[House Report 116-38]
[From the U.S. Government Publishing Office]


116th Congress}                                            { Report

  1st Session }        HOUSE OF REPRESENTATIVES	           { 116-38    

======================================================================
 
 BUILDING ON REEMPLOYMENT IMPROVEMENTS TO DELIVER GOOD EMPLOYMENT FOR 
                              WORKERS ACT

                                _______
                                

 April 9, 2019.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Neal, from the Committee on Ways and Means, submitted the following

                              R E P O R T

                        [To accompany H.R. 1759]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 1759) to amend title III of the Social Security Act 
to extend reemployment services and eligibility assessments to 
all claimants for unemployment compensation, and for other 
purposes, having considered the same, report favorably thereon 
with amendments and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
 I. SUMMARY AND BACKGROUND............................................2
        A. Purpose and Summary...................................     2
        B. Background and Need for Legislation...................     3
        C. Legislative History...................................     4
II. EXPLANATION OF THE BILL...........................................5
        A. The BRIDGE for Workers Act............................     5
III.VOTES OF THE COMMITTEE............................................5

IV. BUDGET EFFECTS OF THE BILL........................................6
        A. Committee Estimate of Budgetary Effects...............     6
        B. Statement Regarding New Budget Authority..............     6
        C. Cost Estimate Prepared by the Congressional Budget 
            Office...............................................     6
 V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE........7
        A. Committee Oversight Findings and Recommendations......     7
        B. Statement of General Performance Goals and Objectives.     7
        C. Information Relating to Unfunded Mandates.............     8
        D. Congressional Earmarks, Limited Tax Benefits, and 
            Limited Tariff Benefits..............................     8
        E. Duplication of Federal Programs.......................     8
        F. Hearings..............................................     8
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED.............8

    The amendments are as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Building on Reemployment Improvements 
to Deliver Good Employment for Workers Act'' or the ``BRIDGE for 
Workers Act''.

SEC. 2. FINDINGS.

  Congress finds the following:
          (1) The Bipartisan Budget Act of 2018 (Public Law 115-123) 
        improved program accountability for effectively serving 
        unemployed workers and made a significant new investment in 
        reemployment services.
          (2) Research shows the longer workers are out of work, the 
        harder it can be to maintain their skills, professional 
        network, and stable home life.
          (3) Reemployment services give workers who might otherwise 
        struggle to find new jobs the tools that they need to get back 
        to work--such as individualized career counseling and job 
        search help as well as local labor market information--and they 
        can serve as an entry point to the workforce development 
        system.
          (4) Reemployment services have been demonstrated to reduce 
        the number of weeks that program participants receive 
        unemployment benefits by improving their employment outcomes, 
        including earnings.
          (5) Unemployment benefits replace less than half of working 
        income, on average, so workers who find new jobs quickly suffer 
        less financial hardship.
          (6) Combining targeted reemployment services with 
        unemployment benefits helps keep people attached to the labor 
        force who might otherwise become discouraged and drop out.
          (7) The Congressional Budget Office estimates that, over 
        time, investments in reemployment services create savings for 
        taxpayers and unemployment trust funds by reducing spending on 
        unemployment benefits.
          (8) Many different types of workers can benefit from 
        reemployment services. Reemployment services should be used to 
        shorten the duration of unemployment for workers even if they 
        are not projected to fully exhaust their unemployment benefits.

SEC. 3. ELIGIBILITY FOR REEMPLOYMENT SERVICES.

  Section 306(a) of the Social Security Act (42 U.S.C. 506(a)) is 
amended--
          (1) by striking ``individuals referred to reemployment 
        services as described in section 303(j)'' and inserting 
        ``claimants for unemployment compensation, including claimants 
        referred to reemployment services as described in section 
        303(j),''; and
          (2) by striking ``such individuals'' and inserting ``such 
        claimants''.

    Amend the long title to read as follows: ``To amend title 
III of the Social Security Act to extend reemployment services 
and eligibility assessments to all claimants for unemployment 
benefits, and for other purposes.''.

    Amend the title so as to read:
    A bill to amend title III of the Social Security Act to 
extend reemployment services and eligibility assessments to all 
claimants for unemployment benefits, and for other purposes.

