year the amount provided in this 
        paragraph for the preceding fiscal year increased by 
        the percentage increase referred to in paragraph 
        (1)(B), rounded to the nearest $10,000; and
          (5) American Samoa shall not exceed (A) $2,140,000 
        for fiscal year 1994, and (B) for each succeeding 
        fiscal year the amount provided in this paragraph for 
        the preceding fiscal year increased by the percentage 
        increase referred to in paragraph (1)(B), rounded to 
        the nearest $10,000.
  (g) Medicaid Payments to Territories for Fiscal Year 1998 and 
Thereafter.--
          (1) Fiscal year 1998.--With respect to fiscal year 
        1998, the amounts otherwise determined for Puerto Rico, 
        the Virgin Islands, Guam, the Northern Mariana Islands, 
        and American Samoa under subsection (f) for such fiscal 
        year shall be increased by the following amounts:
                  (A) For Puerto Rico, $30,000,000.
                  (B) For the Virgin Islands, $750,000.
                  (C) For Guam, $750,000.
                  (D) For the Northern Mariana Islands, 
                $500,000.
                  (E) For American Samoa, $500,000.
          (2) Fiscal year 1999 and thereafter.--Notwithstanding 
        subsection (f) and subject to and section 1323(a)(2) of 
        the Patient Protection and Affordable Care Act 
        paragraphs (3) and (5), with respect to fiscal year 
        1999 and any fiscal year thereafter, the total amount 
        certified by the Secretary under title XIX for payment 
        to--
                  (A) Puerto Rico shall not exceed the sum of 
                the amount provided in this subsection for the 
                preceding fiscal year increased by the 
                percentage increase in the medical care 
                component of the Consumer Price Index for all 
                urban consumers (as published by the Bureau of 
                Labor Statistics) for the 12-month period 
                ending in March preceding the beginning of the 
                fiscal year, rounded to the nearest $100,000;
                  (B) the Virgin Islands shall not exceed the 
                sum of the amount provided in this subsection 
                for the preceding fiscal year increased by the 
                percentage increase referred to in subparagraph 
                (A), rounded to the nearest $10,000;
                  (C) Guam shall not exceed the sum of the 
                amount provided in this subsection for the 
                preceding fiscal year increased by the 
                percentage increase referred to in subparagraph 
                (A), rounded to the nearest $10,000;
                  (D) the Northern Mariana Islands shall not 
                exceed the sum of the amount provided in this 
                subsection for the preceding fiscal year 
                increased by the percentage increase referred 
                to in subparagraph (A), rounded to the nearest 
                $10,000; and
                  (E) American Samoa shall not exceed the sum 
                of the amount provided in this subsection for 
                the preceding fiscal year increased by the 
                percentage increase referred to in subparagraph 
                (A), rounded to the nearest $10,000.
          (3) Fiscal years 2006 and 2007 for certain insular 
        areas.--The amounts otherwise determined under this 
        subsection for Puerto Rico, the Virgin Islands, Guam, 
        the Northern Mariana Islands, and American Samoa for 
        fiscal year 2006 and fiscal year 2007 shall be 
        increased by the following amounts:
                  (A) For Puerto Rico, $12,000,000 for fiscal 
                year 2006 and $12,000,000 for fiscal year 2007.
                  (B) For the Virgin Islands, $2,500,000 for 
                fiscal year 2006 and $5,000,000 for fiscal year 
                2007.
                  (C) For Guam, $2,500,000 for fiscal year 2006 
                and $5,000,000 for fiscal year 2007.
                  (D) For the Northern Mariana Islands, 
                $1,000,000 for fiscal year 2006 and $2,000,000 
                for fiscal year 2007.
                  (E) For American Samoa, $2,000,000 for fiscal 
                year 2006 and $4,000,000 for fiscal year 2007.
        Such amounts shall not be taken into account in 
        applying paragraph (2) for fiscal year 2007 but shall 
        be taken into account in applying such paragraph for 
        fiscal year 2008 and subsequent fiscal years.
