[House Report 117-311]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
2nd Session } { 117-311
======================================================================
COMMUNITY SERVICES BLOCK GRANT MODERNIZATION ACT OF 2022
_______
May 6, 2022.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Scott of Virginia, from the Committee on Education and Labor,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 5129]
The Committee on Education and Labor, to whom was referred
the bill (H.R. 5129) to amend the Community Services Block
Grant Act to reauthorize and modernize the Act, having
considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 20
Committee Action................................................. 22
Committee Views.................................................. 23
Section-by-Section Analysis...................................... 42
Explanation of Amendments........................................ 51
Application of Law to the Legislative Branch..................... 51
Unfunded Mandate Statement....................................... 51
Earmark Statement................................................ 52
Roll Call Votes.................................................. 52
Statement of Performance Goals and Objectives.................... 59
Duplication of Federal Programs.................................. 59
Hearings......................................................... 59
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 59
New Budget Authority and CBO Cost Estimate....................... 59
Committee Cost Estimate.......................................... 60
Changes in Existing Law Made by the Bill, as Reported............ 60
Minority Views................................................... 125
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Community Services Block Grant
Modernization Act of 2022''.
SEC. 2. REAUTHORIZATION.
Subtitle B of title VI of the Omnibus Budget Reconciliation Act of
1981 (42 U.S.C. 9901 et seq.) is amended to read as follows:
``Subtitle B--Community Services Block Grant Program
``SEC. 671. SHORT TITLE.
``This subtitle may be cited as the `Community Services Block Grant
Act'.
``SEC. 672. PURPOSES.
``The purposes of this subtitle are--
``(1) to reduce poverty in the United States by supporting
the activities of community action agencies and other community
services network organizations that improve the economic
security of low-income individuals and families and create new
economic opportunities in the communities where they live; and
``(2) to accomplish the purposes described in paragraph (1)
by--
``(A) strengthening community capabilities for
identifying poverty conditions and opportunities to
alleviate such conditions;
``(B) empowering residents of the low-income
communities served to respond to the unique problems
and needs in their communities through their maximum
feasible participation in advising, planning, and
evaluating the programs, projects, and services funded
under this subtitle;
``(C) using innovative community-based approaches
that produce a measurable impact on the causes and
effects of poverty, including whole family approaches
that create opportunities for, and address the needs
of, parents and children together;
``(D) coordinating Federal, State, local, and other
assistance, including private resources, related to the
reduction of poverty so that resources can be used in a
manner responsive to local needs and conditions; and
``(E) broadening the resources directed to the
elimination of poverty, so as to promote partnerships
that include--
``(i) private, religious, charitable, and
neighborhood-based organizations; and
``(ii) individuals, businesses, labor
organizations, professional organizations, and
other organizations engaged in expanding
opportunities for all individuals.
``SEC. 673. DEFINITIONS.
``In this subtitle:
``(1) Agency-wide strategic plan.--The term `agency-wide
strategic plan' means a plan that has been adopted by an
eligible entity in the previous 5 years and establishes goals
that include meeting needs identified by the entity in
consultation with residents of the community through a process
of comprehensive community needs assessment.
``(2) Poverty line.--The term `poverty line' means the
poverty guideline calculated by the Secretary from the most
recent data available from the Bureau of the Census. The
Secretary shall revise the poverty line annually (or at any
shorter interval the Secretary determines to be feasible and
desirable). The required revision shall be accomplished by
multiplying the official poverty thresholds from the Bureau of
the Census by the percentage change in the Consumer Price Index
for All Urban Consumers during the annual or other interval
immediately preceding the time at which the revision is made.
``(3) Community action agency.--The term `community action
agency' means an eligible entity (which meets the requirements
of paragraph (1) or (2), as appropriate, of section 680(c))
that delivers multiple programs, projects, and services to a
variety of low-income individuals and families.
``(4) Community action plan.--The term `community action
plan' means a detailed plan, including a budget, that is
adopted by an eligible entity, for expenditures of funds
appropriated for a fiscal year under this subtitle for the
activities supported directly or indirectly by such funds.
``(5) Community services network organization.--The term
`community services network organization' means any of the
following organizations funded under this subtitle:
``(A) A grantee.
``(B) An eligible entity.
``(C) A Tribal grantee.
``(D) An association with a membership composed
primarily of grantees, eligible entities, Tribal
grantees, or associations of grantees, eligible
entities, or Tribal grantees.
``(6) Department.--The term `Department' means the Department
of Health and Human Services.
``(7) Eligible entity.--The term `eligible entity' means an
entity--
``(A) that is an eligible entity described in section
673(1) of the Community Services Block Grant Act (as in
effect immediately before the date of the enactment of
the Community Services Block Grant Modernization Act of
2022) as of the day before such date of enactment, or
has been designated by the process described in section
680(a) (including an organization serving migrant or
seasonal farmworkers that is so described or
designated); and
``(B) that has a tripartite board described in
paragraph (1) or (2), as appropriate, of section
680(c).
``(8) Evidence-based practice.--The term `evidence-based
practice' means an activity, strategy, or intervention that--
``(A) demonstrates a statistically significant effect
on improving relevant outcomes based on at least one
well-designed and well-implemented experimental or
quasi-experimental study, or at least one well-designed
and well-implemented correlational study with
statistical controls for selection bias, and includes
ongoing efforts to examine the effects of such
activity, strategy, or intervention; or
``(B) demonstrates a rationale based on high-quality
research findings or positive evaluation that such
activity, strategy, or intervention is likely to
improve relevant outcomes, and includes ongoing efforts
to examine the effects of such activity, strategy, or
intervention.
``(9) Grantee.--The term `grantee' means a recipient of a
grant under section 675 or 676.
``(10) Private, nonprofit organization.--The term `private,
nonprofit organization' means a domestic organization that is--
``(A) described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from taxation under
section 501(a) of such Code; and
``(B) described in paragraph (1) or (2) of section
509(a) of the Internal Revenue Code of 1986.
``(11) Secretary.--The term `Secretary' means the Secretary
of Health and Human Services.
``(12) Service area.--The term `service area' means the
unique geographic area which the State has designated as the
area to be served by an eligible entity with funding under
section 679(a)(1).
``(13) State.--The term `State' means any of the several
States, the District of Columbia, Puerto Rico, Guam, American
Samoa, the United States Virgin Islands, or the Commonwealth of
the Northern Mariana Islands.
``(14) Tribal grantee.--The term `Tribal grantee' means an
Indian Tribe or Tribal organization, as defined in section
677(a), that receives a grant under section 677(c).
``SEC. 674. AUTHORIZATION OF COMMUNITY SERVICES BLOCK GRANT PROGRAM.
``(a) Authorization of Program.--The Secretary is authorized to carry
out a community services block grant program and to make grants through
the program, under sections 675 and 676, to States to support local
community action plans carried out by eligible entities to reduce
poverty in the communities served by such entities.
``(b) Authority of Secretary.--The Secretary is authorized to carry
out other community programs described in section 690.
``SEC. 675. GRANTS TO TERRITORIES.
``(a) Apportionment.--The Secretary shall apportion the amount
reserved under section 691(c)(1) for each fiscal year on the basis of
need, based on the most recent applicable data available from the
Bureau of the Census to account for poverty, to eligible jurisdictions
among Guam, American Samoa, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands.
``(b) Grants.--The Secretary shall make a grant to each eligible
jurisdiction to which subsection (a) applies for the amount apportioned
under subsection (a).
``(c) Plans for Apportionment to Territories.--No later than six
months after the enactment of this Act, the Secretary shall make
publicly available the Department's plan for apportioning funds among
territories, including factors that contribute to the calculation of
need and methodology for calculating the apportionment for each
territory. The Secretary must make publicly available any updates or
changes to this plan no less frequently than any time new applicable
data are available from the Bureau of Census.
``SEC. 676. ALLOTMENTS AND GRANTS TO STATES.
``(a) Allotments in General.--From the amount appropriated under
section 691(a) for each fiscal year and remaining after the Secretary
makes the reservations required by section 691(c), the Secretary shall
allot to each eligible State, subject to section 677, an amount that
bears the same ratio to such remaining amount as the amount received by
the State for fiscal year 1981 under section 221 of the Economic
Opportunity Act of 1964 bore to the total amount received by all States
for fiscal year 1981 under such section, except as provided in
subsection (b).
``(b) Minimum Allotments.--
``(1) In general.--The Secretary shall allot to each State
not less than \1/2\ of 1 percent of the amount appropriated
under section 691(a) for such fiscal year and remaining after
the Secretary makes the reservations required by section
691(c).
``(2) Years with greater available funds.--Notwithstanding
paragraph (1), if the amount appropriated under section 691(a)
for a fiscal year and remaining after the Secretary makes the
reservations required by section 691(c) exceeds $900,000,000,
no State shall receive under this section less than \3/4\ of 1
percent of the remaining amount.
``(c) Grants and Payments.--Subject to section 677, the Secretary
shall make grants to eligible States for the allotments described in
subsections (a) and (b). The Secretary shall make payments for the
grants in accordance with section 6503(a) of title 31, United States
Code. The Secretary shall allocate the amounts allotted under
subsections (a) and (b) on a quarterly basis at a minimum, notify the
States of their respective allocations, and make each State's first
allocation amount in a fiscal year available for expenditure by the
State no later than 30 days after receipt of an approved apportionment
from the Office of Management and Budget and, for subsequent allocation
amounts in the fiscal year, not later than 30 days after the start of
the period for which the Secretary is allocating the funds.
``(d) Definition.--In this section, the term `State' does not include
Guam, American Samoa, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands.
``SEC. 677. PAYMENTS TO INDIAN TRIBES.
``(a) Definitions.--In this section:
``(1) Indian.--The term `Indian' means a member of an Indian
Tribe or Tribal organization.
``(2) Indian tribe or tribal organization.--The term `Indian
Tribe or Tribal organization' means a Tribe, band, or other
organized group recognized in the State in which the Tribe,
band, or group resides, or considered by the Secretary of the
Interior to be an Indian Tribe or an Indian organization for
any purpose.
``(b) Reservation.--
``(1) Application.--Paragraph (2) shall apply only if, with
respect to any State, the Secretary--
``(A) receives a request from the governing body of
an Indian Tribe or Tribal organization in such State
that assistance under this subtitle be made available
directly to such Indian Tribe or Tribal organization;
and
``(B) determines that the members of such Indian
Tribe or Tribal organization would be better served by
means of grants made directly to such Indian Tribe or
Tribal organization to provide benefits under this
subtitle.
``(2) Amount.--The Secretary shall reserve from amounts
allotted to a State under section 676 for a fiscal year not
less than the amount that bears the same ratio to the State
allotment for the fiscal year as the population of all eligible
Indians in that particular State for whom a determination has
been made under paragraph (1) bears to the population of all
individuals eligible for assistance through a grant made under
section 676 to such State.
``(c) Awards.--The amount reserved by the Secretary on the basis of a
determination made under subsection (b)(1)(B) shall be made available
by grant to the Indian Tribe or Tribal organization serving the Indians
for whom the determination has been made under subsection (b)(1)(B).
``(d) Plan.--In order for an Indian Tribe or Tribal organization to
be eligible for a grant award for a fiscal year under this section, the
Indian Tribe or Tribal organization shall submit to the Secretary a
plan for such fiscal year that meets such criteria as the Secretary may
prescribe by regulation.
``(e) Alternative Performance Measurement System.--The Secretary may
implement alternative requirements for implementation by an Indian
Tribe or Tribal Organization of the requirements of section 686(a).
``SEC. 678. STATE PLANS AND APPLICATIONS; COMMUNITY ACTION PLANS AND
APPLICATIONS.
``(a) State Lead Agency.--
``(1) Designation.--The chief executive officer of a State
desiring to receive a grant under section 675 or 676 shall
designate, in an application submitted to the Secretary under
subsection (b), an appropriate State agency that agrees to
comply with the requirements of paragraph (2), to act as a lead
agency for purposes of carrying out State activities under this
subtitle.
``(2) Duties of state lead agencies.--The State lead agency--
``(A) shall be authorized by the chief executive
officer to convene State agencies and coordinate
information and activities funded under this subtitle;
``(B) shall develop the State plan to be submitted to
the Secretary under subsection (b), which shall be
based primarily on the community action plans of
eligible entities, submitted to the State as a
condition of receiving funding under this subtitle;
``(C) may revise an existing State plan for
submission to the Secretary, if considered a major
revision under criteria established by the Secretary in
regulations required under section 689(a)(1));
``(D) in conjunction with the development or revision
of the State plan as required under subsection (b)--
``(i) shall hold at least 1 hearing in the
State on the proposed plan or a proposed major
revision to a plan to provide to the public an
opportunity to comment on the public record on
the proposed use and distribution of funds
under the plan;
``(ii) not less than 15 days before the
hearing, shall distribute notice of the hearing
and a copy of the proposed plan or major plan
revision statewide to the public and directly
to the chief executive officer and the
chairperson of the board of each of the
eligible entities (or designees) and other
community services network organizations; and
``(iii) in the case of any proposed plan
revision, without regard to whether it is a
major revision, shall notify and distribute a
copy of the proposed revision statewide
directly to the chief executive officer and the
chairperson of the board of each of the
eligible entities (or designees) and other
community services network organizations,
before submission of such proposed revision to
the Secretary; and
``(E) at least every 3 years, in conjunction with the
development of the State plan, shall hold at least 1
legislative hearing.
``(b) State Application for State Program and State Plan.--Beginning
with the first fiscal year following the transition period described in
section 3 of the Community Services Block Grant Modernization Act of
2022, to be eligible to receive a grant under section 675 or 676, a
State shall prepare and submit to the Secretary for approval an
application containing a State plan covering a period of not more than
2 fiscal years. The application shall be submitted not later than 60
days before the beginning of the first fiscal year covered by the plan,
and shall contain such information as the Secretary shall require,
including--
``(1) a description of the manner in which funds made
available through the grant under section 675 or 676 will be
used to carry out the State activities described in section
679(b) and the State's community action plans;
``(2) a description summarizing the community action plans of
the eligible entities serving the State;
``(3) an assurance that the State and all eligible entities
in the State will participate in a performance measurement
system under section 686(a)(1)(A);
``(4) a plan for the State's oversight of eligible entities;
``(5) an assurance that the State will make payments to
eligible entities in accordance with section 679(a)(2);
``(6) an assurance that no eligible entity in the State that
received, in the previous fiscal year, funding through a grant
made under section 675 or 676 will have funding reduced below
the proportional share of funding the entity received from the
State in the previous fiscal year, or eliminated, or its
designation as an eligible entity terminated, unless, after
providing the affected entity (or entities, as applicable) with
notice and an opportunity for a hearing on the record, the
State determines that cause exists for the reduction or
elimination of funding or for termination of such designation,
subject to review by the Secretary as provided in section
684(c); and--
``(A) in the case of failure of an eligible entity to
comply with the terms of a corrective action plan
relating to correction of a serious deficiency, except
according to the procedures set forth in section
684(b); and
``(B) for purposes of this subsection, the term
`cause' means--
``(i) the failure of an eligible entity to
comply with the terms of a corrective action
plan relating to correction of a serious
deficiency as described in subsection 684(b);
or
``(ii) a statewide proportional distribution
of funds provided through a community services
block grant under this subtitle to respond to--
``(I) the results of the most
recently available census or other
appropriate demographic data;
``(II) severe economic dislocation;
or
``(III) the designation of an
eligible entity to serve a geographic
area that has been unserved for at
least the previous 5 years;
``(7) an assurance that each eligible entity serving the
State has established procedures that permit a low-income
individual or organization to petition for adequate
representation of such individuals or organizations,
respectively, on the board of the eligible entity;
``(8) a description of outcome measures to be used to measure
State and eligible entity performance in achieving the goals of
the State plan and the community action plans, respectively;
``(9) an assurance that the State will develop a policy on
board vacancies in accordance with section 680(c)(3) and
provide guidance to assist eligible entities in filling board
vacancies; and
``(10) an assurance that the State and the eligible entities
in the State will coordinate, and establish linkages between,
governmental and other social services programs to assure the
effective delivery of such services to low-income individuals
and to avoid duplication of such services, and a description of
how the State and the eligible entities will coordinate the
provision of employment and training activities, as defined in
section 3 of the Workforce Innovation and Opportunity Act, in
the State and in communities with entities providing activities
through statewide and local workforce development systems under
such Act.
``(c) Approval.--The Secretary shall notify the chief executive
officer of each State submitting an application containing a State plan
under this section of the approval, disapproval, or approval in part,
of the application, not later than 60 days after receiving the
application. In the event of a full or partial disapproval, the
Secretary's notification shall include a description of changes
necessary for final approval. In the event of a partial approval, the
Secretary may allow grantee use of funds for activities included in the
portions of the plan which the Secretary has approved. In the event a
State application fails to be approved in whole or in part before the
end of the third month of the period covered by such plan the Secretary
may award funding as specified in section 684(a)(5)(B).
``(d) Public Inspection.--Each plan and major revision to a State
plan prepared under this section shall be distributed for public
inspection and comment. A hearing on such plan or major revision shall
be held as required under subparagraphs (C) and (D) of subsection
(a)(2), but a State application for merger, combination, or
privatization of entities under section 680(b) shall not be considered
a major revision.
``(e) Eligible Entity Application and Community Action Plan.--
Beginning with the first fiscal year following the transition period
described in section 3 of the Community Services Block Grant
Modernization Act of 2022, to be eligible to receive a subgrant under
section 679(a), each eligible entity shall prepare and submit to the
State an application containing a community action plan or plans
covering a period of not more than 2 fiscal years. Such application
shall be submitted in a reasonable and timely manner as required by the
State. The application shall contain information on the intended
implementation of the eligible entity's activities, including
demonstrating how the activities will--
``(1) meet needs identified in the most recent comprehensive
community needs assessment which has been conducted in the
previous 3 years and which may be coordinated with community
needs assessments conducted for other programs; and
``(2) achieve the purposes of this subtitle through programs,
projects, and services.
``SEC. 679. STATE AND LOCAL USES OF FUNDS.
``(a) State Subgrants to Eligible Entities and Other Organizations.--
``(1) In general.--A State that receives a grant under
section 675 or 676 shall use not less than 90 percent to make
subgrants to eligible entities that enable the entities to
implement programs, projects, and services for a purpose
described in section 672.
``(2) Obligational requirements.--
``(A) Date of obligation.--The State shall obligate
the funds for subgrants described in paragraph (1) and
make such subgrants available for expenditure by
eligible entities not later than the later of--
``(i) the 30th day after the date on which
the State receives from the Secretary a notice
of funding availability for the State's
application under section 678 for a first or
subsequent allocation for a fiscal year; or
``(ii) the first day of the State program
year for which funds are to be expended under
the State application.
``(B) Exception.--If funds are appropriated to carry
out this subtitle for less than a full fiscal year, a
State may request an exception from the Secretary from
the requirement to make subgrants available for
expenditure by eligible entities in accordance with
subparagraph (A), except that a State may not
accumulate more than one fiscal quarter's worth of
funding without making such funds available for
expenditure by eligible entities.
``(C) Availability.--Funds allocated to eligible
entities through subgrants made under paragraph (1) for
a fiscal year shall be available for obligation by the
eligible entity during that fiscal year and the
succeeding fiscal year.
``(b) Statewide Activities.--
``(1) Use of remainder.--
``(A) In general.--A State that receives a grant
under section 675 or 676 shall, after carrying out
subsection (a), use the remainder of the grant funds
for activities described in the State's application
under section 678(b) as described in subparagraph (B)
and for administrative expenses subject to the
limitations in paragraph (2).
``(B) Training and technical assistance.--After
applying subsection (a), the State may use the
remaining grant funds for the purposes of--
``(i) providing to eligible entities training
and technical assistance and resources to
respond to statewide or regional conditions
that create economic insecurity, including
emergency conditions;
``(ii) supporting professional development
activities for eligible entities that enhance
the skills of their local personnel (including
members of the board of directors of such
entities) in organizational management, service
delivery, and program development and
management, giving priority to activities
carried out through partnerships of such
entities with institutions of higher education;
``(iii) supporting information and
communication resources for the comprehensive
community needs assessments described in
section 678(e)(1);
``(iv) supporting performance measurement
systems consistent with the requirements of
section 686;
``(v) promoting coordination and cooperation
among eligible entities in the State, including
supporting activities of a statewide
association of community services network
organizations;
``(vi) providing training and technical
assistance and resources to assist eligible
entities in building and using evidence of
effectiveness in reducing poverty conditions,
including entities participating in or
proposing to participate in the Community
Action Innovations Program established under
section 682(a)(2);
``(vii) supporting efforts of eligible
entities to identify and respond to physical
and behavioral health challenges (including
substance use disorders) experienced by low-
income individuals, families, and communities;
and
``(viii) analyzing the distribution of funds
made available under this subtitle within the
State to determine if such funds have been
targeted to the areas of greatest need.
``(2) Administrative cap.--
``(A) Limitation.--Of the amounts remaining after the
required funding for subgrants described under
subsection (a)(1), a State shall not spend more than 5
percent of its grant under section 675 or 676 for
administrative expenses.
``(B) Definition.--In this paragraph, the term
`administrative expenses'--
``(i) means the costs incurred by the State's
lead agency for carrying out planning and
management activities, including monitoring,
oversight, and reporting as required by this
Act; and
``(ii) does not include the cost of
activities conducted under paragraph (1)(B)
other than monitoring.
``(c) Eligible Entity Use of Funds.--An eligible entity that receives
a subgrant under subsection (a)(1) shall use the subgrant funds to
carry out a community action plan that shall include--
``(1) programs, projects, and services that provide low-
income individuals and families with opportunities--
``(A) to identify and develop strategies to remove
obstacles and solve problems that block access to
opportunity, economic stability, and achievement of
self-sufficiency;
``(B) to secure and retain meaningful employment at a
family supporting wage;
``(C) to secure an adequate education, improve
literacy and language skills, and obtain job-related
skills;
``(D) to make effective use of available income and
build assets;
``(E) to obtain and maintain adequate housing and a
safe and healthy living environment;
``(F) to address health needs and improve health and
well-being;
``(G) to obtain emergency materials or other
assistance to meet immediate and urgent needs,
including to meet the collective needs of a community,
and prevent greater or more prolonged economic
instability;
``(H) to secure and identify assistance related to
reducing energy expenses and reducing energy
consumption; and
``(I) to achieve greater participation in community
affairs; and
``(2) activities that develop and maintain--
``(A) partnerships for the purpose of addressing
community, economic, and social conditions of poverty
and promoting healthy communities, between the eligible
entity and--
``(i) State and local public entities; and
``(ii) private partners, including statewide
and local businesses, associations of private
employers, and private charitable and civic
organizations;
``(B) linkages with public and private organizations
for coordinating initiatives, services, and investments
so as to avoid duplication, and maximize the effective
use, of community resources for creating economic
opportunity, including developing lasting social and
economic assets; and
``(C) new investments in the community to reduce the
incidence of poverty, including developing lasting
social and economic assets.
``(d) Eligibility Criterion.--
``(1) Subject to paragraph (2), 200 percent of the poverty
line shall be used as a criterion of eligibility for services,
assistance, or resources provided directly to individuals or
families through the community services block grant program
established under this subtitle.
``(2) A State or Tribal grantee may establish procedures to
ensure that a participant in a program, project, or service
funded under this subtitle remains eligible to participate as
long as the participant is successfully progressing toward
achievement of the goals of the program, project, or service,
regardless of the income eligibility criteria used to determine
the participant's initial eligibility.
``SEC. 680. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS.
``(a) Designation and Redesignation of Eligible Entities in Unserved
Areas.--
``(1) In general.--If any geographic area of a State is not,
or ceases to be, served by an eligible entity, the State lead
agency may, in consultation with local officials and
organizations representing the area, solicit one or more
applications and designate a new community action agency to
provide programs, projects, and services to the area, that is--
``(A) a community action agency that is a private,
nonprofit organization and that is geographically
located in an area in reasonable proximity of, or
contiguous to, the unserved area and that is already
providing similar programs, projects, and services, and
that has demonstrated financial capacity to manage and
account for Federal funds; or
``(B) if no community action agency described in
subparagraph (A) is available, a private, nonprofit
organization (which may include an eligible entity)
that is geographically located in, or is in reasonable
proximity to, the unserved area and that is capable of
providing a broad range of programs, projects, and
services designed to achieve the purposes of this
subtitle as stated in section 672.
``(2) Requirement.--In order to serve as the eligible entity
for the service area, an entity described in paragraph (1)
shall agree to ensure that the governing board of directors of
the entity will meet the requirements of subsection (c).
``(3) Community.--A service area referred to in this
subsection or a portion thereof shall be treated as a community
for purposes of this subtitle.
``(4) Interim designation.--If no entity that meets the
requirements of paragraphs (1) and (2) is available for
designation as a permanent eligible entity, the State may
designate a private, nonprofit agency (or public agency if a
private, nonprofit is not available) on an interim basis for no
more than 1 year while the State completes a selection process
for a permanent eligible entity that meets the requirements of
paragraphs (1) and (2). An agency designated on an interim
basis shall be capable of providing programs, projects, and
services designed to achieve the purposes of this subtitle as
stated in section 672 and have demonstrated financial capacity
to manage and account for Federal funds, and may be designated
as a permanent eligible entity only if, by the time of
permanent designation, it meets all the requirements of
paragraphs (1) and (2).
``(b) Merger, Combination, or Privatization of Eligible Entities.--
``(1) In general.--If an eligible entity receiving subgrant
funds makes a determination described in paragraph (2) and
notifies the State, the State--
``(A) shall assist in developing a plan for
implementing such merger, combination, or
privatization, including a budget for transitional
costs not to exceed 2 years in duration;
``(B) in the case of a merger or combination, shall
provide to the merged or combined entity an amount of
funding under section 679(a)(1) equal to the sum of
amounts the merged or combined entities each received
under section 679(a)(1) immediately before the merger
or combination.
``(2) Covered merger, combination, or privatization.--This
subsection applies when--
``(A) 2 or more eligible entities determine that the
geographic areas of a State that they serve can be more
effectively served under common control or shared
management; or
``(B) a public organization that is an eligible
entity determines that the area it serves can be more
effectively served if it becomes a private, nonprofit
organization.
``(3) Plans.--A State may establish requirements for merger,
combination, or privatization plans and for a determination
that the merged, combined, or privatized entity, or entities,
will be capable of conducting a broad range of programs,
projects, and services designed to achieve the purposes of this
subtitle as stated in section 672 consistent with the
comprehensive community needs assessments for the areas served.
``(4) State determination.--If a State determines that a
merged, combined, or privatized entity or entities will be
capable of conducting a broad range of programs, projects, and
services as specified in paragraph (3), it shall designate the
merged, combined, or privatized entity or entities to serve the
area(s) in question without soliciting applications from other
entities.
``(c) Tripartite Boards.--
``(1) Private, nonprofit organizations.--
``(A) Board.--In order for a private, nonprofit
organization to be considered to be an eligible entity
for purposes of section 673(7), the entity shall be
governed by a tripartite board of directors described
in subparagraph (C) that fully participates in the
development, planning, implementation, oversight, and
evaluation of the programs, projects, and services
carried out or provided through the subgrant made under
section 679(a)(1) and all activities of the entity.
``(B) Selection.--The members of the board referred
to in subparagraph (A) shall be selected by the
private, nonprofit organization.
``(C) Composition of board.--The board shall be
composed so as to assure that--
``(i) \1/3\ of the members of the board are
elected public officials holding office on the
date of selection, or their representatives
(but if an elected public official chooses not
to serve, such official may designate a
representative to serve as the voting board
member);
``(ii) not fewer than \1/3\ of the members
are persons chosen in accordance with
democratic selection procedures adequate to
assure that such members are representative of
low-income individuals and families in the
service area; and if selected to represent a
specific geographic area, such member resides
in that area; and
``(iii) the remainder of the members may be
comprised of representatives from business,
industry, labor, religious, educational,
charitable, or other significant groups and
interests in the community.
``(D) Expertise.--The eligible entity shall ensure
that the members of the board are provided resources,
which may include contracted services with individuals
and organizations with expertise in financial
management, accounting, and law, to support the work of
the board.
``(E) Compliance with tax-exempt and other
requirements.--The board of a private, nonprofit
organization shall ensure that the board operates and
conducts activities under the subgrant made under
section 679(a)(1) in a manner that complies with--
``(i) the requirements for maintaining tax-
exempt status under section 501(a) of the
Internal Revenue Code of 1986 (26 U.S.C.
501(a)) regarding the governance of charities
under section 501(c)(3) of the Internal Revenue
Code of 1986 (26 U.S.C. 501(c)(3)); and
``(ii) applicable requirements of State
nonprofit law.
``(2) Public organizations.--
``(A) Board.--In order for a local public
(governmental) entity to be considered to be an
eligible entity for purposes of section 673(7), the
entity shall ensure that the programs, projects, and
services carried out or provided through the subgrant
made under section 679(a)(1) are administered under the
supervision of a tripartite board described in
subparagraph (C) that fully participates in the
development, planning, implementation, oversight, and
evaluation of such programs, projects, and services.
``(B) Selection.--The members of the board referred
to in subparagraph (A) shall be selected by the local
public entity.
``(C) Composition of board.--The board shall be
composed so as to assure that--
``(i) not more than \1/3\ of the members of
the board are employees or officials, including
elected officials, of the unit of government in
which the organization is located;
``(ii) not fewer than \1/3\ of the members
are persons chosen in accordance with
democratic selection procedures adequate to
assure that such members are representative of
low-income individuals and families in the
service area; and if selected to represent a
specific geographic area, such member resides
in that area; and
``(iii) the remainder of the members may be
comprised of representatives from business,
industry, labor, religious, educational,
charitable, or other significant groups and
interests in the community.
``(D) Expertise.--The eligible entity shall ensure
that the members of the board are provided resources,
which may include contracted services with individuals
and organizations with expertise in financial
management, accounting, and law, to support the work of
the board.
``(E) Compliance with state requirements and
policy.--The board of a public organization shall
ensure that the board operates in a manner that
complies with State requirements for open meetings,
financial transparency, and State open records policy.
``(3) Board vacancies.--To fulfill the requirements under
this section, an eligible entity shall fill a board vacancy not
later than 6 months after such vacancy arises. In the event
that an eligible entity is unable to fill a board vacancy in
the 6-month period, the entity shall certify to the State that
it is making a good faith effort to fill the vacancy and shall
receive 1 additional 6-month period to fill such vacancy.
``(4) Safeguard.--Neither the Federal Government nor a State
or local government shall require a religious organization to
alter its form of internal governance, except (for purposes of
administration of the community services block grant program)
as provided in section 680(c).
``(d) Operations and Duties of the Board.--The duties of a board
described in paragraph (1) or (2) of subsection (c) shall include--
``(1) in the case of a board for a private, nonprofit
organization that is an eligible entity, having legal and
financial responsibility for administering and overseeing the
eligible entity, including making proper use of Federal funds;
``(2) establishing terms for officers and adopting a code of
ethical conduct, including a conflict of interest policy for
board members;
``(3) participating in each comprehensive community needs
assessment, developing and adopting for the corresponding
eligible entity an agency-wide strategic plan, and preparing
the community action plan for the use of funds under this
subtitle;
``(4) approving the eligible entity's operating budget;
``(5) reviewing all major policies such that--
``(A) for private, nonprofit organizations that are
eligible entities, a review includes conducting annual
performance reviews of the eligible entity's chief
executive officer (or individual holding an equivalent
position); and
``(B) for local public entities that are eligible
entities, a review includes participating in annual
performance reviews of the eligible entity's chief
executive officer (or individual holding an equivalent
position);
``(6) performing oversight of the eligible entity to
include--
``(A) conducting assessments of the eligible entity's
progress in carrying out programmatic and financial
provisions in the community action plan; and
``(B) in the case of any required corrective action,
reviewing the eligible entity's plans and progress in
remedying identified deficiencies; and
``(7) concerning personnel policies and procedures--
``(A) in the case of private, nonprofit organizations
that are eligible entities, adopting personnel policies
and procedures, including for hiring, annual
evaluation, compensation, and termination, of the
eligible entity's chief executive officer (or
individual holding a similar position); and
``(B) in the case of local public entities that are
eligible entities, reviewing personnel policies and
procedures, including for hiring, annual evaluation,
compensation, and termination, of the eligible entity's
chief executive officer (or individual holding a
similar position).
``SEC. 681. OFFICE OF COMMUNITY SERVICES.
``(a) Office.--
``(1) Establishment.--The Secretary shall establish an Office
of Community Services in the Department to carry out the
functions of this subtitle.
``(2) Director.--The Office shall be headed by a Director
(referred to in this section as the `Director').
``(b) Grants, Contracts, and Cooperative Agreements.--The Secretary,
acting through the Director, shall carry out the functions of this
subtitle through grants, contracts, or cooperative agreements.
``SEC. 682. TRAINING, TECHNICAL ASSISTANCE, AND RELATED ACTIVITIES.
``(a) Activities.--
``(1) In general.--The Secretary shall--
``(A) use amounts reserved under section 691(c)(2)
for training, technical assistance, planning,
assessment, and performance measurement, as described
in this section and in sections 684 and 686, to assist
States, eligible entities, Tribal grantees, and other
community services network organizations in--
``(i) building and using evidence of
effectiveness in reducing poverty conditions,
including through development and dissemination
of information about clearinghouses and other
resources that identify relevant evidence-based
initiatives, for use in connection with the
Community Action Innovations Program
established under paragraph (2);
``(ii) carrying out professional development
activities that expand the capacity of eligible
entities and Tribal grantees;
``(iii) carrying out performance measurement,
data collection, and reporting activities
related to programs, projects, and services
carried out under this subtitle; and
``(iv) correcting programmatic deficiencies,
including such deficiencies of eligible
entities or Tribal grantees; and
``(B) distribute the amounts reserved under section
691(c)(2)(A) through grants, contracts, or cooperative
agreements with eligible entities, Tribal grantees, and
other community services network organizations
described in subsection (b) for--
``(i) professional development for key
community services network organization
personnel;
``(ii) activities to improve community
services network organization programs,
financial management, compliance, and
governance practices (including practices
related to performance management information
systems);
``(iii) activities that train community
services network organizations and their staff
and board members to effectively address the
needs of low-income families and communities
through place-based strategies that address
local causes and conditions of poverty through
coordinated investment and integrated service
delivery; and
``(iv) activities that train community
services network organizations in building and
using evidence of effectiveness in reducing
poverty conditions and that support effective
administration of funds under the Community
Action Innovations Program established under
paragraph (2).
``(2) Innovative and evidence-based projects to reduce
poverty.--
``(A) In general.--The Secretary shall use amounts
reserved under section 691(c)(3) for a Community Action
Innovations Program to--
``(i) award grants, contracts, or cooperative
agreements to eligible entities, Tribal
grantees, and other community services network
organizations, including consortia of such
entities, grantees, or organizations to
facilitate innovation and use of evidence-based
practice designed to reduce poverty conditions,
including through whole family approaches that
create opportunities for, and address the needs
of, parents and children together; and
``(ii) disseminate results for public use.
``(B) Projects.--The Secretary shall award funds from
its Community Action Innovations Program for projects
to enable--
``(i) replication or expansion of innovative
practices with demonstrated evidence of
effectiveness, with priority given to those
with the strongest evidence base as determined
through a broad review of available studies; or
``(ii) testing of innovative practices to
determine their effectiveness, with priority
given to those incorporating rigorous,
independent evaluation to further build the
evidence base.
``(C) Use of funds.--The funds reserved for use under
this paragraph may be used by awardees for resources or
activities necessary to replicate, expand, or test
innovative and evidence-based practices, including
costs of training and technical assistance, evaluation,
data collection, and technology.
``(D) Expenses.--The funds reserved for use under
this paragraph may be used for reasonable expenses of
awardees, associated with administration of projects
and dissemination of their results.
``(E) Awards and obligation.--The Secretary shall
award and obligate funds reserved for projects under
this paragraph during the first program year for which
the funds are appropriated. Grant funds awarded under
this paragraph shall remain available for expenditure
by the awardee not later than 36 months after the date
of award by the Secretary, unless a longer period of
availability is approved by the Secretary based on
extenuating circumstances and demonstrated evidence of
effectiveness.
``(b) Eligible Entities, Tribal Grantees, and Other Community
Services Network Organizations.--Eligible entities, Tribal grantees,
and other community services network organizations referred to in
subsection (a)(1)(B) shall include such entities, grantees, and
organizations (and their partners, including institutions of higher
education) with demonstrated expertise in providing training for
individuals and organizations on methods of effectively addressing the
needs of low-income families and communities and, if appropriate,
expertise in Tribal issues.
``(c) Training and Technical Assistance Process.--`The process for
determining the training and technical assistance to be carried out
under subsection (a)(1) shall--
``(1) ensure that the needs of eligible entities, Tribal
grantees, and programs relating to improving program quality
(including quality of financial management practices) are
addressed to the maximum extent feasible; and
``(2) incorporate mechanisms to ensure responsiveness to
local needs, including an ongoing procedure for obtaining input
from the national and State networks of eligible entities.
``SEC. 683. STATE MONITORING OF ELIGIBLE ENTITIES.
``In order to determine whether eligible entities receiving subgrants
under this subtitle meet performance goals, administrative standards,
financial management requirements, and other requirements under this
subtitle, the State shall conduct the following reviews of eligible
entities:
``(1) A full onsite review of each eligible entity at least
once during each 3-year period.
``(2) An onsite review of each newly designated eligible
entity immediately after the completion of the first year in
which such entity receives funds through the community services
block grant program under this subtitle.
``(3) Followup reviews, including onsite reviews scheduled in
a corrective action plan (including return visits), in a
calendar quarter for eligible entities with programs, projects,
or services that fail to meet the State's performance criteria,
standards, financial management requirements, or other
significant requirements established under this subtitle.
``(4) Other reviews as appropriate, including reviews of
eligible entities with programs, projects, and services that
have had other Federal, State, or local grants (other than
assistance provided under this subtitle) terminated for cause.
``(5) In conducting reviews, including as required by
paragraph (1), a State may conduct a remote (including virtual)
review of an eligible entity in extraordinary circumstances if
approved by the Secretary on a case-by-case basis.
``SEC. 684. ASSESSMENTS; CORRECTIVE ACTION; REDUCTION OR ELIMINATION OF
FUNDING.