                       I. Summary and Background


                         A. PURPOSE AND SUMMARY

    H.R. 1759, as amended, the ``Building on Reemployment 
Improvements to Deliver Good Employment for Workers Act,'' or 
``BRIDGE for Workers Act,'' as ordered favorably reported by 
the Committee on Ways and Means on April 2, 2019, modifies 
Reemployment Services and Eligibility Assessment (RESEA) grants 
to allow states and territories to provide services to any 
recipient of unemployment insurance benefits who could return 
to work more quickly, if provided with services.

                 B. BACKGROUND AND NEED FOR LEGISLATION

    The Unemployment Insurance (UI) program is a federal-state 
partnership to provide earned benefits to individuals who lose 
their job through no fault of their own. RESEAs pair weekly UI 
benefits with services to improve program integrity and provide 
workers who might otherwise struggle to find new jobs with 
tools that help them return to work, such as individualized 
career counseling, job search help and local labor market 
information. RESEAs can also serve as an entry point to the 
workforce development system, when needed. Rigorous research 
conducted for the Department of Labor (DOL) found that RESEAs, 
and in particular, an approach that combined personalized 
assessment and the provision of reemployment services, were 
effective in increasing employment and reducing the duration of 
unemployment benefit receipt.\1\
---------------------------------------------------------------------------
    \1\Michaelides et al, ``Impact of the Reemployment and Eligibility 
Assessment (REA) in Nevada.'' Impaq International, LLC. https://
www.impaqint.com/sites/default/files/files/
ETAOP_2012_08_REA_Nevada_Follow_up_Report.pdf.
---------------------------------------------------------------------------
    Between 2005 and 2018,\2\ Congress provided modest 
appropriated funding for RESEAs, which the DOL then used to 
award grants to states and territories.\3\ Sec. 30206 of the 
Bipartisan Budget Act of 2018 (P.L. 115-123) codified the 
authority for the DOL to administer the RESEA program in a new 
Sec. 306 of the Social Security Act. It also set out various 
requirements for states to use certain types of evidence-based 
interventions for UI claimants under RESEA, provided for 
reasonable notice and accommodations to participating 
beneficiaries, allocated discretionary funding for RESEA across 
three categories (base funding, outcome payments, and research 
and technical assistance) and provided for a funding increase 
of $2.5 billion over 10 years.\4\ The Congressional Budget 
Office estimated that if the Appropriations Committee were to 
fully fund the new investments in RESEAs, it would reduce the 
budget deficit by $600 million between 2022 and 2027.\5\
---------------------------------------------------------------------------
    \2\Wentworth, George, ``Reemployment services and eligibility 
assessments and the Bipartisan Budget Act of 2018.'' National 
Employment Law Project. https://www.nelp.org/blog/reemployment-
services-eligibility-assessments-bipartisan-budget-act-2018/.
    \3\``How States are Using Reemployment Services and Eligibility 
Assessments.'' National Association of State Workforce Agencies. 
https://www.naswa.org/news/how-states-are-using-reemployment-services-
and-eligibility-assessments-resea-march-27-2019.
    \4\Bipartisan Budget Act of 2018, Pub. L. 115-123. https://
www.congress.gov/115/plaws/publ123/PLAW-115publ123.pdf.
    \5\``CBO Estimate for Senate Amendment 1930, the Bipartisan Budget 
Act of 2018.'' Congressional Budget Office. https://www.cbo.gov/system/
files/115th-congress-2017-2018/costestimate/
bipartisanbudgetactof2018.pdf.
---------------------------------------------------------------------------
    Under current law, in fiscal year 2020 and future years, 
the DOL will require states to limit RESEA programs to serving 
only those workers who are profiled as likely to exhaust their 
unemployment benefits before finding work. Temporary 
flexibility to serve any recipient of unemployment benefits 
provided in the Department of Defense and Labor, Health and 
Human Services, and Education Appropriations Act, 2019 and 
Continuing Appropriations Act, 2019 (P.L. 115-245) will expire 
at the end of fiscal year 2019.\6\
---------------------------------------------------------------------------
    \6\Department of Defense and Labor, Health and Human Services, and 
Education Appropriations Act, 2019 and Continuing Appropriations Act, 
2019, Pub. L. 115-245. https://www.congress.gov/115/bills/hr6157/BILLS-
115hr6157enr.pdf.
---------------------------------------------------------------------------
    In a survey conducted by the National Association of State 
Workforce Agencies (NASWA), 59 percent of states said they were 
using the temporary flexibility to serve a wider array of 
workers.\7\ NAWSA Board President Jon Pierpont wrote to the 
Ways and Means Committee:

    \7\``How States are Using Reemployment Services and Eligibility 
Assessments.'' National Association of State Workforce Agencies. 
https://www.naswa.org/news/how-states-are-using-reemployment-services-
and-eligibility-assessments-resea-march-27-2019.