          (4) Exclusion of certain expenditures from payment 
        limits.--With respect to fiscal years beginning with 
        fiscal year 2009, if Puerto Rico, the Virgin Islands, 
        Guam, the Northern Mariana Islands, or American Samoa 
        qualify for a payment under subparagraph (A)(i), (B), 
        or (F) of section 1903(a)(3) for a calendar quarter of 
        such fiscal year, and with respect to fiscal years 
        beginning with fiscal year 2017, if Puerto Rico 
        qualifies for a payment under section 1903(a)(6) for a 
        calendar quarter (beginning on or after July 1, 2017) 
        of such fiscal year, and with respect to fiscal years 
        beginning with fiscal year 2018, if the Virgin Islands 
        qualifies for a payment under section 1903(a)(6) for a 
        calendar quarter (beginning on or after January 1, 
        2018) of such fiscal year, the payment shall not be 
        taken into account in applying subsection (f) (as 
        increased in accordance with paragraphs (1), (2), (3), 
        and (4) of this subsection) to such commonwealth or 
        territory for such fiscal year.
          (5) Additional increase.--(A) Subject to 
        subparagraphs (B), (C), (D), and (E), the Secretary 
        shall increase the amounts otherwise determined under 
        this subsection for Puerto Rico, the Virgin Islands, 
        Guam, the Northern Mariana Islands, and American Samoa 
        (after the application of subsection (f) and the 
        preceding paragraphs of this subsection) for the period 
        beginning July 1, 2011, and ending on September 30, 
        2019, by such amounts that the total additional 
        payments under title XIX to such territories equals 
        $6,300,000,000 for such period. The Secretary shall 
        increase such amounts in proportion to the amounts 
        applicable to such territories under this subsection 
        and subsection (f) on the date of enactment of this 
        paragraph.
          (B) The amount of the increase otherwise provided 
        under subparagraph (A) for Puerto Rico shall be further 
        increased by $295,900,000.
          (C) Subject to subparagraphs (D) and (E), for the 
        period beginning January 1, 2018, and ending September 
        30, 2019--
                  (i) the amount of the increase otherwise 
                provided under subparagraphs (A) and (B) for 
                Puerto Rico shall be further increased by 
                $3,600,000,000; and
                  (ii) the amount of the increase otherwise 
                provided under subparagraph (A) for the Virgin 
                Islands shall be further increased by 
                $106,931,000.
          (D) For the period described in subparagraph (C), the 
        amount of the increase otherwise provided under 
        subparagraph (A)--
                  (i) for Puerto Rico shall be further 
                increased by $1,200,000,000 if the Secretary 
                certifies that Puerto Rico has taken reasonable 
                and appropriate steps during such period, in 
                accordance with a timeline established by the 
                Secretary, to--
                          (I) implement methods, satisfactory 
                        to the Secretary, for the collection 
                        and reporting of reliable data to the 
                        Transformed Medicaid Statistical 
                        Information System (T-MSIS) (or a 
                        successor system); and
                          (II) demonstrate progress in 
                        establishing a State medicaid fraud 
                        control unit described in section 
                        1903(q); and
                  (ii) for the Virgin Islands shall be further 
                increased by $35,644,000 if the Secretary 
                certifies that the Virgin Islands has taken 
                reasonable and appropriate steps during such 
                period, in accordance with a timeline 
                established by the Secretary, to meet the 
                conditions for certification specified in 
                subclauses (I) and (II) of clause (i).
          (E) Notwithstanding any other provision of title XIX, 
        during the period in which the additional funds 
        provided under subparagraphs (C) and (D) are available 
        for Puerto Rico and the Virgin Islands, respectively, 
        with respect to payments from such additional funds for 
        amounts expended by Puerto Rico and the Virgin Islands 
        under such title, the Secretary shall increase the 
        Federal medical assistance percentage or other rate 
        that would otherwise apply to such payments to 100 
        percent.

           *       *       *       *       *       *       *


                         VII. DISSENTING VIEWS

DISSENTING VIEWS ON JOBS AND OPPORTUNITY WITH BENEFITS AND SERVICES FOR 
                        SUCCESS ACT (H.R. 5861)

    Committee Democrats oppose H.R. 5861. This legislation 
represents a missed opportunity to help close the skills gap 
and help struggling parents get good jobs that will lift their 
families out of poverty. The bill makes zero new investments in 
education, training, apprenticeships, or career pathways 
programs that have been demonstrated to lead to good jobs.
