[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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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).
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------

      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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------

                    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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).
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------
    \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/.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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).
---------------------------------------------------------------------------

                               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.

           *       *       *       *       *       *       *

                              ----------                              


                      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]