``(a) Assessments of States by the Secretary.--
``(1) In general.--The Secretary shall conduct, in not fewer
than 1/5 of the States in each fiscal year, assessments
(including investigations) of State compliance with this
subtitle, including requirements relating to the use of funds
received under this subtitle, requirements applicable to State
plans submitted under section 678(b), and requirements of
section 679(a)(2).
``(2) Report to states.--The Secretary shall submit to each
State assessed, and make available to the public on the
Department's website, a report containing--
``(A) the results of such assessment; and
``(B)(i) recommendations for improvements designed to
enhance the benefit and impact of the activities
carried out with such funds; and
``(ii) in the event a serious deficiency is found
regarding a State's compliance with this subtitle,
including requirements relating to the use of funds
received under this subtitle, a proposed corrective
action plan.
``(3) State response.--Not later than 45 days after receiving
a report under paragraph (2)--
``(A) a State that received recommendations under
paragraph (2)(B)(i) shall submit to the Secretary and
make available to the public on the State lead agency's
website a plan of action in response to the
recommendations; and
``(B) a State that received a proposed corrective
action plan under paragraph (2)(B)(ii) shall agree to
implement the corrective action plan proposed by the
Secretary or propose to the Secretary and make
available to the public on the State lead agency's
website a different corrective action plan, developed
by the State in a timely manner that the State will
implement upon approval by the Secretary.
``(4) Report to congress.--The Secretary shall submit the
results of the assessments annually, as part of the report
submitted by the Secretary in accordance with section
686(b)(2).
``(5) Enforcement.--
``(A) Reduction or elimination of funding.--If the
Secretary determines, in a final decision based on an
assessment conducted under this section, that a State
fails to meet the requirements of this subtitle, the
Secretary may, after providing adequate notice and an
opportunity for a hearing, initiate proceedings to
reduce or eliminate the amount of funding apportioned
and allocated to the State as described in section 675
or 676, as applicable (and, if necessary, deobligate
such funding).
``(B) Direct awards to other entities.--
``(i) Reduction or elimination of state
funding; lack of approved state plan.--If the
Secretary reduces or eliminates funding to a
State under subparagraph (A), the Secretary
shall award funding directly as provided under
clauses (ii) and (iii). If, for a particular
fiscal year, a State plan is not approved by
the Secretary in accordance with section
678(c), the Secretary may award funding
directly as provided under clauses (ii) and
(iii).
``(ii) Direct funding to eligible entities.--
If funding specified in section 679(a)(1) is
reduced or eliminated due to the Secretary's
reduction or elimination of funding under
subparagraph (A), or if the Secretary chooses
to award funding directly due to the lack of an
approved State plan as authorized in clause
(i), the Secretary shall award financial
assistance in the amount of such reduced or
eliminated funding, or in the amount the State
would have received for the purposes specified
in section 679(a)(1) had a State plan been
approved, directly (by grant or cooperative
agreement) to affected eligible entities
(provided that any such entity has not had its
funding under this subtitle eliminated or its
designation as an eligible entity terminated by
the State in accordance with subsections (b)
and (c) of section 684) to carry out the
activities described in section 679(c). In
awarding such funding, the Secretary shall
ensure that each such affected eligible entity
receives the same proportionate share of
funding under section 679(a)(1) that it
received in the previous fiscal year.
``(iii) Statewide funds.--If funding
specified in section 679(b) is reduced or
eliminated due to the Secretary's reduction or
elimination of funding under subparagraph (A),
or if the Secretary chooses to award funding
directly due to the lack of an approved State
plan as authorized in clause (i), the Secretary
shall reserve an amount equal to the amount of
such reduced or eliminated funds, or to the
amount the State would have received for the
purposes specified in section 679(b) had a
State plan been approved. The Secretary may use
such amount for such purposes directly or
through a grant or cooperative agreement to
community services network organizations (other
than the State itself).
``(iv) Reduction.--In the case of expenditure
as provided in accordance with this
subparagraph, the Secretary shall reduce
funding the State would otherwise have received
under section 675 or 676 (and, if necessary,
deobligate such funding) for the appropriate
fiscal year by an amount equal to the amount so
expended.
``(6) Training and technical assistance.--The Secretary,
through the Department's own employees or contractors (rather
than under grants, contracts, or cooperative agreements issued
under section 682), shall provide training and technical
assistance to States with respect to the development or
implementation of the States' corrective action plans.
``(b) Determination of Eligible Entity Failure To Comply.--
``(1) Corrective action by eligible entities.--If the State
determines, on the basis of a review pursuant to section 683 or
section 685, that there is a serious deficiency regarding an
eligible entity's compliance with this subtitle, the State
shall inform the entity of the serious deficiencies that shall
be corrected and provide technical assistance for the
corrective action.
``(2) Eligible entity corrective action plans.--An eligible
entity that is found to have a serious deficiency under
paragraph (1) shall develop, in a timely manner, a corrective
action plan that shall be subject to the approval of the State,
and that shall specify--
``(A) the deficiencies to be corrected;
``(B) the actions to be taken to correct such
deficiencies; and
``(C) the timetable for accomplishment of the
corrective actions specified.
``(3) Final decision.--If the State determines, on the basis
of a final decision in a review conducted under section 683,
that an eligible entity fails to comply with the terms of a
corrective action plan under paragraph (2) relating to
correction of a serious deficiency for the eligible entity, the
State may, after providing adequate notice and an opportunity
for a hearing, initiate proceedings to withhold, reduce, or
eliminate the funding provided under section 679(a)(1) to the
eligible entity (including, in the case of elimination of
funding, terminating the designation under this subtitle of the
eligible entity) unless the entity corrects the serious
deficiency.
``(c) Review.--A State's decision to withhold, reduce, or eliminate
funding, or to terminate the designation of an eligible entity (or
eligible entities, as applicable) may be reviewed by the Secretary.
Upon request by a community services network organization, the
Secretary shall review such a determination. The review shall be
completed not later than 60 days after the Secretary receives from the
State all necessary documentation relating to the determination. The
State shall submit such documentation within a reasonable time frame
established by the Secretary.
``(d) Direct Assistance.--Whenever the Secretary determines that a
State has violated the State plan described in section 678(b)
(including the assurance described in section 678(b)(6)) and the State
has reduced or eliminated the funding provided under section 679(a) to
any eligible entity or entities or terminated the eligible entity
designation of any eligible entity or entities before the completion of
the State proceedings described in section 678(b)(6) (including, if
applicable, the proceedings required by subsection (b)) and the
Secretary's review as required by subsection (c), the Secretary may
provide financial assistance under this subtitle to the affected
eligible entity or entities directly until the violation is corrected
by the State. In such a case, the Secretary may reduce funding the
State would otherwise have received under section 675 or 676 (and, if
necessary, deobligate such funding) for the appropriate fiscal year by
an amount equal to the financial assistance provided directly by the
Secretary to such eligible entity or entities.
``SEC. 685. STATE AND LOCAL FISCAL CONTROLS AND AUDITS.
``(a) Fiscal Controls, Procedures, Audits, and Inspections.--A State
that receives funds under this subtitle shall--
``(1) establish fiscal control and fund accounting procedures
necessary to assure the proper disbursal of, and accounting
for, Federal funds paid to the State under this subtitle,
including procedures for monitoring the funds provided under
this subtitle;
``(2) ensure that cost and accounting standards of the Office
of Management and Budget apply to a subrecipient of the funds
under this subtitle;
``(3) in accordance with subsections (b) and (c), prepare,
not less than once each year, an audit of the expenditures of
the State of amounts received under this subtitle; and
``(4) make appropriate books, documents, papers, and records
available to the Secretary and the Comptroller General of the
United States, or any of their duly authorized representatives,
for examination, copying, or mechanical reproduction, on or off
the premises of the appropriate entity, upon a reasonable
request for the items.
``(b) Independent Entity.--Subject to subsection (c), each audit
required by subsection (a)(3) shall be conducted by an entity
independent of any agency administering activities or services under
this subtitle and shall be conducted in accordance with generally
accepted accounting principles.
``(c) Single Audit Requirements.--
``(1) In general.--Any audit under this subsection shall be
conducted in the manner and to the extent provided in chapter
75 of title 31, United States Code (commonly known as the
`Single Audit Act Amendments of 1984') except in the event a
serious financial deficiency is identified.
``(2) Serious financial deficiency.--In the event that such a
deficiency is identified, the Secretary shall order--
``(A) an audit conducted as described in subsection
(a); or
``(B) an audit of each of the accounts involved, in
accordance with subsections (b) and (d).
``(d) Submission of Copies.--Not later than 30 days after the
completion of each audit in a State as required in subsection (a)(3),
the chief executive officer of the State shall submit copies of such
audit, at no charge, to any eligible entity that was the subject of the
audit, to the legislature of the State, and to the Secretary.
``(e) Repayments.--If the Secretary, after review of the audit, finds
that a State has not expended an amount of funds in accordance with
this subtitle, the Secretary is authorized to withhold funds from a
State under this subtitle until the State remedies the improperly
expended funds for the original purposes for which the grant funds were
intended.
``(f) Response to Complaints.--The Secretary shall respond in an
expeditious manner to complaints of a substantial or serious nature
that a State has failed to use grant funds received under section 675
or 676 or to carry out State activities under this subtitle in
accordance with the provisions of this subtitle.
``(g) Investigations.--Whenever the Secretary determines that there
is a pattern of complaints regarding failures described in subsection
(f) or a complaint of a serious deficiency concerning any State, the
Secretary shall conduct an investigation of the use of the funds
received under this subtitle by such State in order to ensure
compliance with the provisions of this subtitle.
``SEC. 686. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
``(a) State Accountability and Reporting Requirements.--
``(1) Performance measurement.--
``(A) In general.--Beginning with the first fiscal
year following the transition period described in
section 3 of the Community Services Block Grant
Modernization Act of 2022, each State that receives
funds under this subtitle shall participate, and shall
ensure that all eligible entities in the State
participate, in a results-oriented performance
measurement system that the Secretary is satisfied
meets the requirements of section 689(b)(1).
``(B) Subcontractors.--The State may elect to have
subcontractors of the eligible entities under this
subtitle participate in the results-oriented
performance measurement system. If the State makes that
election, references in this section to eligible
entities shall be considered to include such
subcontractors.
``(C) Eligible entity reports.--Eligible entities
shall provide the results measured by their performance
measurement system and such other reports as the State
may require.
``(2) Annual report.--Each State receiving funds under this
subtitle shall annually prepare, and submit to the Secretary by
March 31 of each year, a report on the performance of the State
and eligible entities in the State, including achievement with
respect to performance measurements that were used by community
services network organizations in the State for the previous
fiscal year. Each State shall also include in the report--
``(A) an accounting of the expenditure of funds
received by the State through the community services
block grant program, including an accounting of funds
spent on administrative or indirect costs by the State
and the eligible entities and funds spent by the
eligible entities on local programs, projects, and
services;
``(B) information on the number and characteristics
of participants served under this subtitle in the
State, based on data collected from the eligible
entities;
``(C) a summary describing the training and technical
assistance offered by the State under subparagraph (B)
of section 679(b)(1) during the year covered by the
report;
``(D) information on the total budget and activities
of the eligible entities receiving subgrants from the
State under this subtitle, including local and private
resources available for a purpose described in section
672; and
``(E) a report on the manner in which the State and
eligible entities and other recipients of funds under
this subtitle have implemented results-oriented
management practices based on their performance
measurement systems.
``(b) Reporting Requirements.--
``(1) Contents.--Not later than September 30 of each year,
the Secretary shall, directly or by grant or contract, prepare
a report including--
``(A) the information included in the State annual
reports under subsection (a)(2) for the preceding
fiscal year;
``(B) a report on the performance of the Department
in the preceding year regarding carrying out critical
roles and responsibilities under this subtitle,
including with regard to timeliness in allocating and
making appropriated funds available for expenditure to
States, approvals or notifications to States concerning
State plans and plan revisions, and conducting
assessments of States and implementation of State
corrective action plans (including status of and
follow-up on recommendations made in previous State
assessments and corrective action plans);
``(C) a description of the training and technical
assistance activities funded by the Secretary under
section 682 and the results of those activities; and
``(D) a report on the Community Action Innovations
Program authorized under section 682(a)(2), including a
description of training and technical assistance funded
by the Secretary, the rationale for projects that
received support, a description of funded activities
and their results, and a summary of ways in which the
Program has expanded use of evidence-based practice or
contributed to building the evidence base designed to
reduce poverty conditions.
``(2) Submission.--The Secretary shall submit to the
Committee on Education and Labor of the House of
Representatives and to the Committee on Health, Education,
Labor, and Pensions of the Senate the report described in
paragraph (1) and any recommendations the Secretary may have
with respect to such report.
``(3) Electronic data system for reports to states and
eligible entities.--The Secretary, through the Department's own
employees or contractors (rather than under grants, contracts,
or cooperative agreements issued under section 682), shall
provide technical assistance, including support for the
development and maintenance of an electronic data system for
the reports under this section, to the States and eligible
entities to enhance the quality and timeliness of reports
submitted under this subtitle. The system shall be coordinated
and consistent with the data systems established for other
programs of the Department that are managed by eligible
entities, including all programs of the Administration for
Children and Families or successor administrative units in
which the office is located.
``SEC. 687. LIMITATIONS ON USE OF FUNDS.
``(a) Construction of Facilities.--
``(1) Limitations.--Except as provided in paragraphs (2) and
(3) of this subsection and in paragraphs (2) and (3) of section
690(a), grants or subgrants made under this subtitle may not be
for the purchase or improvement of land, or the purchase,
construction or permanent improvement of any building or other
facility.
``(2) Waiver.--The Secretary may waive the limitation
contained in paragraph (1) upon a State request for such a
waiver if the Secretary finds that--
``(A) the request describes extraordinary
circumstances to justify the purchase or improvement of
land, or the purchase, construction, or permanent
improvement of any building or other facilities; and
``(B) permitting the waiver will contribute to the
ability of the State and eligible entities to carry out
a purpose described in section 672 at substantially
reduced costs.
``(3) Architectural barriers to accessibility.--Grants or
subgrants made under this subtitle may be used by eligible
entities or Tribal grantees for making material improvements in
the accessibility of the physical structures for individuals
with disabilities seeking services of such entities.
``(b) Political Activities.--
``(1) Treatment as a state or local agency.--For purposes of
chapter 15 of title 5, United States Code, any entity that
assumes responsibility for planning, developing, and
coordinating activities under this subtitle and receives
assistance under this subtitle shall be deemed to be a State or
local agency. For purposes of paragraphs (1) and (2) of section
1502(a) of such title, any entity receiving assistance under
this subtitle shall be deemed to be a State or local agency.
``(2) Prohibitions.--A program, project, or service assisted
under this subtitle, and any individual employed by, or
assigned to or in, such a program, project, or service (during
the hours in which the individual is working on behalf of the
program, project, or service) shall not engage in--
``(A) any partisan or nonpartisan political activity
or any political activity associated with a candidate,
or contending faction or group, in an election for
public or party office; or
``(B) any activity to provide voters or prospective
voters with transportation to the polls or similar
assistance in connection with any election.
``(3) Registration.--None of the funds appropriated to carry
out this subtitle may be used to conduct voter registration
activities. Nothing in this subtitle prohibits entities
receiving assistance under this subtitle from making its
facilities available during hours of operation for use by
nonpartisan organizations to increase the number of eligible
citizens who register to vote in elections for Federal office.
``(c) Nondiscrimination.--
``(1) In general.--No person shall, on the basis of race,
color, national origin, or sex, be excluded from participation
in, be denied the benefits of, or be subjected to
discrimination under, any program, project, or service funded
in whole or in part with funds made available under this
subtitle. Any prohibition against discrimination on the basis
of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101
et seq.) or with respect to an otherwise qualified individual
with a disability as provided in section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), or title II of the
Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et
seq.), shall also apply to any such program, project, or
service.
``(2) Action of secretary.--Whenever the Secretary determines
that a State that has received a payment under this subtitle
has failed to comply with paragraph (1) or an applicable
regulation, the Secretary shall notify the chief executive
officer of the State and shall request that the officer secure
compliance. If within a reasonable period of time, not to
exceed 60 days, the chief executive officer fails or refuses to
secure compliance, the Secretary is authorized to--
``(A) refer the matter to the Attorney General with a
recommendation that an appropriate civil action be
instituted;
``(B) exercise the powers and functions provided by
title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.), the Age Discrimination Act of 1975 (42
U.S.C. 6101 et seq.), section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794), or title II of the
Americans with Disabilities Act of 1990 (42 U.S.C.
12131 et seq.), as may be applicable; or
``(C) take such other action as may be provided by
law.
``(3) Action of attorney general.--When a matter is referred
to the Attorney General pursuant to paragraph (2), or whenever
the Attorney General has reason to believe that the State is
engaged in a pattern or practice of discrimination in violation
of the provisions of this subsection, the Attorney General may
bring a civil action in any appropriate United States district
court for such relief as may be appropriate, including
injunctive relief.
``SEC. 688. CHILD SUPPORT SERVICES AND REFERRALS.
``During each fiscal year for which an eligible entity receives a
subgrant under section 679(a), such entity shall--
``(1) inform custodial parents or legal guardians that
participate in programs, projects, or services carried out or
provided under this subtitle about the availability of child
support services; and
``(2) refer custodial parents or legal guardians to the child
support offices of State and local governments.
``SEC. 689. REGULATIONS.
``(a) Regulations.--The Secretary shall promulgate regulations
implementing this subtitle, including regulations regarding--
``(1) State plans, including the form and information
required for State plans submitted to the Secretary, and
criteria for determining whether a State plan revision is to be
considered a major revision;
``(2) community action plans, including the form and
information required for community action plans submitted to
States;
``(3) State monitoring of eligible entities; and
``(4) reports to the Secretary described in section 686.
``(b) Guidance.--
``(1) Performance measurement.--The Secretary shall issue
guidance regarding State and local performance measurement
systems. Guidance may include one or more model performance
measurement systems, facilitated by the Secretary, that States
and eligible entities may use to measure their performance in
carrying out the requirements of this subtitle and in achieving
the goals of their community action plans.
``(2) Comprehensive analysis of poverty conditions.--The
Secretary shall issue guidance (including models) for
comprehensive community needs assessments described in section
678(e)(1). The guidance shall include methods for preparing an
analysis of all poverty conditions affecting a community and of
local and regional assets for alleviating such conditions.
``SEC. 690. DISCRETIONARY COMMUNITY PROGRAMS.
``(a) Grants, Contracts, Arrangements, Loans, and Guarantees.--
``(1) In general.--The Secretary shall, from funds
appropriated under section 691(b), make grants, loans, or
guarantees to States and public agencies and private, nonprofit
organizations, or enter into contracts or jointly financed
cooperative arrangements with States and public agencies and
private, nonprofit organizations (and for-profit organizations,
to the extent specified in paragraph (2)(E)) for each of the
objectives described in paragraphs (2) through (4).
``(2) Community economic development.--
``(A) Economic development activities.--The Secretary
shall make grants described in paragraph (1) on a
competitive basis to private, nonprofit organizations
that are community development corporations to provide
technical and financial assistance for economic
development activities designed to address the economic
needs of low-income individuals and families by
creating employment and business development
opportunities.
``(B) Consultation.--The Secretary shall exercise the
authority provided under subparagraph (A) after
consultation with other relevant Federal officials.
``(C) Governing boards.--For a community development
corporation to receive funds to carry out this
paragraph, the corporation shall be governed by a board
that shall--
``(i) consist of residents of the community
and business and civic leaders; and
``(ii) have as a principal purpose planning,
developing, or managing low-income housing or
community development projects.
``(D) Geographic distribution.--In making grants to
carry out this paragraph, the Secretary shall take into
consideration the geographic distribution of funding
among States and the relative proportion of funding
among rural and urban areas.
``(E) Reservation.--Of the amounts made available to
carry out this paragraph, the Secretary may reserve not
more than 1 percent for each fiscal year to make grants
to private, nonprofit organizations or to enter into
contracts with private, nonprofit, or for-profit
organizations to provide technical assistance to aid
community development corporations in developing or
implementing activities funded to carry out this
paragraph and to evaluate activities funded to carry
out this paragraph.
``(3) Rural community development activities.--The Secretary
shall provide the assistance described in paragraph (1) for
rural community development activities, which shall include
providing--
``(A) grants to private, nonprofit organizations to
enable the organizations to provide assistance
concerning home repair to rural low-income families and
planning and developing low-income rural rental housing
units; and
``(B) grants to multi-State, regional, private,
nonprofit organizations to enable the organizations to
provide training and technical assistance to small,
rural communities concerning meeting their community
facility needs.
``(4) Broadband navigator projects.--
``(A) Navigator project authority.--The Secretary is
authorized to provide assistance described in paragraph
(1) for broadband navigator projects consistent with
the purposes of this Act to address the educational and
economic needs of low-income individuals and
communities.
``(B) Navigator grants.--The Secretary shall make
grants consistent with subparagraph (A) to community
action agencies and Tribal grantees to enable them to
provide assistance through trained navigators to low-
income individuals and communities to help facilitate
access to affordable high-speed broadband service,
internet-enabled devices, digital literacy training,
technical support, and other services to meet the
broadband and digital needs of such individuals and
communities.
``(C) Priority.--Priority in the awarding of such
grants under paragraph (4) shall be given to community
action agencies and Tribal grantees serving underserved
areas with the most significant unmet broadband and
digital needs.
``(D) Technical assistance.--Of the amounts made
available to carry out broadband navigator projects,
the Secretary may reserve up to 5 percent for grant
review, technical assistance, and evaluation.
``(b) Evaluation.--The Secretary shall require all activities
receiving assistance under this section to be evaluated for their
effectiveness. Funding for such evaluations shall be provided as a
stated percentage of the assistance or through a separate grant or
contract awarded by the Secretary specifically for the purpose of
evaluation of a particular activity or group of activities.
``(c) Annual Report.--The Secretary shall compile an annual report
containing a summary of the evaluations required under subsection (b)
and a listing of all activities assisted under this section. The
Secretary shall annually submit such report to the chairperson of the
Committee on Education and Labor of the House of Representatives and
the chairperson of the Committee on Health, Education, Labor, and
Pensions of the Senate.
``SEC. 691. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this subtitle (excluding section 690)--
``(1) $1,000,000,000 for each of fiscal years 2023 through
2027; and
``(2) such sums as may be necessary for fiscal years 2028
through 2032.
``(b) Discretionary Programs.--There are authorized to be
appropriated to carry out section 690 such sums as may be necessary for
fiscal years 2023 through 2032.
``(c) Reservations by the Secretary.--Of the amounts appropriated
under subsection (a) for each fiscal year, the Secretary shall
reserve--
``(1) \1/2\ of 1 percent for carrying out section 675
(relating to grants to territories);
``(2) 2 percent for activities authorized in section
682(a)(1), of which--
``(A) not less than 50 percent of the amount reserved
by the Secretary under this paragraph shall be awarded
through grants, contracts, or cooperative agreements to
eligible entities, Tribal grantees, and other community
services network organizations described in section
682(b), for the purpose of carrying out activities
described in section 682(a)(1)(B); and
``(B) the remainder of the amount reserved by the
Secretary under this paragraph may be awarded through
grants, contracts, or cooperative agreements to
eligible entities, Tribal grantees, and other community
services network organizations described in section
682(b), or other entities with demonstrated expertise
in providing training for individuals and organizations
on methods of effectively addressing the needs of low-
income families and communities and, if appropriate,
expertise in Tribal issues;
``(3) 1 percent for the Community Action Innovations Program
authorized in section 682(a)(2); and
``(4) up to $5,000,000 for each of the fiscal years 2023,
2024, and 2025, to carry out section 686(b)(3).
``SEC. 692. REFERENCES.
``A reference in any provision of law to the poverty line set forth
in section 624 or 625 of the Economic Opportunity Act of 1964 shall be
construed to be a reference to the poverty line defined in section 673
of this subtitle. Except as otherwise provided, any reference in any
provision of law to any community action agency designated under title
II of the Economic Opportunity Act of 1964 shall be construed to be a
reference to an entity eligible to receive funds under the community
services block grant program.''.
SEC. 3. TRANSITION PERIOD.
(a) Transition Period.--The Secretary of Health and Human Services
shall expeditiously announce a transition period for the implementation
of any changes in regulations, procedures, guidance, and reporting
requirements of the Community Services Block Grant Act (42 U.S.C. 9901
et seq.) as amended by this Act, from the regulations, procedures,
guidance, and reporting requirements of the Community Services Block
Grant Act (42 U.S.C. 9901 et seq.) as in effect immediately before the
date of enactment of this Act.
(b) Federal Training.--The transition period shall include the
availability of Federal training for States and eligible entities
regarding compliance with new requirements under the Community Services
Block Grant Act (42 U.S.C. 9901 et seq.) as amended by this Act.
(c) Timing.--The transition period described in this section--
(1) may not extend later than the date that is 3 months prior
to the start of the second fiscal year after the date of
enactment of the Community Services Block Grant Modernization
Act of 2022;
(2) notwithstanding (1), may not extend later than two years
after the date of enactment of the Community Services Block
Grant Modernization Act of 2022 for the issuance of final
regulations implementing this subtitle; and
(3) may require that certain regulations, procedures, and
reporting requirements be adopted before other regulations,
procedures, or reporting requirements.
SEC. 4. CONFORMING AMENDMENTS.
Section 306(a)(6)(C)(ii) of the Older Americans Act of 1965 (42
U.S.C. 3026(a)(6)(C)(ii)) is amended by inserting ``or subsequent
years'' after ``fiscal year 1982'' and by striking ``section 676B of
the Community Services Block Grant Act'' and inserting ``section 680(c)
of the Community Services Block Grant Act''.
Purpose and Summary
The purpose of H.R. 5129, the Community Services Block
Grant Modernization Act of 2022,\1\ is to modernize and
reauthorize the Community Services Block Grant Act (the CSBG
Act or the Act).\2\
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\1\H.R. 5129, 117th Cong. (as reported by the H. Comm. on Ed. &
Labor, Mar. 16, 2022).
\2\Pub. L. No. 97-35, 95 Stat. 511 (1981) (codified as amended at
42 U.S.C. Sec. Sec. 9901-9926).
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The Community Services Block Grant provides grants to
states and territories which then distribute subgrants to local
eligible entities that provide poverty-alleviating programs and
services to improve the economic conditions of low-income
individuals, families, and communities. These local entities
include, but are not limited to, local governments, migrant and
seasonal farmworker organizations,\3\ Indian Tribes,\4\ and
Community Action Agencies (CAAs)--the primary subgrantees of
CSBG--led by private, nonprofit organizations or by local
public/government agencies. In addition to the block grant
program, the Act authorizes several discretionary programs that
are carried out by the U.S. Department of Health and Human
Services (HHS). CSBG's predecessor was first authorized as the
Community Action Program in 1964 as part of the Economic
Opportunity Act of 1964 and was later converted into a block
grant in 1981. The CSBG Act has not been reauthorized since
1998. Reauthorization will ensure greater certainty for CAAs
and other eligible entities that provide crucial services for
low-income communities and modernize outdated provisions so
that the Act and its programs can better address conditions of
poverty.
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\3\The Economic Opportunity Act of 1964 greatly expanded programs
for farmworkers, including migrant and seasonal workers, and provided
services to farmworkers such as temporary housing, full time day-care,
and referral and assistance services. See Pub. L. No. 88-452, 78 Stat.
508, 524-27 (1964) repealed by Omnibus Budget Reconciliation Act of
1981, Pub. L. No. 97-35, Title VI, Sec. 683(a), 95 Stat. 357, 519.
Following the enactment of the Economic Opportunity Act, over 100
farmworker projects were implemented in 35 states under the Office of
Economic Opportunity (OEO). See U.S. Dep't of Health, Ed. & Welfare,
Off. Of Econ. Opportunity, OEO Programs for Migrant and Seasonal Farm
Workers 7-9 (1969), https://files.eric.ed.gov/fulltext/ED028877.pdf.
OEO supported fewer projects for farmworkers as time went on and local
sources supported these activities instead. Prior to enactment,
essentially no programs/organizations supported farmworkers, let alone
migrant or seasonal workers. As of 2018, there were twelve migrant and/
or seasonal farmworker organizations in nine states (Arizona,
California, Florida, Idaho, New Jersey, New York, Oregon, Washington,
and Wisconsin). These organizations are treated as eligible entities
under CSBG. See Nat'l Ass'n for State Cmty. Servs. Programs, The FFY
CSBG 2018 National Performance Update, 7 (2021), https://nascsp.org/
wpcontent/uploads/2021/05/NASCSP_2018_National_Report_051421.pdf.
\4\Tribal grantees are defined under H.R. 5129 as an Indian Tribe
or Tribal organization receiving direct CSBG funds from the U.S.
Department of Health and Human Services. See House Bill 5129, supra
note 1. Indian Tribes may receive funding either as a subgrantee from a
state (considered eligible entities) or may opt to receive a grant
directly from the U.S. Department of Health and Human Services
(considered Tribal grantees).
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H.R. 5129 reauthorizes the CSBG Act for ten years and
authorizes appropriations for $1 billion annually for FY 2023-
FY 2027 and ``such sums'' for FY 2028-FY 2032. The bill also
updates the small state funding formula, increasing its minimum
allotment from half of one percent to three-quarters of one
percent when appropriations reach $900 million (after
reservations required under section 691(c)). Importantly, the
bill permanently increases income eligibility to 200 percent of
the federal poverty level (FPL) while also giving states,
territories, and Tribal grantees the added flexibility of
serving individuals who exceed the eligibility threshold if
they are continuing to make progress toward their goals of a
program or service. For example, this would allow a CAA to
continue to provide child care assistance and transportation
assistance to a single parent who has recently received a job
offer as he or she continues toward a goal of self-sufficiency.
To ensure a solid foundation for the program's future, the bill
modernizes and streamlines the CSBG program to strengthen
management functions at the federal, state, and local levels
while also enhancing accountability and performance
requirements. H.R. 5129 enjoys the support of the National
Community Action Foundation (NCAF) and the National Association
for State Community Services Programs (NASCSP).
Committee Action
116TH CONGRESS
On March 12, 2019, the Community Services Block Grant
Reauthorization Act of 2019 (H.R. 1695) was introduced by
Representatives Betty McCollum (D-MN-4), Glenn Thompson (R-PA-
15), Marcia Fudge (D-OH-11), and Elise Stefanik (R-NY-21) and
was referred to the Committee on Education and Labor. No
further action was taken.
117TH CONGRESS
On August 31, 2021, the Community Services Block Grant
Modernization Act of 2021 (H.R. 5129) was introduced by
Representatives Suzanne Bonamici (D-OR-1), Thompson, McCollum,
Stefanik, Mark DeSaulnier (D-CA-11), and James Comer (R-KY-1)
and was referred to the Committee on Education and Labor. While
H.R. 5129 maintains the overall structure of the CSBG Act under
current law, it makes several key changes to the funding level
and formulas, eligibility requirements for those served,
administrative processes, and other improvements.
On November 3, 2021, the Committee on Education and Labor's
Subcommittee on Civil Rights and Human Services (Subcommittee)
held a hearing titled ``A Call to Action: Modernizing the
Community Services Block Grant'' (November 3rd Hearing). The
purpose of this hearing was to examine how the CSBG Act reduces
poverty and helps low-income individuals and communities
develop economically, as well as discuss the changes H.R. 5129
makes to improve and modernize the Act. The Committee heard
testimony from Mr. David Bradley, Chief Executive Officer of
the National Community Action Foundation, Fredericksburg,
Virginia; Ms. Katherine King Galian, Director of Family and
Community Resources of Community Action, Hillsboro, Oregon; Ms.
Sharon Scott-Chandler, Executive Vice President and Chief
Operating Officer of Action for Boston Community Development,
Inc., Boston, Massachusetts; and Mr. Clarence H. Carter,
Commissioner of the Tennessee Department of Human Services,
Nashville, Tennessee.
On March 16, 2022, the Committee marked up H.R. 5129. The
Committee considered the following amendments to H.R. 5129:
Rep. Bonamici offered an amendment in the
nature of a substitute. The amendment was adopted by
voice vote.
Rep. Tim Walberg (R-MI-7) offered an
amendment to reinstate current law's charitable choice
provision. The amendment was defeated by a vote of 22
Yeas and 28 Nays.
Rep. Diana Harshbarger (R-TN-1) offered an
amendment to reinstate a provision in current law
requiring states to provide an assurance that the state
and eligible entities will coordinate with other social
service programs to avoid duplication and describe how
the state and eligible entities will coordinate
employment and skills development activities with state
and local workforce systems under the Workforce
Innovation and Opportunity Act (WIOA). The amendment
was adopted by voice vote.
Rep. Lisa McClain (R-MI-10) offered an
amendment to strike language from the bill that allows
funding granted from the new Community Action
Innovations Program to fulfill non-federal match
requirements for the purposes of meeting such
requirements in other federal programs. The amendment
was adopted by voice vote.
Rep. Bob Good (R-VA-5) offered an amendment
to prohibit CSBG funds from being used to pay for or
reimburse for health care services. The amendment was
defeated by a vote of 22 Yeas and 28 Nays.
Rep. Glenn Grothman (R-WI-6) offered an
amendment to strike the income eligibility increase, to
restore the current law eligibility threshold (100
percent of the Federal Poverty Level (FPL) with a state
option to go up to 125 percent FPL), and to strike the
continued eligibility state option. The amendment was
defeated by a vote of 20 Yeas and 30 Nays.
Rep. Madison Cawthorn (R-NC-11) offered an
amendment to add voter registration activity as a
prohibited activity using program assistance personnel
and to prohibit the use of CSBG funds for the influence
of federal, state, or local agency actions regarding
executive orders, legislation, and petitions. The
amendment was defeated by a vote of 22 Yeas and 28
Nays.
Rep. Julia Letlow (R-LA-5) offered an
amendment to strike language from the bill that
requires tripartite boards to create a conflict-of-
interest policy and adds language regarding a
prohibition on board members, their immediate family
members, or their organizations from receiving direct
financial benefit from the CSBG program. The amendment
was defeated by a vote of 24 Yeas and 26 Nays.
H.R. 5129 was reported favorably, as amended, to the House
of Representatives by a vote of 35 Yeas and 14 Nays.
Committee Views
INTRODUCTION
As the legislative centerpiece for President Lyndon B.
Johnson's War on Poverty, the Economic Opportunity Act of 1964
(the 1964 Act) authorized community-based antipoverty programs
to address education, employment, and the general welfare of
low-income individuals and their communities.\5\ Title II of
the 1964 Act first authorized Community Action Programs (CAPs)
to carry out the mission of poverty-reduction through local
control and ``maximum feasible participation,'' a novel concept
that called for low-income individuals to have a seat at the
table in the development and administration of programs in
their communities.\6\ Under the 1964 Act, local CAPs received
funding through the then Office of Economic Opportunity, and
states played only a supportive role, receiving funding to
provide technical assistance to CAPs. In the Omnibus
Reconciliation Act of 1981 (the 1981 Act), Congress
significantly restructured the program from a national direct
grant program to a block grant program, the Community Service
Block Grant (CSBG) program, whereby states administer funds to
and provide oversight of local entities--predominantly CAAs,
formerly CAPs. This restructuring created the CSBG program's
framework that exists today. The 1981 Act also placed the
program under the newly created Office of Community Services
(OCS) within HHS.
---------------------------------------------------------------------------
\5\Economic Opportunity Act of 1964, Pub. L. No. 88-452, Sec. 202,
78 Stat. 508, 516 (1964), repealed by Omnibus Budget Reconciliation Act
of 1981, Pub. L. No. 97-35, Title VI, Sec. 1A683(a), 95 Stat. 357,
519.
\6\Id.
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The CSBG Act was then reauthorized in 1984, 1986, 1990,
1994, and 1998, and it has not been reauthorized since.\7\
Congress has continued to appropriate funds for the Act since
2003, when the last reauthorization expired. Today, the CSBG
program continues its core mission to support local antipoverty
programs that fit the unique needs of communities.
---------------------------------------------------------------------------
\7\The Community Services Block Grant was last reauthorized in
1998. See Pub. L. No. 105-285, tit. II, 112 Stat. 2702, 2728 (1998)
(codified at 42 U.S.C. Sec. Sec. 9901-9926).
---------------------------------------------------------------------------
COMMUNITY ACTION AGENCIES SUPPORT THE SOCIAL SAFETY NET
Federal funds for the CSBG program are allocated first to
states that then allocate funding to local eligible entities.
State agencies play a critical role in the administration and
distribution of federal CSBG resources, providing training,
technical assistance, and oversight. CAAs, the primary
subgrantees of CSBG, are local organizations, both private and
public, with the mission of reducing poverty through locally
designed and delivered programs and services. A nationwide
network of local agencies is dedicated to the mission of
addressing the causes and conditions of poverty to help low-
income individuals and families become economically stable,
secure meaningful employment and adequate education, gain and
improve literacy and job-related skills, obtain adequate
housing, address health needs, and participate in the
community.
This network of local agencies often administers other
federal programs that support individuals, children, families,
and communities. Out of the over 1,000 CAAs nationwide that
receive CSBG funding, more than half also administer the Low
Income Home Energy Assistance Program (LIHEAP) and the
Weatherization Assistance Program.\8\ In addition, CAAs often
also administer Head Start,\9\ Temporary Assistance for Needy
Families (TANF),\10\ the Child Care and Development Block Grant
(CCDBG),\11\ and others.
---------------------------------------------------------------------------
\8\Fact Sheet, Nat'l Ass'n for State Cmty. Servs. Programs, FFY
2019 State CSBG Fact Sheet (2021), https://nascsp.org/wp-content/
uploads/2021/04/FFY-2019-NATIONAL-CSBG-FACTSHEET-1.pdf.
\9\Approximately half of all CAAs run a Head Start program and just
over a third operate an Early Head Start program. See Cmty. Action
P'ship, Community Action & Head Start: Cases of Integration, 2 (2018),
https://communityactionpartnership.com/wp-content/uploads/2018/07/
CA_HS-Cases-of-Integration_July2018.pdf.
\10\Nat'l Ass'n for State Cmty. Servs. Programs, supra note 3 at
12.
\11\Id.
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Responding to Unique Community Needs
Each CAA directs funding to identified needs within the
community that it is designated to represent after conducting a
community needs assessment, which it then uses to create its
programming. The community needs assessment is conducted every
three years to identify the causes and issues surrounding
poverty in the community as well as the resources and services
that are needed to address them. Because of the flexibility
afforded under the statute, CSBG-funded programs are often
unique across the country, reflecting the tailoring to meet the
specific needs of different communities. In FY 2018, CAAs used
nearly 15 percent of CSBG funds for housing, nearly 15 percent
for health and social behavior development, nearly 13 percent
for employment, and nearly 11 percent for education.\12\ Ms.