    Millions of good jobs are going unfilled now, or will in 
the future, because workers lack the skills and supports to 
fill them. This bill does not provide a single penny of new 
investment in education, job training, or career pathways. 
Instead, the bill continues the freeze on Temporary Assistance 
for Needy Families (TANF) funding, which the Congressional 
Research Services estimates is 35 percent lower, in real terms, 
than it was in 1996. On average, states currently spend less 
than four percent of TANF funds on education and training. This 
bill gives them no reason to change that, since it would not 
measure how effective states are at increasing educational 
attainment needed for work. The TANF funding gap is not made up 
by other programs--formula funding for education and training 
provided through the Workforce Investment and Opportunity Act 
(WIOA) is currently $700 million below the authorized level, 
and fewer than a million Americans received job training or 
intensive career services in 2017.
    Democrats know that parents in our states and communities 
want to make better lives for their children. So, if they're 
not taking advantage of good jobs that are available, it's 
because they cannot. It is our job to give those parents real 
opportunities to get ahead.
    Instead of investing in helping families enter the middle 
class, the bill classifies nearly all parents and caregivers, 
including new moms and grandparents, as ``work-eligible'' and 
gives states expanded authority to reduce or eliminate benefits 
for the entire family if the adult does not fully comply with 
every provision of a plan developed by the state. Also, the 
bill's very modest increase in child care funding is paid for 
by making TANF cuts in some states, making it a net loss for 
those states.
    Over 90 percent of families receiving TANF are single-
parent households, and access to quality child care is critical 
to help them balance work and parenting. This legislation fails 
to even restore the number of child care slots to its 2006 
level, and it limits the amount of TANF funding states can use 
to pay for quality child care.
    Even though over 13 million American children live in 
poverty, only 20 percent receive help from TANF. This bill does 
not even require states to measure how effectively they are 
reducing poverty or helping poor children, let alone develop a 
plan to do so.
    At our Committee markup, Democrats offered a number of 
amendments that would have invested in effective local 
workforce development programs, quality child care, assistance 
for vulnerable children and grandparents, modernizing and 
expanding responsible fatherhood programs, and creating an 
emergency reserve fund to prepare for economic downturns. Those 
investments were fully paid for by very slightly reducing the 
windfall Republicans provided to corporations under their 
recent tax bill, which will add $2.3 trillion to our national 
debt over the next decade. The Majority refused to allow votes 
on the amendments. Democrats also offered amendments to remove 
the bill's limits on state child care spending, develop a plan 
to eliminate child poverty, target more funding to work, child 
care, and family assistance, and measure state effectiveness in 
stabilizing families and helping parents get the degrees and 
credentials necessary for good jobs.
    Particularly at a time when Republicans are working 
diligently to cut off basic necessities like food, housing, and 
health care for millions of American parents, children, 
seniors, and people with disabilities, Committee Democrats 
cannot support TANF legislation that gives states more 
authority to cut off basic necessities and no additional 
resources to help families get ahead.

                                   Richard E. Neal.
                                   Sander M. Levin.
                                   John Lewis.
                                   Mike Thompson.
                                   John B. Larson.
                                   Earl Blumenauer.
                                   Bill Pascrell, Jr.
                                   Joseph Crowley.
                                   Danny K. Davis.
                                   Linda T. Sanchez.
                                   Brian Higgins.
                                   Terri A. Sewell.
                                   Suzan DelBene.
                                   Judy Chu.

 ADDITIONAL DISSENTING VIEWS ON JOBS AND OPPORTUNITY WITH BENEFITS AND 
                  SERVICES FOR SUCCESS ACT (H.R. 5861)

    In addition to the overall concerns outlined in the 
Democratic Dissenting Views that H.R. 5861 neglects to help 
struggling parents get good jobs to lift their families out of 
poverty, we express deep concerns that this bill: (1) ignores 
the needs of children--the primary beneficiaries of TANF; (2) 
fails to help vulnerable families with multiple barriers to 
employment, including parents with children with chronic health 
problems, parents struggling with addiction, returning 
citizens, grandparent caregivers, domestic and sexual violence 
victims, parents experiencing trauma, teen parents, and 
noncustodial fathers; and (3) lacks important safeguard to 
protect parents from inappropriate sanctions.