          Until the passage of the [Bipartisan Budget] Act, 
        federal RESEA had been limited to a widely-successful 
        pilot grant program. Today, States around the nation 
        now have the ability to accelerate unemployment 
        insurance (UI) claimants' transition back to employment 
        faster than non-participants, which is particularly 
        important in an economy desperately in need of skilled 
        workers.
          To enhance these efforts, we encourage a minor 
        statutory fix to the Act that reflects your intent to 
        ensure any UI claimant, not just those most likely to 
        exhaust their benefits, are eligible for RESEA services 
        and assessments. The current language in Section 306 of 
        Act needs to be modified to ensure this intent is 
        actualized and while the Appropriations Committee made 
        such a modification in their FYI9 Labor-HHS 
        Appropriations bill, a permanent fix would provide 
        clarity and stability for states actively focused on 
        helping claimants return to work expeditiously.\8\
---------------------------------------------------------------------------
    \8\Pierpont, Jon. ``To Richard Neal, Danny Davis, Kevin Brady, and 
Jackie Walorski.'' 8 March 2019.
---------------------------------------------------------------------------

                         C. LEGISLATIVE HISTORY

Background

    H.R. 1759, the ``Building on Reemployment Improvements to 
Deliver Good Employment for Workers Act,'' was introduced on 
March 14, 2019, by Representative Stephanie Murphy and was 
referred to the Committee on Ways and Means.

Committee hearings

    On March 7, the Ways and Means Subcommittee on Worker and 
Family Support held a hearing on ways to better support workers 
and their families. The hearing entitled ``Leveling the Playing 
Field for Working Families: Challenges and Opportunities'' 
provided Members with the opportunity to hear from workers 
about challenges they faced in finding and maintaining 
employment, and also to discuss supports and programs that help 
individuals enter and re-enter the workforce.
    The House Ways and Means Human Resources Subcommittee also 
held hearings focusing on obstacles to reemployment and 
unemployment insurance in previous Congresses, including:
           Jobs and Opportunity: Employer Perspectives 
        on the Jobs Gap, April 25, 2018
           Jobs and Opportunity: Federal Perspectives 
        on the Jobs Gap, April 17, 2018
           Jobs and Opportunity: Local Perspectives on 
        the Jobs Gap, April 12, 2018
           The Geography of U.S. Poverty, February 15, 
        2017
           Missing from the Labor Force: Examining 
        Declining Employment Among Working-Age Men, September 
        6, 2017
           Unemployment Insurance: An Overview of the 
        Challenges and Strengths of Today's System, September 
        7, 2016

Committee action

    The Committee on Ways and Means marked up H.R. 1759, the 
BRIDGE for Workers Act, on April 2, 2019. The bill, as amended 
was ordered favorably reported to the House of Representatives 
(with a quorum being present) by voice vote.

                      II. Explanation of the Bill


                     A. THE BRIDGE FOR WORKERS ACT

Current law

    Eligibility for RESEA services is limited to individuals 
who are receiving regular unemployment compensation and are 
referred to reemployment services after a state system using 
statistical profiling identifies the worker as likely to 
exhaust regular Unemployment Compensation (UC) benefits.\9\
---------------------------------------------------------------------------
    \9\Sections 306(a) and 303(j) of the Social Security Act, as 
amended through Pub. L. 115-123.
---------------------------------------------------------------------------

Reasons for change

    The Committee believes that allowing states and territories 
the flexibility to provide RESEA services to recipients of 
earned unemployment benefits who could return to work more 
quickly, if provided with additional assistance, is cost-
effective and will benefit both workers and employers.

Explanation of provisions

    Section 1. Short title. Building on Reemployment 
Improvements to Deliver Good Employment for Workers Act (BRIDGE 
for Workers Act) of 2019.
    Section 2. Findings. This section outlines a number of 
findings concerning the demonstrated effectiveness and cost-
effectiveness of RESEAs.
    Section 3. Eligibility for reemployment services. This 
section amends Sec. 306(a) to define the population eligible 
for services under RESEA to include all recipients of regular 
and extended UC benefits, not just regular UC claimants 
identified through state UI worker profiling. With the change, 
states would be able to use RESEA funds to assist workers who 
could return to work more quickly if provided assistance, even 
if they are not profiled to exhaust all benefits.