Katherine King Galian, Director of Family and Community
Resources for Community Action in Hillsboro, Oregon discussed
the breadth of services provided during the November 3rd
Hearing, stating that, ``Our organization provides community-
based programs across a variety of categories including
financial education, career coaching, utility assistance, and
weatherization, emergency shelter, housing, parenting supports,
small business development and early childhood education.''\13\
Flexibility in the use of CSBG funds allows local entities to
address needs that are not explicitly accounted for or
addressed by other programs.
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\12\Id. at 15-16.
\13\A Call to Action: Modernizing the Community Services Block
Grant Before the H. Comm. On Educ. & Labor, 117th Cong. (Nov. 3, 2021)
[Hereinafter King Galian Testimony] (Statement of Katherine King
Galian, Director, Family and Community Resources for Community Action,
https://edlabor.house.gov/imo/media/doc/
GalianKingKatherineTestimony110321.pdf).
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Coordination of Programs and Services
Those served through CSBG often receive a suite of services
that support one another rather than services that only address
one issue. Eligible entities create coordinated interventions
and the CSBG program facilitates coordination of programs and
services from federal, state, and local sources in a way that
promotes efficient use of resources. For example, an individual
might receive support securing employment, pursuing an
education, accessing transportation, and obtaining child care
all through a CSBG-funded CAA. This comprehensive approach
recognizes that there are many causes of poverty and a solution
for one cause can often be unsuccessful without addressing
other barriers and challenges. Furthermore, a significant share
of services provided by CSBG, about 18 percent, goes to
activities supporting multiple needs, including case
management, transportation, and child care.\14\ According to
the Community Action Partnership, this ``braiding and blending
[of] resources,'' including those leveraged from the private
sector, allows these local agencies to not only tailor services
to meet the unique needs of individuals, but also address
multiple, simultaneous needs that individuals may have.\15\
Coordinating services not only promotes efficient use of
resources, but ``[r]esearch has shown that individuals who
receive coordinated or `bundled' services are three to four
times likely to achieve a major economic outcome such as
gaining and maintaining employment, earning a vocational
certification or associate's degree, or buying a car, than
individuals receiving only one type of service.''\16\ In the
November 3rd Hearing, Ms. King Galian described how her
organization uses CSBG funding to comprehensively address the
needs of individuals saying, ``Families and individuals are
more successful in their efforts to escape poverty when
interventions are sequenced and coordinated in a way that
reflects the realities of the human experience.''\17\ At its
core, community action is about community building that brings
together fragmented resources and interests to maximize and
coordinate the available resources for low-income
individuals.\18\ Further, the broad purposes of CSBG reflect
the interconnectedness of various conditions of poverty--
health, education, employment, nutrition, among others--and the
impact they have on the well-being of low-income individuals
and their communities.
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\14\Nat'l Ass'n for State Cmty. Servs. Programs, supra note 3 at
15-16.
\15\Cmty. Action P'ship, Report: How Did the Community Action
Network Respond to the COVID-19 Pandemic? 17 (2021), https://
communityactionpartnership.com/wp-content/uploads/2022/03/National-
Community-Action-Partnership-ANCRT-Report-Final.pdf.
\16\Nat'l Ass'n for State Cmty. Servs. Programs, supra note 3 at 4.
\17\King Galian Testimony, supra note 13.
\18\A long-standing means to achieve the purposes of CSBG is by
``coordinating Federal, State, local and other assistance, including
private resources, related to the reduction of poverty so that
resources can be used in a manner responsible to local needs and
conditions.'' 42 U.S.C. Sec. 9901(2)(A). See also H.R. 5129, 117th
Cong. Sec. 672(2)(D) (2021).
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H.R. 5129 strengthens provisions related to coordination in
several ways. Under H.R. 5129, statewide funds can be used to
support eligible entities' response to regional or statewide
conditions and also used to promote coordination among eligible
entities. States play a crucial role in promoting the
coordination of programs and resources within their states
while also providing oversight and support in the form of
technical assistance and training to eligible entities. The
bill requires that in carrying out a community action plan,
eligible entities include public and private partnerships for
the coordination of services to effectively utilize resources
and requires them to detail how activities in the plan will
achieve the purposes of the Act. Though CSBG funds generally
only make up a small percentage of a local agency's budget,
they play a vital role in supporting the overall infrastructure
of local agencies to build and manage an integrated service
delivery system for their communities.\19\
During the Committee's consideration of H.R. 5129, an
amendment offered by Rep. Harshbarger was adopted to reinstate
a provision from current law requiring an assurance that the
state and eligible entities coordinate programs funded through
CSBG funds with other social services programs and also
coordinate employment and skills development activities with
state and local workforce systems under the Workforce
Innovation and Opportunity Act (WIOA). This reinforces a core
function of the CSBG program to leverage and coordinate
resources and programs within a state. Under current law,
community action agencies are required partners in WIOA's One-
Stop centers and states must coordinate workforce activities to
avoid duplication.\20\ The amendment helps to maintain the
important coordination between WIOA and the CSBG program.
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\19\Nat'l Ass'n for State Cmty. Servs. Programs, supra note 3 at
12.
\20\29 U.S.C. Sec. 3151(b)(1)(B). Moreover, under WIOA a state may
develop a combined plan for its programs, including the employment and
training activities offered under CSBG programs.
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Community-driven Leadership
An important feature of all eligible entities that receive
funding to administer the CSBG program--including CAAs--is the
tripartite board that governs the entity. A tripartite board is
a three-part board composed of representatives from public and
private entities with a range of backgrounds as well as members
that represent low-income individuals from the community
served. For private agency boards, one-third of the board's
members must be comprised of elected public officials or their
representatives, and at least one third must be representatives
from low-income communities. The remaining one-third may
include leaders in the private sector, such as businesses,
faith-based organizations, and civic groups.
H.R. 5129 maintains this structure, and for public
agencies, improves current law by clarifying required
components for public agency tripartite boards. Current law
requires public agencies to have a tripartite board but only
specifies the participation requirements for low-income
individuals.\21\ In practice, and as outlined in the guidance
on organizational standards, most public agencies have
tripartite boards that mirror the general requirements of
private agencies.\22\ To update the statute, H.R. 5129 includes
similar and parallel requirements for public boards and private
boards. For public boards, no more than one-third shall be
comprised of local government employees or officials and, at a
minimum, one-third of the members shall be democratically
selected local representatives of low-income individuals and
families. The bill also specifies that the remaining one-third
of the public board may include representatives from groups,
such as business, industry, labor, religious, educational,
charitable, and other significant private groups in the
community. H.R. 5129 clarifies and restructures the language in
current law pertaining to board requirements, including
selection of board members who may be elected to represent a
specific geographic area.\23\ The representation of individuals
from low-income communities on local agency boards ensures
direct input from those being served by the CAAs, fulfilling a
core purpose that is unique to the CSBG program and was first
enunciated by the Economic Opportunity Act that programs be
developed and administered with maximum feasible participation
of residents in their communities.\24\
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\21\42 U.S.C. Sec. 9910.
\22\See Information Memorandum No. 138 from Dep't of Health and
Human Servs., Off. Of Cmty. Servs. to the State Cmty. Servs. Block
Grant Administrators (Jan. 26, 2015), https://www.acf.hhs.gov/sites/
default/files/documents/ocs/
im_138_csbg_organizational_standards_fy_2015.pdf.
\23\The specific drafting is to clarify that the residency of the
representative is a board composition requirement, but not an
additional obligation under the ``democratic selection procedures''.
See House Bill 5129, supra note 19.
\24\Pub. L. No. 88-452, Sec. 202, 78 Stat. 508, 516 (1964),
repealed by Omnibus Budget Reconciliation Act of 1981, Pub. L. No. 97-
35, Title VI, Sec. 683(a), 95 Stat. 357, 519.
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H.R. 5129 retains the structure of the tripartite board
while adding requirements to strengthen boards' obligations,
management, and duties. The bill adds that eligible entities
must provide public and private nonprofit boards with access to
resources which may include access to contracted services with
experts in law, financial management, and accounting, and it
adds the requirement that boards of private nonprofits comply
with section 501(a) of the Internal Revenue Code of 1986 (the
Code) relating to the governance of charitable nonprofits
organized under the Code.\25\ In addition to adding
requirements to improve the management of boards, H.R. 5129
bolsters the state training and technical assistance available
to boards and eligible entities to support professional
development in the areas of organizational management and
program operations.
---------------------------------------------------------------------------
\25\26 U.S.C. Sec. Sec. 501(a), 501(c)(3).
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H.R. 5129 also sets out the duties of the board, including
a requirement to adopt a code of ethical conduct that includes
a conflict-of-interest policy for members. The requirement to
adopt such policy reflects long-standing agency practice and
HHS guidance.\26\ An amendment regarding this conflict-of-
interest requirement was offered by Rep. Letlow and was
defeated. The amendment as drafted struck the requirement for
boards to adopt a conflict-of-interest policy requirement and
sought to restrict board members and family members from
directly benefiting from the eligible entities.\27\ While the
Committee agrees that individual board members should not
benefit financially solely because of their position, the
amendment offered as drafted could harm the very agencies the
amendment seeks to protect, thereby undermining recruitment of
board members and potentially limiting partnerships. For
instance, an eligible entity may work with a domestic violence
shelter to provide culturally competent services to survivors
of violence, and a representative of the shelter may sit on the
eligible entity's board. The amendment would have prohibited
both an employee of the shelter as well as a recipient of
services from the shelter from serving on the eligible entity's
board if the eligible entity provided funding to the shelter.
The amendment also failed to align with the Internal Revenue
Service (IRS) procedures for resolving conflicts of interest or
to account for the IRS exception on benefits received as a
member of a charitable class.\28\
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\26\Information Memorandum No. 82 from Dep't of Health and Human
Servs., Off. Of Cmty. Servs. to the State Cmty. Servs. Block Grant
Program Directors et al. (Mar. 23, 2005), https://www.acf.hhs.gov/ocs/
policy-guidance/csbg-im-82-tripartite-boards. See also Information
Memorandum No. 138 from Dep't of Health and Human Servs., Off. Of Cmty.
Servs. to the State Cmty. Servs. Block Grant Administrators (Jan. 26,
2015), https://www.acf.hhs.gov/sites/default/files/documents/ocs/
im_138_csbg_organizational_standards_fy_2015.pdf.
\27\The Committee notes that the amendment as offered struck the
requirement to establish a conflict-of-policy but then added additional
parameters to the original language that the amendment struck.
Therefore, in additional to the substantive concerns addressed in the
report, the amendment, as offered, could not be properly executed.
\28\26 C.F.R. Sec. 53.4958-4(a)(4)(v) (2002).
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Supporting Public-Private Partnerships to Leverage Funding and
Resources
CSBG funding is instrumental to the ability of eligible
entities to build private-public partnerships and maximize the
potential of the social safety net to ensure comprehensive
services for low-income individuals and families. In FY 2019,
CAAs partnered with 45,620 nonprofits, 48,688 for-profits,
19,166 faith-based organizations, and 10,402 school
districts.\29\ Since CSBG is the only federal program that has
the broad overreaching goal of reducing poverty, with no
reference to a specific cause, it is an invaluable source of
funding for CAAs to fill gaps in services, test innovative
poverty-reduction strategies, and provide emergency supports,
among other activities. In FY 2019, for every CSBG dollar, CAAs
leveraged $2.40 from private sources, $2.25 from local sources,
$12.34 from other federal programs, $2.49 from state sources,
and $0.35 from volunteer help.\30\
---------------------------------------------------------------------------
\29\Nat'l Ass'n for State Cmty. Servs. Programs, supra note 8.
\30\Id.
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Reach and Results in Communities Across the Country
In FY 2019, CAAs served over nine million individuals and
nearly five million families.\31\ In FY 2018, about 36 percent
of the clients were children and over 24 percent were 55 years-
of-age or older.\32\ About 70 percent had incomes at or below
the federal poverty line, and nearly a third of families had
incomes at or below 50 percent of the poverty guidelines,
categorized as severely poor.\33\ About 55 percent of
individuals reported they were white, 28 percent reported they
were African American, and 20 percent reported they were
Hispanic or Latino.\34\
---------------------------------------------------------------------------
\31\Id.
\32\Nat'l Ass'n for State Cmty. Servs. Programs, supra note 3 at
22.
\33\Id. at 19.
\34\Id. at 21.
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CAAs have been successful in reducing poverty. Among other
outcomes, in FY 2019, CAAs achieved:\35\
---------------------------------------------------------------------------
\35\Nat'l Ass'n for State Cmty. Servs. Programs, supra note 8.
---------------------------------------------------------------------------
254,756 outcomes in employment, defined as
obtaining and maintaining a job, increasing earnings,
and obtaining benefits;
1,528,322 outcomes in housing, defined as
obtaining and maintaining housing, avoiding eviction or
foreclosure, and reducing energy burden;
1,493,921 outcomes in education, defined as
improving literacy, school readiness, and obtaining
additional degrees;
2,835,065 outcomes in health and social/
behavioral development, defined as improving nutrition
and physical or mental health as well as living
independently; and
398,506 outcomes in income and asset
building, defined as maintaining a budget, opening a
savings account, increasing assets, and improving
financial well-being.
In the November 3rd Hearing, Ms. King Galian provided the
Subcommittee with one example of an individual, Patricia, who
was successfully served by a CAA under the Community Action
Network in Hillsboro, Oregon.\36\ Patricia lost her job and her
home in 2019. Using CSBG funds, the Community Action Network
arranged for Patricia to work with a career coach to become a
certified nursing assistant, which resulted in Patricia being
able to increase her earning potential and employability.
---------------------------------------------------------------------------
\36\King Galian Testimony, supra note 13.
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BOLSTERING THE ABILITY OF CSBG TO RESPOND TO COMMUNITY NEEDS
H.R. 5129 reauthorizes CSBG for ten years--$1 billion
annually from FY 2023-FY 2027 and such sums as necessary from
FY 2028-FY 2032. In the recently enacted omnibus appropriations
bill for FY 2022, CSBG received approximately $755 million for
the block grant to states and territories, an increase from
$745 million in FY 2021.\37\ Adjusted for inflation, this still
pales in comparison to initial funding in 1982.\38\ A 2017
report by the Center on Budget and Policy Priorities found that
annual funding for the CSBG program had declined by five
percent since 2000 and by eight percent since its inception in
1982, after adjusting for inflation.\39\ The decline is even
more dramatic when controlling for both inflation and
population growth, which shows that CSBG declined by 18 percent
since 2000 and 34 percent since its inception.\40\ By
increasing the authorization level for CSBG, H.R. 5129
mitigates the erosion of CSBG appropriations and addresses the
increased need for poverty reduction services, particularly as
the country recovers from the COVID-19 pandemic.
---------------------------------------------------------------------------
\37\Pub. L. No. 116-260, 134 Stat. 1182, 1584 (2021) (the law also
appropriated $20 million for the CED program and $10 million for the
RCD program).
\38\Conor F. Boyle, Cong. Rsch. Serv., RL32872, Community Services
Block Grants (CSBG): Background and Funding 21-24 (2018), https://
crsreports.congress.gov/product/pdf/RL/RL32872.
\39\David Reich et al., Ctr. On Budget and Pol'y Priorities, Block-
Granting Low-Income Programs Leads to Large Funding Declines Over Time,
History Shows, 4 (2017), https://www.cbpp.org/sites/default/files/
atoms/files/2-22-17bud.pdf.
\40\Id.
---------------------------------------------------------------------------
In March 2020, the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act) provided an additional $1 billion in
funding for the block grant to states, available for use until
September 30, 2022.\41\ These funds enabled expansions in
eligibility and innovation at a time of need and were
invaluable for CAAs during the COVID-19 pandemic.\42\ Because
CSBG provides flexible funding and local agencies already have
close ties with the communities and individuals they serve,
CAAs mobilized immediately at the onset of the COVID-19
pandemic. Specifically, CAAs were instrumental in providing
cross-cutting initiatives to promote health equity, support
public health education and outreach, remove barriers to
vaccine access, and support the rollout of vaccines.\43\ In
addition to their critical public health role, CAAs were also
involved in meeting basic needs, including distributing food
and other emergency assistance to suddenly unemployed
families.\44\ In the November 3rd Hearing, Ms. Sharon Scott-
Chandler, Executive Vice President and Chief Operating Officer
of Action for Boston Community Development, Inc., laid out how
the flexibility of CSBG allowed her organization to
``immediately [adapt] its emergency services safely to respond
early on in the crisis while many non-profits and government
entities remain closed.''\45\ The work of CAAs during the
COVID-19 pandemic reflects their role in providing emergency
assistance, whether during a health emergency or an economic
crisis such as the 2008 recession. CAA's actions to respond to
the COVID-19 pandemic also highlights their engagement on
health challenges facing their communities which has been a
core purpose of the CSBG program since its inception.\46\
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\41\Pub. L. No. 116-136, div. B, tit. VIII, 134 Stat. 281, 558
(2020) (codified at 15 U.S.C. ch. 116).
\42\During the 2008 economic crisis, CSBG also received funding
under the American Recovery and Reinvestment Act (ARRA). This allowed
CAAs to ``serve additional eligible families through existing programs,
implement innovative new programs and improve existing ones, and build
their capacity to effectively serve eligible families in the future.
Through the expanded provision of services, over 18,000 jobs were
created under CSBG ARRA.'' Carol J. De Vita & Margaret Simms et al.,
Urban Inst., Implementation of Community Services Block Grants under
ARRA, at v (2012), https://www.urban.org/sites/default/files/
publication/25571/412602-Implementation-of-Community-Services-Block-
Grants-under-ARRA.PDF.
\43\Memorandum, Nat'l Cmty. Action Found., Community Action Agency
Participation in Vaccine Education and Outreach, https://
static1.squarespace.com/static/5d2f38b4b9bb1b00018b555f/t/
605cebd20569c176819379d8/1616702418149/
Community+Action+Agency+Participation+in+
Vaccine+Education+and+Outreach.pdf (last visited Mar. 24, 2022).
\44\Cmty. Action P'ship, How the Community Action Network is
Responding to COVID-19, 2-5 (2021), https://
communityactionpartnership.com/wp-content/uploads/2021/09/NCAP-OCS-
Report-Final.pdf.
\45\A Call to Action: Modernizing the Community Services Block
Grant Before the H. Comm. on Educ. & Labor, 117th Cong. (Nov. 2, 2021)
[Hereinafter Scott-Chandler Testimony] (Statement of Sharon Scott-
Chandler, J.D., Executive Vice-President and CEO, Action for Boston
Community Development, Inc., https://edlabor.house.gov/download/
chandlerscottsharontestimony110321).
\46\ The 1964 Act specifically required that funded programs
address the health needs of low-income individuals and their
communities. Pub. L. No. 88-452, Sec. 205, 78 Stat. 508, 518 (1964).
---------------------------------------------------------------------------
Supporting Small States' Ability to Reach Communities
H.R. 5129 largely preserves the same funding formula laid
out in the Omnibus Reconciliation Act of 1981, which authorized
the Secretary of Health and Human Services (Secretary) to
allocate an amount to each state that is equal, as a percent of
the total amount allotted, to the percentage of the total
amount allotted to that state in 1981. The 1981 allotment was
based on the ratios determined in the Economic Opportunity Act
of 1964. In practice, this formula has meant that a state's
share of CSBG funding has remained roughly proportional over
time. However, the bill updates the small state minimum
allocation formula to better reflect current appropriations and
need. Under current law, the minimum amount allotted to any
state is half of one percent if the total amount that is
appropriated exceeds $345 million, which has been the case
since 1990 when the minimum allotment was increased from one-
quarter of one percent to half of one percent. H.R. 5129 would
increase the minimum allotment to three-quarters of one percent
when the amount appropriated after reservations exceeds $900
million, recognizing the need of the small state minimum to
increase as appropriations increase.
In FY 2020, the minimum state allocation provision applied
to twelve states, meaning that under the funding formula
enacted in 1981, twelve states were originally allotted less
than half of one percent of total funds, so the minimum
allocation provision effectively increased their funding.\47\
Many of these states that benefit from the small state
allotment are disproportionately rural, and CSBG-funded CAAs
are critically important in rural areas as they are often the
only provider for a wide range of services for low-income
people. Under H.R. 5129, the new minimum state allocation
provision would apply to four additional states (Maine,
Nebraska, New Mexico, and Rhode Island). This increase would
allow small states to maximize the impact of CSBG funds and
better serve their communities.
---------------------------------------------------------------------------
\47\The 12 states are: Alaska, Delaware, Hawaii, Idaho, Montana,
Nevada, New Hampshire, North Dakota, South Dakota, Vermont, and
Wyoming. See State Table: CSBG FY 2020 Allocations, The Admin. for
Children and Families (Sept. 3, 2020), https://www.acf.hhs.gov/sites/
default/files/documents/ocs/comm_csbg_final_allocations_fy2020.pdf.
---------------------------------------------------------------------------
Serving More Individuals and Families
Current law allows states to serve individuals who make up
to 125 percent of the federal poverty level (FPL).\48\ Many
other federal programs serve individuals at 130 percent of FPL
or higher. H.R. 5129 raises the income eligibility for
individuals to 200 percent FPL\49\ and provides states,
territories, and Tribal grantees with the authority and
flexibility to establish procedures to allow individuals to
still be eligible after they exceed the 200 percent as long as
these individuals continue to make progress toward established
goals.\50\ The statute currently uses the Office of Management
and Budget's (OMB) definition of the federal poverty line and
requires the Secretary to annually update the poverty
guidelines to account for changes in the Consumer Price Index
for All Urban Consumers over the same period. In practice, the
poverty line is calculated by the Secretary from the most
recent data available from the Bureau of the Census. H.R. 5129
updates the definition of ``poverty line'' to better reflect
the current practice of how the poverty line is actually
calculated. The Committee wishes to make clear that this is
only a technical change--not a substantive change--to reflect
the current calculation process.
---------------------------------------------------------------------------
\48\``Federal poverty level'' and ``[federal] poverty guidelines''
are used interchangeably here. ``Federal poverty level'' is often used
in agency documents to describe eligibility. See, e.g., Dep't of Health
and Human Servs., Off. of Cmty. Servs., CSBG DCL-2021-23 Reminder of
COVID-19 Related Flexibilities and Respective Timeframes (Aug. 13,
2021), https://www.acf.hhs.gov/ocs/policy-guidance/csbg-dcl-2021-23-
reminder-covid-19-related-flexibilities-and-respective. However,
``federal poverty guidelines'' is a more precise term. CSBG statute
defines the ``poverty line'' in 673(2), codified at 42 U.S C.
Sec. 9902, which is the federal poverty guideline. See Frequently Asked
Questions Related to the Poverty Guidelines and Poverty, Dep't of
Health and Human Servs., Off. of the Assistant Sec`y for Planning and
Evaluation, https://aspe.hhs.gov/topics/poverty-economic-mobility/
poverty-guidelines/frequently-asked-questions-related-poverty-
guidelines-poverty (last visited Mar. 25, 2022).
\49\The eligibility criterion applies to services, assistance, or
resources provided directly to individuals and families. This is
keeping with current practice which allows eligible entities to offer
community-wide budgeting classes, health fair, or other initiatives
intended to benefit the larger community where eligibility is not a
factor. H.R. 5129, 117th Cong. Sec. 679 (as reported by the H. Comm. on
Ed. & Labor, Mar. 16, 2022).
\50\The National Association for State Community Services Programs
(NASCSP) sent a letter of support for H.R. 5129 writing that: ``The Act
changes the eligibility criterion from 125 percent of the Federal
Poverty Level (FPL) to 200 percent of the FPL, making the funding able
to reach more households in need, especially as we recover from the
nationwide impact of COVID-19. Important language is also included in
the Act that provides for the ongoing eligibility of clients, so they
do not lose assistance as they work toward achieving their goal. This
is critical to households' ability to meaningfully and sustainably exit
poverty.'' Letter from Beverly Buchanan, Board President, Nat'l Ass'n
for State Cmty. Servs. Programs, to Representative Robert Scott,
Chairman, and Representative Virginia Foxx, Ranking Member, of the H.
Comm. on Educ. & Labor (Mar. 15, 2022) (on file with committee staff).
---------------------------------------------------------------------------
In 2021, at the 200 percent of the federal poverty
guidelines, a family of four in the contiguous 48 states and
the District of Columbia would have to have an annual income of
under $53,000 to be eligible to receive services funded by
CSBG, whereas at 125 percent of the federal poverty guidelines,
a family of four making less than $33,125 is eligible.\51\
Those between 125 and 200 percent of the federal poverty
guidelines are often still in need of CSBG-funded programs and
on the benefits cliff or one unexpected cost away from poverty.
As David Bradley, the Chief Executive Officer of the National
Community Action Foundation, explained in the November 3rd
Hearing ``it's the hard-working low-income families that fall
between 125 and 200 percent . . . [i]t's easier to help assist,
get them back on their feet when they're first falling, than
when they plummet all the way down and have so many mountains
to climb to get back to self-sufficiency.''\52\ Ms. King Galian
further stated that, ``This flexibility has meant that we're
able to kind of dull the cliff effect for families and provide
some security for them as they work towards permanent
stability.''\53\
---------------------------------------------------------------------------
\51\HHS Poverty Guidelines for 2021, Dep't of Health and Human
Servs., Off. of the Assistant Sec'y for Planning and Evaluation (Jan.
13, 2021), https://aspe.hhs.gov/topics/poverty-economic-mobility/
poverty-guidelines.
\52\A Call to Action: Modernizing the Community Services Block
Grant Before the H. Comm. on Educ. & Labor, 117th Cong. (Nov. 2, 2021)
(Statement of David Bradley, CEO, National Community Action Foundation,
https://edlabor.house.gov/imo/media/doc/
BradleyDavidTestimony110321.pdf).
\53\King Galian Testimony, supra note 13.
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The CARES Act allowed states to serve individuals who make
up to 200 percent in FY 2020 and FY 2021,\54\ a flexibility
which the vast majority of states used.\55\ The temporary
authority for states to serve individuals who make up to 200
percent of the federal poverty guidelines was recently extended
through September 30, 2022 by the Consolidated Appropriations
Act, 2022.\56\ Statutorily raising the income eligibility
criterion for individuals up to 200 percent FPL also makes CSBG
more consistent with the criteria for other federal programs,
making coordination across programs easier for agencies as they
assist individuals and families with a range of needs. CAAs
operate and often coordinate an array of federal, state, and
local programs, all with varying eligibility requirements. For
example, over half of CAAs operate the Weatherization
Assistance Program and LIHEAP, which use 200 percent FPL and
150 percent FPL as the eligibility criteria, respectively.\57\
However, CSBG services are not an entitlement, and eligible
entities are required to provide services and activities in
response to their community's needs assessment. As such, they
are allowed to target resources to those identified needs. In
practice, the income threshold criteria means that entities
cannot provide direct assistance to individuals over those
income limits.
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\54\Pub. L. No. 116-136, div. B, tit. VIII, 134 Stat. 281, 558
(2020) (codified at 42 U.S.C. Sec. Sec. 9857-9858r).
\55\Only three states (Arkansas, Missouri, and Wisconsin) did not
expand to 200 percent eligibility for FYs 2020 and 2021. Congress
previously raised the eligibility for CSBG services to 200 percent as
part of the American Recovery and Reinvestment Act of 2009. See Pub. L.
No. 111-5, div. A, tit. VIII, Sec. 16007, 123 Stat 115, 179 (2009)
(codified at 42 U.S.C. Sec. 673).
\56\Pub. L. No. 117-103, div. H, tit. II (2022).
\57\According to the FY 2019 National State CSBG Fact Sheet, 547
community action agencies operate Weatherization Assistance Programs
and 569 community action agencies operate the Low Income Home Energy
Assistance Program (LIHEAP). See Nat'l Ass'n for State Cmty. Servs.
Programs, supra note 8.
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Allotments to Territories
Poverty rates in territories are significantly higher than
in the contiguous United States, Hawaii, and Alaska. In 2009,
the share of the population in poverty was 57.8 percent in
American Samoa,\58\ 22.9 percent in Guam,\59\ 22.5 percent in
the U.S. Virgin Islands,\60\ and 52.3 percent in the
Commonwealth of the Northern Mariana Islands,\61\ compared to
14.3 percent in the United States (including the District of
Columbia and Puerto Rico).\62\ Consistent with current law,
H.R. 5129 reserves half of one percent of the total amount
appropriated for grants to territories allotted on the basis of
need. In order to ensure that allotments to territories reflect
the most current data and in order to increase transparency,
H.R. 5129 also requires that the most up-to-date, applicable
Census data is incorporated in assessing need, and it requires
additional transparency from the Secretary around the methods
used to assess need. Territories are defined as Guam, American
Samoa, the U.S. Virgin Islands, and the Commonwealth of the
Northern Mariana Islands.\63\ While H.R. 5129 maintains the
requirement for territories to submit an application and plan,
the requirement for territories is folded in with the general
requirements for state plans and applications.
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\58\See 2010 Island Areas--American Samoa Dataset, Cross
Tabulations 1, Table 1-17, U.S. Census Bureau (2013), https://
www.census.gov/data/datasets/2010/dec/american-samoa.html.
\59\See 2010 Island Areas--Guam Dataset, Cross Tabulations 1, Table
1-17, U.S. Census Bureau (2013), https://www.census.gov/data/datasets/
2010/dec/guam.html.
\60\See 2010 Island Areas--U.S. Virgin Islands Dataset, Cross
Tabulations 1, Table 1-17, U.S. Census Bureau (2013), https://
www.census.gov/data/datasets/2010/dec/virgin-islands.html.
\61\See 2010 Island Areas--Commonwealth of the Northern Mariana
Islands Dataset, Cross Tabulations 1, Table 1-17, U.S. Census Bureau
(2013), https://www.census.gov/data/datasets/2010/dec/cnmi.html.
\62\Alemayehu Bishaw & Suzanne Macartney, U.S. Census Bureau,
Poverty: 2008 and 2009, at 2 (2010), https://www2.census.gov/library/
publications/2010/acs/acsbr09-01.pdf.
\63\Puerto Rico (like the District of Columbia) receives
allocations based on the state formula. See 42 U.S.C. Sec. Sec. 9905-
9906; H.R. 5129, 117th Cong. Sec. 676 (2021).
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IMPROVING ADMINISTRATION OF CSBG
Modernizing and Streamlining States' and CAAs' Applications and Plans
H.R. 5129 makes several important updates to states'
applications and plans, such as providing a timeline for the
application process and significantly streamlining the
requirements for state plans. While current law requires states
to submit a state plan to HHS in order to receive CSBG funding,
H.R. 5129 requires that those plans be approved by HHS, similar
to other federal programs, to ensure quality and consistency in
the state and local planning process. To facilitate the state
application process, H.R. 5129 requires the Secretary to inform
states of approval, disapproval, or partial approval within 60
days after receipt of a state plan; the bill also authorizes
the Secretary to provide funds to eligible entities directly if
the state plan is not approved by the end of the third month
covered by the plan.\64\
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\64\The Federal Accountability Measures outlined in Appendix 3 in
the Information Memorandum #144 includes reporting indicators for what
percent of state plans were provided a response by 45 days and 60 days
indicating that the 60-day response requirement in the bill mirrors
current administration standards. Dep't of Health and Human Servs.,
Off. of Admin. for Children and Families, State and Federal
Accountability Measures and Data Collection, Appendix 3 (Oct. 2, 2015),
https://www.acf.hhs.gov/sites/default/files/documents/ocs/
appx_3_csbg_federal_accountability_measures_10022015.pdf.
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To update the statute and improve program administration,
the bill also requires states to provide an oversight plan and
an assurance to pay eligible entities in a timely manner as
part of their state plan. Additionally, H.R. 5129 requires
states to develop a policy on board vacancies and to provide a
description of state and local outcome measures. H.R. 5129
creates an eligible entity application and plan submission
process by requiring eligible entities to submit their plans to
states. To ensure that CAAs deliver the most appropriate and
highest quality services to those they serve, H.R. 5129
requires that CAAs' plans detail how they will meet the needs
identified in their community needs assessment. To better
support the work of eligible entities to identify and assess
needs in their communities, H.R. 5129 further requires HHS to
issue guidance, including developing models, for the
comprehensive needs assessments.
Timely Distribution of Funds
Over the years, there have been concerns about the timely
flow of payments to CAAs. In 2015, HHS adopted guidance for
state and federal accountability measures which included a
measure on timely payments of grant and subgrant funding, both
from HHS to states and states to eligible entities.\65\ Despite
these actions by HHS to address this issue, concerns remain.
The House Appropriations Committee's report on the Departments
of Labor, Health and Human Services, and Education, and Related
Agencies appropriations bill for FY 2017 stated: ``The
Committee is concerned funds are not reaching local agencies
and community residents promptly'' and ``urge[s] ACF to take
all necessary action to ensure funds are made available as soon
as possible to States and annual allocation amounts are made
public as soon as can be accomplished.''\66\ To address the
longstanding concerns on this issue, H.R. 5129 includes
improvements to ensure that funds are promptly allocated to
both states and local entities. Specifically, the bill provides
a framework for the timely flow of funds at both the federal
and state levels. Specifically, the bill requires HHS to
allocate funds to states no later than 30 days after
apportionment from OMB. The bill requires states to obligate
funds to eligible entities no later than 30 days after a state
receives notice of funding availability from HHS or by the
first day of the state program year, while also providing
states with flexibility in the case of irregular appropriations
where the allocation may provide less than a fiscal year's
worth of funding. H.R. 5129 mirrors a number of the timetables
currently included in the accountability measures to provide
clear expectations and provide HHS with better enforcement
authority on these issues.
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\65\See ``2Sa'', Dep't of Health and Human Servs., Off. of Admin.
for Children and Families, State and Federal Accountability Measures
and Data Collection, Appendix 2 (Oct. 2, 2015), https://
www.acf.hhs.gov/sites/default/files/documents/ocs/
appx_2_csbg_state_accountability_
measures_10022015.pdf; ``2Fa'', Dep't of Health and Human Servs., Off.
of Admin. for Children and Families, State and Federal Accountability
Measures and Data Collection, Appendix 3 (Oct. 2, 2015), https://
www.acf.hhs.gov/sites/default/files/documents/ocs/
appx_3_csbg_federal_accountability_measures_10022015.pdf.
\66\H.R. Rep. No. 114-699, at 98 (2016) (Comm. Rep.), https://
www.govinfo.gov/content/pkg/CRPT-114hrpt699/pdf/CRPT-114hrpt699.pdf.
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Improving Performance and Accountability at Federal, State, and Local
Levels
In the last decade, HHS worked with stakeholders to improve
program performance, increase accountability, and incorporate
continuous management improvement. This led to the development
and issuance of guidance covering organizational standards for
eligible entities, performance and outcome measures, and state
and federal accountability measures.\67\ While this guidance is
intended to improve the accountability and performance at all
levels of the CSBG program, it fails to provide HHS with the
necessary enforcement tools of law or regulation. To remedy
this, H.R. 5129 incorporates a number of policies from these
guidance documents while also adding provisions to strengthen
the management functions at each level of the program. To
further modernize the administration of CSBG and improve
transparency, H.R. 5129 requires the issuance of regulations on
state and community action plans, state monitoring of eligible
entities, and the state reports to the Secretary as outlined
under section 686. The requirement to issue regulations in
these key areas will help to ensure quality and consistency in
state and local planning processes, better enable HHS to hold
states accountable for compliance, and promote transparency and
accountability throughout the program. Regulations should seek
to preserve the flexibility in local programs to tailor
services to meet the needs of their communities while also
reinforce the core of community action and the local nature of
the CSBG program.
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\67\Guidance in the form of information memorandum were issued to
develop the CSBG performance management framework: See Information
Memorandum No. 138 from Dep't of Health and Human Servs., Off. Of Cmty.
Servs. to the State Cmty. Servs. Block Grant Administrators (Jan. 26,
2015), https://www.acf.hhs.gov/sites/default/files/documents/ocs/
im_138_csbg_organizational_standards_fy_2015.pdf; Information
Memorandum No. 144 from Dep't of Health and Human Servs., Off. Of Cmty.
Servs. to the State Cmty. Servs. Block Grant Administrators (Oct. 2,
2015), https://www.acf.hhs.gov/sites/default/files/documents/ocs/
im_144_state_and_federal_accountability_measures_data_collection.pdf;
Information Memorandum No. 152 from Dep't of Health and Human Servs.,
Off. Of Cmty. Servs. to the State Cmty. Servs. Block Grant
Administrators (Jan. 19, 2017), https://www.acf.hhs.gov/sites/default/
files/documents/ocs/im_152_csbg_annual_report_01192017.pdf.
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H.R. 5129 requires states and eligible entities to
participate in a ``results-oriented performance measurement
system'' that meets the requirements established by the
Secretary in guidance under the bill. The bill removes
reference to the Results-Oriented Management and Accountability
System (ROMA), which was never defined in the law.\68\ Instead,
H.R. 5129 gives HHS discretion to establish guidance for ROMA
or another results-oriented performance management system that
best meets the needs of the program. Such a system will support
transparency and accountability at local, state, and national
levels. It will also promote continuous improvement in
achieving established goals, simplify data reporting, and
consider flexibility for small agencies with limited resources.
H.R. 5129 bolsters provisions related to corrective action
and enforcement of compliance with the requirements of law. For
eligible entities, the bill adds a requirement for states to
conduct on-site follow-up reviews within a calendar quarter for
entities that fail to meet the Act's requirements, while also
requiring eligible entities to develop a corrective action plan
where a state has found serious deficiencies. If a state makes
a final determination that an eligible entity has failed to
correct a serious deficiency, the state may initiate procedures
to withhold, reduce, or terminate funding. H.R. 5129 expands
corrective action for states by providing HHS with broader
authority to reduce funding to a state and make direct payments
to eligible entities within the state if the state fails to
meet requirements of the law or if a state fails to submit a
plan that meets HHS' approval. The bill requires HHS to assess
a specified number of states each year and to increase
transparency, and it requires that HHS make state evaluation
results, including any recommendations for improvements or any
corresponding corrective action plans, publicly available.