    This past April marked the 50th anniversary of the 
assassination of Dr. Martin Luther King, Jr. At the time of his 
assassination, Dr. King was focusing the civil rights movement 
on economic justice and the opportunity gap that exists in this 
country. If communities lack quality education, economic 
opportunity is limited. If communities lack transportation, 
affordable housing, and employers offering good jobs, economic 
opportunity is limited. If communities lack substance abuse 
services or job training programs economic opportunity is 
limited. It is our obligation to help states knock down the 
obstacles keeping people from work, not to vilify workers who 
have fallen on hard times and who need our help to overcome 
barriers.
    The needs of children. Aside from an empty promise to 
reduce child poverty, this bill ignores the children who are 
the primary TANF beneficiaries. Over two-thirds of TANF 
recipients are children and most are children under the age of 
12, with a very large percent being young children under age 6. 
In 2017, only 1.4 million families received income support, and 
almost half of TANF cases were child-only. Millions of children 
live in poverty and receive nothing from TANF at all. It is 
inexcusable that nearly 20 percent of our children are 
condemned to grow up in poverty, with one out of every three 
Black, Latino, and Native American children living in poverty. 
The injustice of high child poverty rates in our nation is 
magnified by the tremendous suffering poverty inflicts on our 
youth, families, communities, and nation and by the reality 
that poverty exacts a greater toll on children of color. These 
disparities in early childhood have cumulative negative effects 
on lifelong learning, earnings, and health well into adulthood. 
New research finds that child poverty costs our economy over $1 
trillion dollars each year. Reducing child poverty makes both 
moral and economic sense.
    Yet H.R. 5861 fails to advance meaningful efforts to reduce 
child poverty. Republicans rejected a no-cost amendment to 
enact evidence-based policies coordinated at the federal, 
state, and local levels to alleviate child poverty. Using this 
approach, the United Kingdom reduced their child poverty rate 
by 50 percent in a decade. By contrast, during this same time 
period, the U.S. child poverty rate increased by over 20 
percent.
    Republicans also rejected an amendment to reduce child 
poverty by incenting states to provide basic assistance levels 
and supports to help stabilize struggling families with 
children. Research shows that an increase in family income of 
as little as $3,000 per year when a child is developing is 
associated with a 17 percent increase in the children's future 
earnings. However, only one state provides basic assistance 
above the level of extreme poverty--or 50 percent of the 
Federal poverty level. Approximately half of states provide 
basic assistance at or below 25 percent of Federal poverty 
level. Further, many states immediately reduce benefits once 
parents begin working, pulling the rug out from under them and 
contributing to continued instability rather than giving 
families the foundation needed to enter and succeed in the 
workforce. Encouraging states to invest in assistance levels 
that help families work makes common sense and promises to 
improve child well-being and reduce child poverty.
    The needs of vulnerable families. In addition, H.R. 5861 
fails to focus states on helping vulnerable families with 
significant barriers to employment, such as parents caring for 
children with chronic health conditions, parents struggling 
with addiction, returning citizens, grandparent caregivers, 
domestic and sexual violence victims, parents experiencing 
trauma, teen parents, and noncustodial fathers.
    Child health is a significant barrier to employment for 
poor, single mothers. For example, children in poverty are 
significantly more likely to experience chronic health 
problems, leading to unexpected and costly doctor visits that 
undermine work, especially low-level entry jobs. A recent study 
documents that children in poverty are much more likely to 
experience chronic health problems, such as asthma and 
Attention Deficit Hyperactivity Disorder (ADHD). Further, 
children living in extreme poverty who have asthma or ADHD are 
about twice as likely to have another chronic condition--like 
developmental delays, autism, depression, behavioral issues, 
speech/language difficulties, or epilepsy. Republicans rejected 
an amendment to give states the authority to develop modified 
employment plans for recipients caring for a family member with 
a disability or chronic health condition as well as to prohibit 
sanctions for caregivers if the work difficulties stemmed 
directly from their children's health problems. A single mom 
does not decide when an asthma attack, diabetic complication, 
or sickle cell episode occurs. Allowing greater flexibility for 
caregivers to meet their children's health needs without 
sanction is humane and helps parents remain engaged in the 
workforce.