Effective Date

    The changes made by the bill are effective upon enactment.

                      III. Votes of the Committee

    In compliance with clause 3(b) of rule XIII of 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. 1759, ``BRIDGE for Workers 
Act'' on April 2, 2019.
    The Chairman's amendment in the nature of a substitute was 
adopted by a voice vote (with a quorum being present).
    The bill, H.R. 1759, was ordered favorably reported as 
amended by voice vote (with a quorum being present).

                     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. 1759, 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

    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, April 5, 2019.
Hon. Richard Neal,
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. 1759, the BRIDGE 
for Workers Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Meredith 
Decker.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.
    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    H.R. 1759 would allow the Department of Labor (DOL) to 
award grants to states to conduct reemployment services and 
eligibility assessments for all unemployment claimants. 
Currently, states can only use those grants to serve claimants 
that are identified as likely to exhaust regular compensation 
and thus need job search assistance. DOL requires states, as a 
condition of receiving the grants, to prioritize those 
claimants who are unlikely to return to work quickly.
    CBO assumes that under H.R. 1759 states would continue to 
operate the program under that long-standing DOL guidance and 
that DOL would continue to require states to provide 
reemployment services to high-priority people. However, the 
states would have more flexibility in how and when they serve 
claimants for reemployment services. As a result, CBO estimates 
that implementing H.R. 1759 would not significantly change the 
number of people who receive reemployment services and 
eligibility assessments. Thus, CBO estimates that enacting H.R. 
1759 would have no effect on the federal budget.
    The CBO staff contact for this estimate is Meredith Decker. 
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 and clause 
2(b)(1) of rule X 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, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. INFORMATION RELATING TO UNFUNDED MANDATES

    This information is provided in accordance with Sec. 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

    With respect to clause 3(c)(5) of rule XIII of the Rules of 
the House of Representatives, the Committee states that the 
bill contains no provision establishing or authorizing a 
federal program so no statement on duplication of federal 
programs is required.

                              F. HEARINGS

    In compliance with Sec. 103(i) of H. Res. 6 (116th 
Congress) the following hearing was used to develop or consider 
H.R. 1759: ``Leveling the Playing Field for Working Families: 
Challenges and Opportunities,'' held March 7, 2019, and 
described in the legislative history section.

       VI. Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e)(1)(B) of rule XIII of the 
Rules of the House of Representatives, changes in existing law 
proposed 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, 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 III--GRANTS TO STATES FOR UNEMPLOYMENT COMPENSATION 
ADMINISTRATION

           *       *       *       *       *       *       *



SEC. 306. GRANTS TO STATES FOR REEMPLOYMENT SERVICES AND ELIGIBILITY 
                    ASSESSMENTS.