In order to facilitate the implementation of a robust
system of accountability and performance, H.R. 5129 requires
HHS to establish an electronic data system for reports required
under the legislation to enhance the quality and timeliness of
these reports. The bill authorizes up to $5 million for FY
2023, FY 2024, and FY 2025 to create an updated nationwide
electronic data system to cover the diverse network of states,
territories, Tribes, and eligible entities served. This new
requirement will allow federal CSBG administrators to utilize a
data system that is coordinated and consistent with other data
systems across HHS while strengthening accountability within
CSBG and other HHS programs.
INNOVATING AND CREATING NEW PATHWAYS TO ECONOMIC SECURITY
Community Action Innovations Program
Innovation is an integral part of the history and legacy of
community action since its inception as the Community Action
Program in 1964. Under current law, CSBG already promotes
innovation through the flexible use of funds that support
locally tailored services. Ms. Sharon Scott-Chandler, Executive
Vice President and Chief Operating Officer of Action for Boston
Community Development, Inc., provided an example of innovative
programming that leverages CSBG funding. In the November 3rd
Hearing, Ms. Scott-Chandler stated, ``[T]hree years ago we were
able to pilot a program that leverag[es] CSBG dollars in our
childcare voucher subsidy management program . . . the program
utilized a model of bundled vouchers in which it combined
immediate access to education for the in-demand jobs [and]
industries and childcare for job-seeking moms.''\69\
H.R. 5129 newly authorizes the Community Action Innovations
Program to facilitate innovation and use of evidence-based
practices to reduce poverty at the community level. By lifting
up and sharing best practices, effective interventions to
reduce poverty can be adopted and replicated more widely across
the diverse network of local agencies. The bill reserves one
percent of total appropriated funds for this new program.
Funding supports projects with demonstrated effectiveness that
can be replicated and/or expanded as well as testing innovative
evidence-based practices and determining their effectiveness.
H.R. 5129 encourages relevant evidence-based practices to
incorporate whole family approaches to create opportunities
that address the needs of parents and children together. Two-
generation approaches have shown success in promoting equity
and well-being by utilizing a family-focused framework to align
child- and adult-serving programs.\70\ As of 2021, there are 19
states promoting whole family approaches in their CSBG-funded
programs to help move entire families out of poverty.\71\
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\68\42 U.S.C. Sec. 9908 requires states, as part of their state
plan, to assure that the state and all eligible entities will
participate in the Results Oriented Management and Accountability
System or an alternative system that mees the requirements not later
than Fiscal Year 2001. ROMA was created in 1994 by Community Services
Block Grant Network officials and is based on concepts from the
Government Performance and Results Act of 1993.
\69\Scott-Chandler Testimony, supra note 45.
\70\Anne Mosle & Morjorie Sims, Aspen Inst., State of the Field:
Two-Generation Approaches to Family Well-Being 19 (2021), https://
ascend-resources.aspeninstitute.org/resources/state-of-the-field-two-
generation-approaches-to-family-well-being/.
\71\A Call to Action: Modernizing the Community Services Block
Grant Before the H. Comm. on Educ. & Labor, 117th Cong. (Nov. 2, 2021)
(Statement of Janae Bjelland, Executive Director, National Association
for State Community Services Programs) (on file with committee staff).
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Training and Technical Assistance
H.R. 5129 reserves two percent of total appropriated funds
for federal training, technical assistance, and related federal
activities. While current law already reserves funding for
these activities, the bill increases the set-aside amount from
one and a half percent to two percent and provides additional
guidelines and specific examples for activities that could be
funded by this set-aside. These specifics include funding
activities that support the dissemination of evidence-based
practices, including through the Community Action Innovations
Program, as well as funding for professional development,
resources for correcting programmatic deficiencies, and support
for performance measurement systems. The increased reservation
reflects the added responsibilities for HHS, including the
added training and technical assistance under the new Community
Action Innovations Program.
Under both current law and the bill, states are limited to
spending no more than five percent of grant funds for
administrative expenses and are required to pass 90 percent of
grant funds to eligible entities. Any remaining funds can be
used by states to support training and technical assistance to
eligible entities and conduct state-wide activities. Such
activities may include, but are not limited to, providing
training and resources to eligible entities, supporting
professional development, responding to physical and behavioral
health challenges, promoting coordination and cooperation among
eligible entities, and assisting with comprehensive needs
assessment and performance measurement systems. H.R. 5129
revises current law to better focus state-wide activities to
bolster eligible entities' ability to serve low-income
individuals.
MODERNIZATION OF THE STATUTE
Meeting 21st Century Needs
H.R. 5129 modernizes and updates the statute by
incorporating provisions that will better equip individuals and
communities to meet the challenges of today and tomorrow. In
2021, only about 57 percent of adults with incomes of $30,000
or lower had access to broadband, a 20-percentage point
difference from the average broadband access rate of 77 percent
across all household income levels.\72\ Tribal communities also
face a significant digital divide with 32 percent of those
living on Tribal lands lacking access to high-speed internet
access.\73\ A recent study from the Assistant Secretary for
Planning and Evaluation (ASPE) within HHS indicated that video-
enabled telehealth service usage was lower among adults with
low incomes, adults over age 65, those without a high school
degree, and Black, Latino, and Asian consumers.\74\ While the
pandemic has cast a bright light on the importance of internet
access, the need is only becoming greater as so many aspects of
life have permanently moved online. Access to the internet can
significantly improve economic outcomes, and those who lack
broadband access because they are already economically and/or
geographically disadvantaged are further disadvantaged by
missing out on the benefits of broadband.\75\
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\72\Internet/Broadband Fact Sheet, Pew Rsch. Ctr. (Apr. 7, 2021),
https://www.pewresearch.org/internet/fact-sheet/internet-broadband/
#home-broadband-use-over-time?menuItem=2ab2b0be-6364-4d3a-8db7-
ae134dbc05cd.
\73\Traci Morris & Brian Howard, Tribal Digital Divide 1-2 (Ariz.
St. Univ., Am. Indian Pol'y Inst., Policy Brief and Recommendations,
2020), https://aipi.asu.edu/sites/default/files/tribal-digital-divide-
stimulus-bill-advocacy-04032020.pdf.
\74\Madjid Karimi et al., Dep't of Health and Human Servs ASPE, HP-
2022-04, National Survey Trends in Telehealth Use in 2021: Disparities
in Utilization and Audio vs. Video Services 9-10 (2022), https://
aspe.hhs.gov/sites/default/files/documents/
4e1853c0b4885112b2994680a58af9ed/telehealth-hps-ib.pdf.
\75\Adie Tomer et al., Digital prosperity: How broadband can
deliver health and equity to all communities, Brookings Inst. (Feb. 27,
2020), https://www.brookings.edu/research/digital-prosperity-how-
broadband-can-deliver-health-and-equity-to-all-communities/.
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Because of the great need, many CAAs have already taken
steps to help facilitate access to broadband by publishing
information from the Federal Communications Commission (FCC)
about the Emergency Broadband Benefit and connecting community
members to reliable internet access. For example, two CAAs in
Michigan's upper peninsula partnered to bring critical internet
service to people in Northern Michigan, a rural community, so
that they can access telehealth, educational, and e-commerce
opportunities.\76\ Other CAAs are also helping their
communities access telehealth services. For example, in order
to provide counseling services to families enrolled in their
whole family approach pilot program, the Hampton Roads
Community Action Program in Virginia is utilizing
teleconferencing.\77\
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\76\NMU's EAN Partners with Two U.P. Community Action Agencies, N.
Michigan Univ., https://nmu.edu/ruralhealth/nmus-ean-partners-two-
community-action-agencies (last visited Mar. 25, 2022).
\77\Community Action P'ship, COVID-19: Community Action Responded
Quickly in the Early Days of the Pandemic, 58 (2020), https://
communityactionpartnership.com/wp-content/uploads/2021/01/Covid-19-
Community-Action-Responded-Quickly-in-the-Early-Days-of-the-Pandemic-
NCAP-12.20.pdf.
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To address the urgent and critical digital needs of
communities, the bill creates a Broadband Navigator Program
that authorizes grants to community action agencies and Tribal
grantees for trained navigators to help low-income individuals
and communities gain access to affordable, high-speed,
broadband service; internet-enabled devices; digital literacy
training; technical support; and other services. Similar to
CAAs' role as a bridge connecting low-income individuals to
separate federal, state, and local services, CAAs would connect
low-income individuals and their communities with resources
related to their digital needs, including finding and obtaining
access to affordable internet service, training and technical
supports to improve computer skills, and affordable computers
or other hardware that support connectivity.
Current law generally prohibits use of federal funds for
construction of facilities, but it does allow the Secretary to
waive prohibition under limited circumstances. To further
update the Act to ensure eligible entities are accessible to
those they serve, the bill permits use of federal funds to make
structural improvements to increase accessibility. H.R. 5129
maintains this limitation for federal funds but adds an
exception for making structural improvements to increase
accessibility where individuals are served by CSBG.\78\
Individuals with disabilities live in poverty at more than
twice the rate of people without disabilities, and although
they make up only 12 percent of the U.S. working-age
population, they account for more than half of those living in
long-term poverty.\79\ Moreover, the aging population is
expected to increase to almost 90 million by 2050.\80\ In 2019,
CAAs served 1,590,785 people who reported having disabilities
and 1,184,463 senior citizens.\81\ Allowing accessibility
improvements will enable CSBG to better meet the needs of these
populations.
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\78\More than one million individuals with disabilities were served
by the CSBG program in FY 2016. Dep't of Health and Human Servs., Off.
Of Cmty. Servs., Community Services Block Grant Report to Congress
Fiscal Year 2016, at 54 (2021), https://www.acf.hhs.gov/sites/default/
files/documents/ocs/rpt_csbg_congressional_fy2016.pdf.
\79\Nat'l Council on Disability (NCD), National Disability Policy:
A Progress Report 19 (2017), https://ncd.gov/progressreport/2017/
national-disability-policy-progress-report-october-2017.
\80\Demographic Changes and Aging Population, Rural Health Info.
Hub, https://www.ruralhealthinfo.org/toolkits/aging/1/demographics
(last visited Apr. 11, 2022).
\81\Nat'l Ass'n for State Cmty. Servs. Programs, supra note 8.
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Streamlining to Focus on CSBG's Mission
To further modernize the statute, H.R. 5129 removes several
provisions. H.R. 5129 eliminates several discretionary programs
that either have never been funded or have not been funded in
more than fifteen years.\82\ The bill also removes language
that explicitly permits states to test participants in CSBG
funded programs for controlled substances (drug testing).\83\
While the Committee understands that this authority has never
been used, the intention of the removal of this language is to
ensure that individuals needing services are not dissuaded from
accessing them, particularly during the continuing opioid
public health emergency.
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\82\These include: the Neighborhood Innovation Projects program (42
U.S.C. Sec. 9921(a)(4)), the Community Food and Nutrition Programs (42
U.S.C. Sec. 9922), and the National Youth Sport program (42 U.S.C.
Sec. 9923). The Neighborhood Innovation Projects has never been funded
and both the Community Food and Nutrition Programs and the National
Youth Sport Program have not received funding since 2005.
\83\42 U.S.C. Sec. 9919. As mentioned, it is the Committee's
understanding that this authority has never been used by the states.
The Temporary Assistance for Needy Families (TANF), a program that also
serves low-income families, permits drug testing which has not shown
positive results. See, e.g., Amanda Michelle Gomez, States waste
hundreds of thousands on drug testing for welfare, but have little to
show for it, Ctr. for L. and Soc. Pol'y (May 7, 2018), https://
www.clasp.org/press-room/news-clips/states-waste-hundreds-thousands-
drug-testing-welfare-have-little-show-it.
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Like the bipartisan CSBG reauthorization legislation
introduced in the 116th Congress,\84\ H.R. 5129 removes a
controversial provision known as Charitable Choice,\85\
language governing the participation of faith-based entities in
CSBG programs that allows religious discrimination against
employees with taxpayer funds\86\ in CSBG funded programs and
fails to protect beneficiaries from such discrimination.\87\
The Committee received a letter from the Coalition Against
Religious Discrimination (CARD) representing a broad and
diverse group of leading religious, civil rights, labor, and
health organizations supporting the removal of the Charitable
Choice provision from CSBG's statute, noting: ``It allows
taxpayer-funded faith-based organizations to discriminate in
hiring, including by undermining state and local
nondiscrimination protections, and threatens the rights of
beneficiaries when delivering services.''\88\ This provision
served as the legislative foundation to President George W.
Bush's Faith-Based Initiative, which failed in Congress\89\ due
to civil rights concerns and faced criticism due to
politicization of the initiative.\90\ Since the inception of
community action in the 1960s, faith leaders and faith-based
organizations have been deeply involved in community action
agencies.\91\ Today, CAA's partnerships with faith-based
organizations are alive and well with over 19,000 partnerships
between CAAs and faith-based organizations.\92\ Moreover, a
number of faith leaders sit on boards of their local CAAs,
contributing to how CAAs serve their communities.\93\ In
addition, a CSBG-specific statutory and regulatory provision
distinct from broader HHS policy creates a patchwork of
confusing and administratively cumbersome requirements for
providers, especially those that operate multiple HHS programs.
Removing this controversial provision will allow
reauthorization of the Act to move forward while maintaining
the longstanding involvement of faith-based organizations in
the CSBG program.
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\84\H.R. 1695, 116th Cong. (2019).
\85\In signing the 1998 CSBG reauthorization legislation into law,
President Clinton included a limitation for the implementation of
Charitable Choice in his signing statement. President Bill Clinton,
Statement on Signing the Community Opportunities, Accountability, and
Training and Educational Services Act of 1998 (Oct. 27, 1998)
(transcript available at Am. Presidency Project, https://
www.presidency.ucsb.edu/documents/statement-signing-the-community-
opportunities-accountability-and-training-and-educational).
\86\Fundamentally, the extension of the religious exemption in
Title VII of the Civil Rights Act of 1964 to federally funded positions
is contrary to the legislative history of that exemption as supporters
justified the exemption by indicating that religious organizations were
using their private funds for these positions. See Melissa Rogers,
Federal Funding and Religion-based Employment Decisions, in Sanctioning
religion? Politics, Law, and Faith-based Public Services, 105-24 (David
K. Ryden et al. eds., 2005).
\87\42 U.S.C. Sec. 9920. Section 679 of current law does not
provide any protections for beneficiaries against religious
discrimination, nor does it require that religious activity be
separated in time and location from the provision of CSBG services. In
contrast, regulations applicable to CSBG include protections for
beneficiaries and constitutional limitation regarding religious
activity. 45 C.F.R. pt. 1050 (2003). HHS also has department-wide
regulations, not currently applicable to CSBG which are also more
protective than Sec. 679 of current law. 45 C.F.R. pt. 87 (2016).
\88\Letter from Coalition Against Religious Discrimination to
Representative Robert C. Scott, Chairman, H. Comm. on Educ. & Labor
(Mar. 16, 2022) (on file with committee staff).
\89\Dana Milbank, Bush Legislative Approach Failed in Faith Bill
Battle, Wash. Post (Apr. 23, 2003), https://www.washingtonpost.com/
archive/politics/2003/04/23/bush-legislative-approach-failed-in-faith-
bill-battle/bccb0efd-cf97-4191-a3e5-322327482aa7/.
\90\See Daniel Schorn, A Loss of Faith, CBS News (Oct. 14, 2006),
https://www.cbsnews.com/news/a-loss-of-faith/ and Gross, Terry,
Remembering David Kuo: Refocusing Religious Groups on Faith, NPR (April
8, 2013), https://www.npr.org/2013/04/08/176567908/remembering-david-
kuo-refocusing-religious-groups-on-faith.
\91\Robert Clark & Judy Mason, Cmty. Action P'ship, Community
Action Agencies and Faith-Based Organizations: A Legacy of Productive
Partnerships 8 (2001), https://files.eric.ed.gov/fulltext/ED464170.pdf.
\92\Nat'l Ass'n for State Cmty. Servs. Programs, supra note 8.
\93\A survey of Community Action Agencies reported that two-thirds
of CAAs responding to the survey have at least one representative from
a faith-based organization on their board. Moreover, some CAAs
specifically preserve board seats for representatives from faith-based
organizations. See Robert Clark & Judy Mason, supra note 91.
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Finally, current law, as amended in 1998, contains language
prohibiting the use of funds for political activity and
nonpartisan voter registration activities.\94\ The 1998
reauthorization of CSBG significantly revised and expanded
provisions on political and nonpartisan voter registration
activities and, in effect, ran contrary to the broad
requirements in the National Voter Registration Act.\95\
Enacted in 1993, the National Voter Registration Act expanded
nonpartisan voter registration opportunities at state
Department of Motor Vehicles and state agencies providing
public assistance.\96\ H.R. 5129 updates the Act to align it
with provisions currently in Head Start,\97\ which allow
nonpartisan groups to offer voter registration during eligible
entities' hours of service.\98\ Since 30 percent of Head Start
programs are administered by community action agencies, it is
appropriate to align these programs' requirements.\99\ H.R.
5129 maintains the restrictions on political activity specific
to CSBG and does not change the lobbying restrictions that are
contained in annual appropriations bills nor does it affect
HHS-wide regulations that apply to all HHS programs, including
the CSBG Act's programs.\100\ An amendment was offered by Mr.
Cawthorn during markup that sought to broadly prohibit lobbying
with use of CSBG funds but failed to align with current
requirements.\101\ The amendment's broad requirements could
prohibit the sharing of materials, including nonpartisan
analysis, studies, or research, by an eligible entity for
general use by legislative bodies and could prevent submitting
these same materials in response to general announcements for
testimony and feedback unless specifically requested to do
so.\102\ The amendment was defeated.
---------------------------------------------------------------------------
\94\42 U.S.C. Sec. 9918.
\95\Pub. L. No 103-31, Sec. 7, 107 Stat. 77, 78 (1993) (codified at
42 U.S.C. Sec. 20503).
\96\Id.
\97\42 U.S.C. Sec. 9851.
\98\Id.
\99\Dep't of Health & Human Servs., Off. of Head Start, Biennial
Report to Congress, Fiscal Year 2017, 29 (2017), https://
www.acf.hhs.gov/sites/default/files/documents/ohs/ohs-2017-biennial-
report-to-congress.pdf.
\100\See Pub. L. No. 117-103, div. H, Sec. 503 (2022); 45 C.F.R.
Sec. 75.450 (2016).
\101\45 C.F.R. Sec. 75.450.
\102\Id. Sec. 75.450(c)(2).
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CONCLUSION
For nearly sixty years, the Community Services Block Grant
and its predecessor, the CAP program, have served as a
cornerstone of poverty reduction in the United States and
provided critical resources to states, territories, CAAs,
Tribes, and other entities to address the causes and conditions
of poverty in their respective communities. CSBG enables the
community action network to leverage federal investment to
develop public-private partnerships to help reduce poverty,
improve economic security, and create new economic
opportunities for low-income individuals and communities.
Modernizing and improving CSBG is both necessary and long
overdue. H.R. 5129 modernizes this storied anti-poverty program
and revitalizes it to meet the needs of the 21st century.
Section-by Section Analysis
Section 1. Short title
This section states that the title of the bill is the
Community Services Block Grant Modernization Act of 2022.
Section 2. Reauthorization
This section states that the bill amends subtitle B of
title VI of the Omnibus Budget Reconciliation Act of 1981 (the
Community Services Block Grant Act). This section replaces all
sections under title VI of the Omnibus Budget Reconciliation
Act of 1981 with the following sections:
Section 671. Short Title
This section states that the Act may be cited as the
Community Services Block Grant Act.
Section 672. Purposes
The section outlines the purposes of the Act: reducing
poverty by supporting activities of community action agencies
and other community services network organizations that improve
economic security of low-income individuals and families and
create new economic opportunities in their communities and
accomplishing these purposes by strengthening community
capabilities to identify and alleviate poverty conditions;
empowering residents of low-income communities to respond to
community needs through maximum feasible participation in
activities under the Act; using innovative community-based
approaches that produce a measurable impact on poverty,
including whole family approaches; coordinating public and
private resources related to reduction of poverty; and
broadening resources directed to elimination of poverty to
promote partnerships among private and public individuals and
organizations.
Section 673. Definitions
This section makes changes to the definitions of ``Poverty
Line'' and ``Private Nonprofit Organization''; adds definitions
for ``Agency-wide Strategic Plan,'' ``Community Action
Agency,'' ``Community Action Plan,'' ``Community Services
Network Organization,'' ``Evidence-Based Practice,''
``Grantee,'' ``Service Area,'' and ``Tribal Grantee'';
preserves the definitions of ``Eligible Entity,''
``Secretary,'' and ``State''; and deletes the definition of
``Family Literacy Services.''
Section 674. Authorization of Community Services Block Grant Program
This section authorizes the Secretary to carry out the
Community Services Block Grant (CSBG) and make grants to states
and territories to support local community action plans and
carry out discretionary community programs under section 690.
Section 675. Grants to Territories
This section requires the Secretary to use the amount
reserved, half of one percent of the total appropriation, each
fiscal year, to apportion on the basis of need among Guam,
American Samoa, the U.S. Virgin Islands, and the Commonwealth
of the Northern Mariana Islands. The Secretary shall make a
grant to each territory for the apportioned amount. The section
further requires that the Secretary apportion funds to
territories based on the most recent applicable Census data
accounting for poverty and requires that the Secretary publicly
publish plans on how funds are apportioned among territories.
Section 676. Allotments and Grants to States
This section requires the Secretary, from appropriations
remaining after reservations for territories and certain
federal activities, to make allotments to each eligible state
(including Puerto Rico), based on the relative amount each
state received in FY 1981 under the former Economic Opportunity
Act of 1964. Additionally, the section updates the minimum
state allotment, allowing it to increase from half of one
percent to three-quarters of one percent if the appropriated
amount available for state allotments exceeds $900 million
after reservations for territories, training and technical
assistance, the Community Action Innovations Fund, and the
electronic data system. This section further requires the
Secretary to make grants to eligible states for these
allotments and to make payments for grants in accordance with
31 U.S.C. Sec. 6503(a). Lastly, the section requires the
Secretary to allocate amounts on a quarterly basis at a
minimum, notify states of their allocations, make each state's
first allocation of the fiscal year available for expenditure
no later than 30 days after receipt of the apportionment from
OMB, and, for subsequent funds in the fiscal year, make funds
available to states no later than 30 days after the start of
the period for which the Secretary is allocating funds. For
purposes of this section, ``State'' does not include Guam,
American Samoa, the U.S. Virgin Islands, and the Commonwealth
of the Northern Mariana Islands.
Section 677. Payments to Indian Tribes
This section includes definitions for indigenous tribes
including ``Indian'' and ``Indian Tribe or Tribal
Organization'' and requires the Secretary to award funds that
would otherwise be allotted to a state directly to an Indian
tribe or Tribal organization upon request if the Secretary
finds that Tribal members would be better served in such
manner. The section further provides that the amount reserved
must be based on the size of the Indian Tribe's or Tribal
Organization's population of eligible Indians as a proportion
of all eligible individuals in the state. To be eligible to
receive a grant, the section requires that an Indian Tribe or
Tribal organization submit a plan for the Secretary's approval.
The section also provides that the Secretary may implement an
alternative performance requirement for Tribal implementation
of the requirements of section 686(a).
Section 678. State Plans
This section requires that for a state to receive a grant,
the chief executive officer must: designate a lead agency that
will be authorized to convene state agencies and coordinate
information and activities under the Act; develop the state
plan, based primarily on community action plans of eligible
entities in the state; modify an existing state plan for
submission to the Secretary if considered a major revision;
hold at least one public hearing and a legislative hearing, at
least once every three years, on the plan and proposed major
revisions. In this section, the term ``State'' includes Guam,
American Samoa, the U.S. Virgin Islands, the Commonwealth of
the Northern Mariana Islands, and Puerto Rico.
This section further outlines the state application process
and plan requirements. States must submit a state plan covering
no more than two fiscal years to the Secretary for approval no
later than 60 days before the beginning of the first fiscal
year covered by the plan. Plans must include: how funds under
the Act will be used; a description summarizing community
action plans; an assurance that the state and eligible entities
in the state will participate in a performance measurement
system; plans for oversight of eligible entities; an assurance
that the state will pay eligible entities as outlined by the
Act's requirements; an assurance that an eligible entity's
funding will not be reduced, eliminated, or its designation as
an eligible entity terminated, except under procedures
specified in the Act for cause; assurance of procedures for
low-income individuals or organizations to petition for
adequate representation on an entity's board; a description of
the outcome measures to be used to measure performance; an
assurance that the state will develop policies on board
vacancies; and an assurance that the state will coordinate the
CSBG program with other social service programs and the
employment and training activities connected to the Workforce
Innovation and Opportunity Act.
This section also requires the Secretary to notify states
of their application status within 60 days of receipt and
provide notice of approval, disapproval, or partial approval.
If plans are disapproved or partially disapproved, the
Secretary must describe changes necessary for approval. The
section also allows the Secretary to award funding directly to
eligible entities if the state plan is not approved by the end
of the third month covered by the plan. The section also sets
forth requirements for the eligible entity application: each
eligible entity application to the state must include a
community action plan, based on the needs identified in the
community needs assessment, covering no more than two fiscal
years. The section further provides that the application must
describe how the entity will implement activities and
demonstrate how these activities will meet the needs identified
in the latest comprehensive community needs assessment
conducted in the previous three years and achieve purposes of
the Act.
Section 679. State and Local Uses of Funds
This section mandates that states distribute at least 90
percent of their allotments as subgrants to eligible entities.
It further requires that states obligate funds for subgrants
and make funds available for expenditure by eligible entities
no later than 30 days after the state receives notice of
funding availability from the Secretary. This requirement
applies to both the first allocation of funds and any
subsequent allocations. The section allows states to request an
exception from the Secretary from the obligation requirements
in circumstances where funds are appropriated for less than a
full fiscal year (e.g., as part of a continuing resolution).
Additionally, this section authorizes states to use
remaining block grant funds for administrative expenses and
training and technical assistance but caps administrative
spending at five percent of the state's block grant. This
section also requires that eligible entities use subgrants to
provide low-income individuals and families with poverty
reducing services and opportunities through private and public
partnerships, relationships to avoid duplication of services,
and community investment. This section further authorizes
eligible entities to secure and identify assistance related to
reducing energy expenses and reducing energy consumption for
low-income individuals and families.
The section also requires that 200 percent of the poverty
line as defined be used as the eligibility criterion for
assistance provided directly to individuals who receive
services under the Act. The section further authorizes states
or a Tribal grantee to establish procedures to allow a
participant to remain eligible, regardless of income criteria
used to determine initial eligibility, to continue receiving
services if they are successfully progressing toward the goals
of a program, project, or service under the Act.
Section 680. Eligible Entities and Tripartite Boards
This section provides for the designation, re-designation,
and interim designation of eligible entities in unserved areas.
In such circumstances, the section authorizes the state lead
agency, in consultation with stakeholders, to designate a new
community action agency that is an existing private nonprofit
community action agency located near the unserved area. If no
entity meeting all requirements for designation as a permanent
eligible entity is available, the state may designate a private
nonprofit agency (or public agency if a private nonprofit is
not available) on an interim basis for no more than one year
while the state seeks to identify a permanent entity.
The section also provides for the merger, combination, or
privatization of existing eligible entities. If two or more
entities find their service areas can be more effectively
served under a single agency or if a public entity finds it
would be more effective as a private nonprofit, the section
requires the state to assist in the development of a plan to
implement the merger or transition. The section further
provides that a state may establish requirements for merger,
combination, and privatization plans and for making its
determination of the capability of a merged, combined, or
privatized agency.
The section lays out the governing structure for private
nonprofit and public eligible entities including the
requirements, composition, and duties of their respective
tripartite boards. Private nonprofit eligible entities must be
governed by a tripartite board that is composed of one-third
elected public officials or their representatives; at least
one-third democratically selected representatives of the low-
income community, and reside in the area, if members are chosen
to represent a specific area; and the remaining board members
may represent significant groups and interests in the
community. Public eligible entities must ensure that their
programs are under the supervision of a tripartite board of
which no more than one-third of the members may be local
government employees or officials, including elected officials;
no fewer than one-third must be democratically selected
representatives of the low-income community that reside in the
area; and the remaining board members may represent groups and
interests in the community.
This section further specifies that board members must be
provided resources including access to individuals with
expertise in financial management, accounting, and law. The
section further requires that private agency boards operate in
compliance with federal tax-exempt requirements and applicable
state laws, and public agency boards must comply with state
requirements for open meetings, financial transparency, and
open records. The section clarifies that neither the federal
government nor a state or local government shall require a
religious organization to alter its form of internal governance
except to meet the tripartite board requirements in the
administration of CSBG. The section also requires that board
vacancies be filled within six months; the eligible entity can
request an additional six months from the state if it certifies
that it is making an effort to fill the seat.
The section additionally specifies the operations and
duties of tripartite boards. For private nonprofit boards, it
requires the boards to have legal and financial responsibility
for administration and oversight of the eligible entity's
operation of the program including the duties to review major
policies, conduct performance reviews of the chief executive
officer, and adopt personnel policies. For public agency
boards, it requires that the boards supervise the eligible
entity's administration of the program including the duties to
review major policies, participate in performance reviews of
the chief executive officer, and review personnel policies. For
boards of both private nonprofit organizations and public
agencies, it requires that they establish officer terms and a
code of ethical conduct, participate in community needs
assessments, develop and adopt an agency-wide strategic plan
that responds to the needs assessment, prepare the community
action plan, approve the operating budget, conduct assessments
on the eligible entity's progress in carrying out the community
action plan, and perform oversight.
Section 681. Office of Community Services
This section establishes the Office of Community Services
in the U.S. Department of Health and Human Services, to be
headed by a Director, and requires the Secretary, acting
through the Director, to carry out the Act through grants,
contracts, or cooperative agreements.
Section 682. Training, Technical Assistance, and Related Activities
This section requires the Secretary to use two percent of
total block grant appropriations, for training, technical
assistance, planning, evaluation, and performance measurements.
Specifically, these funds must be used to help states, eligible
entities, Tribal grantees, and other community services network
organizations in building and using evidence of effectiveness
in reducing poverty conditions, including information about
evidence-based initiatives in connection with the Community
Action Innovations Program; carrying out professional
development activities to expand the capacity of eligible
entities and Tribal grantees; carrying out performance
management, reporting, and data collection activities; and
correcting programmatic deficiencies. No less than half of the
two percent of total funds must be distributed directly to
specified entities for: professional development of key
personnel; activities to improve program quality, financial
management, compliance, and government practices; training for
staff and board members to effectively address the needs of
low-income families and communities; and training in building
and using evidence of effectiveness in reducing poverty
conditions and activities that support the Community Action
Innovations Program. Specified entities eligible for these
grants include eligible entities, Tribal grantees, and other
community services network organizations with demonstrated
expertise in providing training on methods of effectively
addressing the needs of low-income families and communities.
This section also directs the Secretary to use one percent of
total funds reserved for a Community Action Innovations Program
by awarding grants, contracts, or cooperative agreements to
entities defined in the Act to facilitate innovation,
expansion, replication, use, and dissemination of evidence-
based practices, including through whole family approaches, to
reduce poverty conditions.
Section 683. State Monitoring of Eligible Entities
This section requires states to review eligible entities to
determine if they meet performance goals, administrative
standards, financial management requirements, and other
requirements under the Act. States must conduct: a full on-site
review of each eligible entity at least once every three years;
an on-site review of each newly designated eligible entity
immediately after its first year of receiving funds under the
Act; follow-up reviews within a calendar quarter for entities
that fail to meet state criteria or the Act's requirements; and
other reviews as appropriate. The section also allows remote
reviews if approved by the Secretary.
Section 684. Evaluations; Corrective Action; Reduction or Elimination
of Funding
This section requires the Secretary to conduct evaluations
of state compliance with the Act in no fewer than one-fifth of
states each year and make the evaluations, including any
recommendation for improvements, publicly available on the U.S.
Department of Health and Human Services' website. In the event
a serious deficiency is found as part of an assessment, the
Secretary must propose a corrective action plan. Within 45 days
of receiving the Secretary's report containing recommendations,
states must submit to the Secretary and make publicly available
on the State lead agency's website a plan of action in response
to any recommendations for which the Secretary must provide
training and technical assistance. In cases where a state
receives a corrective action plan from the Secretary, the state
shall agree to implement such plan or propose a different
corrective action plan approved by the Secretary. After a final
determination of a state's failure to comply and after giving
notice and opportunity for a hearing, the Secretary may begin
proceedings to reduce or eliminate the state's block grant
funding and must award the funding directly to eligible
entities in the state if the funding for the state is reduced.
The Secretary also may award funding directly to eligible
entities in the state and, for statewide activities, to
community services network organizations in the state if a
state fails to meet the requirements of the Act or if the state
plan is not approved by the end of the third month of the
period covered by the plan.
The section sets out similar processes for state review of
and possible reduction or elimination of funding for eligible
entities and their designation as such. The state must provide
documentation of its decision to reduce, withhold, or terminate
funding in a timely manner defined by the Secretary and provide
technical assistance to the eligible entity for the corrective
action and approve of such plan. The section authorizes the
Secretary to review the state's decision to reduce or eliminate
funding or terminate an eligible entity's designation in the
case of a finding of a serious deficiency and requires the
Secretary to do so upon request by a community services network
organization, which must be completed within 60 days after the
Secretary receives necessary documentation from a state. After
this review, the Secretary may award funds directly to the
affected entity if the state violates required procedures. If
the Secretary finds that a state violated its state plan, the
Secretary shall award funds directly to the effected entity
until the violation is corrected by the state.
Section 685. State and Local Fiscal Controls and Audits
This section requires states to establish necessary fiscal
control and fund accounting procedures, ensure that cost and
accounting standards of the Office of Management and Budget
(OMB) apply to eligible entities, prepare an audit of
expenditures under the Act at least once a year, and make
appropriate records available to the Secretary and Comptroller
General of the United States. This section also requires the
Secretary to investigate and respond to substantial or serious
complaints about the use of funds or activities conducted by
states. If the Secretary finds that a state has not used the
funds in accordance with the subtitle, the Secretary is
authorized to withhold funds from a state under this subtitle
until the state remedies the improperly expended funds.
Section 686. Accountability and Reporting Requirements
This section requires states to participate in and ensure
participation by eligible entities in a results-oriented
performance management system that meets the Secretary's
requirements outlined in guidance. The section requires that
eligible entities report to states on their performance and, by
March 31 each year, that states report to the Secretary on the
performance of the state and eligible entities within the
state. State annual reports must include: an accounting of the
expenditure of funds under the Act; the number and
characteristics of participants served; a summary of training
and technical assistance offered by the state; information on
the total budget and activities of eligible entities (including
local and private resources available for CSBG purposes); and a
report on results-oriented management practices.
The Secretary must provide technical assistance to states
and eligible entities to enhance the quality and timeliness of
reports. This section also requires the Secretary to prepare a
report by September 30 of each year that includes information
from state annual reports and the U.S. Department of Health and
Human Services' performance in carrying out the Act and submit
the report and any recommendations to the House Committee on
Education and Labor and the Senate Committee on Health,
Education, Labor and Pensions Committee.
Section 687. Limitations on Use of Funds
This section prohibits using grants and subgrants for the
purchase or improvement of land, buildings, or facilities,
except for the Community Economic Development and Rural
Community Development activities under section 690 of the Act,
unless the Secretary grants a waiver, or if funds are used to
improve accessibility of physical structures for individuals
with disabilities. The section also prohibits funds being used
on activities or programs that discriminate on the basis of
race, color, national origin, or sex, and it applies the
antidiscrimination provisions of the Age Discrimination Act,
section 504 of the Rehabilitation Act, and Title II of the
Americans with Disabilities Act. This section applies the Hatch
Act to the employees of public and private community action
agencies. It also prohibits programs or employees (during work
hours) from engaging in specified political activities but
allows eligible entities to make their facilities available for
use by a nonpartisan organization to increase the number of
eligible citizens who register to vote in federal elections.
Section 688. Child Support Services and Referrals
This section requires eligible entities to inform custodial
parents or legal guardians who participate in the entity's
activities about child support services and to refer parents or
legal guardians to state and local child support offices.
Section 689. Regulations
This section requires the Secretary to promulgate
regulations implementing the Act, including regulations for
state and community action plans, state monitoring of eligible
entities, and annual reports to the Secretary. This section
also requires the Secretary to issue guidance regarding state
and local performance management systems and the comprehensive
community needs assessments.
Section 690. Discretionary Community Programs
This section authorizes the Secretary to directly
administer the Community Economic Development program, Rural
Community Development Activities program, and Broadband
Navigator Projects. This section further provides that
activities funded under this section be evaluated and requires
an annual report on these programs be sent to the House
Committee on Education and Labor and Senate Committee on
Health, Education, Labor and Pensions.
Section 691. Authorization of Appropriations
This section authorizes $1 billion to be appropriated each
fiscal year from FY 2023 through FY 2027 and such sums as
necessary for each year from FY 2028 through FY 2032 for all
activities under the Act, except Discretionary Community
Programs, which is authorized for such sums as necessary for
each year from FY 2023 through FY 2032. This section also
requires several reservations from the total of amounts
appropriated: half of one percent for grants to territories;
two percent for training, technical assistance, and related
activities; one percent for the Community Action Innovations
Program; and up to $5 million for FY 2023, FY 2024, and FY 2025
for Electronic Data System for Reports.
Section 692. References
This section provides that any reference in law to the
``poverty line'' in the Economic Opportunity Act of 1964 shall
mean the definition of ``poverty line'' as defined in the Act.
The section also provides that any reference to the ``poverty
line'' in the Community Services Block Grant Act, as in effect
prior to enactment of this Act, shall be deemed to reference
the definition of the poverty line as now defined in the Act.
Lastly, the section outlines that any reference in law to any
community action agency as designated under the Economic
Opportunity Act of 1964 shall be construed to be an eligible
entity to receive funds under the Act.
Section 3. Transition period
This section requires the Secretary to establish a
transition period and schedule to implement any changes
required by the Community Services Block Grant Modernization
Act of 2022, which must include the availability of federal
training for states and eligible entities regarding compliance
with new requirements. The section requires that the transition
period must end no later than three months before the start of
the second fiscal year after enactment, and for issuance of
final regulations implementing the subtitle, the transition
period may not extend later than two years after the enactment.
Section 4. Conforming amendments
This section makes technical conforming amendments to the
Older Americans Act.