    When our country struggles with opioid addiction, the 
Republican bill continues to exclude many people with substance 
abuse convictions from TANF. Even though millions of parents 
experience addiction, H.R. 5861 continues the policy of making 
it easier for states to exclude them from assistance by 
maintaining the lifetime ban for individuals with a felony drug 
conviction rather than to help them move forward and support 
their families. The federal government should take the lead to 
convey to states that assisting individuals who have struggled 
with addiction to find work is important for the economic well-
being of families and our nation.
    When we heard from witness after witness about the need to 
help returning citizens overcome their multiple barriers to 
employment, this bill fails to focus states on the complex 
needs of these potential workers.
    Further, this bill fails to remove the barriers faced by 
millions of family caregivers--like unrealistic work 
requirements, time limits and asset tests meant for younger 
workers, not for nearly-retired grandparents. Many Members on 
this Committee live in states with large numbers of kinship 
caregivers--states like Illinois, Texas, North Carolina, South 
Carolina and Tennessee. This bill ignores these caregivers.
    The Republican bill does not require states to improve 
their standards to address domestic and sexual violence among 
TANF participants. It also fails to acknowledge poverty-related 
traumas, such as discrimination, social isolation, housing 
instability, and community violence--often increasingly 
experienced by single, female-headed families. Nor does it lift 
the punitive bans on assistance to unwed teen parents who are 
not in school nor the ban on teens who are not living with an 
adult, leaving homeless youth and former foster youth out in 
the cold.
    Despite clear need, Republicans rejected an amendment to 
focus states on helping these vulnerable parents overcome their 
barriers to employment to achieve economic security.
    Although H.R. 5861 extends the authorization of the 
Fatherhood grants, the bill fails to modernize and expand these 
grants to provide workforce development to noncustodial 
fathers. Low-income fathers experience multiple challenges to 
contributing financially and emotionally to their children due 
to limited education and job skills, unstable employment 
opportunities, incarceration, and strained relationships with 
their children's mothers. Helping remove employment barriers 
for noncustodial parents promises to promote economic well-
being, reduce poverty, and increase labor-force participation. 
Improving the economic well-being of noncustodial parents 
promotes responsible fatherhood and helps these workers provide 
for their families.
    Fathers play a significant 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 drop-out, and teen pregnancy. Father 
engagement does not depend on living in the same house as one's 
child, with many non-residential fathers being actively-
involved with their children and supportive of their children's 
mothers. Despite the importance of fathers emotionally and 
economically, Republicans rejected an amendment to increase the 
upward economic mobility of custodial and noncustodial fathers 
so 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.
    Protections for Families. H.R. 5861 also lacks essential 
due process protections to ensure that TANF recipients are not 
inappropriately denied, sanctioned, or kicked-off of benefits. 
Given that TANF primarily benefits children and given the 
severe consequences associated with denial or loss of benefits 
to impoverished families, it is reasonable to include basic 
protections to ensure fair treatment of applicants and 
recipients. For example, we should prohibit imposing life-time 
or whole-family sanctions in order to provide basic necessities 
to children. We should include a pre-sanction review process to 
ensure families will not lose benefits in error or due to lack 
of notice. Republicans rejected an amendment to include due 
process protections to safeguard fair treatment for vulnerable 
families with children.
    Given these concerns, we strongly oppose H.R. 5861. This 
legislation is too incomplete and fails to address the 
substantial problems with TANF facing low-income children and 
families in our communities--problems that contribute to child 
poverty and suffering and problems that disproportionately harm 
communities of color. We cannot support TANF legislation that 
fails to increase the economic security of vulnerable children 
and families, especially when Republicans are working to 
undermine that same security by cutting the basic necessities 
of food, housing, and healthcare for millions of struggling 
families.
                                   Danny K. Davis.
                                   John Lewis.
                                   Terri A. Sewell.

                                  [all]