  (a) In General.--The Secretary of Labor (in this section 
referred to as the ``Secretary'') shall award grants under this 
section for a fiscal year to eligible States to conduct a 
program of reemployment services and eligibility assessments 
for [individuals referred to reemployment services as described 
in section 303(j)] claimants for unemployment compensation, 
including claimants referred to reemployment services as 
described in section 303(j), for weeks in such fiscal year for 
which [such individuals] such claimants receive unemployment 
compensation.
  (b) Purposes.--The purposes of this section are to accomplish 
the following goals:
          (1) To improve employment outcomes of individuals 
        that receive unemployment compensation and to reduce 
        the average duration of receipt of such compensation 
        through employment.
          (2) To strengthen program integrity and reduce 
        improper payments of unemployment compensation by 
        States through the detection and prevention of such 
        payments to individuals who are not eligible for such 
        compensation.
          (3) To promote alignment with the broader vision of 
        the Workforce Innovation and Opportunity Act (29 U.S.C. 
        3101 et seq.) of increased program integration and 
        service delivery for job seekers, including claimants 
        for unemployment compensation.
          (4) To establish reemployment services and 
        eligibility assessments as an entry point for 
        individuals receiving unemployment compensation into 
        other workforce system partner programs.
  (c) Evidence-based Standards.--
          (1) In general.--In carrying out a State program of 
        reemployment services and eligibility assessments using 
        grant funds awarded to the State under this section, a 
        State shall use such funds only for interventions 
        demonstrated to reduce the number of weeks for which 
        program participants receive unemployment compensation 
        by improving employment outcomes for program 
        participants.
          (2) Expanding evidence-based interventions.--In 
        addition to the requirement imposed by paragraph (1), a 
        State shall--
                  (A) for fiscal years 2023 and 2024, use no 
                less than 25 percent of the grant funds awarded 
                to the State under this section for 
                interventions with a high or moderate causal 
                evidence rating that show a demonstrated 
                capacity to improve employment and earnings 
                outcomes for program participants;
                  (B) for fiscal years 2025 and 2026, use no 
                less than 40 percent of such grant funds for 
                interventions described in subparagraph (A); 
                and
                  (C) for fiscal years beginning after fiscal 
                year 2026, use no less than 50 percent of such 
                grant funds for interventions described in 
                subparagraph (A).
  (d) Evaluations.--
          (1) Required evaluations.--Any intervention without a 
        high or moderate causal evidence rating used by a State 
        in carrying out a State program of reemployment 
        services and eligibility assessments under this section 
        shall be under evaluation at the time of use.
          (2) Funding limitation.--A State shall use not more 
        than 10 percent of grant funds awarded to the State 
        under this section to conduct or cause to be conducted 
        evaluations of interventions used in carrying out a 
        program under this section (including evaluations 
        conducted pursuant to paragraph (1)).
  (e) State Plan.--
          (1) In general.--As a condition of eligibility to 
        receive a grant under this section for a fiscal year, a 
        State shall submit to the Secretary, at such time and 
        in such manner as the Secretary may require, a State 
        plan that outlines how the State intends to conduct a 
        program of reemployment services and eligibility 
        assessments under this section, including--
                  (A) assurances that, and a description of 
                how, the program will provide--
                          (i) proper notification to 
                        participating individuals of the 
                        program's eligibility conditions, 
                        requirements, and benefits, including 
                        the issuance of warnings and simple, 
                        clear notifications to ensure that 
                        participating individuals are fully 
                        aware of the consequences of failing to 
                        adhere to such requirements, including 
                        policies related to non-attendance or 
                        non-fulfillment of work search 
                        requirements; and
                          (ii) reasonable scheduling 
                        accommodations to maximize 
                        participation for eligible individuals;
                  (B) assurances that, and a description of 
                how, the program will conform with the purposes 
                outlined in subsection (b) and satisfy the 
                requirement to use evidence-based standards 
                under subsection (c), including--
                          (i) a description of the evidence-
                        based interventions the State plans to 
                        use to speed reemployment;
                          (ii) an explanation of how such 
                        interventions are appropriate to the 
                        population served; and
                          (iii) if applicable, a description of 
                        the evaluation structure the State 
                        plans to use for interventions without 
                        at least a moderate or high causal 
                        evidence rating, which may include 
                        national evaluations conducted by the 
                        Department of Labor or by other 
                        entities; and
                  (C) a description of any reemployment 
                activities and evaluations conducted in the 
                prior fiscal year, and any data collected on--
                          (i) characteristics of program 
                        participants;
                          (ii) the number of weeks for which 
                        program participants receive 
                        unemployment compensation; and
                          (iii) employment and other outcomes 
                        for program participants consistent 
                        with State performance accountability 
                        measures provided by the State 