Explanation of Amendments
The amendments, including the amendment in the nature of a
substitute, are explained in the descriptive portions of this
report.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional
Accountability Act, Pub. L. No. 104-1, H.R. 5129 does not apply
to terms and conditions of employment or to access to public
services or accommodations within the legislative branch.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act of 1974, Pub. L. No. 93-344 (as amended
by Section 101(a)(2) of the Unfunded Mandates Reform Act of
1995, Pub. L. No. 104-4), the Committee traditionally adopts as
its own the cost estimate prepared by the Director of the
Congressional Budget Office (CBO) pursuant to section 402 of
the Congressional Budget and Impoundment Control Act of 1974.
The Committee reports that because this cost estimate was not
timely submitted to the Committee before the filing of this
report, the Committee is not in a position to make a cost
estimate for H.R. 5129, as amended.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 5129 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
following roll call votes occurred during the Committee's
consideration of H.R. 5129:
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 5129 are to update
and improve the Community Services Block Grant Act.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R. 5129 establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Pub. L. No. 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Hearings
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the Committee held a legislative
hearing entitled ``A Call to Action: Modernizing the Community
Services Block Grant,'' which was used to consider H.R. 5129.
The Committee heard testimony on: how the Community Services
Block Grant lifts individuals and families out of poverty; how
local entities use CSBG funds to serve their communities; and
how the changes in H.R. 5129 improve and modernize the CSBG
Act, and the necessity of these changes particularly as the
nation recovers from the COVID-19 pandemic. The Committee heard
testimony from Mr. David Bradley, Chief Executive Officer of
the National Community Action Foundation, Fredericksburg,
Virginia; Ms. Katherine King Galian, Director of Family and
Community Resources of Community Action, Hillsboro, Oregon; Ms.
Sharon Scott-Chandler, Executive Vice President and Chief
Operating Officer of Action for Boston Community Development,
Inc., Boston, Massachusetts; and Mr. Clarence H. Carter,
Commissioner of the Tennessee Department of Human Services,
Nashville, Tennessee.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with 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's oversight findings and recommendations are
reflected in the descriptive portions of this report.
New Budget Authority and CBO Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget and Impoundment Control Act of 1974, and
pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives and section 402 of the Congressional
Budget and Impoundment Control Act of 1974, the Committee has
requested but not received a cost estimate for the bill from
the Director of the Congressional Budget Office.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 5129.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget and Impoundment
Control Act of 1974. The Committee reports that because this
cost estimate was not timely submitted to the Committee before
the filing of this report, the Committee is not in a position
to make a cost estimate for H.R. 5129, as amended.
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, H.R. 5129, as reported, are shown as follows:
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 italics, and existing law in which no
change is proposed is shown in roman):
OMNIBUS BUDGET RECONCILIATION ACT OF 1981
* * * * * * *
TITLE VI--HUMAN SERVICES PROGRAMS
* * * * * * *
[Subtitle B--Community Services Block Grant Program
[SEC. 671. SHORT TITLE.
[This subtitle may be cited as the ``Community Services Block
Grant Act''.
[SEC. 672. PURPOSES AND GOALS.
[The purposes of this subtitle are--
[(1) to provide assistance to States and local
communities, working through a network of community
action agencies and other neighborhood-based
organizations, for the reduction of poverty, the
revitalization of low-income communities, and the
empowerment of low-income families and individuals in
rural and urban areas to become fully self-sufficient
(particularly families who are attempting to transition
off a State program carried out under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.));
and
[(2) to accomplish the goals described in paragraph
(1) through--
[(A) the strengthening of community
capabilities for planning and coordinating the
use of a broad range of Federal, State, local,
and other assistance (including private
resources) related to the elimination of
poverty, so that this assistance can be used in
a manner responsive to local needs and
conditions;
[(B) the organization of a range of services
related to the needs of low-income families and
individuals, so that these services may have a
measurable and potentially major impact on the
causes of poverty in the community and may help
the families and individuals to achieve self-
sufficiency;
[(C) the greater use of innovative and
effective community-based approaches to
attacking the causes and effects of poverty and
of community breakdown;
[(D) the maximum participation of residents
of the low-income communities and members of
the groups served by programs assisted through
the block grants made under this subtitle to
empower such residents and members to respond
to the unique problems and needs within their
communities; and
[(E) the broadening of the resource base of
programs directed to the elimination of poverty
so as to secure a more active role in the
provision of services for--
[(i) private, religious, charitable,
and neighborhood-based organizations;
and
[(ii) individual citizens, and
business, labor, and professional
groups, who are able to influence the
quantity and quality of opportunities
and services for the poor.
[SEC. 673. DEFINITIONS.
[In this subtitle:
[(1) Eligible entity; family literacy services.--
[(A) Eligible entity.--The term ``eligible
entity'' means an entity--
[(i) that is an eligible entity
described in section 673(1) (as in
effect on the day before the date of
enactment of the Coats Human Services
Reauthorization Act of 1998) as of the
day before such date of enactment or is
designated by the process described in
section 676A (including an organization
serving migrant or seasonal farmworkers
that is so described or designated);
and
[(ii) that has a tripartite board or
other mechanism described in subsection
(a) or (b), as appropriate, of section
676B.
[(B) Family literacy services.--The term
``family literacy services'' has the meaning
given the term in section 637 of the Head Start
Act (42 U.S.C. 9832).
[(2) Poverty line.--The term ``poverty line'' means
the official poverty line defined by the Office of
Management and Budget based on the most recent data
available from the Bureau of the Census. The Secretary
shall revise annually (or at any shorter interval the
Secretary determines to be feasible and desirable) the
poverty line, which shall be used as a criterion of
eligibility in the community services block grant
program established under this subtitle. The required
revision shall be accomplished by multiplying the
official poverty line by the percentage change in the
Consumer Price Index for All Urban Consumers during the
annual or other interval immediately preceding the time
at which the revision is made. Whenever a State
determines that it serves the objectives of the block
grant program established under this subtitle, the
State may revise the poverty line to not to exceed 125
percent of the official poverty line otherwise
applicable under this paragraph.
[(3) Private, nonprofit organization.--The term
``private, nonprofit organization'' includes a
religious organization, to which the provisions of
section 679 shall apply.
[(4) Secretary.--The term ``Secretary'' means the
Secretary of Health and Human Services.
[(5) State.--The term ``State'' means each of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, Guam, the United States
Virgin Islands, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
[SEC. 674. AUTHORIZATION OF APPROPRIATIONS.
[(a) In General.--There are authorized to be appropriated
such sums as may be necessary for each of fiscal years 1999
through 2003 to carry out the provisions of this subtitle
(other than sections 681 and 682).
[(b) Reservations.--Of the amounts appropriated under
subsection (a) for each fiscal year, the Secretary shall
reserve--
[(1) \1/2\ of 1 percent for carrying out section 675A
(relating to payments for territories);
[(2) 1\1/2\ percent for activities authorized in
sections 678A through 678F, of which--
[(A) not less than \1/2\ of the amount
reserved by the Secretary under this paragraph
shall be distributed directly to eligible
entities, organizations, or associations
described in section 678A(c)(2) for the purpose
of carrying out activities described in section
678A(c); and
[(B) \1/2\ of the remainder of the amount
reserved by the Secretary under this paragraph
shall be used by the Secretary to carry out
evaluation and to assist States in carrying out
corrective action activities and monitoring (to
correct programmatic deficiencies of eligible
entities), as described in sections 678B(c) and
678A; and
[(3) 9 percent for carrying out section 680 (relating
to discretionary activities) and section 678E(b)(2).
[SEC. 675. ESTABLISHMENT OF BLOCK GRANT PROGRAM.
[The Secretary is authorized to establish a community
services block grant program and make grants through the
program to States to ameliorate the causes of poverty in
communities within the States.
[SEC. 675A. DISTRIBUTION TO TERRITORIES.
[(a) Apportionment.--The Secretary shall apportion the amount
reserved under section 674(b)(1) for each fiscal year on the
basis of need among Guam, American Samoa, the United States
Virgin Islands, and the Commonwealth of the Northern Mariana
Islands.
[(b) Application.--Each jurisdiction to which subsection (a)
applies may receive a grant under this section for the amount
apportioned under subsection (a) on submitting to the
Secretary, and obtaining approval of, an application,
containing provisions that describe the programs for which
assistance is sought under this section, that is prepared in
accordance with, and contains the information described in,
section 676.
[SEC. 675B. ALLOTMENTS AND PAYMENTS TO STATES.
[(a) Allotments in General.--The Secretary shall, from the
amount appropriated under section 674(a) for each fiscal year
that remains after the Secretary makes the reservations
required in section 674(b), allot to each State (subject to
section 677) an amount that bears the same ratio to such
remaining amount as the amount received by the State for fiscal
year 1981 under section 221 of the Economic Opportunity Act of
1964 bore to the total amount received by all States for fiscal
year 1981 under such section, except--
[(1) that no State shall receive less than \1/4\ of 1
percent of the amount appropriated under section 674(a)
for such fiscal year; and
[(2) as provided in subsection (b).
[(b) Allotments in Years With Greater Available Funds.--
[(1) Minimum allotments.--Subject to paragraphs (2)
and (3), if the amount appropriated under section
674(a) for a fiscal year that remains after the
Secretary makes the reservations required in section
674(b) exceeds $345,000,000, the Secretary shall allot
to each State not less than \1/2\ of 1 percent of the
amount appropriated under section 674(a) for such
fiscal year.
[(2) Maintenance of fiscal year 1990 levels.--
Paragraph (1) shall not apply with respect to a fiscal
year if the amount allotted under subsection (a) to any
State for that year is less than the amount allotted
under section 674(a)(1) (as in effect on September 30,
1989) to such State for fiscal year 1990.
[(3) Maximum allotments.--The amount allotted under
paragraph (1) to a State for a fiscal year shall be
reduced, if necessary, so that the aggregate amount
allotted to such State under such paragraph and
subsection (a) does not exceed 140 percent of the
aggregate amount allotted to such State under the
corresponding provisions of this subtitle for the
preceding fiscal year.
[(c) Payments.--The Secretary shall make grants to eligible
States for the allotments described in subsections (a) and (b).
The Secretary shall make payments for the grants in accordance
with section 6503(a) of title 31, United States Code.
[(d) Definition.--In this section, the term ``State'' does
not include Guam, American Samoa, the United States Virgin
Islands, and the Commonwealth of the Northern Mariana Islands.
[SEC. 675C. USES OF FUNDS.
[(a) Grants to Eligible Entities and Other Organizations.--
[(1) In general.--Not less than 90 percent of the
funds made available to a State under section 675A or
675B shall be used by the State to make grants for the
purposes described in section 672 to eligible entities.
[(2) Obligational authority.--Funds distributed to
eligible entities through grants made in accordance
with paragraph (1) for a fiscal year shall be available
for obligation during that fiscal year and the
succeeding fiscal year, subject to paragraph (3).
[(3) Recapture and redistribution of unobligated
funds.--
[(A) Amount.--Beginning on October 1, 2000, a
State may recapture and redistribute funds
distributed to an eligible entity through a
grant made under paragraph (1) that are
unobligated at the end of a fiscal year if such
unobligated funds exceed 20 percent of the
amount so distributed to such eligible entity
for such fiscal year.
[(B) Redistribution.--In redistributing funds
recaptured in accordance with this paragraph,
States shall redistribute such funds to an
eligible entity, or require the original
recipient of the funds to redistribute the
funds to a private, nonprofit organization,
located within the community served by the
original recipient of the funds, for activities
consistent with the purposes of this subtitle.
[(b) Statewide Activities.--
[(1) Use of remainder.--If a State uses less than 100
percent of the grant or allotment received under
section 675A or 675B to make grants under subsection
(a), the State shall use the remainder of the grant or
allotment under section 675A or 675B (subject to
paragraph (2)) for activities that may include--
[(A) providing training and technical
assistance to those entities in need of such
training and assistance;
[(B) coordinating State-operated programs and
services, and at the option of the State,
locally-operated programs and services,
targeted to low-income children and families
with services provided by eligible entities and
other organizations funded under this subtitle,
including detailing appropriate employees of
State or local agencies to entities funded
under this subtitle, to ensure increased access
to services provided by such State or local
agencies;
[(C) supporting statewide coordination and
communication among eligible entities;
[(D) analyzing the distribution of funds made
available under this subtitle within the State
to determine if such funds have been targeted
to the areas of greatest need;
[(E) supporting asset-building programs for
low-income individuals, such as programs
supporting individual development accounts;
[(F) supporting innovative programs and
activities conducted by community action
agencies or other neighborhood-based
organizations to eliminate poverty, promote
self-sufficiency, and promote community
revitalization;
[(G) supporting State charity tax credits as
described in subsection (c); and
[(H) supporting other activities, consistent
with the purposes of this subtitle.
[(2) Administrative cap.--No State may spend more
than the greater of $55,000, or 5 percent, of the grant
received under section 675A or State allotment received
under section 675B for administrative expenses,
including monitoring activities. Funds to be spent for
such expenses shall be taken from the portion of the
grant under section 675A or State allotment that
remains after the State makes grants to eligible
entities under subsection (a). The cost of activities
conducted under paragraph (1)(A) shall not be
considered to be administrative expenses. The startup
cost and cost of administrative activities conducted
under subsection (c) shall be considered to be
administrative expenses.
[(c) Charity Tax Credit.--
[(1) In general.--Subject to paragraph (2), if there
is in effect under State law a charity tax credit, the
State may use for any purpose the amount of the
allotment that is available for expenditure under
subsection (b).
[(2) Limit.--The aggregate amount a State may use
under paragraph (1) during a fiscal year shall not
exceed 100 percent of the revenue loss of the State
during the fiscal year that is attributable to the
charity tax credit, as determined by the Secretary of
the Treasury without regard to any such revenue loss
occurring before January 1, 1999.
[(3) Definitions and rules.--In this subsection:
[(A) Charity tax credit.--The term ``charity
tax credit'' means a nonrefundable credit
against State income tax (or, in the case of a
State that does not impose an income tax, a
comparable benefit) that is allowable for
contributions, in cash or in kind, to qualified
charities.
[(B) Qualified charity.--
[(i) In general.--The term
``qualified charity'' means any
organization--
[(I) that is--
[(aa) described in
section 501(c)(3) of
the Internal Revenue
Code of 1986 and exempt
from tax under section
501(a) of such Code;
[(bb) an eligible
entity; or
[(cc) a public
housing agency as
defined in section
3(b)(6) of the United
States Housing Act of
1937 (42 U.S.C.
1437a(b)(6));
[(II) that is certified by
the appropriate State authority
as meeting the requirements of
clauses (iii) and (iv); and
[(III) if such organization
is otherwise required to file a
return under section 6033 of
such Code, that elects to treat
the information required to be
furnished by clause (v) as
being specified in section
6033(b) of such Code.
[(ii) Certain contributions to
collection organizations treated as
contributions to qualified charity.--
[(I) In general.--A
contribution to a collection
organization shall be treated
as a contribution to a
qualified charity if the donor
designates in writing that the
contribution is for the
qualified charity.
[(II) Collection
organization.--The term
``collection organization''
means an organization described
in section 501(c)(3) of such
Code and exempt from tax under
section 501(a) of such Code--
[(aa) that solicits
and collects gifts and
grants that, by
agreement, are
distributed to
qualified charities;
[(bb) that
distributes to
qualified charities at
least 90 percent of the
gifts and grants the
organization receives
that are designated for
such qualified
charities; and
[(cc) that meets the
requirements of clause
(vi).
[(iii) Charity must primarily assist
poor individuals.--
[(I) In general.--An
organization meets the
requirements of this clause
only if the appropriate State
authority reasonably expects
that the predominant activity
of such organization will be
the provision of direct
services within the United
States to individuals and
families whose annual incomes
generally do not exceed 185
percent of the poverty line in
order to prevent or alleviate
poverty among such individuals
and families.
[(II) No recordkeeping in
certain cases.--An organization
shall not be required to
establish or maintain records
with respect to the incomes of
individuals and families for
purposes of subclause (I) if
such individuals or families
are members of groups that are
generally recognized as
including substantially only
individuals and families
described in subclause (I).
[(III) Food aid and homeless
shelters.--Except as otherwise
provided by the appropriate
State authority, for purposes
of subclause (I), services to
individuals in the form of--
[(aa) donations of
food or meals; or
[(bb) temporary
shelter to homeless
individuals;
shall be treated as provided to
individuals described in
subclause (I) if the location
and provision of such services
are such that the service
provider may reasonably
conclude that the beneficiaries
of such services are
predominantly individuals
described in subclause (I).
[(iv) Minimum expense requirement.--
[(I) In general.--An
organization meets the
requirements of this clause
only if the appropriate State
authority reasonably expects
that the annual poverty program
expenses of such organization
will not be less than 75
percent of the annual aggregate
expenses of such organization.
[(II) Poverty program
expense.--For purposes of
subclause (I)--
[(aa) In general.--
The term ``poverty
program expense'' means
any expense in
providing direct
services referred to in
clause (iii).
[(bb) Exceptions.--
Such term shall not
include any management
or general expense, any
expense for the purpose
of influencing
legislation (as defined
in section 4911(d) of
the Internal Revenue
Code of 1986), any
expense for the purpose
of fundraising, any
expense for a legal
service provided on
behalf of any
individual referred to
in clause (iii), any
expense for providing
tuition assistance
relating to compulsory
school attendance, and
any expense that
consists of a payment
to an affiliate of the
organization.
[(v) Reporting requirement.--The
information required to be furnished
under this clause about an organization
is--
[(I) the percentages
determined by dividing the
following categories of the
organization's expenses for the
year by the total expenses of
the organization for the year:
expenses for direct services,
management expenses, general
expenses, fundraising expenses,
and payments to affiliates; and
[(II) the category or
categories (including food,
shelter, education, substance
abuse prevention or treatment,
job training, or other) of
services that constitute
predominant activities of the
organization.
[(vi) Additional requirements for
collection organizations.--The
requirements of this clause are met if
the organization--
[(I) maintains separate
accounting for revenues and
expenses; and
[(II) makes available to the
public information on the
administrative and fundraising
costs of the organization, and
information as to the
organizations receiving funds
from the organization and the
amount of such funds.
[(vii) Special rule for states
requiring tax uniformity.--In the case
of a State--
[(I) that has a
constitutional requirement of
tax uniformity; and
[(II) that, as of December
31, 1997, imposed a tax on
personal income with--
[(aa) a single flat
rate applicable to all
earned and unearned
income (except insofar
as any amount is not
taxed pursuant to tax
forgiveness
provisions); and
[(bb) no generally
available exemptions or
deductions to
individuals;
the requirement of paragraph (2) shall
be treated as met if the amount of the
credit described in paragraph (2) is
limited to a uniform percentage (but
not greater than 25 percent) of State
personal income tax liability
(determined without regard to credits).
[(4) Limitation on use of funds for startup and
administrative activities.--Except to the extent
provided in subsection (b)(2), no part of the aggregate
amount a State uses under paragraph (1) may be used to
pay for the cost of the startup and administrative
activities conducted under this subsection.
[(5) Prohibition on use of funds for legal services
or tuition assistance.--No part of the aggregate amount
a State uses under paragraph (1) may be used to provide
legal services or to provide tuition assistance related
to compulsory education requirements (not including
tuition assistance for tutoring, camps, skills
development, or other supplemental services or
training).
[(6) Prohibition on supplanting funds.--No part of
the aggregate amount a State uses under paragraph (1)
may be used to supplant non-Federal funds that would be
available, in the absence of Federal funds, to offset a
revenue loss of the State attributable to a charity tax
credit.
[SEC. 676. APPLICATION AND PLAN.
[(a) Designation of Lead Agency.--
[(1) Designation.--The chief executive officer of a
State desiring to receive a grant or allotment under
section 675A or 675B shall designate, in an application
submitted to the Secretary under subsection (b), an
appropriate State agency that complies with the
requirements of paragraph (2) to act as a lead agency
for purposes of carrying out State activities under
this subtitle.
[(2) Duties.--The lead agency shall--
[(A) develop the State plan to be submitted
to the Secretary under subsection (b);
[(B) in conjunction with the development of
the State plan as required under subsection
(b), hold at least one hearing in the State
with sufficient time and statewide distribution
of notice of such hearing, to provide to the
public an opportunity to comment on the
proposed use and distribution of funds to be
provided through the grant or allotment under
section 675A or 675B for the period covered by
the State plan; and
[(C) conduct reviews of eligible entities
under section 678B.
[(3) Legislative hearing.--In order to be eligible to
receive a grant or allotment under section 675A or
675B, the State shall hold at least one legislative
hearing every 3 years in conjunction with the
development of the State plan.
[(b) State Application and Plan.--Beginning with fiscal year
2000, to be eligible to receive a grant or allotment under
section 675A or 675B, a State shall prepare and submit to the
Secretary an application and State plan covering a period of
not less than 1 fiscal year and not more than 2 fiscal years.
The plan shall be submitted not later than 30 days prior to the
beginning of the first fiscal year covered by the plan, and
shall contain such information as the Secretary shall require,
including--
[(1) an assurance that funds made available through
the grant or allotment will be used--
[(A) to support activities that are designed
to assist low-income families and individuals,
including families and individuals receiving
assistance under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.),
homeless families and individuals, migrant or
seasonal farmworkers, and elderly low-income
individuals and families, and a description of
how such activities will enable the families
and individuals--
[(i) to remove obstacles and solve
problems that block the achievement of
self-sufficiency (including self-
sufficiency for families and
individuals who are attempting to
transition off a State program carried
out under part A of title IV of the
Social Security Act);
[(ii) to secure and retain meaningful
employment;
[(iii) to attain an adequate
education, with particular attention
toward improving literacy skills of the
low-income families in the communities
involved, which may include carrying
out family literacy initiatives;
[(iv) to make better use of available
income;
[(v) to obtain and maintain adequate
housing and a suitable living
environment;
[(vi) to obtain emergency assistance
through loans, grants, or other means
to meet immediate and urgent family and
individual needs; and
[(vii) to achieve greater
participation in the affairs of the
communities involved, including the
development of public and private
grassroots partnerships with local law
enforcement agencies, local housing
authorities, private foundations, and
other public and private partners to--
[(I) document best practices
based on successful grassroots
intervention in urban areas, to
develop methodologies for
widespread replication; and
[(II) strengthen and improve
relationships with local law
enforcement agencies, which may
include participation in
activities such as neighborhood
or community policing efforts;
[(B) to address the needs of youth in low-
income communities through youth development
programs that support the primary role of the
family, give priority to the prevention of
youth problems and crime, and promote increased
community coordination and collaboration in
meeting the needs of youth, and support
development and expansion of innovative
community-based youth development programs that
have demonstrated success in preventing or
reducing youth crime, such as--
[(i) programs for the establishment
of violence-free zones that would
involve youth development and
intervention models (such as models
involving youth mediation, youth
mentoring, life skills training, job
creation, and entrepreneurship
programs); and
[(ii) after-school child care
programs; and
[(C) to make more effective use of, and to
coordinate with, other programs related to the
purposes of this subtitle (including State
welfare reform efforts);
[(2) a description of how the State intends to use
discretionary funds made available from the remainder
of the grant or allotment described in section 675C(b)
in accordance with this subtitle, including a
description of how the State will support innovative
community and neighborhood-based initiatives related to
the purposes of this subtitle;
[(3) information provided by eligible entities in the
State, containing--
[(A) a description of the service delivery
system, for services provided or coordinated
with funds made available through grants made
under section 675C(a), targeted to low-income
individuals and families in communities within
the State;
[(B) a description of how linkages will be
developed to fill identified gaps in the
services, through the provision of information,
referrals, case management, and followup
consultations;
[(C) a description of how funds made
available through grants made under section
675C(a) will be coordinated with other public
and private resources; and
[(D) a description of how the local entity
will use the funds to support innovative
community and neighborhood-based initiatives
related to the purposes of this subtitle, which
may include fatherhood initiatives and other
initiatives with the goal of strengthening
families and encouraging effective parenting;
[(4) an assurance that eligible entities in the State
will provide, on an emergency basis, for the provision
of such supplies and services, nutritious foods, and
related services, as may be necessary to counteract
conditions of starvation and malnutrition among low-
income individuals;
[(5) an assurance that the State and the eligible
entities in the State will coordinate, and establish
linkages between, governmental and other social
services programs to assure the effective delivery of
such services to low-income individuals and to avoid
duplication of such services, and a description of how
the State and the eligible entities will coordinate the
provision of employment and training activities, as
defined in section 101 of such Act, in the State and in
communities with entities providing activities through
statewide and local workforce investment systems under
the Workforce Investment Act of 1998; f
=======================================================================
[(5) an assurance that the State and the eligible
entities in the State will coordinate, and establish
linkages between, governmental and other social
services programs to assure the effective delivery of
such services to low-income individuals and to avoid
duplication of such services, and a description of how
the State and the eligible entities will coordinate the
provision of employment and training activities, as
defined in section 3 of the Workforce Innovation and
Opportunity Act, in the State and in communities with
entities providing activities through statewide and
local workforce development systems under such Act;
=======================================================================
[(6) an assurance that the State will ensure
coordination between antipoverty programs in each
community in the State, and ensure, where appropriate,
that emergency energy crisis intervention programs
under title XXVI (relating to low-income home energy
assistance) are conducted in such community;
[(7) an assurance that the State will permit and
cooperate with Federal investigations undertaken in
accordance with section 678D;
[(8) an assurance that any eligible entity in the
State that received funding in the previous fiscal year
through a community services block grant made under
this subtitle will not have its funding terminated
under this subtitle, or reduced below the proportional
share of funding the entity received in the previous
fiscal year unless, after providing notice and an
opportunity for a hearing on the record, the State
determines that cause exists for such termination or
such reduction, subject to review by the Secretary as
provided in section 678C(b);
[(9) an assurance that the State and eligible
entities in the State will, to the maximum extent
possible, coordinate programs with and form
partnerships with other organizations serving low-
income residents of the communities and members of the
groups served by the State, including religious
organizations, charitable groups, and community
organizations;
[(10) an assurance that the State will require each
eligible entity in the State to establish procedures
under which a low-income individual, community
organization, or religious organization, or
representative of low-income individuals that considers
its organization, or low-income individuals, to be
inadequately represented on the board (or other
mechanism) of the eligible entity to petition for
adequate representation;
[(11) an assurance that the State will secure from
each eligible entity in the State, as a condition to
receipt of funding by the entity through a community
services block grant made under this subtitle for a
program, a community action plan (which shall be
submitted to the Secretary, at the request of the
Secretary, with the State plan) that includes a
community-needs assessment for the community served,
which may be coordinated with community-needs
assessments conducted for other programs;
[(12) an assurance that the State and all eligible
entities in the State will, not later than fiscal year
2001, participate in the Results Oriented Management
and Accountability System, another performance measure
system for which the Secretary facilitated development
pursuant to section 678E(b), or an alternative system
for measuring performance and results that meets the
requirements of that section, and a description of
outcome measures to be used to measure eligible entity
performance in promoting self-sufficiency, family
stability, and community revitalization; and
[(13) information describing how the State will carry
out the assurances described in this subsection.
[(c) Funding Termination or Reductions.--For purposes of
making a determination in accordance with subsection (b)(8)
with respect to--
[(1) a funding reduction, the term ``cause''
includes--
[(A) a statewide redistribution of funds
provided through a community services block
grant under this subtitle to respond to--
[(i) the results of the most recently
available census or other appropriate
data;
[(ii) the designation of a new
eligible entity; or
[(iii) severe economic dislocation;
or
[(B) the failure of an eligible entity to
comply with the terms of an agreement or a
State plan, or to meet a State requirement, as
described in section 678C(a); and
[(2) a termination, the term ``cause'' includes the
failure of an eligible entity to comply with the terms
of an agreement or a State plan, or to meet a State
requirement, as described in section 678C(a).
[(d) Procedures and Information.--The Secretary may prescribe
procedures for the purpose of assessing the effectiveness of
eligible entities in carrying out the purposes of this
subtitle.
[(e) Revisions and Inspection.--
[(1) Revisions.--The chief executive officer of each
State may revise any plan prepared under this section
and shall submit the revised plan to the Secretary.
[(2) Public inspection.--Each plan or revised plan
prepared under this section shall be made available for
public inspection within the State in such a manner as
will facilitate review of, and comment on, the plan.
[(f) Transition.--For fiscal year 2000, to be eligible to
receive a grant or allotment under section 675A or 675B, a
State shall prepare and submit to the Secretary an application
and State plan in accordance with the provisions of this
subtitle (as in effect on the day before the date of enactment
of the Coats Human Services Reauthorization Act of 1998),
rather than the provisions of subsections (a) through (c)
relating to applications and plans.
[SEC. 676A. DESIGNATION AND REDESIGNATION OF ELIGIBLE ENTITIES IN
UNSERVED AREAS.
[(a) Qualified Organization In or Near Area.--
[(1) In general.--If any geographic area of a State
is not, or ceases to be, served by an eligible entity
under this subtitle, and if the chief executive officer
of the State decides to serve such area, the chief
executive officer may solicit applications from, and
designate as an eligible entity--
[(A) a private nonprofit organization (which
may include an eligible entity) that is
geographically located in the unserved area,
that is capable of providing a broad range of
services designed to eliminate poverty and
foster self-sufficiency, and that meets the
requirements of this subtitle; and
[(B) a private nonprofit eligible entity that
is geographically located in an area contiguous
to or within reasonable proximity of the
unserved area and that is already providing
related services in the unserved area.
[(2) Requirement.--In order to serve as the eligible
entity for the area, an entity described in paragraph
(1)(B) shall agree to add additional members to the
board of the entity to ensure adequate representation--
[(A) in each of the three required categories
described in subparagraphs (A), (B), and (C) of
section 676B(a)(2), by members that reside in
the community comprised by the unserved area;
and
[(B) in the category described in section
676B(a)(2)(B), by members that reside in the
neighborhood to be served.
[(b) Special Consideration.--In designating an eligible
entity under subsection (a), the chief executive officer shall
grant the designation to an organization of demonstrated
effectiveness in meeting the goals and purposes of this
subtitle and may give priority, in granting the designation, to
eligible entities that are providing related services in the
unserved area, consistent with the needs identified by a
community-needs assessment.
[(c) No Qualified Organization in or Near Area.--If no
private, nonprofit organization is identified or determined to
be qualified under subsection (a) to serve the unserved area as
an eligible entity the chief executive officer may designate an
appropriate political subdivision of the State to serve as an
eligible entity for the area. In order to serve as the eligible
entity for that area, the political subdivision shall have a
board or other mechanism as required in section 676B(b).
[SEC. 676B. TRIPARTITE BOARDS.
[(a) Private Nonprofit Entities.--
[(1) Board.--In order for a private, nonprofit entity
to be considered to be an eligible entity for purposes
of section 673(1), the entity shall administer the
community services block grant program through a
tripartite board described in paragraph (2) that fully
participates in the development, planning,
implementation, and evaluation of the program to serve
low-income communities.
[(2) Selection and composition of board.--The members
of the board referred to in paragraph (1) shall be
selected by the entity and the board shall be composed
so as to assure that--
[(A) \1/3\ of the members of the board are
elected public officials, holding office on the
date of selection, or their representatives,
except that if the number of such elected
officials reasonably available and willing to
serve on the board is less than \1/3\ of the
membership of the board, membership on the
board of appointive public officials or their
representatives may be counted in meeting such
\1/3\ requirement;
[(B)(i) not fewer than \1/3\ of the members
are persons chosen in accordance with
democratic selection procedures adequate to
assure that these members are representative of
low-income individuals and families in the
neighborhood served; and
[(ii) each representative of low-income
individuals and families selected to represent
a specific neighborhood within a community
under clause (i) resides in the neighborhood
represented by the member; and
[(C) the remainder of the members are
officials or members of business, industry,
labor, religious, law enforcement, education,
or other major groups and interests in the
community served.
[(b) Public Organizations.--In order for a public
organization to be considered to be an eligible entity for
purposes of section 673(1), the entity shall administer the
community services block grant program through--
[(1) a tripartite board, which shall have members
selected by the organization and shall be composed so
as to assure that not fewer than \1/3\ of the members
are persons chosen in accordance with democratic
selection procedures adequate to assure that these
members--
[(A) are representative of low-income
individuals and families in the neighborhood
served;
[(B) reside in the neighborhood served; and
[(C) are able to participate actively in the
development, planning, implementation, and
evaluation of programs funded under this
subtitle; or
[(2) another mechanism specified by the State to
assure decisionmaking and participation by low-income
individuals in the development, planning,
implementation, and evaluation of programs funded under
this subtitle.
[SEC. 677. PAYMENTS TO INDIAN TRIBES.
[(a) Reservation.--If, with respect to any State, the
Secretary--
[(1) receives a request from the governing body of an
Indian tribe or tribal organization within the State
that assistance under this subtitle be made directly to
such tribe or organization; and
[(2) determines that the members of such tribe or
tribal organization would be better served by means of
grants made directly to provide benefits under this
subtitle,
the Secretary shall reserve from amounts that would otherwise
be allotted to such State under section 675B for the fiscal
year the amount determined under subsection (b).
[(b) Determination of Reserved Amount.--The Secretary shall
reserve for the purpose of subsection (a) from amounts that
would otherwise be allotted to such State, not less than 100
percent of an amount that bears the same ratio to the State
allotment for the fiscal year involved as the population of all
eligible Indians for whom a determination has been made under
subsection (a) bears to the population of all individuals
eligible for assistance through a community services block
grant made under this subtitle in such State.
[(c) Awards.--The sums reserved by the Secretary on the basis
of a determination made under subsection (a) shall be made
available by grant to the Indian tribe or tribal organization
serving the individuals for whom such a determination has been
made.
[(d) Plan.--In order for an Indian tribe or tribal
organization to be eligible for a grant award for a fiscal year
under this section, the tribe or organization shall submit to
the Secretary a plan for such fiscal year that meets such
criteria as the Secretary may prescribe by regulation.
[(e) Definitions.--In this section:
[(1) Indian tribe; tribal organization.--The terms
``Indian tribe'' and ``tribal organization'' mean a
tribe, band, or other organized group recognized in the
State in which the tribe, band, or group resides, or
considered by the Secretary of the Interior, to be an
Indian tribe or an Indian organization for any purpose.
[(2) Indian.--The term ``Indian'' means a member of
an Indian tribe or of a tribal organization.
[SEC. 678. OFFICE OF COMMUNITY SERVICES.
[(a) Office.--The Secretary shall carry out the functions of
this subtitle through an Office of Community Services, which
shall be established in the Department of Health and Human
Services. The Office shall be headed by a Director.
[(b) Grants, Contracts, and Cooperative Agreements.--The
Secretary shall carry out functions of this subtitle through
grants, contracts, or cooperative agreements.
[SEC. 678A. TRAINING, TECHNICAL ASSISTANCE, AND OTHER ACTIVITIES.
[(a) Activities.--
[(1) In general.--The Secretary shall use amounts
reserved in section 674(b)(2)--
[(A) for training, technical assistance,
planning, evaluation, and performance
measurement, to assist States in carrying out
corrective action activities and monitoring (to
correct programmatic deficiencies of eligible
entities), and for reporting and data
collection activities, related to programs
carried out under this subtitle; and
[(B) to distribute amounts in accordance with
subsection (c).
[(2) Grants, contracts, and cooperative agreements.--
The activities described in paragraph (1)(A) may be
carried out by the Secretary through grants, contracts,
or cooperative agreements with appropriate entities.
[(b) Terms and Technical Assistance Process.--The process for
determining the training and technical assistance to be carried
out under this section shall--
[(1) ensure that the needs of eligible entities and
programs relating to improving program quality
(including quality of financial management practices)
are addressed to the maximum extent feasible; and
[(2) incorporate mechanisms to ensure responsiveness
to local needs, including an ongoing procedure for
obtaining input from the national and State networks of
eligible entities.
[(c) Distribution Requirement.--
[(1) In general.--The amounts reserved under section
674(b)(2)(A) for activities to be carried out under
this subsection shall be distributed directly to
eligible entities, organizations, or associations
described in paragraph (2) for the purpose of improving
program quality (including quality of financial
management practices), management information and
reporting systems, and measurement of program results,
and for the purpose of ensuring responsiveness to
identified local needs.
[(2) Eligible entities, organizations, or
associations.--Eligible entities, organizations, or
associations described in this paragraph shall be
eligible entities, or statewide or local organizations
or associations, with demonstrated expertise in
providing training to individuals and organizations on
methods of effectively addressing the needs of low-
income families and communities.
[SEC. 678B. MONITORING OF ELIGIBLE ENTITIES.
[(a) In General.--In order to determine whether eligible
entities meet the performance goals, administrative standards,
financial management requirements, and other requirements of a
State, the State shall conduct the following reviews of
eligible entities:
[(1) A full onsite review of each such entity at
least once during each 3-year period.
[(2) An onsite review of each newly designated entity
immediately after the completion of the first year in
which such entity receives funds through the community
services block grant program.
[(3) Followup reviews including prompt return visits
to eligible entities, and their programs, that fail to
meet the goals, standards, and requirements established
by the State.
[(4) Other reviews as appropriate, including reviews
of entities with programs that have had other Federal,
State, or local grants (other than assistance provided
under this subtitle) terminated for cause.
[(b) Requests.--The State may request training and technical
assistance from the Secretary as needed to comply with the
requirements of this section.
[(c) Evaluations by the Secretary.--The Secretary shall
conduct in several States in each fiscal year evaluations
(including investigations) of the use of funds received by the
States under this subtitle in order to evaluate compliance with
the provisions of this subtitle, and especially with respect to
compliance with section 676(b). The Secretary shall submit, to
each State evaluated, a report containing the results of such
evaluations, and recommendations of improvements designed to
enhance the benefit and impact of the activities carried out
with such funds for people in need. On receiving the report,
the State shall submit to the Secretary a plan of action in
response to the recommendations contained in the report. The
results of the evaluations shall be submitted annually to the
Chairperson of the Committee on Education and the Workforce of
the House of Representatives and the Chairperson of the
Committee on Labor and Human Resources of the Senate as part of
the report submitted by the Secretary in accordance with
section 678E(b)(2).
[SEC. 678C. CORRECTIVE ACTION; TERMINATION AND REDUCTION OF FUNDING.
[(a) Determination.--If the State determines, on the basis of
a final decision in a review pursuant to section 678B, that an
eligible entity fails to comply with the terms of an agreement,
or the State plan, to provide services under this subtitle or
to meet appropriate standards, goals, and other requirements
established by the State (including performance objectives),
the State shall--
[(1) inform the entity of the deficiency to be
corrected;
[(2) require the entity to correct the deficiency;
[(3)(A) offer training and technical assistance, if
appropriate, to help correct the deficiency, and
prepare and submit to the Secretary a report describing
the training and technical assistance offered; or
[(B) if the State determines that such training and
technical assistance are not appropriate, prepare and
submit to the Secretary a report stating the reasons
for the determination;
[(4)(A) at the discretion of the State (taking into
account the seriousness of the deficiency and the time
reasonably required to correct the deficiency), allow
the entity to develop and implement, within 60 days
after being informed of the deficiency, a quality
improvement plan to correct such deficiency within a
reasonable period of time, as determined by the State;
and
[(B) not later than 30 days after receiving from an
eligible entity a proposed quality improvement plan
pursuant to subparagraph (A), either approve such
proposed plan or specify the reasons why the proposed
plan cannot be approved; and
[(5) after providing adequate notice and an
opportunity for a hearing, initiate proceedings to
terminate the designation of or reduce the funding
under this subtitle of the eligible entity unless the
entity corrects the deficiency.
[(b) Review.--A determination to terminate the designation or
reduce the funding of an eligible entity is reviewable by the
Secretary. The Secretary shall, upon request, review such a
determination. The review shall be completed not later than 90
days after the Secretary receives from the State all necessary
documentation relating to the determination to terminate the
designation or reduce the funding. If the review is not
completed within 90 days, the determination of the State shall
become final at the end of the 90th day.
[(c) Direct Assistance.--Whenever a State violates the
assurances contained in section 676(b)(8) and terminates or
reduces the funding of an eligible entity prior to the
completion of the State hearing described in that section and
the Secretary's review as required in subsection (b), the
Secretary is authorized to provide financial assistance under
this subtitle to the eligible entity affected until the
violation is corrected. In such a case, the grant or allotment
for the State under section 675A or 675B for the earliest
appropriate fiscal year shall be reduced by an amount equal to
the funds provided under this subsection to such eligible
entity.
[SEC. 678D. FISCAL CONTROLS, AUDITS, AND WITHHOLDING.
[(a) Fiscal Controls, Procedures, Audits, and Inspections.--
[(1) In general.--A State that receives funds under
this subtitle shall--
[(A) establish fiscal control and fund
accounting procedures necessary to assure the
proper disbursal of and accounting for Federal
funds paid to the State under this subtitle,
including procedures for monitoring the funds
provided under this subtitle;
[(B) ensure that cost and accounting
standards of the Office of Management and
Budget apply to a recipient of the funds under
this subtitle;
[(C) subject to paragraph (2), prepare, at
least every year, an audit of the expenditures
of the State of amounts received under this
subtitle and amounts transferred to carry out
the purposes of this subtitle; and
[(D) make appropriate books, documents,
papers, and records available to the Secretary
and the Comptroller General of the United
States, or any of their duly authorized
representatives, for examination, copying, or
mechanical reproduction on or off the premises
of the appropriate entity upon a reasonable
request for the items.
[(2) Audits.--
[(A) In general.--Subject to subparagraph
(B), each audit required by subsection
(a)(1)(C) shall be conducted by an entity
independent of any agency administering
activities or services carried out under this
subtitle and shall be conducted in accordance
with generally accepted accounting principles.
[(B) Single audit requirements.--Audits shall
be conducted under this paragraph in the manner
and to the extent provided in chapter 75 of
title 31, United States Code (commonly known as
the ``Single Audit Act Amendments of 1996'').
[(C) Submission of copies.--Within 30 days
after the completion of each such audit in a
State, the chief executive officer of the State
shall submit a copy of such audit to any
eligible entity that was the subject of the
audit at no charge, to the legislature of the
State, and to the Secretary.
[(3) Repayments.--The State shall repay to the United
States amounts found not to have been expended in
accordance with this subtitle or the Secretary may
offset such amounts against any other amount to which
the State is or may become entitled under this
subtitle.
[(b) Withholding.--
[(1) In general.--The Secretary shall, after
providing adequate notice and an opportunity for a
hearing conducted within the affected State, withhold
funds from any State that does not utilize the grant or
allotment under section 675A or 675B in accordance with
the provisions of this subtitle, including the
assurances such State provided under section 676.
[(2) Response to complaints.--The Secretary shall
respond in an expeditious and speedy manner to
complaints of a substantial or serious nature that a
State has failed to use funds in accordance with the
provisions of this subtitle, including the assurances
provided by the State under section 676. For purposes
of this paragraph, a complaint of a failure to meet any
one of the assurances provided under section 676 that
constitutes disregarding that assurance shall be
considered to be a complaint of a serious nature.
[(3) Investigations.--Whenever the Secretary
determines that there is a pattern of complaints of
failures described in paragraph (2) from any State in
any fiscal year, the Secretary shall conduct an
investigation of the use of funds received under this
subtitle by such State in order to ensure compliance
with the provisions of this subtitle.
[SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
[(a) State Accountability and Reporting Requirements.--
[(1) Performance measurement.--
[(A) In general.--By October 1, 2001, each
State that receives funds under this subtitle
shall participate, and shall ensure that all
eligible entities in the State participate, in
a performance measurement system, which may be
a performance measurement system for which the
Secretary facilitated development pursuant to
subsection (b), or an alternative system that
the Secretary is satisfied meets the
requirements of subsection (b).
[(B) Local agencies.--The State may elect to
have local agencies that are subcontractors of
the eligible entities under this subtitle
participate in the performance measurement
system. If the State makes that election,
references in this section to eligible entities
shall be considered to include the local
agencies.
[(2) Annual report.--Each State shall annually
prepare and submit to the Secretary a report on the
measured performance of the State and the eligible
entities in the State. Prior to the participation of
the State in the performance measurement system, the
State shall include in the report any information
collected by the State relating to such performance.
Each State shall also include in the report an
accounting of the expenditure of funds received by the
State through the community services block grant
program, including an accounting of funds spent on
administrative costs by the State and the eligible
entities, and funds spent by eligible entities on the
direct delivery of local services, and shall include
information on the number of and characteristics of
clients served under this subtitle in the State, based
on data collected from the eligible entities. The State
shall also include in the report a summary describing
the training and technical assistance offered by the
State under section 678C(a)(3) during the year covered
by the report.
[(b) Secretary's Accountability and Reporting Requirements.--
[(1) Performance measurement.--The Secretary, in
collaboration with the States and with eligible
entities throughout the Nation, shall facilitate the
development of one or more model performance
measurement systems, which may be used by the States
and by eligible entities to measure their performance
in carrying out the requirements of this subtitle and
in achieving the goals of their community action plans.
The Secretary shall provide technical assistance,
including support for the enhancement of electronic
data systems, to States and to eligible entities to
enhance their capability to collect and report data for
such a system and to aid in their participation in such
a system.
[(2) Reporting requirements.--At the end of each
fiscal year beginning after September 30, 1999, the
Secretary shall, directly or by grant or contract,
prepare a report containing--
[(A) a summary of the planned use of funds by
each State, and the eligible entities in the
State, under the community services block grant
program, as contained in each State plan
submitted pursuant to section 676;
[(B) a description of how funds were actually
spent by the State and eligible entities in the
State, including a breakdown of funds spent on
administrative costs and on the direct delivery
of local services by eligible entities;
[(C) information on the number of entities
eligible for funds under this subtitle, the
number of low-income persons served under this
subtitle, and such demographic data on the low-
income populations served by eligible entities
as is determined by the Secretary to be
feasible;
[(D) a comparison of the planned uses of
funds for each State and the actual uses of the
funds;
[(E) a summary of each State's performance
results, and the results for the eligible
entities, as collected and submitted by the
States in accordance with subsection (a)(2);
and
[(F) any additional information that the
Secretary considers to be appropriate to carry
out this subtitle, if the Secretary informs the
States of the need for such additional
information and allows a reasonable period of
time for the States to collect and provide the
information.
[(3) Submission.--The Secretary shall submit to the
Committee on Education and the Workforce of the House
of Representatives and the Committee on Labor and Human
Resources of the Senate the report described in
paragraph (2), and any comments the Secretary may have
with respect to such report. The report shall include
definitions of direct and administrative costs used by
the Department of Health and Human Services for
programs funded under this subtitle.
[(4) Costs.--Of the funds reserved under section
674(b)(3), not more than $350,000 shall be available to
carry out the reporting requirements contained in
paragraph (2).
[SEC. 678F. LIMITATIONS ON USE OF FUNDS.
[(a) Construction of Facilities.--
[(1) Limitations.--Except as provided in paragraph
(2), grants made under this subtitle (other than
amounts reserved under section 674(b)(3)) may not be
used by the State, or by any other person with which
the State makes arrangements to carry out the purposes
of this subtitle, for the purchase or improvement of
land, or the purchase, construction, or permanent
improvement (other than low-cost residential
weatherization or other energy-related home repairs) of
any building or other facility.
[(2) Waiver.--The Secretary may waive the limitation
contained in paragraph (1) upon a State request for
such a waiver, if the Secretary finds that the request
describes extraordinary circumstances to justify the
purchase of land or the construction of facilities (or
the making of permanent improvements) and that
permitting the waiver will contribute to the ability of
the State to carry out the purposes of this subtitle.
[(b) Political Activities.--
[(1) Treatment as a state or local agency.--For
purposes of chapter 15 of title 5, United States Code,
any entity that assumes responsibility for planning,
developing, and coordinating activities under this
subtitle and receives assistance under this subtitle
shall be deemed to be a State or local agency. For
purposes of paragraphs (1) and (2) of section 1502(a)
of such title, any entity receiving assistance under
this subtitle shall be deemed to be a State or local
agency.
[(2) Prohibitions.--Programs assisted under this
subtitle shall not be carried on in a manner involving
the use of program funds, the provision of services, or
the employment or assignment of personnel, in a manner
supporting or resulting in the identification of such
programs with--
[(A) any partisan or nonpartisan political
activity or any political activity associated
with a candidate, or contending faction or
group, in an election for public or party
office;
[(B) any activity to provide voters or
prospective voters with transportation to the
polls or similar assistance in connection with
any such election; or
[(C) any voter registration activity.
[(3) Rules and regulations.--The Secretary, after
consultation with the Office of Personnel Management,
shall issue rules and regulations to provide for the
enforcement of this subsection, which shall include
provisions for summary suspension of assistance or
other action necessary to permit enforcement on an
emergency basis.
[(c) Nondiscrimination.--
[(1) In general.--No person shall, on the basis of
race, color, national origin, or sex be excluded from
participation in, be denied the benefits of, or be
subjected to discrimination under, any program or
activity funded in whole or in part with funds made
available under this subtitle. Any prohibition against
discrimination on the basis of age under the Age
Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) or
with respect to an otherwise qualified individual with
a disability as provided in section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), or title II
of the Americans with Disabilities Act of 1990 (42
U.S.C. 12131 et seq.) shall also apply to any such
program or activity.
[(2) Action of secretary.--Whenever the Secretary
determines that a State that has received a payment
under this subtitle has failed to comply with paragraph
(1) or an applicable regulation, the Secretary shall
notify the chief executive officer of the State and
shall request that the officer secure compliance. If
within a reasonable period of time, not to exceed 60
days, the chief executive officer fails or refuses to
secure compliance, the Secretary is authorized to--
[(A) refer the matter to the Attorney General
with a recommendation that an appropriate civil
action be instituted;
[(B) exercise the powers and functions
provided by title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.), the Age
Discrimination Act of 1975 (42 U.S.C. 6101 et
seq.), section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794), or title II of the
Americans with Disabilities Act of 1990 (42
U.S.C. 12131 et seq.), as may be applicable; or
[(C) take such other action as may be
provided by law.
[(3) Action of attorney general.--When a matter is
referred to the Attorney General pursuant to paragraph
(2), or whenever the Attorney General has reason to
believe that the State is engaged in a pattern or
practice of discrimination in violation of the
provisions of this subsection, the Attorney General may
bring a civil action in any appropriate United States
district court for such relief as may be appropriate,
including injunctive relief.
[SEC. 678G. DRUG AND CHILD SUPPORT SERVICES AND REFERRALS.
[(a) Drug Testing and Rehabilitation.--
[(1) In general.--Nothing in this subtitle shall be
construed to prohibit a State from testing participants
in programs, activities, or services carried out or
provided under this subtitle for controlled substances.
A State that conducts such testing shall inform the
participants who test positive for any of such
substances about the availability of treatment or
rehabilitation services and refer such participants for
appropriate treatment or rehabilitation services.
[(2) Administrative expenses.--Any funds provided
under this subtitle expended for such testing shall be
considered to be expended for administrative expenses
and shall be subject to the limitation specified in
section 675C(b)(2).
[(3) Definition.--In this subsection, the term
``controlled substance'' has the meaning given the term
in section 102 of the Controlled Substances Act (21
U.S.C. 802).
[(b) Child Support Services and Referrals.--During each
fiscal year for which an eligible entity receives a grant under
section 675C, such entity shall--
[(1) inform custodial parents in single-parent
families that participate in programs, activities, or
services carried out or provided under this subtitle
about the availability of child support services; and
[(2) refer eligible parents to the child support
offices of State and local governments.
[SEC. 679. OPERATIONAL RULE.
[(a) Religious Organizations Included as Nongovernmental
Providers.--For any program carried out by the Federal
Government, or by a State or local government under this
subtitle, the government shall consider, on the same basis as
other nongovernmental organizations, religious organizations to
provide the assistance under the program, so long as the
program is implemented in a manner consistent with the
Establishment Clause of the first amendment to the
Constitution. Neither the Federal Government nor a State or
local government receiving funds under this subtitle shall
discriminate against an organization that provides assistance
under, or applies to provide assistance under, this subtitle,
on the basis that the organization has a religious character.
[(b) Religious Character and Independence.--
[(1) In general.--A religious organization that
provides assistance under a program described in
subsection (a) shall retain its religious character and
control over the definition, development, practice, and
expression of its religious beliefs.
[(2) Additional safeguards.--Neither the Federal
Government nor a State or local government shall
require a religious organization--
[(A) to alter its form of internal
governance, except (for purposes of
administration of the community services block
grant program) as provided in section 676B; or
[(B) to remove religious art, icons,
scripture, or other symbols;
in order to be eligible to provide assistance under a
program described in subsection (a).
[(3) Employment practices.--A religious
organization's exemption provided under section 702 of
the Civil Rights Act of 1964 (42 U.S.C. 2000e-1)
regarding employment practices shall not be affected by
its participation in, or receipt of funds from,
programs described in subsection (a).
[(c) Limitations on Use of Funds for Certain Purposes.--No
funds provided directly to a religious organization to provide
assistance under any program described in subsection (a) shall
be expended for sectarian worship, instruction, or
proselytization.
[(d) Fiscal Accountability.--
[(1) In general.--Except as provided in paragraph
(2), any religious organization providing assistance
under any program described in subsection (a) shall be
subject to the same regulations as other
nongovernmental organizations to account in accord with
generally accepted accounting principles for the use of
such funds provided under such program.
[(2) Limited audit.--Such organization shall
segregate government funds provided under such program
into a separate account. Only the government funds
shall be subject to audit by the government.
[(e) Treatment of Eligible Entities and Other Intermediate
Organizations.--If an eligible entity or other organization
(referred to in this subsection as an ``intermediate
organization''), acting under a contract, or grant or other
agreement, with the Federal Government or a State or local
government, is given the authority under the contract or
agreement to select nongovernmental organizations to provide
assistance under the programs described in subsection (a), the
intermediate organization shall have the same duties under this
section as the government.
[SEC. 680. DISCRETIONARY AUTHORITY OF THE SECRETARY.
[(a) Grants, Contracts, Arrangements, Loans, and
Guarantees.--
[(1) In general.--The Secretary shall, from funds
reserved under section 674(b)(3), make grants, loans,
or guarantees to States and public agencies and
private, nonprofit organizations, or enter into
contracts or jointly financed cooperative arrangements
with States and public agencies and private, nonprofit
organizations (and for-profit organizations, to the
extent specified in paragraph (2)(E)) for each of the
objectives described in paragraphs (2) through (4).
[(2) Community economic development.--
[(A) Economic development activities.--The
Secretary shall make grants described in
paragraph (1) on a competitive basis to
private, nonprofit organizations that are
community development corporations to provide
technical and financial assistance for economic
development activities designed to address the
economic needs of low-income individuals and
families by creating employment and business
development opportunities.
[(B) Consultation.--The Secretary shall
exercise the authority provided under
subparagraph (A) after consultation with other
relevant Federal officials.
[(C) Governing boards.--For a community
development corporation to receive funds to
carry out this paragraph, the corporation shall
be governed by a board that shall consist of
residents of the community and business and
civic leaders and shall have as a principal
purpose planning, developing, or managing low-
income housing or community development
projects.
[(D) Geographic distribution.--In making
grants to carry out this paragraph, the
Secretary shall take into consideration the
geographic distribution of funding among States
and the relative proportion of funding among
rural and urban areas.
[(E) Reservation.--Of the amounts made
available to carry out this paragraph, the
Secretary may reserve not more than 1 percent
for each fiscal year to make grants to private,
nonprofit organizations or to enter into
contracts with private, nonprofit or for-profit
organizations to provide technical assistance
to aid community development corporations in
developing or implementing activities funded to
carry out this paragraph and to evaluate
activities funded to carry out this paragraph.
[(3) Rural community development activities.--The
Secretary shall provide the assistance described in
paragraph (1) for rural community development
activities, which shall include providing--
[(A) grants to private, nonprofit
corporations to enable the corporations to
provide assistance concerning home repair to
rural low-income families and concerning
planning and developing low-income rural rental
housing units; and
[(B) grants to multistate, regional, private,
nonprofit organizations to enable the
organizations to provide training and technical
assistance to small, rural communities
concerning meeting their community facility
needs.
[(4) Neighborhood innovation projects.--The Secretary
shall provide the assistance described in paragraph (1)
for neighborhood innovation projects, which shall
include providing grants to neighborhood-based private,
nonprofit organizations to test or assist in the
development of new approaches or methods that will aid
in overcoming special problems identified by
communities or neighborhoods or otherwise assist in
furthering the purposes of this subtitle, and which may
include providing assistance for projects that are
designed to serve low-income individuals and families
who are not being effectively served by other programs.
[(b) Evaluation.--The Secretary shall require all activities
receiving assistance under this section to be evaluated for
their effectiveness. Funding for such evaluations shall be
provided as a stated percentage of the assistance or through a
separate grant awarded by the Secretary specifically for the
purpose of evaluation of a particular activity or group of
activities.
[(c) Annual Report.--The Secretary shall compile an annual
report containing a summary of the evaluations required in
subsection (b) and a listing of all activities assisted under
this section. The Secretary shall annually submit the report to
the Chairperson of the Committee on Education and the Workforce
of the House of Representatives and the Chairperson of the
Committee on Labor and Human Resources of the Senate.
[SEC. 681. COMMUNITY FOOD AND NUTRITION PROGRAMS.
[(a) Grants.--The Secretary may, through grants to public and
private, nonprofit agencies, provide for community-based,
local, statewide, and national programs--
[(1) to coordinate private and public food assistance
resources, wherever the grant recipient involved
determines such coordination to be inadequate, to
better serve low-income populations;
[(2) to assist low-income communities to identify
potential sponsors of child nutrition programs and to
initiate such programs in underserved or unserved
areas; and
[(3) to develop innovative approaches at the State
and local level to meet the nutrition needs of low-
income individuals.
[(b) Allotments and Distribution of Funds.--
[(1) Not to exceed $6,000,000 in appropriations.--Of
the amount appropriated for a fiscal year to carry out
this section (but not to exceed $6,000,000), the
Secretary shall distribute funds for grants under
subsection (a) as follows:
[(A) Allotments.--From a portion equal to 60
percent of such amount (but not to exceed
$3,600,000), the Secretary shall allot for
grants to eligible agencies for statewide
programs in each State the amount that bears
the same ratio to such portion as the low-
income and unemployed population of such State
bears to the low-income and unemployed
population of all the States.
[(B) Competitive grants.--From a portion
equal to 40 percent of such amount (but not to
exceed $2,400,000), the Secretary shall make
grants on a competitive basis to eligible
agencies for local and statewide programs.
[(2) Greater available appropriations.--Any amounts
appropriated for a fiscal year to carry out this
section in excess of $6,000,000 shall be allotted as
follows:
[(A) Allotments.--The Secretary shall use 40
percent of such excess to allot for grants
under subsection (a) to eligible agencies for
statewide programs in each State an amount that
bears the same ratio to 40 percent of such
excess as the low-income and unemployed
population of such State bears to the low-
income and unemployed population of all the
States.
[(B) Competitive grants for local and
statewide programs.--The Secretary shall use 40
percent of such excess to make grants under
subsection (a) on a competitive basis to
eligible agencies for local and statewide
programs.
[(C) Competitive grants for nationwide
programs.--The Secretary shall use the
remaining 20 percent of such excess to make
grants under subsection (a) on a competitive
basis to eligible agencies for nationwide
programs, including programs benefiting
Indians, as defined in section 677, and migrant
or seasonal farmworkers.
[(3) Eligibility for allotments for statewide
programs.--To be eligible to receive an allotment under
paragraph (1)(A) or (2)(A), an eligible agency shall
demonstrate that the proposed program is statewide in
scope and represents a comprehensive and coordinated
effort to alleviate hunger within the State.
[(4) Minimum allotments for statewide programs.--
[(A) In general.--From the amounts allotted
under paragraphs (1)(A) and (2)(A), the minimum
total allotment for each State for each fiscal
year shall be--
[(i) $15,000 if the total amount
appropriated to carry out this section
is not less than $7,000,000 but less
than $10,000,000;
[(ii) $20,000 if the total amount
appropriated to carry out this section
is not less than $10,000,000 but less
than $15,000,000; or
[(iii) $30,000 if the total amount
appropriated to carry out this section
is not less than $15,000,000.
[(B) Definition.--In this paragraph, the term
``State'' does not include Guam, American
Samoa, the United States Virgin Islands, and
the Commonwealth of the Northern Mariana
Islands.
[(5) Maximum grants.--From funds made available under
paragraphs (1)(B) and (2)(B) for any fiscal year, the
Secretary may not make grants under subsection (a) to
an eligible agency in an aggregate amount exceeding
$50,000. From funds made available under paragraph
(2)(C) for any fiscal year, the Secretary may not make
grants under subsection (a) to an eligible agency in an
aggregate amount exceeding $300,000.
[(c) Report.--For each fiscal year, the Secretary shall
prepare and submit, to the Committee on Education and the
Workforce of the House of Representatives and the Committee on
Labor and Human Resources of the Senate, a report concerning
the grants made under this section. Such report shall include--
[(1) a list of grant recipients;
[(2) information on the amount of funding awarded to
each grant recipient; and
[(3) a summary of the activities performed by the
grant recipients with funding awarded under this
section and a description of the manner in which such
activities meet the objectives described in subsection
(a).
[(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for each of fiscal years 1999 through 2003.
[SEC. 682. NATIONAL OR REGIONAL PROGRAMS DESIGNED TO PROVIDE
INSTRUCTIONAL ACTIVITIES FOR LOW-INCOME YOUTH.
[(a) General Authority.--The Secretary is authorized to make
a grant to an eligible service provider to administer national
or regional programs to provide instructional activities for
low-income youth. In making such a grant, the Secretary shall
give priority to eligible service providers that have a
demonstrated ability to operate such a program.
[(b) Program Requirements.--Any instructional activity
carried out by an eligible service provider receiving a grant
under this section shall be carried out on the campus of an
institution of higher education (as defined in section 1201(a)
of the Higher Education Act of 1965 (20 U.S.C. 1141(a))) and
shall include--
[(1) access to the facilities and resources of such
an institution;
[(2) an initial medical examination and follow-up
referral or treatment, without charge, for youth during
their participation in such activity;
[(3) at least one nutritious meal daily, without
charge, for participating youth during each day of
participation;
[(4) high quality instruction in a variety of sports
(that shall include swimming and that may include dance
and any other high quality recreational activity)
provided by coaches and teachers from institutions of
higher education and from elementary and secondary
schools (as defined in section 8101 of the Elementary
and Secondary Education Act of 1965); and
[(5) enrichment instruction and information on
matters relating to the well-being of youth, to include
educational opportunities and information on study
practices, education for the prevention of drug and
alcohol abuse, and information on health and nutrition,
career opportunities, and family and job
responsibilities.
[(c) Advisory Committee; Partnerships.--The eligible service
provider shall, in each community in which a program is funded
under this section--
[(1) ensure that--
[(A) a community-based advisory committee is
established, with representatives from local
youth, family, and social service
organizations, schools, entities providing park
and recreation services, and other community-
based organizations serving high-risk youth; or
[(B) an existing community-based advisory
board, commission, or committee with similar
membership is utilized to serve as the
committee described in subparagraph (A); and
[(2) enter into formal partnerships with youth-
serving organizations or other appropriate social
service entities in order to link program participants
with year-round services in their home communities that
support and continue the objectives of this subtitle.
[(d) Eligible Providers.--A service provider that is a
national private, nonprofit organization, a coalition of such
organizations, or a private, nonprofit organization applying
jointly with a business concern shall be eligible to apply for
a grant under this section if--
[(1) the applicant has demonstrated experience in
operating a program providing instruction to low-income
youth;
[(2) the applicant agrees to contribute an amount (in
cash or in kind, fairly evaluated) of not less than 25
percent of the amount requested, for the program funded
through the grant;
[(3) the applicant agrees to use no funds from a
grant authorized under this section for administrative
expenses; and
[(4) the applicant agrees to comply with the
regulations or program guidelines promulgated by the
Secretary for use of funds made available through the
grant.
[(e) Application Process.--To be eligible to receive a grant
under this section, a service provider shall submit to the
Secretary, for approval, an application at such time, in such
manner, and containing such information as the Secretary may
require.
[(f) Promulgation of Regulations or Program Guidelines.--The
Secretary shall promulgate regulations or program guidelines to
ensure funds made available through a grant made under this
section are used in accordance with the objectives of this
subtitle.
[(g) Authorization of Appropriations.--There are authorized
to be appropriated $15,000,000 for each of fiscal years 1999
through 2003 for grants to carry out this section.]
Subtitle B--Community Services Block Grant Program
SEC. 671. SHORT TITLE.
This subtitle may be cited as the ``Community Services Block
Grant Act''.
SEC. 672. PURPOSES.
The purposes of this subtitle are--
(1) to reduce poverty in the United States by
supporting the activities of community action agencies
and other community services network organizations that
improve the economic security of low-income individuals
and families and create new economic opportunities in
the communities where they live; and
(2) to accomplish the purposes described in paragraph
(1) by--
(A) strengthening community capabilities for
identifying poverty conditions and
opportunities to alleviate such conditions;
(B) empowering residents of the low-income
communities served to respond to the unique
problems and needs in their communities through
their maximum feasible participation in
advising, planning, and evaluating the
programs, projects, and services funded under
this subtitle;
(C) using innovative community-based
approaches that produce a measurable impact on
the causes and effects of poverty, including
whole family approaches that create
opportunities for, and address the needs of,
parents and children together;
(D) coordinating Federal, State, local, and
other assistance, including private resources,
related to the reduction of poverty so that
resources can be used in a manner responsive to
local needs and conditions; and
(E) broadening the resources directed to the
elimination of poverty, so as to promote
partnerships that include--
(i) private, religious, charitable,
and neighborhood-based organizations;
and
(ii) individuals, businesses, labor
organizations, professional
organizations, and other organizations
engaged in expanding opportunities for
all individuals.
SEC. 673. DEFINITIONS.
In this subtitle:
(1) Agency-wide strategic plan.--The term ``agency-
wide strategic plan'' means a plan that has been
adopted by an eligible entity in the previous 5 years
and establishes goals that include meeting needs
identified by the entity in consultation with residents
of the community through a process of comprehensive
community needs assessment.
(2) Poverty line.--The term ``poverty line'' means
the poverty guideline calculated by the Secretary from
the most recent data available from the Bureau of the
Census. The Secretary shall revise the poverty line
annually (or at any shorter interval the Secretary
determines to be feasible and desirable). The required
revision shall be accomplished by multiplying the
official poverty thresholds from the Bureau of the
Census by the percentage change in the Consumer Price
Index for All Urban Consumers during the annual or
other interval immediately preceding the time at which
the revision is made.
(3) Community action agency.--The term ``community
action agency'' means an eligible entity (which meets
the requirements of paragraph (1) or (2), as
appropriate, of section 680(c)) that delivers multiple
programs, projects, and services to a variety of low-
income individuals and families.
(4) Community action plan.--The term ``community
action plan'' means a detailed plan, including a
budget, that is adopted by an eligible entity, for
expenditures of funds appropriated for a fiscal year
under this subtitle for the activities supported
directly or indirectly by such funds.
(5) Community services network organization.--The
term ``community services network organization'' means
any of the following organizations funded under this
subtitle:
(A) A grantee.
(B) An eligible entity.
(C) A Tribal grantee.
(D) An association with a membership composed
primarily of grantees, eligible entities,
Tribal grantees, or associations of grantees,
eligible entities, or Tribal grantees.
(6) Department.--The term ``Department'' means the
Department of Health and Human Services.
(7) Eligible entity.--The term ``eligible entity''
means an entity--
(A) that is an eligible entity described in
section 673(1) of the Community Services Block
Grant Act (as in effect immediately before the
date of the enactment of the Community Services
Block Grant Modernization Act of 2022) as of
the day before such date of enactment, or has
been designated by the process described in
section 680(a) (including an organization
serving migrant or seasonal farmworkers that is
so described or designated); and
(B) that has a tripartite board described in
paragraph (1) or (2), as appropriate, of
section 680(c).
(8) Evidence-based practice.--The term ``evidence-
based practice'' means an activity, strategy, or
intervention that--
(A) demonstrates a statistically significant
effect on improving relevant outcomes based on
at least one well-designed and well-implemented
experimental or quasi-experimental study, or at
least one well-designed and well-implemented
correlational study with statistical controls
for selection bias, and includes ongoing
efforts to examine the effects of such
activity, strategy, or intervention; or
(B) demonstrates a rationale based on high-
quality research findings or positive
evaluation that such activity, strategy, or
intervention is likely to improve relevant
outcomes, and includes ongoing efforts to
examine the effects of such activity, strategy,
or intervention.
(9) Grantee.--The term ``grantee'' means a recipient
of a grant under section 675 or 676.
(10) Private, nonprofit organization.--The term
``private, nonprofit organization'' means a domestic
organization that is--
(A) described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from
taxation under section 501(a) of such Code; and
(B) described in paragraph (1) or (2) of
section 509(a) of the Internal Revenue Code of
1986.
(11) Secretary.--The term ``Secretary'' means the
Secretary of Health and Human Services.
(12) Service area.--The term ``service area'' means
the unique geographic area which the State has
designated as the area to be served by an eligible
entity with funding under section 679(a)(1).
(13) State.--The term ``State'' means any of the
several States, the District of Columbia, Puerto Rico,
Guam, American Samoa, the United States Virgin Islands,
or the Commonwealth of the Northern Mariana Islands.
(14) Tribal grantee.--The term ``Tribal grantee''
means an Indian Tribe or Tribal organization, as
defined in section 677(a), that receives a grant under
section 677(c).
SEC. 674. AUTHORIZATION OF COMMUNITY SERVICES BLOCK GRANT PROGRAM.
(a) Authorization of Program.--The Secretary is authorized to
carry out a community services block grant program and to make
grants through the program, under sections 675 and 676, to
States to support local community action plans carried out by
eligible entities to reduce poverty in the communities served
by such entities.
(b) Authority of Secretary.--The Secretary is authorized to
carry out other community programs described in section 690.
SEC. 675. GRANTS TO TERRITORIES.
(a) Apportionment.--The Secretary shall apportion the amount
reserved under section 691(c)(1) for each fiscal year on the
basis of need, based on the most recent applicable data
available from the Bureau of the Census to account for poverty,
to eligible jurisdictions among Guam, American Samoa, the
United States Virgin Islands, and the Commonwealth of the
Northern Mariana Islands.
(b) Grants.--The Secretary shall make a grant to each
eligible jurisdiction to which subsection (a) applies for the
amount apportioned under subsection (a).
(c) Plans for Apportionment to Territories.--No later than
six months after the enactment of this Act, the Secretary shall
make publicly available the Department's plan for apportioning
funds among territories, including factors that contribute to
the calculation of need and methodology for calculating the
apportionment for each territory. The Secretary must make
publicly available any updates or changes to this plan no less
frequently than any time new applicable data are available from
the Bureau of Census.
SEC. 676. ALLOTMENTS AND GRANTS TO STATES.
(a) Allotments in General.--From the amount appropriated
under section 691(a) for each fiscal year and remaining after
the Secretary makes the reservations required by section
691(c), the Secretary shall allot to each eligible State,
subject to section 677, an amount that bears the same ratio to
such remaining amount as the amount received by the State for
fiscal year 1981 under section 221 of the Economic Opportunity
Act of 1964 bore to the total amount received by all States for
fiscal year 1981 under such section, except as provided in
subsection (b).
(b) Minimum Allotments.--
(1) In general.--The Secretary shall allot to each
State not less than \1/2\ of 1 percent of the amount
appropriated under section 691(a) for such fiscal year
and remaining after the Secretary makes the
reservations required by section 691(c).
(2) Years with greater available funds.--
Notwithstanding paragraph (1), if the amount
appropriated under section 691(a) for a fiscal year and
remaining after the Secretary makes the reservations
required by section 691(c) exceeds $900,000,000, no
State shall receive under this section less than \3/4\
of 1 percent of the remaining amount.
(c) Grants and Payments.--Subject to section 677, the
Secretary shall make grants to eligible States for the
allotments described in subsections (a) and (b). The Secretary
shall make payments for the grants in accordance with section
6503(a) of title 31, United States Code. The Secretary shall
allocate the amounts allotted under subsections (a) and (b) on
a quarterly basis at a minimum, notify the States of their
respective allocations, and make each State's first allocation
amount in a fiscal year available for expenditure by the State
no later than 30 days after receipt of an approved
apportionment from the Office of Management and Budget and, for
subsequent allocation amounts in the fiscal year, not later
than 30 days after the start of the period for which the
Secretary is allocating the funds.
(d) Definition.--In this section, the term ``State'' does not
include Guam, American Samoa, the United States Virgin Islands,
and the Commonwealth of the Northern Mariana Islands.
SEC. 677. PAYMENTS TO INDIAN TRIBES.
(a) Definitions.--In this section:
(1) Indian.--The term ``Indian'' means a member of an
Indian Tribe or Tribal organization.
(2) Indian tribe or tribal organization.--The term
``Indian Tribe or Tribal organization'' means a Tribe,
band, or other organized group recognized in the State
in which the Tribe, band, or group resides, or
considered by the Secretary of the Interior to be an
Indian Tribe or an Indian organization for any purpose.
(b) Reservation.--
(1) Application.--Paragraph (2) shall apply only if,
with respect to any State, the Secretary--
(A) receives a request from the governing
body of an Indian Tribe or Tribal organization
in such State that assistance under this
subtitle be made available directly to such
Indian Tribe or Tribal organization; and
(B) determines that the members of such
Indian Tribe or Tribal organization would be
better served by means of grants made directly
to such Indian Tribe or Tribal organization to
provide benefits under this subtitle.
(2) Amount.--The Secretary shall reserve from amounts
allotted to a State under section 676 for a fiscal year
not less than the amount that bears the same ratio to
the State allotment for the fiscal year as the
population of all eligible Indians in that particular
State for whom a determination has been made under
paragraph (1) bears to the population of all
individuals eligible for assistance through a grant
made under section 676 to such State.
(c) Awards.--The amount reserved by the Secretary on the
basis of a determination made under subsection (b)(1)(B) shall
be made available by grant to the Indian Tribe or Tribal
organization serving the Indians for whom the determination has
been made under subsection (b)(1)(B).
(d) Plan.--In order for an Indian Tribe or Tribal
organization to be eligible for a grant award for a fiscal year
under this section, the Indian Tribe or Tribal organization
shall submit to the Secretary a plan for such fiscal year that
meets such criteria as the Secretary may prescribe by
regulation.
(e) Alternative Performance Measurement System.--The
Secretary may implement alternative requirements for
implementation by an Indian Tribe or Tribal Organization of the
requirements of section 686(a).
SEC. 678. STATE PLANS AND APPLICATIONS; COMMUNITY ACTION PLANS AND
APPLICATIONS.
(a) State Lead Agency.--
(1) Designation.--The chief executive officer of a
State desiring to receive a grant under section 675 or
676 shall designate, in an application submitted to the
Secretary under subsection (b), an appropriate State
agency that agrees to comply with the requirements of
paragraph (2), to act as a lead agency for purposes of
carrying out State activities under this subtitle.
(2) Duties of state lead agencies.--The State lead
agency--
(A) shall be authorized by the chief
executive officer to convene State agencies and
coordinate information and activities funded
under this subtitle;
(B) shall develop the State plan to be
submitted to the Secretary under subsection
(b), which shall be based primarily on the
community action plans of eligible entities,
submitted to the State as a condition of
receiving funding under this subtitle;
(C) may revise an existing State plan for
submission to the Secretary, if considered a
major revision under criteria established by
the Secretary in regulations required under
section 689(a)(1));
(D) in conjunction with the development or
revision of the State plan as required under
subsection (b)--
(i) shall hold at least 1 hearing in
the State on the proposed plan or a
proposed major revision to a plan to
provide to the public an opportunity to
comment on the public record on the
proposed use and distribution of funds
under the plan;
(ii) not less than 15 days before the
hearing, shall distribute notice of the
hearing and a copy of the proposed plan
or major plan revision statewide to the
public and directly to the chief
executive officer and the chairperson
of the board of each of the eligible
entities (or designees) and other
community services network
organizations; and
(iii) in the case of any proposed
plan revision, without regard to
whether it is a major revision, shall
notify and distribute a copy of the
proposed revision statewide directly to
the chief executive officer and the
chairperson of the board of each of the
eligible entities (or designees) and
other community services network
organizations, before submission of
such proposed revision to the
Secretary; and
(E) at least every 3 years, in conjunction
with the development of the State plan, shall
hold at least 1 legislative hearing.
(b) State Application for State Program and State Plan.--
Beginning with the first fiscal year following the transition
period described in section 3 of the Community Services Block
Grant Modernization Act of 2022, to be eligible to receive a
grant under section 675 or 676, a State shall prepare and
submit to the Secretary for approval an application containing
a State plan covering a period of not more than 2 fiscal years.