                        unemployment compensation program and 
                        in section 116(b) of the Workforce 
                        Innovation and Opportunity Act (29 
                        U.S.C. 3141(b)).
          (2) Approval.--The Secretary shall approve any State 
        plan, that is timely submitted to the Secretary, in 
        such manner as the Secretary may require, that 
        satisfies the conditions described in paragraph (1).
          (3) Disapproval and revision.--If the Secretary 
        determines that a State plan submitted pursuant to this 
        subsection fails to satisfy the conditions described in 
        paragraph (1), the Secretary shall--
                  (A) disapprove such plan;
                  (B) provide to the State, not later than 30 
                days after the date of receipt of the State 
                plan, a written notice of such disapproval that 
                includes a description of any portion of the 
                plan that was not approved and the reason for 
                the disapproval of each such portion; and
                  (C) provide the State with an opportunity to 
                correct any such failure and submit a revised 
                State plan.
  (f) Allocation of Funds.--
          (1) Base funding.--
                  (A) In general.--For each fiscal year after 
                fiscal year 2020, the Secretary shall allocate 
                a percentage equal to the base funding 
                percentage for such fiscal year of the funds 
                made available for grants under this section 
                among the States awarded such a grant for such 
                fiscal year using a formula prescribed by the 
                Secretary based on the rate of insured 
                unemployment (as defined in section 203(e)(1) 
                of the Federal-State Extended Unemployment 
                Compensation Act of 1970 (26 U.S.C. 3304 note)) 
                in the State for a period to be determined by 
                the Secretary. In developing such formula with 
                respect to a State, the Secretary shall 
                consider the importance of avoiding sharp 
                reductions in grant funding to a State over 
                time.
                  (B) Base funding percentage.--For purposes of 
                subparagraph (A), the term ``base funding 
                percentage'' means--
                          (i) for fiscal years 2021 through 
                        2026, 89 percent; and
                          (ii) for fiscal years after 2026, 84 
                        percent.
          (2) Reservation for outcome payments.--
                  (A) In general.--Of the amounts made 
                available for grants under this section for 
                each fiscal year after 2020, the Secretary 
                shall reserve a percentage equal to the outcome 
                reservation percentage for such fiscal year for 
                outcome payments to increase the amount 
                otherwise awarded to a State under paragraph 
                (1). Such outcome payments shall be paid to 
                States conducting reemployment services and 
                eligibility assessments under this section 
                that, during the previous fiscal year, met or 
                exceeded the outcome goals provided in 
                subsection (b)(1) related to reducing the 
                average duration of receipt of unemployment 
                compensation by improving employment outcomes.
                  (B) Outcome reservation percentage.--For 
                purposes of subparagraph (A), the term 
                ``outcome reservation percentage'' means--
                          (i) for fiscal years 2021 through 
                        2026, 10 percent; and
                          (ii) for fiscal years after 2026, 15 
                        percent.
          (3) Reservation for research and technical 
        assistance.--Of the amounts made available for grants 
        under this section for each fiscal year after 2020, the 
        Secretary may reserve not more than 1 percent to 
        conduct research and provide technical assistance to 
        States.
          (4) Consultation and public comment.--Not later than 
        September 30, 2019, the Secretary shall--
                  (A) consult with the States and seek public 
                comment in developing the allocation formula 
                under paragraph (1) and the criteria for 
                carrying out the reservations under paragraph 
                (2); and
                  (B) make publicly available the allocation 
                formula and criteria developed pursuant to 
                subclause (A).
  (g) Notification to Congress.--Not later than 90 days prior 
to making any changes to the allocation formula or the criteria 
developed pursuant to subsection (f)(5)(A), the Secretary shall 
submit to Congress, including to the Committee on Ways and 
Means and the Committee on Appropriations of the House of 
Representatives and the Committee on Finance and the Committee 
on Appropriations of the Senate, a notification of any such 
change.
  (h) Supplement Not Supplant.--Funds made available to carry 
out this section shall be used to supplement the level of 
Federal, State, and local public funds that, in the absence of 
such availability, would be expended to provide reemployment 
services and eligibility assessments to individuals receiving 
unemployment compensation, and in no case to supplant such 
Federal, State, or local public funds.
  (i) Definitions.--In this section:
          (1) Causal evidence rating.--The terms ``high causal 
        evidence rating'' and ``moderate causal evidence 
        rating'' shall have the meaning given such terms by the 
        Secretary of Labor.
          (2) Eligible state.--The term ``eligible State'' 
        means a State that has in effect a State plan approved 
        by the Secretary in accordance with subsection (e).
          (3) Intervention.--The term ``intervention'' means a 
        service delivery strategy for the provision of State 
        reemployment services and eligibility assessment 
        activities under this section.
          (4) State.--The term ``State'' has the meaning given 
        the term in section 205 of the Federal-State Extended 
        Unemployment Compensation Act of 1970 (26 U.S.C. 3304 
        note).
          (5) Unemployment compensation.--The term unemployment 
        compensation means ``regular compensation'', ``extended 
        compensation'', and ``additional compensation'' (as 
        such terms are defined by section 205 of the Federal-
        State Extended Unemployment Compensation Act of 1970 
        (26 U.S.C. 3304 note)).

                                  [all]