The application shall be submitted not later than 60 days
before the beginning of the first fiscal year covered by the
plan, and shall contain such information as the Secretary shall
require, including--
(1) a description of the manner in which funds made
available through the grant under section 675 or 676
will be used to carry out the State activities
described in section 679(b) and the State's community
action plans;
(2) a description summarizing the community action
plans of the eligible entities serving the State;
(3) an assurance that the State and all eligible
entities in the State will participate in a performance
measurement system under section 686(a)(1)(A);
(4) a plan for the State's oversight of eligible
entities;
(5) an assurance that the State will make payments to
eligible entities in accordance with section 679(a)(2);
(6) an assurance that no eligible entity in the State
that received, in the previous fiscal year, funding
through a grant made under section 675 or 676 will have
funding reduced below the proportional share of funding
the entity received from the State in the previous
fiscal year, or eliminated, or its designation as an
eligible entity terminated, unless, after providing the
affected entity (or entities, as applicable) with
notice and an opportunity for a hearing on the record,
the State determines that cause exists for the
reduction or elimination of funding or for termination
of such designation, subject to review by the Secretary
as provided in section 684(c); and--
(A) in the case of failure of an eligible
entity to comply with the terms of a corrective
action plan relating to correction of a serious
deficiency, except according to the procedures
set forth in section 684(b); and
(B) for purposes of this subsection, the term
``cause'' means--
(i) the failure of an eligible entity
to comply with the terms of a
corrective action plan relating to
correction of a serious deficiency as
described in subsection 684(b); or
(ii) a statewide proportional
distribution of funds provided through
a community services block grant under
this subtitle to respond to--
(I) the results of the most
recently available census or
other appropriate demographic
data;
(II) severe economic
dislocation; or
(III) the designation of an
eligible entity to serve a
geographic area that has been
unserved for at least the
previous 5 years;
(7) an assurance that each eligible entity serving
the State has established procedures that permit a low-
income individual or organization to petition for
adequate representation of such individuals or
organizations, respectively, on the board of the
eligible entity;
(8) a description of outcome measures to be used to
measure State and eligible entity performance in
achieving the goals of the State plan and the community
action plans, respectively;
(9) an assurance that the State will develop a policy
on board vacancies in accordance with section 680(c)(3)
and provide guidance to assist eligible entities in
filling board vacancies; and
(10) an assurance that the State and the eligible
entities in the State will coordinate, and establish
linkages between, governmental and other social
services programs to assure the effective delivery of
such services to low-income individuals and to avoid
duplication of such services, and a description of how
the State and the eligible entities will coordinate the
provision of employment and training activities, as
defined in section 3 of the Workforce Innovation and
Opportunity Act, in the State and in communities with
entities providing activities through statewide and
local workforce development systems under such Act.
(c) Approval.--The Secretary shall notify the chief executive
officer of each State submitting an application containing a
State plan under this section of the approval, disapproval, or
approval in part, of the application, not later than 60 days
after receiving the application. In the event of a full or
partial disapproval, the Secretary's notification shall include
a description of changes necessary for final approval. In the
event of a partial approval, the Secretary may allow grantee
use of funds for activities included in the portions of the
plan which the Secretary has approved. In the event a State
application fails to be approved in whole or in part before the
end of the third month of the period covered by such plan the
Secretary may award funding as specified in section
684(a)(5)(B).
(d) Public Inspection.--Each plan and major revision to a
State plan prepared under this section shall be distributed for
public inspection and comment. A hearing on such plan or major
revision shall be held as required under subparagraphs (C) and
(D) of subsection (a)(2), but a State application for merger,
combination, or privatization of entities under section 680(b)
shall not be considered a major revision.
(e) Eligible Entity Application and Community Action Plan.--
Beginning with the first fiscal year following the transition
period described in section 3 of the Community Services Block
Grant Modernization Act of 2022, to be eligible to receive a
subgrant under section 679(a), each eligible entity shall
prepare and submit to the State an application containing a
community action plan or plans covering a period of not more
than 2 fiscal years. Such application shall be submitted in a
reasonable and timely manner as required by the State. The
application shall contain information on the intended
implementation of the eligible entity's activities, including
demonstrating how the activities will--
(1) meet needs identified in the most recent
comprehensive community needs assessment which has been
conducted in the previous 3 years and which may be
coordinated with community needs assessments conducted
for other programs; and
(2) achieve the purposes of this subtitle through
programs, projects, and services.
SEC. 679. STATE AND LOCAL USES OF FUNDS.
(a) State Subgrants to Eligible Entities and Other
Organizations.--
(1) In general.--A State that receives a grant under
section 675 or 676 shall use not less than 90 percent
to make subgrants to eligible entities that enable the
entities to implement programs, projects, and services
for a purpose described in section 672.
(2) Obligational requirements.--
(A) Date of obligation.--The State shall
obligate the funds for subgrants described in
paragraph (1) and make such subgrants available
for expenditure by eligible entities not later
than the later of--
(i) the 30th day after the date on
which the State receives from the
Secretary a notice of funding
availability for the State's
application under section 678 for a
first or subsequent allocation for a
fiscal year; or
(ii) the first day of the State
program year for which funds are to be
expended under the State application.
(B) Exception.--If funds are appropriated to
carry out this subtitle for less than a full
fiscal year, a State may request an exception
from the Secretary from the requirement to make
subgrants available for expenditure by eligible
entities in accordance with subparagraph (A),
except that a State may not accumulate more
than one fiscal quarter's worth of funding
without making such funds available for
expenditure by eligible entities.
(C) Availability.--Funds allocated to
eligible entities through subgrants made under
paragraph (1) for a fiscal year shall be
available for obligation by the eligible entity
during that fiscal year and the succeeding
fiscal year.
(b) Statewide Activities.--
(1) Use of remainder.--
(A) In general.--A State that receives a
grant under section 675 or 676 shall, after
carrying out subsection (a), use the remainder
of the grant funds for activities described in
the State's application under section 678(b) as
described in subparagraph (B) and for
administrative expenses subject to the
limitations in paragraph (2).
(B) Training and technical assistance.--After
applying subsection (a), the State may use the
remaining grant funds for the purposes of--
(i) providing to eligible entities
training and technical assistance and
resources to respond to statewide or
regional conditions that create
economic insecurity, including
emergency conditions;
(ii) supporting professional
development activities for eligible
entities that enhance the skills of
their local personnel (including
members of the board of directors of
such entities) in organizational
management, service delivery, and
program development and management,
giving priority to activities carried
out through partnerships of such
entities with institutions of higher
education;
(iii) supporting information and
communication resources for the
comprehensive community needs
assessments described in section
678(e)(1);
(iv) supporting performance
measurement systems consistent with the
requirements of section 686;
(v) promoting coordination and
cooperation among eligible entities in
the State, including supporting
activities of a statewide association
of community services network
organizations;
(vi) providing training and technical
assistance and resources to assist
eligible entities in building and using
evidence of effectiveness in reducing
poverty conditions, including entities
participating in or proposing to
participate in the Community Action
Innovations Program established under
section 682(a)(2);
(vii) supporting efforts of eligible
entities to identify and respond to
physical and behavioral health
challenges (including substance use
disorders) experienced by low-income
individuals, families, and communities;
and
(viii) analyzing the distribution of
funds made available under this
subtitle within the State to determine
if such funds have been targeted to the
areas of greatest need.
(2) Administrative cap.--
(A) Limitation.--Of the amounts remaining
after the required funding for subgrants
described under subsection (a)(1), a State
shall not spend more than 5 percent of its
grant under section 675 or 676 for
administrative expenses.
(B) Definition.--In this paragraph, the term
``administrative expenses''--
(i) means the costs incurred by the
State's lead agency for carrying out
planning and management activities,
including monitoring, oversight, and
reporting as required by this Act; and
(ii) does not include the cost of
activities conducted under paragraph
(1)(B) other than monitoring.
(c) Eligible Entity Use of Funds.--An eligible entity that
receives a subgrant under subsection (a)(1) shall use the
subgrant funds to carry out a community action plan that shall
include--
(1) programs, projects, and services that provide
low-income individuals and families with
opportunities--
(A) to identify and develop strategies to
remove obstacles and solve problems that block
access to opportunity, economic stability, and
achievement of self-sufficiency;
(B) to secure and retain meaningful
employment at a family supporting wage;
(C) to secure an adequate education, improve
literacy and language skills, and obtain job-
related skills;
(D) to make effective use of available income
and build assets;
(E) to obtain and maintain adequate housing
and a safe and healthy living environment;
(F) to address health needs and improve
health and well-being;
(G) to obtain emergency materials or other
assistance to meet immediate and urgent needs,
including to meet the collective needs of a
community, and prevent greater or more
prolonged economic instability;
(H) to secure and identify assistance related
to reducing energy expenses and reducing energy
consumption; and
(I) to achieve greater participation in
community affairs; and
(2) activities that develop and maintain--
(A) partnerships for the purpose of
addressing community, economic, and social
conditions of poverty and promoting healthy
communities, between the eligible entity and--
(i) State and local public entities;
and
(ii) private partners, including
statewide and local businesses,
associations of private employers, and
private charitable and civic
organizations;
(B) linkages with public and private
organizations for coordinating initiatives,
services, and investments so as to avoid
duplication, and maximize the effective use, of
community resources for creating economic
opportunity, including developing lasting
social and economic assets; and
(C) new investments in the community to
reduce the incidence of poverty, including
developing lasting social and economic assets.
(d) Eligibility Criterion.--
(1) Subject to paragraph (2), 200 percent of the
poverty line shall be used as a criterion of
eligibility for services, assistance, or resources
provided directly to individuals or families through
the community services block grant program established
under this subtitle.
(2) A State or Tribal grantee may establish
procedures to ensure that a participant in a program,
project, or service funded under this subtitle remains
eligible to participate as long as the participant is
successfully progressing toward achievement of the
goals of the program, project, or service, regardless
of the income eligibility criteria used to determine
the participant's initial eligibility.
SEC. 680. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS.
(a) Designation and Redesignation of Eligible Entities in
Unserved Areas.--
(1) In general.--If any geographic area of a State is
not, or ceases to be, served by an eligible entity, the
State lead agency may, in consultation with local
officials and organizations representing the area,
solicit one or more applications and designate a new
community action agency to provide programs, projects,
and services to the area, that is--
(A) a community action agency that is a
private, nonprofit organization and that is
geographically located in an area in reasonable
proximity of, or contiguous to, the unserved
area and that is already providing similar
programs, projects, and services, and that has
demonstrated financial capacity to manage and
account for Federal funds; or
(B) if no community action agency described
in subparagraph (A) is available, a private,
nonprofit organization (which may include an
eligible entity) that is geographically located
in, or is in reasonable proximity to, the
unserved area and that is capable of providing
a broad range of programs, projects, and
services designed to achieve the purposes of
this subtitle as stated in section 672.
(2) Requirement.--In order to serve as the eligible
entity for the service area, an entity described in
paragraph (1) shall agree to ensure that the governing
board of directors of the entity will meet the
requirements of subsection (c).
(3) Community.--A service area referred to in this
subsection or a portion thereof shall be treated as a
community for purposes of this subtitle.
(4) Interim designation.--If no entity that meets the
requirements of paragraphs (1) and (2) is available for
designation as a permanent eligible entity, the State
may designate a private, nonprofit agency (or public
agency if a private, nonprofit is not available) on an
interim basis for no more than 1 year while the State
completes a selection process for a permanent eligible
entity that meets the requirements of paragraphs (1)
and (2). An agency designated on an interim basis shall
be capable of providing programs, projects, and
services designed to achieve the purposes of this
subtitle as stated in section 672 and have demonstrated
financial capacity to manage and account for Federal
funds, and may be designated as a permanent eligible
entity only if, by the time of permanent designation,
it meets all the requirements of paragraphs (1) and
(2).
(b) Merger, Combination, or Privatization of Eligible
Entities.--
(1) In general.--If an eligible entity receiving
subgrant funds makes a determination described in
paragraph (2) and notifies the State, the State--
(A) shall assist in developing a plan for
implementing such merger, combination, or
privatization, including a budget for
transitional costs not to exceed 2 years in
duration;
(B) in the case of a merger or combination,
shall provide to the merged or combined entity
an amount of funding under section 679(a)(1)
equal to the sum of amounts the merged or
combined entities each received under section
679(a)(1) immediately before the merger or
combination.
(2) Covered merger, combination, or privatization.--
This subsection applies when--
(A) 2 or more eligible entities determine
that the geographic areas of a State that they
serve can be more effectively served under
common control or shared management; or
(B) a public organization that is an eligible
entity determines that the area it serves can
be more effectively served if it becomes a
private, nonprofit organization.
(3) Plans.--A State may establish requirements for
merger, combination, or privatization plans and for a
determination that the merged, combined, or privatized
entity, or entities, will be capable of conducting a
broad range of programs, projects, and services
designed to achieve the purposes of this subtitle as
stated in section 672 consistent with the comprehensive
community needs assessments for the areas served.
(4) State determination.--If a State determines that
a merged, combined, or privatized entity or entities
will be capable of conducting a broad range of
programs, projects, and services as specified in
paragraph (3), it shall designate the merged, combined,
or privatized entity or entities to serve the area(s)
in question without soliciting applications from other
entities.
(c) Tripartite Boards.--
(1) Private, nonprofit organizations.--
(A) Board.--In order for a private, nonprofit
organization to be considered to be an eligible
entity for purposes of section 673(7), the
entity shall be governed by a tripartite board
of directors described in subparagraph (C) that
fully participates in the development,
planning, implementation, oversight, and
evaluation of the programs, projects, and
services carried out or provided through the
subgrant made under section 679(a)(1) and all
activities of the entity.
(B) Selection.--The members of the board
referred to in subparagraph (A) shall be
selected by the private, nonprofit
organization.
(C) Composition of board.--The board shall be
composed so as to assure that--
(i) \1/3\ of the members of the board
are elected public officials holding
office on the date of selection, or
their representatives (but if an
elected public official chooses not to
serve, such official may designate a
representative to serve as the voting
board member);
(ii) not fewer than \1/3\ of the
members are persons chosen in
accordance with democratic selection
procedures adequate to assure that such
members are representative of low-
income individuals and families in the
service area; and if selected to
represent a specific geographic area,
such member resides in that area; and
(iii) the remainder of the members
may be comprised of representatives
from business, industry, labor,
religious, educational, charitable, or
other significant groups and interests
in the community.
(D) Expertise.--The eligible entity shall
ensure that the members of the board are
provided resources, which may include
contracted services with individuals and
organizations with expertise in financial
management, accounting, and law, to support the
work of the board.
(E) Compliance with tax-exempt and other
requirements.--The board of a private,
nonprofit organization shall ensure that the
board operates and conducts activities under
the subgrant made under section 679(a)(1) in a
manner that complies with--
(i) the requirements for maintaining
tax-exempt status under section 501(a)
of the Internal Revenue Code of 1986
(26 U.S.C. 501(a)) regarding the
governance of charities under section
501(c)(3) of the Internal Revenue Code
of 1986 (26 U.S.C. 501(c)(3)); and
(ii) applicable requirements of State
nonprofit law.
(2) Public organizations.--
(A) Board.--In order for a local public
(governmental) entity to be considered to be an
eligible entity for purposes of section 673(7),
the entity shall ensure that the programs,
projects, and services carried out or provided
through the subgrant made under section
679(a)(1) are administered under the
supervision of a tripartite board described in
subparagraph (C) that fully participates in the
development, planning, implementation,
oversight, and evaluation of such programs,
projects, and services.
(B) Selection.--The members of the board
referred to in subparagraph (A) shall be
selected by the local public entity.
(C) Composition of board.--The board shall be
composed so as to assure that--
(i) not more than \1/3\ of the
members of the board are employees or
officials, including elected officials,
of the unit of government in which the
organization is located;
(ii) not fewer than \1/3\ of the
members are persons chosen in
accordance with democratic selection
procedures adequate to assure that such
members are representative of low-
income individuals and families in the
service area; and if selected to
represent a specific geographic area,
such member resides in that area; and
(iii) the remainder of the members
may be comprised of representatives
from business, industry, labor,
religious, educational, charitable, or
other significant groups and interests
in the community.
(D) Expertise.--The eligible entity shall
ensure that the members of the board are
provided resources, which may include
contracted services with individuals and
organizations with expertise in financial
management, accounting, and law, to support the
work of the board.
(E) Compliance with state requirements and
policy.--The board of a public organization
shall ensure that the board operates in a
manner that complies with State requirements
for open meetings, financial transparency, and
State open records policy.
(3) Board vacancies.--To fulfill the requirements
under this section, an eligible entity shall fill a
board vacancy not later than 6 months after such
vacancy arises. In the event that an eligible entity is
unable to fill a board vacancy in the 6-month period,
the entity shall certify to the State that it is making
a good faith effort to fill the vacancy and shall
receive 1 additional 6-month period to fill such
vacancy.
(4) Safeguard.--Neither the Federal Government nor a
State or local government shall require a religious
organization to alter its form of internal governance,
except (for purposes of administration of the community
services block grant program) as provided in section
680(c).
(d) Operations and Duties of the Board.--The duties of a
board described in paragraph (1) or (2) of subsection (c) shall
include--
(1) in the case of a board for a private, nonprofit
organization that is an eligible entity, having legal
and financial responsibility for administering and
overseeing the eligible entity, including making proper
use of Federal funds;
(2) establishing terms for officers and adopting a
code of ethical conduct, including a conflict of
interest policy for board members;
(3) participating in each comprehensive community
needs assessment, developing and adopting for the
corresponding eligible entity an agency-wide strategic
plan, and preparing the community action plan for the
use of funds under this subtitle;
(4) approving the eligible entity's operating budget;
(5) reviewing all major policies such that--
(A) for private, nonprofit organizations that
are eligible entities, a review includes
conducting annual performance reviews of the
eligible entity's chief executive officer (or
individual holding an equivalent position); and
(B) for local public entities that are
eligible entities, a review includes
participating in annual performance reviews of
the eligible entity's chief executive officer
(or individual holding an equivalent position);
(6) performing oversight of the eligible entity to
include--
(A) conducting assessments of the eligible
entity's progress in carrying out programmatic
and financial provisions in the community
action plan; and
(B) in the case of any required corrective
action, reviewing the eligible entity's plans
and progress in remedying identified
deficiencies; and
(7) concerning personnel policies and procedures--
(A) in the case of private, nonprofit
organizations that are eligible entities,
adopting personnel policies and procedures,
including for hiring, annual evaluation,
compensation, and termination, of the eligible
entity's chief executive officer (or individual
holding a similar position); and
(B) in the case of local public entities that
are eligible entities, reviewing personnel
policies and procedures, including for hiring,
annual evaluation, compensation, and
termination, of the eligible entity's chief
executive officer (or individual holding a
similar position).
SEC. 681. OFFICE OF COMMUNITY SERVICES.
(a) Office.--
(1) Establishment.--The Secretary shall establish an
Office of Community Services in the Department to carry
out the functions of this subtitle.
(2) Director.--The Office shall be headed by a
Director (referred to in this section as the
``Director'').
(b) Grants, Contracts, and Cooperative Agreements.--The
Secretary, acting through the Director, shall carry out the
functions of this subtitle through grants, contracts, or
cooperative agreements.
SEC. 682. TRAINING, TECHNICAL ASSISTANCE, AND RELATED ACTIVITIES.
(a) Activities.--
(1) In general.--The Secretary shall--
(A) use amounts reserved under section
691(c)(2) for training, technical assistance,
planning, assessment, and performance
measurement, as described in this section and
in sections 684 and 686, to assist States,
eligible entities, Tribal grantees, and other
community services network organizations in--
(i) building and using evidence of
effectiveness in reducing poverty
conditions, including through
development and dissemination of
information about clearinghouses and
other resources that identify relevant
evidence-based initiatives, for use in
connection with the Community Action
Innovations Program established under
paragraph (2);
(ii) carrying out professional
development activities that expand the
capacity of eligible entities and
Tribal grantees;
(iii) carrying out performance
measurement, data collection, and
reporting activities related to
programs, projects, and services
carried out under this subtitle; and
(iv) correcting programmatic
deficiencies, including such
deficiencies of eligible entities or
Tribal grantees; and
(B) distribute the amounts reserved under
section 691(c)(2)(A) through grants, contracts,
or cooperative agreements with eligible
entities, Tribal grantees, and other community
services network organizations described in
subsection (b) for--
(i) professional development for key
community services network organization
personnel;
(ii) activities to improve community
services network organization programs,
financial management, compliance, and
governance practices (including
practices related to performance
management information systems);
(iii) activities that train community
services network organizations and
their staff and board members to
effectively address the needs of low-
income families and communities through
place-based strategies that address
local causes and conditions of poverty
through coordinated investment and
integrated service delivery; and
(iv) activities that train community
services network organizations in
building and using evidence of
effectiveness in reducing poverty
conditions and that support effective
administration of funds under the
Community Action Innovations Program
established under paragraph (2).
(2) Innovative and evidence-based projects to reduce
poverty.--
(A) In general.--The Secretary shall use
amounts reserved under section 691(c)(3) for a
Community Action Innovations Program to--
(i) award grants, contracts, or
cooperative agreements to eligible
entities, Tribal grantees, and other
community services network
organizations, including consortia of
such entities, grantees, or
organizations to facilitate innovation
and use of evidence-based practice
designed to reduce poverty conditions,
including through whole family
approaches that create opportunities
for, and address the needs of, parents
and children together; and
(ii) disseminate results for public
use.
(B) Projects.--The Secretary shall award
funds from its Community Action Innovations
Program for projects to enable--
(i) replication or expansion of
innovative practices with demonstrated
evidence of effectiveness, with
priority given to those with the
strongest evidence base as determined
through a broad review of available
studies; or
(ii) testing of innovative practices
to determine their effectiveness, with
priority given to those incorporating
rigorous, independent evaluation to
further build the evidence base.
(C) Use of funds.--The funds reserved for use
under this paragraph may be used by awardees
for resources or activities necessary to
replicate, expand, or test innovative and
evidence-based practices, including costs of
training and technical assistance, evaluation,
data collection, and technology.
(D) Expenses.--The funds reserved for use
under this paragraph may be used for reasonable
expenses of awardees, associated with
administration of projects and dissemination of
their results.
(E) Awards and obligation.--The Secretary
shall award and obligate funds reserved for
projects under this paragraph during the first
program year for which the funds are
appropriated. Grant funds awarded under this
paragraph shall remain available for
expenditure by the awardee not later than 36
months after the date of award by the
Secretary, unless a longer period of
availability is approved by the Secretary based
on extenuating circumstances and demonstrated
evidence of effectiveness.
(b) Eligible Entities, Tribal Grantees, and Other Community
Services Network Organizations.--Eligible entities, Tribal
grantees, and other community services network organizations
referred to in subsection (a)(1)(B) shall include such
entities, grantees, and organizations (and their partners,
including institutions of higher education) with demonstrated
expertise in providing training for individuals and
organizations on methods of effectively addressing the needs of
low-income families and communities and, if appropriate,
expertise in Tribal issues.
(c) Training and Technical Assistance Process.--`The process
for determining the training and technical assistance to be
carried out under subsection (a)(1) shall--
(1) ensure that the needs of eligible entities,
Tribal grantees, and programs relating to improving
program quality (including quality of financial
management practices) are addressed to the maximum
extent feasible; and
(2) incorporate mechanisms to ensure responsiveness
to local needs, including an ongoing procedure for
obtaining input from the national and State networks of
eligible entities.
SEC. 683. STATE MONITORING OF ELIGIBLE ENTITIES.
In order to determine whether eligible entities receiving
subgrants under this subtitle meet performance goals,
administrative standards, financial management requirements,
and other requirements under this subtitle, the State shall
conduct the following reviews of eligible entities:
(1) A full onsite review of each eligible entity at
least once during each 3-year period.
(2) An onsite review of each newly designated
eligible entity immediately after the completion of the
first year in which such entity receives funds through
the community services block grant program under this
subtitle.
(3) Followup reviews, including onsite reviews
scheduled in a corrective action plan (including return
visits), in a calendar quarter for eligible entities
with programs, projects, or services that fail to meet
the State's performance criteria, standards, financial
management requirements, or other significant
requirements established under this subtitle.
(4) Other reviews as appropriate, including reviews
of eligible entities with programs, projects, and
services that have had other Federal, State, or local
grants (other than assistance provided under this
subtitle) terminated for cause.
(5) In conducting reviews, including as required by
paragraph (1), a State may conduct a remote (including
virtual) review of an eligible entity in extraordinary
circumstances if approved by the Secretary on a case-
by-case basis.
SEC. 684. ASSESSMENTS; CORRECTIVE ACTION; REDUCTION OR ELIMINATION OF
FUNDING.
(a) Assessments of States by the Secretary.--
(1) In general.--The Secretary shall conduct, in not
fewer than 1/5 of the States in each fiscal year,
assessments (including investigations) of State
compliance with this subtitle, including requirements
relating to the use of funds received under this
subtitle, requirements applicable to State plans
submitted under section 678(b), and requirements of
section 679(a)(2).
(2) Report to states.--The Secretary shall submit to
each State assessed, and make available to the public
on the Department's website, a report containing--
(A) the results of such assessment; and
(B)(i) recommendations for improvements
designed to enhance the benefit and impact of
the activities carried out with such funds; and
(ii) in the event a serious deficiency is
found regarding a State's compliance with this
subtitle, including requirements relating to
the use of funds received under this subtitle,
a proposed corrective action plan.
(3) State response.--Not later than 45 days after
receiving a report under paragraph (2)--
(A) a State that received recommendations
under paragraph (2)(B)(i) shall submit to the
Secretary and make available to the public on
the State lead agency's website a plan of
action in response to the recommendations; and
(B) a State that received a proposed
corrective action plan under paragraph
(2)(B)(ii) shall agree to implement the
corrective action plan proposed by the
Secretary or propose to the Secretary and make
available to the public on the State lead
agency's website a different corrective action
plan, developed by the State in a timely manner
that the State will implement upon approval by
the Secretary.
(4) Report to congress.--The Secretary shall submit
the results of the assessments annually, as part of the
report submitted by the Secretary in accordance with
section 686(b)(2).
(5) Enforcement.--
(A) Reduction or elimination of funding.--If
the Secretary determines, in a final decision
based on an assessment conducted under this
section, that a State fails to meet the
requirements of this subtitle, the Secretary
may, after providing adequate notice and an
opportunity for a hearing, initiate proceedings
to reduce or eliminate the amount of funding
apportioned and allocated to the State as
described in section 675 or 676, as applicable
(and, if necessary, deobligate such funding).
(B) Direct awards to other entities.--
(i) Reduction or elimination of state
funding; lack of approved state plan.--
If the Secretary reduces or eliminates
funding to a State under subparagraph
(A), the Secretary shall award funding
directly as provided under clauses (ii)
and (iii). If, for a particular fiscal
year, a State plan is not approved by
the Secretary in accordance with
section 678(c), the Secretary may award
funding directly as provided under
clauses (ii) and (iii).
(ii) Direct funding to eligible
entities.--If funding specified in
section 679(a)(1) is reduced or
eliminated due to the Secretary's
reduction or elimination of funding
under subparagraph (A), or if the
Secretary chooses to award funding
directly due to the lack of an approved
State plan as authorized in clause (i),
the Secretary shall award financial
assistance in the amount of such
reduced or eliminated funding, or in
the amount the State would have
received for the purposes specified in
section 679(a)(1) had a State plan been
approved, directly (by grant or
cooperative agreement) to affected
eligible entities (provided that any
such entity has not had its funding
under this subtitle eliminated or its
designation as an eligible entity
terminated by the State in accordance
with subsections (b) and (c) of section
684) to carry out the activities
described in section 679(c). In
awarding such funding, the Secretary
shall ensure that each such affected
eligible entity receives the same
proportionate share of funding under
section 679(a)(1) that it received in
the previous fiscal year.
(iii) Statewide funds.--If funding
specified in section 679(b) is reduced
or eliminated due to the Secretary's
reduction or elimination of funding
under subparagraph (A), or if the
Secretary chooses to award funding
directly due to the lack of an approved
State plan as authorized in clause (i),
the Secretary shall reserve an amount
equal to the amount of such reduced or
eliminated funds, or to the amount the
State would have received for the
purposes specified in section 679(b)
had a State plan been approved. The
Secretary may use such amount for such
purposes directly or through a grant or
cooperative agreement to community
services network organizations (other
than the State itself).
(iv) Reduction.--In the case of
expenditure as provided in accordance
with this subparagraph, the Secretary
shall reduce funding the State would
otherwise have received under section
675 or 676 (and, if necessary,
deobligate such funding) for the
appropriate fiscal year by an amount
equal to the amount so expended.
(6) Training and technical assistance.--The
Secretary, through the Department's own employees or
contractors (rather than under grants, contracts, or
cooperative agreements issued under section 682), shall
provide training and technical assistance to States
with respect to the development or implementation of
the States' corrective action plans.
(b) Determination of Eligible Entity Failure to Comply.--
(1) Corrective action by eligible entities.--If the
State determines, on the basis of a review pursuant to
section 683 or section 685, that there is a serious
deficiency regarding an eligible entity's compliance
with this subtitle, the State shall inform the entity
of the serious deficiencies that shall be corrected and
provide technical assistance for the corrective action.
(2) Eligible entity corrective action plans.--An
eligible entity that is found to have a serious
deficiency under paragraph (1) shall develop, in a
timely manner, a corrective action plan that shall be
subject to the approval of the State, and that shall
specify--
(A) the deficiencies to be corrected;
(B) the actions to be taken to correct such
deficiencies; and
(C) the timetable for accomplishment of the
corrective actions specified.
(3) Final decision.--If the State determines, on the
basis of a final decision in a review conducted under
section 683, that an eligible entity fails to comply
with the terms of a corrective action plan under
paragraph (2) relating to correction of a serious
deficiency for the eligible entity, the State may,
after providing adequate notice and an opportunity for
a hearing, initiate proceedings to withhold, reduce, or
eliminate the funding provided under section 679(a)(1)
to the eligible entity (including, in the case of
elimination of funding, terminating the designation
under this subtitle of the eligible entity) unless the
entity corrects the serious deficiency.
(c) Review.--A State's decision to withhold, reduce, or
eliminate funding, or to terminate the designation of an
eligible entity (or eligible entities, as applicable) may be
reviewed by the Secretary. Upon request by a community services
network organization, the Secretary shall review such a
determination. The review shall be completed not later than 60
days after the Secretary receives from the State all necessary
documentation relating to the determination. The State shall
submit such documentation within a reasonable time frame
established by the Secretary.
(d) Direct Assistance.--Whenever the Secretary determines
that a State has violated the State plan described in section
678(b) (including the assurance described in section 678(b)(6))
and the State has reduced or eliminated the funding provided
under section 679(a) to any eligible entity or entities or
terminated the eligible entity designation of any eligible
entity or entities before the completion of the State
proceedings described in section 678(b)(6) (including, if
applicable, the proceedings required by subsection (b)) and the
Secretary's review as required by subsection (c), the Secretary
may provide financial assistance under this subtitle to the
affected eligible entity or entities directly until the
violation is corrected by the State. In such a case, the
Secretary may reduce funding the State would otherwise have
received under section 675 or 676 (and, if necessary,
deobligate such funding) for the appropriate fiscal year by an
amount equal to the financial assistance provided directly by
the Secretary to such eligible entity or entities.
SEC. 685. STATE AND LOCAL FISCAL CONTROLS AND AUDITS.
(a) Fiscal Controls, Procedures, Audits, and Inspections.--A
State that receives funds under this subtitle shall--
(1) establish fiscal control and fund accounting
procedures necessary to assure the proper disbursal of,
and accounting for, Federal funds paid to the State
under this subtitle, including procedures for
monitoring the funds provided under this subtitle;
(2) ensure that cost and accounting standards of the
Office of Management and Budget apply to a subrecipient
of the funds under this subtitle;
(3) in accordance with subsections (b) and (c),
prepare, not less than once each year, an audit of the
expenditures of the State of amounts received under
this subtitle; and
(4) make appropriate books, documents, papers, and
records available to the Secretary and the Comptroller
General of the United States, or any of their duly
authorized representatives, for examination, copying,
or mechanical reproduction, on or off the premises of
the appropriate entity, upon a reasonable request for
the items.
(b) Independent Entity.--Subject to subsection (c), each
audit required by subsection (a)(3) shall be conducted by an
entity independent of any agency administering activities or
services under this subtitle and shall be conducted in
accordance with generally accepted accounting principles.
(c) Single Audit Requirements.--
(1) In general.--Any audit under this subsection
shall be conducted in the manner and to the extent
provided in chapter 75 of title 31, United States Code
(commonly known as the ``Single Audit Act Amendments of
1984'') except in the event a serious financial
deficiency is identified.
(2) Serious financial deficiency.--In the event that
such a deficiency is identified, the Secretary shall
order--
(A) an audit conducted as described in
subsection (a); or
(B) an audit of each of the accounts
involved, in accordance with subsections (b)
and (d).
(d) Submission of Copies.--Not later than 30 days after the
completion of each audit in a State as required in subsection
(a)(3), the chief executive officer of the State shall submit
copies of such audit, at no charge, to any eligible entity that
was the subject of the audit, to the legislature of the State,
and to the Secretary.
(e) Repayments.--If the Secretary, after review of the audit,
finds that a State has not expended an amount of funds in
accordance with this subtitle, the Secretary is authorized to
withhold funds from a State under this subtitle until the State
remedies the improperly expended funds for the original
purposes for which the grant funds were intended.
(f) Response to Complaints.--The Secretary shall respond in
an expeditious manner to complaints of a substantial or serious
nature that a State has failed to use grant funds received
under section 675 or 676 or to carry out State activities under
this subtitle in accordance with the provisions of this
subtitle.
(g) Investigations.--Whenever the Secretary determines that
there is a pattern of complaints regarding failures described
in subsection (f) or a complaint of a serious deficiency
concerning any State, the Secretary shall conduct an
investigation of the use of the funds received under this
subtitle by such State in order to ensure compliance with the
provisions of this subtitle.
SEC. 686. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
(a) State Accountability and Reporting Requirements.--
(1) Performance measurement.--
(A) In general.--Beginning with the first
fiscal year following the transition period
described in section 3 of the Community
Services Block Grant Modernization Act of 2022,
each State that receives funds under this
subtitle shall participate, and shall ensure
that all eligible entities in the State
participate, in a results-oriented performance
measurement system that the Secretary is
satisfied meets the requirements of section
689(b)(1).
(B) Subcontractors.--The State may elect to
have subcontractors of the eligible entities
under this subtitle participate in the results-
oriented performance measurement system. If the
State makes that election, references in this
section to eligible entities shall be
considered to include such subcontractors.
(C) Eligible entity reports.--Eligible
entities shall provide the results measured by
their performance measurement system and such
other reports as the State may require.
(2) Annual report.--Each State receiving funds under
this subtitle shall annually prepare, and submit to the
Secretary by March 31 of each year, a report on the
performance of the State and eligible entities in the
State, including achievement with respect to
performance measurements that were used by community
services network organizations in the State for the
previous fiscal year. Each State shall also include in
the report--
(A) an accounting of the expenditure of funds
received by the State through the community
services block grant program, including an
accounting of funds spent on administrative or
indirect costs by the State and the eligible
entities and funds spent by the eligible
entities on local programs, projects, and
services;
(B) information on the number and
characteristics of participants served under
this subtitle in the State, based on data
collected from the eligible entities;
(C) a summary describing the training and
technical assistance offered by the State under
subparagraph (B) of section 679(b)(1) during
the year covered by the report;
(D) information on the total budget and
activities of the eligible entities receiving
subgrants from the State under this subtitle,
including local and private resources available
for a purpose described in section 672; and
(E) a report on the manner in which the State
and eligible entities and other recipients of
funds under this subtitle have implemented
results-oriented management practices based on
their performance measurement systems.
(b) Reporting Requirements.--
(1) Contents.--Not later than September 30 of each
year, the Secretary shall, directly or by grant or
contract, prepare a report including--
(A) the information included in the State
annual reports under subsection (a)(2) for the
preceding fiscal year;
(B) a report on the performance of the
Department in the preceding year regarding
carrying out critical roles and
responsibilities under this subtitle, including
with regard to timeliness in allocating and
making appropriated funds available for
expenditure to States, approvals or
notifications to States concerning State plans
and plan revisions, and conducting assessments
of States and implementation of State
corrective action plans (including status of
and follow-up on recommendations made in
previous State assessments and corrective
action plans);
(C) a description of the training and
technical assistance activities funded by the
Secretary under section 682 and the results of
those activities; and
(D) a report on the Community Action
Innovations Program authorized under section
682(a)(2), including a description of training
and technical assistance funded by the
Secretary, the rationale for projects that
received support, a description of funded
activities and their results, and a summary of
ways in which the Program has expanded use of
evidence-based practice or contributed to
building the evidence base designed to reduce
poverty conditions.
(2) Submission.--The Secretary shall submit to the
Committee on Education and Labor of the House of
Representatives and to the Committee on Health,
Education, Labor, and Pensions of the Senate the report
described in paragraph (1) and any recommendations the
Secretary may have with respect to such report.
(3) Electronic data system for reports to states and
eligible entities.--The Secretary, through the
Department's own employees or contractors (rather than
under grants, contracts, or cooperative agreements
issued under section 682), shall provide technical
assistance, including support for the development and
maintenance of an electronic data system for the
reports under this section, to the States and eligible
entities to enhance the quality and timeliness of
reports submitted under this subtitle. The system shall
be coordinated and consistent with the data systems
established for other programs of the Department that
are managed by eligible entities, including all
programs of the Administration for Children and
Families or successor administrative units in which the
office is located.
SEC. 687. LIMITATIONS ON USE OF FUNDS.
(a) Construction of Facilities.--
(1) Limitations.--Except as provided in paragraphs
(2) and (3) of this subsection and in paragraphs (2)
and (3) of section 690(a), grants or subgrants made
under this subtitle may not be for the purchase or
improvement of land, or the purchase, construction or
permanent improvement of any building or other
facility.
(2) Waiver.--The Secretary may waive the limitation
contained in paragraph (1) upon a State request for
such a waiver if the Secretary finds that--
(A) the request describes extraordinary
circumstances to justify the purchase or
improvement of land, or the purchase,
construction, or permanent improvement of any
building or other facilities; and
(B) permitting the waiver will contribute to
the ability of the State and eligible entities
to carry out a purpose described in section 672
at substantially reduced costs.
(3) Architectural barriers to accessibility.--Grants
or subgrants made under this subtitle may be used by
eligible entities or Tribal grantees for making
material improvements in the accessibility of the
physical structures for individuals with disabilities
seeking services of such entities.
(b) Political Activities.--
(1) Treatment as a state or local agency.--For
purposes of chapter 15 of title 5, United States Code,
any entity that assumes responsibility for planning,
developing, and coordinating activities under this
subtitle and receives assistance under this subtitle
shall be deemed to be a State or local agency. For
purposes of paragraphs (1) and (2) of section 1502(a)
of such title, any entity receiving assistance under
this subtitle shall be deemed to be a State or local
agency.
(2) Prohibitions.--A program, project, or service
assisted under this subtitle, and any individual
employed by, or assigned to or in, such a program,
project, or service (during the hours in which the
individual is working on behalf of the program,
project, or service) shall not engage in--
(A) any partisan or nonpartisan political
activity or any political activity associated
with a candidate, or contending faction or
group, in an election for public or party
office; or
(B) any activity to provide voters or
prospective voters with transportation to the
polls or similar assistance in connection with
any election.
(3) Registration.--None of the funds appropriated to
carry out this subtitle may be used to conduct voter
registration activities. Nothing in this subtitle
prohibits entities receiving assistance under this
subtitle from making its facilities available during
hours of operation for use by nonpartisan organizations
to increase the number of eligible citizens who
register to vote in elections for Federal office.
(c) Nondiscrimination.--
(1) In general.--No person shall, on the basis of
race, color, national origin, or sex, be excluded from
participation in, be denied the benefits of, or be
subjected to discrimination under, any program,
project, or service funded in whole or in part with
funds made available under this subtitle. Any
prohibition against discrimination on the basis of age
under the Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.) or with respect to an otherwise qualified
individual with a disability as provided in section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794), or
title II of the Americans with Disabilities Act of 1990
(42 U.S.C. 12131 et seq.), shall also apply to any such
program, project, or service.
(2) Action of secretary.--Whenever the Secretary
determines that a State that has received a payment
under this subtitle has failed to comply with paragraph
(1) or an applicable regulation, the Secretary shall
notify the chief executive officer of the State and
shall request that the officer secure compliance. If
within a reasonable period of time, not to exceed 60
days, the chief executive officer fails or refuses to
secure compliance, the Secretary is authorized to--
(A) refer the matter to the Attorney General
with a recommendation that an appropriate civil
action be instituted;
(B) exercise the powers and functions
provided by title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.), the Age
Discrimination Act of 1975 (42 U.S.C. 6101 et
seq.), section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794), or title II of the
Americans with Disabilities Act of 1990 (42
U.S.C. 12131 et seq.), as may be applicable; or
(C) take such other action as may be provided
by law.
(3) Action of attorney general.--When a matter is
referred to the Attorney General pursuant to paragraph
(2), or whenever the Attorney General has reason to
believe that the State is engaged in a pattern or
practice of discrimination in violation of the
provisions of this subsection, the Attorney General may
bring a civil action in any appropriate United States
district court for such relief as may be appropriate,
including injunctive relief.
SEC. 688. CHILD SUPPORT SERVICES AND REFERRALS.
During each fiscal year for which an eligible entity receives
a subgrant under section 679(a), such entity shall--
(1) inform custodial parents or legal guardians that
participate in programs, projects, or services carried
out or provided under this subtitle about the
availability of child support services; and
(2) refer custodial parents or legal guardians to the
child support offices of State and local governments.
SEC. 689. REGULATIONS.
(a) Regulations.--The Secretary shall promulgate regulations
implementing this subtitle, including regulations regarding--
(1) State plans, including the form and information
required for State plans submitted to the Secretary,
and criteria for determining whether a State plan
revision is to be considered a major revision;
(2) community action plans, including the form and
information required for community action plans
submitted to States;
(3) State monitoring of eligible entities; and
(4) reports to the Secretary described in section
686.
(b) Guidance.--
(1) Performance measurement.--The Secretary shall
issue guidance regarding State and local performance
measurement systems. Guidance may include one or more
model performance measurement systems, facilitated by
the Secretary, that States and eligible entities may
use to measure their performance in carrying out the
requirements of this subtitle and in achieving the
goals of their community action plans.
(2) Comprehensive analysis of poverty conditions.--
The Secretary shall issue guidance (including models)
for comprehensive community needs assessments described
in section 678(e)(1). The guidance shall include
methods for preparing an analysis of all poverty
conditions affecting a community and of local and
regional assets for alleviating such conditions.
SEC. 690. DISCRETIONARY COMMUNITY PROGRAMS.
(a) Grants, Contracts, Arrangements, Loans, and Guarantees.--
(1) In general.--The Secretary shall, from funds
appropriated under section 691(b), make grants, loans,
or guarantees to States and public agencies and
private, nonprofit organizations, or enter into
contracts or jointly financed cooperative arrangements
with States and public agencies and private, nonprofit
organizations (and for-profit organizations, to the
extent specified in paragraph (2)(E)) for each of the
objectives described in paragraphs (2) through (4).
(2) Community economic development.--
(A) Economic development activities.--The
Secretary shall make grants described in
paragraph (1) on a competitive basis to
private, nonprofit organizations that are
community development corporations to provide
technical and financial assistance for economic
development activities designed to address the
economic needs of low-income individuals and
families by creating employment and business
development opportunities.
(B) Consultation.--The Secretary shall
exercise the authority provided under
subparagraph (A) after consultation with other
relevant Federal officials.
(C) Governing boards.--For a community
development corporation to receive funds to
carry out this paragraph, the corporation shall
be governed by a board that shall--
(i) consist of residents of the
community and business and civic
leaders; and
(ii) have as a principal purpose
planning, developing, or managing low-
income housing or community development
projects.
(D) Geographic distribution.--In making
grants to carry out this paragraph, the
Secretary shall take into consideration the
geographic distribution of funding among States
and the relative proportion of funding among
rural and urban areas.
(E) Reservation.--Of the amounts made
available to carry out this paragraph, the
Secretary may reserve not more than 1 percent
for each fiscal year to make grants to private,
nonprofit organizations or to enter into
contracts with private, nonprofit, or for-
profit organizations to provide technical
assistance to aid community development
corporations in developing or implementing
activities funded to carry out this paragraph
and to evaluate activities funded to carry out
this paragraph.
(3) Rural community development activities.--The
Secretary shall provide the assistance described in
paragraph (1) for rural community development
activities, which shall include providing--
(A) grants to private, nonprofit
organizations to enable the organizations to
provide assistance concerning home repair to
rural low-income families and planning and
developing low-income rural rental housing
units; and
(B) grants to multi-State, regional, private,
nonprofit organizations to enable the
organizations to provide training and technical
assistance to small, rural communities
concerning meeting their community facility
needs.
(4) Broadband navigator projects.--
(A) Navigator project authority.--The
Secretary is authorized to provide assistance
described in paragraph (1) for broadband
navigator projects consistent with the purposes
of this Act to address the educational and
economic needs of low-income individuals and
communities.
(B) Navigator grants.--The Secretary shall
make grants consistent with subparagraph (A) to
community action agencies and Tribal grantees
to enable them to provide assistance through
trained navigators to low-income individuals
and communities to help facilitate access to
affordable high-speed broadband service,
internet-enabled devices, digital literacy
training, technical support, and other services
to meet the broadband and digital needs of such
individuals and communities.
(C) Priority.--Priority in the awarding of
such grants under paragraph (4) shall be given
to community action agencies and Tribal
grantees serving underserved areas with the
most significant unmet broadband and digital
needs.
(D) Technical assistance.--Of the amounts
made available to carry out broadband navigator
projects, the Secretary may reserve up to 5
percent for grant review, technical assistance,
and evaluation.
(b) Evaluation.--The Secretary shall require all activities
receiving assistance under this section to be evaluated for
their effectiveness. Funding for such evaluations shall be
provided as a stated percentage of the assistance or through a
separate grant or contract awarded by the Secretary
specifically for the purpose of evaluation of a particular
activity or group of activities.
(c) Annual Report.--The Secretary shall compile an annual
report containing a summary of the evaluations required under
subsection (b) and a listing of all activities assisted under
this section. The Secretary shall annually submit such report
to the chairperson of the Committee on Education and Labor of
the House of Representatives and the chairperson of the
Committee on Health, Education, Labor, and Pensions of the
Senate.
SEC. 691. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated to
carry out this subtitle (excluding section 690)--
(1) $1,000,000,000 for each of fiscal years 2023
through 2027; and
(2) such sums as may be necessary for fiscal years
2028 through 2032.
(b) Discretionary Programs.--There are authorized to be
appropriated to carry out section 690 such sums as may be
necessary for fiscal years 2023 through 2032.
(c) Reservations by the Secretary.--Of the amounts
appropriated under subsection (a) for each fiscal year, the
Secretary shall reserve--
(1) \1/2\ of 1 percent for carrying out section 675
(relating to grants to territories);
(2) 2 percent for activities authorized in section
682(a)(1), of which--
(A) not less than 50 percent of the amount
reserved by the Secretary under this paragraph
shall be awarded through grants, contracts, or
cooperative agreements to eligible entities,
Tribal grantees, and other community services
network organizations described in section
682(b), for the purpose of carrying out
activities described in section 682(a)(1)(B);
and
(B) the remainder of the amount reserved by
the Secretary under this paragraph may be
awarded through grants, contracts, or
cooperative agreements to eligible entities,
Tribal grantees, and other community services
network organizations described in section
682(b), or other entities with demonstrated
expertise in providing training for individuals
and organizations on methods of effectively
addressing the needs of low-income families and
communities and, if appropriate, expertise in
Tribal issues;
(3) 1 percent for the Community Action Innovations
Program authorized in section 682(a)(2); and
(4) up to $5,000,000 for each of the fiscal years
2023, 2024, and 2025, to carry out section 686(b)(3).
SEC. 692. REFERENCES.
A reference in any provision of law to the poverty line set
forth in section 624 or 625 of the Economic Opportunity Act of
1964 shall be construed to be a reference to the poverty line
defined in section 673 of this subtitle. Except as otherwise
provided, any reference in any provision of law to any
community action agency designated under title II of the
Economic Opportunity Act of 1964 shall be construed to be a
reference to an entity eligible to receive funds under the
community services block grant program.
* * * * * * *
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OLDER AMERICANS ACT OF 1965
* * * * * * *
TITLE III--GRANTS FOR STATE AND COMMUNITY PROGRAMS ON AGING
Part A--General Provisions
* * * * * * *
area plans
Sec. 306. (a) Each area agency on aging designated under
section 305(a)(2)(A) shall, in order to be approved by the
State agency, prepare and develop an area plan for a planning
and service area for a two-, three-, or four-year period
determined by the State agency, with such annual adjustments as
may be necessary. Each such plan shall be based upon a uniform
format for area plans within the State prepared in accordance
with section 307(a)(1). Each such plan shall--
(1) provide, through a comprehensive and coordinated
system, for supportive services, nutrition services,
and, where appropriate, for the establishment,
maintenance, modernization, or construction of
multipurpose senior centers (including a plan to use
the skills and services of older individuals in paid
and unpaid work, including multigenerational and older
individual to older individual work), within the
planning and service area covered by the plan,
including determining the extent of need for supportive
services, nutrition services, and multipurpose senior
centers in such area (taking into consideration, among
other things, the number of older individuals with low
incomes residing in such area, the number of older
individuals who have greatest economic need (with
particular attention to low-income older individuals,
including low-income minority older individuals, older
individuals with limited English proficiency, and older
individuals residing in rural areas) residing in such
area, the number of older individuals who have greatest
social need (with particular attention to low-income
older individuals, including low-income minority older
individuals, older individuals with limited English
proficiency, and older individuals residing in rural
areas) residing in such area,the number of older
individuals at risk for institutional placement
residing in such area, and the number of older
individuals who are Indians residing in such area, and
the efforts of voluntary organizations in the
community), evaluating the effectiveness of the use of
resources in meeting such need, and entering into
agreements with providers of supportive services,
nutrition services, or multipurpose senior centers in
such area, for the provision of such services or
centers to meet such need;
(2) provide assurances that an adequate proportion,
as required under section 307(a)(2), of the amount
allotted for part B to the planning and service area
will be expended for the delivery of each of the
following categories of services--
(A) services associated with access to
services (transportation, health services
(including mental and behavioral health
services), outreach, information and assistance
(which may include information and assistance
to consumers on availability of services under
part B and how to receive benefits under and
participate in publicly supported programs for
which the consumer may be eligible), and case
management services);
(B) in-home services, including supportive
services for families of older individuals with
Alzheimer's disease and related disorders with
neurological and organic brain dysfunction; and
(C) legal assistance;
and assurances that the area agency on aging will
report annually to the State agency in detail the
amount of funds expended for each such category during
the fiscal year most recently concluded;
(3)(A) designate, where feasible, a focal point for
comprehensive service delivery in each community,
giving special consideration to designating
multipurpose senior centers (including multipurpose
senior centers operated by organizations referred to in
paragraph (6)(C)) as such focal point; and
(B) specify, in grants, contracts, and agreements
implementing the plan, the identity of each focal point
so designated;
(4)(A)(i)(I) provide assurances that the area agency
on aging will--
(aa) set specific objectives, consistent with
State policy, for providing services to older
individuals with greatest economic need, older
individuals with greatest social need, and
older individuals at risk for institutional
placement;
(bb) include specific objectives for
providing services to low-income minority older
individuals, older individuals with limited
English proficiency, and older individuals
residing in rural areas; and
(II) include proposed methods to achieve the
objectives described in items (aa) and (bb) of
subclause (I);
(ii) provide assurances that the area agency on aging
will include in each agreement made with a provider of
any service under this title, a requirement that such
provider will--
(I) specify how the provider intends to
satisfy the service needs of low-income
minority individuals, older individuals with
limited English proficiency, and older
individuals residing in rural areas in the area
served by the provider;
(II) to the maximum extent feasible, provide
services to low-income minority individuals,
older individuals with limited English
proficiency, and older individuals residing in
rural areas in accordance with their need for
such services; and
(III) meet specific objectives established by
the area agency on aging, for providing
services to low-income minority individuals,
older individuals with limited English
proficiency, and older individuals residing in
rural areas within the planning and service
area; and
(iii) with respect to the fiscal year preceding the
fiscal year for which such plan is prepared--
(I) identify the number of low-income
minority older individuals in the planning and
service area;
(II) describe the methods used to satisfy the
service needs of such minority older
individuals; and
(III) provide information on the extent to
which the area agency on aging met the
objectives described in clause (i);
(B) provide assurances that the area agency on aging
will use outreach efforts that will--
(i) identify individuals eligible for
assistance under this Act, with special
emphasis on--
(I) older individuals residing in
rural areas;
(II) older individuals with greatest
economic need (with particular
attention to low-income minority
individuals and older individuals
residing in rural areas);
(III) older individuals with greatest
social need (with particular attention
to low-income minority individuals and
older individuals residing in rural
areas);
(IV) older individuals with severe
disabilities;
(V) older individuals with limited
English proficiency;
(VI) older individuals with
Alzheimer's disease and related
disorders with neurological and organic
brain dysfunction (and the caretakers
of such individuals); and
(VII) older individuals at risk for
institutional placement, specifically
including survivors of the Holocaust;
and
(ii) inform the older individuals referred to
in subclauses (I) through (VII) of clause (i),
and the caretakers of such individuals, of the
availability of such assistance; and
(C) contain an assurance that the area agency on
aging will ensure that each activity undertaken by the
agency, including planning, advocacy, and systems
development, will include a focus on the needs of low-
income minority older individuals and older individuals
residing in rural areas;
(5) provide assurances that the area agency on aging
will coordinate planning, identification, assessment of
needs, and provision of services for older individuals
with disabilities, with particular attention to
individuals with severe disabilities and individuals at
risk for institutional placement, with agencies that
develop or provide services for individuals with
disabilities;
(6) provide that the area agency on aging will--
(A) take into account in connection with
matters of general policy arising in the
development and administration of the area
plan, the views of recipients of services under
such plan;
(B) serve as the advocate and focal point for
older individuals within the community by (in
cooperation with agencies, organizations, and
individuals participating in activities under
the plan) monitoring, evaluating, and
commenting upon all policies, programs,
hearings, levies, and community actions which
will affect older individuals;
(C)(i) where possible, enter into
arrangements with organizations providing day
care services for children, assistance to older
individuals caring for relatives who are
children, and respite for families, so as to
provide opportunities for older individuals to
aid or assist on a voluntary basis in the
delivery of such services to children, adults,
and families;
(ii) if possible regarding the provision of
services under this title, enter into
arrangements and coordinate with organizations
that have a proven record of providing services
to older individuals, that--
(I) were officially designated as
community action agencies or community
action programs under section 210 of
the Economic Opportunity Act of 1964
(42 U.S.C. 2790) for fiscal year 1981,
and did not lose the designation as a
result of failure to comply with such
Act; or
(II) came into existence during
fiscal year 1982 or subsequent years as
direct successors in interest to such
community action agencies or community
action programs;
and that meet the requirements under [section
676B of the Community Services Block Grant Act]
section 680(c) of the Community Services Block
Grant Act; and
(iii) make use of trained volunteers in
providing direct services delivered to older
individuals and individuals with disabilities
needing such services and, if possible, work in
coordination with organizations that have
experience in providing training, placement,
and stipends for volunteers or participants
(such as organizations carrying out Federal
service programs administered by the
Corporation for National and Community
Service), in community service settings;
(D) establish an advisory council consisting
of older individuals (including minority
individuals and older individuals residing in
rural areas) who are participants or who are
eligible to participate in programs assisted
under this Act, family caregivers of such
individuals, representatives of older
individuals, service providers, representatives
of the business community, local elected
officials, providers of veterans' health care
(if appropriate), and the general public, to
advise continuously the area agency on aging on
all matters relating to the development of the
area plan, the administration of the plan and
operations conducted under the plan;
(E) establish effective and efficient
procedures for coordination of--
(i) entities conducting programs that
receive assistance under this Act
within the planning and service area
served by the agency; and
(ii) entities conducting other
Federal programs for older individuals
at the local level, with particular
emphasis on entities conducting
programs described in section 203(b),
within the area;
(F) in coordination with the State agency and
with the State agency responsible for mental
and behavioral health services, increase public
awareness of mental health disorders, remove
barriers to diagnosis and treatment, and
coordinate mental and behavioral health
services (including mental health screenings)
provided with funds expended by the area agency
on aging with mental and behavioral health
services provided by community health centers
and by other public agencies and nonprofit
private organizations;
(G) if there is a significant population of
older individuals who are Indians in the
planning and service area of the area agency on
aging, the area agency on aging shall conduct
outreach activities to identify such
individuals in such area and shall inform such
individuals of the availability of assistance
under this Act;
(H) in coordination with the State agency and
with the State agency responsible for elder
abuse prevention services, increase public
awareness of elder abuse, neglect, and
exploitation, and remove barriers to education,
prevention, investigation, and treatment of
elder abuse, neglect, and exploitation, as
appropriate; and
(I) to the extent feasible, coordinate with the State
agency to disseminate information about the State
assistive technology entity and access to assistive
technology options for serving older individuals;
(7) provide that the area agency on aging shall,
consistent with this section, facilitate the area-wide
development and implementation of a comprehensive,
coordinated system for providing long-term care in home
and community-based settings, in a manner responsive to
the needs and preferences of older individuals and
their family caregivers, by--
(A) collaborating, coordinating activities,
and consulting with other local public and
private agencies and organizations responsible
for administering programs, benefits, and
services related to providing long-term care;
(B) conducting analyses and making
recommendations with respect to strategies for
modifying the local system of long-term care to
better--
(i) respond to the needs and
preferences of older individuals and
family caregivers;
(ii) facilitate the provision, by
service providers, of long-term care in
home and community-based settings; and
(iii) target services to older
individuals at risk for institutional
placement, to permit such individuals
to remain in home and community-based
settings;
(C) implementing, through the agency or
service providers, evidence-based programs to
assist older individuals and their family
caregivers in learning about and making
behavioral changes intended to reduce the risk
of injury, disease, and disability among older
individuals; and
(D) providing for the availability and
distribution (through public education
campaigns, Aging and Disability Resource
Centers, the area agency on aging itself, and
other appropriate means) of information
relating to--
(i) the need to plan in advance for
long-term care; and
(ii) the full range of available
public and private long-term care
(including integrated long-term care)
programs, options, service providers,
and resources;
(8) provide that case management services provided
under this title through the area agency on aging
will--
(A) not duplicate case management services
provided through other Federal and State
programs;
(B) be coordinated with services described in
subparagraph (A); and
(C) be provided by a public agency or a
nonprofit private agency that--
(i) gives each older individual
seeking services under this title a
list of agencies that provide similar
services within the jurisdiction of the
area agency on aging;
(ii) gives each individual described
in clause (i) a statement specifying
that the individual has a right to make
an independent choice of service
providers and documents receipt by such
individual of such statement;
(iii) has case managers acting as
agents for the individuals receiving
the services and not as promoters for
the agency providing such services; or
(iv) is located in a rural area and
obtains a waiver of the requirements
described in clauses (i) through (iii);
(9) provide assurances that--
(A) the area agency on aging, in carrying out
the State Long-Term Care Ombudsman program
under section 307(a)(9), will expend not less
than the total amount of funds appropriated
under this Act and expended by the agency in
fiscal year 2019 in carrying out such a program
under this title; and
(B) funds made available to the area agency
on aging pursuant to section 712 shall be used
to supplement and not supplant other Federal,
State, and local funds expended to support
activities described in section 712;
(10) provide a grievance procedure for older
individuals who are dissatisfied with or denied
services under this title;
(11) provide information and assurances concerning
services to older individuals who are Native Americans
(referred to in this paragraph as ``older Native
Americans''), including--
(A) information concerning whether there is a
significant population of older Native
Americans in the planning and service area and
if so, an assurance that the area agency on
aging will pursue activities, including
outreach, to increase access of those older
Native Americans to programs and benefits
provided under this title;
(B) an assurance that the area agency on
aging will, to the maximum extent practicable,
coordinate the services the agency provides
under this title with services provided under
title VI; and
(C) an assurance that the area agency on
aging will make services under the area plan
available, to the same extent as such services
are available to older individuals within the
planning and service area, to older Native
Americans; and
(12) provide that the area agency on aging will
establish procedures for coordination of services with
entities conducting other Federal or federally assisted
programs for older individuals at the local level, with
particular emphasis on entities conducting programs
described in section 203(b) within the planning and
service area.
(13) provide assurances that the area agency on aging
will--
(A) maintain the integrity and public purpose
of services provided, and service providers,
under this title in all contractual and
commercial relationships;
(B) disclose to the Assistant Secretary and
the State agency--
(i) the identity of each
nongovernmental entity with which such
agency has a contract or commercial
relationship relating to providing any
service to older individuals; and
(ii) the nature of such contract or
such relationship;
(C) demonstrate that a loss or diminution in
the quantity or quality of the services
provided, or to be provided, under this title
by such agency has not resulted and will not
result from such contract or such relationship;
(D) demonstrate that the quantity or quality
of the services to be provided under this title
by such agency will be enhanced as a result of
such contract or such relationship; and
(E) on the request of the Assistant Secretary
or the State, for the purpose of monitoring
compliance with this Act (including conducting
an audit), disclose all sources and
expenditures of funds such agency receives or
expends to provide services to older
individuals;
(14) provide assurances that preference in receiving
services under this title will not be given by the area
agency on aging to particular older individuals as a
result of a contract or commercial relationship that is
not carried out to implement this title;
(15) provide assurances that funds received under
this title will be used--
(A) to provide benefits and services to older
individuals, giving priority to older
individuals identified in paragraph (4)(A)(i);
and
(B) in compliance with the assurances
specified in paragraph (13) and the limitations
specified in section 212;
(16) provide, to the extent feasible, for the
furnishing of services under this Act, consistent with
self-directed care;
(17) include information detailing how the area
agency on aging will coordinate activities, and develop
long-range emergency preparedness plans, with local and
State emergency response agencies, relief
organizations, local and State governments, and any
other institutions that have responsibility for
disaster relief service delivery;
(18) provide assurances that the area agency on aging
will collect data to determine--
(A) the services that are needed by older
individuals whose needs were the focus of all
centers funded under title IV in fiscal year
2019; and
(B) the effectiveness of the programs,
policies, and services provided by such area
agency on aging in assisting such individuals;
and
(19) provide assurances that the area agency on aging
will use outreach efforts that will identify
individuals eligible for assistance under this Act,
with special emphasis on those individuals whose needs
were the focus of all centers funded under title IV in
fiscal year 2019.
(b)(1) An area agency on aging may include in the area plan
an assessment of how prepared the area agency on aging and
service providers in the planning and service area are for any
anticipated change in the number of older individuals during
the 10-year period following the fiscal year for which the plan
is submitted.
(2) Such assessment may include--
(A) the projected change in the number of older
individuals in the planning and service area;
(B) an analysis of how such change may affect such
individuals, including individuals with low incomes,
individuals with greatest economic need, minority older
individuals, older individuals residing in rural areas,
and older individuals with limited English proficiency;
(C) an analysis of how the programs, policies, and
services provided by such area agency can be improved,
and how resource levels can be adjusted to meet the
needs of the changing population of older individuals
in the planning and service area; and
(D) an analysis of how the change in the number of
individuals age 85 and older in the planning and
service area is expected to affect the need for
supportive services.
(3) An area agency on aging, in cooperation with government
officials, State agencies, tribal organizations, or local
entities, may make recommendations to government officials in
the planning and service area and the State, on actions
determined by the area agency to build the capacity in the
planning and service area to meet the needs of older
individuals for--
(A) health and human services;
(B) land use;
(C) housing;
(D) transportation;
(E) public safety;
(F) workforce and economic development;
(G) recreation;
(H) education;
(I) civic engagement;
(J) emergency preparedness;
(K) protection from elder abuse, neglect, and
exploitation;
(L) assistive technology devices and services; and
(M) any other service as determined by such agency.
(c) Each State, in approving area agency on aging plans under
this section, shall waive the requirement described in
paragraph (2) of subsection (a) for any category of services
described in such paragraph if the area agency on aging
demonstrates to the State agency that services being furnished
for such category in the area are sufficient to meet the need
for such services in such area and had conducted a timely
public hearing upon request.
(d)(1) Subject to regulations prescribed by the Assistant
Secretary, an area agency on aging designated under section
305(a)(2)(A) or, in areas of a State where no such agency has
been designated, the State agency, may enter into agreement
with agencies administering programs under the Rehabilitation
Act of 1973, and titles XIX and XX of the Social Security Act
for the purpose of developing and implementing plans for
meeting the common need for transportation services of
individuals receiving benefits under such Acts and older
individuals participating in programs authorized by this title.
(2) In accordance with an agreement entered into under
paragraph (1), funds appropriated under this title may be used
to purchase transportation services for older individuals and
may be pooled with funds made available for the provision of
transportation services under the Rehabilitation Act of 1973,
and titles XIX and XX of the Social Security Act.
(e) An area agency on aging may not require any provider of
legal assistance under this title to reveal any information
that is protected by the attorney-client privilege.
(f)(1) If the head of a State agency finds that an area
agency on aging has failed to comply with Federal or State
laws, including the area plan requirements of this section,
regulations, or policies, the State may withhold a portion of
the funds to the area agency on aging available under this
title.
(2)(A) The head of a State agency shall not make a final
determination withholding funds under paragraph (1) without
first affording the area agency on aging due process in
accordance with procedures established by the State agency.
(B) At a minimum, such procedures shall include procedures
for--
(i) providing notice of an action to withhold funds;
(ii) providing documentation of the need for such
action; and
(iii) at the request of the area agency on aging,
conducting a public hearing concerning the action.
(3)(A) If a State agency withholds the funds, the State
agency may use the funds withheld to directly administer
programs under this title in the planning and service area
served by the area agency on aging for a period not to exceed
180 days, except as provided in subparagraph (B).
(B) If the State agency determines that the area agency on
aging has not taken corrective action, or if the State agency
does not approve the corrective action, during the 180-day
period described in subparagraph (A), the State agency may
extend the period for not more than 90 days.
(g) Nothing in this Act shall restrict an area agency on
aging from providing services not provided or authorized by
this Act, including through--
(1) contracts with health care payers;
(2) consumer private pay programs; or
(3) other arrangements with entities or individuals
that increase the availability of home- and community-
based services and supports.
* * * * * * *
MINORITY VIEWS
Introduction
The CSBG program has a laudable goal but has been
ineffective in achieving it. Rather than lifting those in need
out of poverty, the program has kept millions locked into the
cycle of poverty without providing them a means of escape. The
nation's federal welfare programs should be a temporary safety
net for Americans with the greatest need, not a false promise
to those trapped in intergenerational poverty.
H.R. 5129, the Community Services Block Grant Modernization
Act, fails to bring needed reforms to the CSBG program,
including effective oversight to ensure the program's grants
fund entities with a proven track record of success. It also
removes important provisions from current law that protect the
religious character of faith-based organizations that
participate in the CSBG program.
Faith-Based Organizations
This legislation discourages faith-based charities from
operating according to their beliefs, undermining the bill's
intent to help Americans in need. Motivated by their religious
beliefs, people of faith have been serving needy Americans
since our country's founding. Religious organizations, from
churches to non-profits, have been a central part of efforts to
relieve poverty across the nation. They play a distinctive role
in the front lines of the fight against poverty.
This point was emphasized during a congressional hearing
held on November 3, 2021. Mr. Clarence Carter, Commissioner of
the Tennessee Department of Human Services, explained how the
community of faith is an ``invaluable partner . . . in serving
economically, socially, and developmentally vulnerable
individuals and families.'' Commissioner Carter further argued
that it is important to combine ``transaction with
relationship'' when it comes to structuring effective anti-
poverty programs.\1\ While the government can successfully
engage in transactions, it is not good at building
relationships. Faith-based providers, on the other hand, can
connect with individuals not only on a personal level but on a
spiritual one. This gives them a better foundation on which to
build a meaningful relationship to better help and serve those
in need.
---------------------------------------------------------------------------
\1\Clarence Carter, Congressional Hearing on November 3, 2021, ``A
Call to Action: Modernizing the Community Services Block Grant.''
https://republicans-edlabor.house.gov/calendar/
eventsingle.aspx?EventID=407829
---------------------------------------------------------------------------
Understanding the important role faith-based providers play
in combatting poverty, it is disappointing to see Democrats
take a monumental step to inhibit the participation of these
valuable partners. H.R. 5129 suggests that they need to hide
the very faith that motivates them to serve those in need. The
changes laid out in this legislation suggest that faith-based
organizations should alter their hiring practices and should
remove religious art and symbols from their facilities to
participate in the CSBG program. This change to the law
discounts the decades of care and aid that people of faith have
provided to Americans in need.
During the markup, Democrats claimed that current law
protections for faith-based providers, which have been in place
for nearly 25 years and were enacted on a bipartisan basis,
allow religious organizations to discriminate against program
beneficiaries.\2\ However, these protections do no such thing.
Over 19,000 faith-based organizations currently participate in
the CSBG program and have been recognized as important partners
in serving all eligible individuals who walk through the door
in need of assistance. In keeping with the First Amendment,
religious organizations that participate in CSBG are simply
afforded the assurance that they can live out their faith
according to their beliefs while participating in the program
and serving those who seek help from them.
---------------------------------------------------------------------------
\2\Coalition Letter for the Record, Led by Stanley Carlson-Theis
with the Institutional Religious Freedom Alliance, March 14, 2022.
---------------------------------------------------------------------------
The Democrats' removal of this language amounts to an
attack on religious liberty. As a coalition letter led by the
International Religious Freedom Alliance put it, the changes in
H.R. 5129 ``will be detrimental to the participation of faith-
based organizations [and] will create a bad precedent by
signaling that Congress is no longer committed to equal
opportunity for service organizations of every faith . . .''\3\
Discouraging faith-based providers from participating in the
CSBG program simply because of their faith would significantly
set back our anti-poverty efforts. Instead of requiring
organizations to check their faith at the door and thereby
discouraging them from continuing their work, we should welcome
every effort to care for needy families. Anything less detracts
from CSBG's main goal: helping others.
---------------------------------------------------------------------------
\3\Ibid.
---------------------------------------------------------------------------
Accountability
Republicans recognize the necessity of a federal safety net
to assist those most in need. However, taxpayers should not be
required to bankroll programs that do not work. This bill will
allow states to continue setting their own benchmarks for
progress and will allow ineffective programs to continue to
receive funds despite poor performance.
As introduced, H.R. 5129 also allows CSBG funds to serve as
the non-federal match in other federal programs, but Committee
Republicans, led by Rep. Lisa McClain (R-MI), were able to
secure an amendment to strip this problematic provision from
the bill. The goal of non-federal match requirements is to
increase buy-in from outside entities in the community. These
requirements ensure that communities are investing in the
programs that are serving their citizens, that they are
deciding what is best for themselves, and that they have a seat
at the table. Match requirements mean stronger programs and
better outcomes.
The legislation also directs the CSBG program's tripartite
boards to create their own conflict of interest policy, leaving
open the possibility that board members, their families, or
their organizations could benefit financially from CSBG. This
threatens to undermine proper management of the program. It
should be made clear that board members must work on behalf of
low-income individuals, not for their own personal benefit.
Committee Republicans believe there should be clear guardrails
for board accountability in place and it is unfortunate that
Rep. Letlow's (R-LA) amendment to put in such guardrails was
rejected.
The Importance of Work
H.R. 5129 also removes a current law requirement for states
and grantees to coordinate employment and skills development
activities with state and local workforce systems under the
Workforce Innovation and Opportunity Act (WIOA), the country's
main workforce development law. By doing so, H.R. 5129
undermines efforts to create a seamless workforce system,
allowing for duplicative programs that will waste taxpayer
dollars. This undermines the efficient use of government funds
and curtails the number of recipients benefitting from the
programs. To improve access to workforce development services,
Rep. Diana Harshbarger (R-TN) successfully offered an amendment
to reinstate this important requirement to coordinate these
services under the law.
Health Services and Abortion
H.R. 5129 also includes an overly vague provision directing
taxpayer dollars to fund programs and services ``to address
health needs and improve health and well-being'' and ``to
identify and respond to physical and behavioral health
challenges.'' Not only is this a bad use of these limited
taxpayer dollars, but also this ambiguous language opens the
possibility that, instead of helping people address acute
needs, abortions would be paid for with taxpayer dollars. This
Congress, Democrats almost universally endorsed eliminating the
Hyde Amendment, a long-standing and bipartisan provision that
protects taxpayer dollars from funding abortion. Combined,
these two developments could pave the way for taxpayer-funded
abortions. Committee Republicans are committed to ensuring that
long-standing Hyde protections remain in place and that federal
programs do not betray the trust of the American taxpayers.
Taxpayers should not be forced to violate their conscience or
religious beliefs by being forced to fund abortions.
REJECTED AMENDMENTS THAT WOULD HAVE IMPROVED THE BILL
During consideration of H.R. 5129, Committee Republicans
offered several amendments to improve the bill. Unfortunately,
most of the amendments were rejected by the Democrats. Those
amendments were as follows:
Rep. Tim Walberg (R-MI) offered an amendment
that would protect religious organizations and ensure
they can exercise their faith while serving needy
families. Contrary to the Democrats' claims during the
debate, this amendment would not allow faith-based
organizations to discriminate against program
beneficiaries because of their religion. It would
instead protect the ability of these organizations to
serve others in a manner informed by their faith, as
they have successfully done for decades.
Rep. Glenn Grothman (R-WI) offered an
amendment that would restore pre-pandemic eligibility
requirements to the CSBG program--keeping eligibility
at the poverty line to help those most in need. It
would also continue to give states the option to
increase eligibility to 125 percent of the poverty line
if needed. This amendment would have ensured that
taxpayer dollars are used as effectively as possible.
Rep. Bob Good (R-VA) offered an amendment that
would have prohibited CSBG funds from being used to
reimburse health care services in order to ensure such
funds could not be used to fund abortions. The right to
life is the most fundamental of rights and Committee
Republicans are dedicated to ensuring that all human
life is protected under the law. Taxpayer dollars
should never be used to fund abortions and this
amendment would have guaranteed that for the CSBG
program.
Rep. Madison Cawthorn (R-NC) offered an
amendment that would have struck a provision in the
bill that permits eligible entities to use their
facilities for increasing voter registration and would
have prohibited the use of CSBG funds for lobbying
activities. Democrats rejected this commonsense
amendment despite this program's goal being to
alleviate poverty rather than promote political
activity.
Rep. Letlow offered an amendment that would
have struck a provision from the bill that permits
tripartite boards to create their own conflict of
interest policy and replaced it with a policy that
prohibits board members, their immediate family
members, or their organization from receiving direct
financial benefit from the CSBG program, exempting low-
income board members from this policy. While Democrats
expressed willingness to work to address this issue,
they ultimately rejected the amendment despite
Committee Republican calls to accept it during the
markup rather than punt the issue until Floor
consideration.
ADOPTED AMENDMENTS THAT WILL IMPROVE THE BILL
Democrats adopted two amendments offered by Committee
Republicans to improve the bill. Those amendments were as
follows:
Rep. Harshbarger offered an amendment that
would require states to provide an assurance that they
will coordinate employment and skills development
activities with state and local workforce systems under
WIOA.
Rep. McClain offered an amendment to strike
language from the bill that allows funds under the new
Community Action Innovations program to fulfill non-
federal match requirements for the purposes of meeting
such requirements in other federal programs.
Conclusion
As outlined in these Minority Views, H.R. 5129 worsens
current federal law rather than providing needed reforms. By
removing protections for faith-based organizations while also
failing to incorporate important oversight requirements, this
reauthorization will reduce the likelihood that low-income
Americans receive the help they need.
Republicans offered numerous amendments that would help set
this reauthorization on the right path and would ensure it
fulfills the goals it sets out to accomplish: to serve low-
income Americans and help them rise out of poverty.
Unfortunately, Democrats did not take the necessary steps to
remedy the multiple problems within this legislation, moving it
further away from the goal of helping Americans most in need.
Virginia Foxx,
Ranking Member.
Joe Wilson.
Tim Walberg.
Glenn Grothman.
Rick W. Allen.
Jim Banks.
Bob Good.
Lisa C. McClain.
Madison Cawthorn.
Julia Letlow.
Chris Jacobs.
[all]