[House Report 114-646]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-646
======================================================================
ACCELERATING INDIVIDUALS INTO THE WORKFORCE ACT
_______
June 28, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Brady of Texas, from the Committee on Ways and Means,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 2990]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 2990) to provide for the conduct of demonstration
projects to test the effectiveness of subsidized employment for
TANF recipients, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND...........................................3
A. Purpose and Summary................................. 3
B. Background and Need for Legislation................. 4
C. Legislative History................................. 5
II. EXPLANATION OF THE BILL..........................................6
Section 1: Short Title................................. 6
Section 2: Demonstration Projects to Support Subsidized
Employment for TANF Recipients..................... 6
Section 3: Effective Date.............................. 8
III. VOTES OF THE COMMITTEE...........................................8
IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES........................9
V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE........9
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......10
A. Committee Oversight Findings and Recommendations.... 10
B. Statement of General Performance Goals and
Objectives......................................... 10
C. Applicability of House Rule XXI 5(b)................ 11
D. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 11
E. Duplication of Federal Programs..................... 11
F. Disclosure of Directed Rule Makings................. 11
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........11
A. Text of Existing Law Amended or Repealed by the
Bill, as Reported.................................. 11
B. Changes in Existing Law Proposed by the Bill, as
Reported........................................... 35
VIII.ADDITIONAL VIEWS................................................62
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Accelerating Individuals into the
Workforce Act''.
SEC. 2. DEMONSTRATION PROJECTS TO SUPPORT SUBSIDIZED EMPLOYMENT FOR
TANF RECIPIENTS.
Section 403 of the Social Security Act (42 U.S.C. 603) is amended by
adding at the end the following:
``(c) Subsidized Employment Demonstration Projects.--
``(1) In general.--The Secretary shall make grants to States
to conduct demonstration projects designed to implement and
evaluate strategies that provide wage subsidies to enable low-
income individuals to enter into and retain employment.
``(2) Application requirements.--The Secretary shall require
each State that applies for a grant under this subsection to do
the following:
``(A) Describe how wage subsidies will be provided
(such as whether paid directly to the employer or the
individual), the duration of the subsidies, the amount
of the subsidies, the structure of the subsidies, and
how employers will be recruited to participate in the
subsidized employment program.
``(B) Describe how the State expects those
participating in subsidized employment to be able to
retain employment after the subsidy ends.
``(C) Describe how the State will coordinate
subsidized employment funded under this subsection with
other efforts to help low-income individuals enter work
as conducted by the State.
``(3) Use of funds.--
``(A) In general.--A State to which a grant is made
under this subsection may use the grant to subsidize
the wages of an eligible recipient for a period not
exceeding 12 months, and only to the extent that the
total of the funds paid under this project and any
other Federal funds so used with respect to the
recipient does not exceed 50 percent of the amount of
the wages received by the recipient during the period.
``(B) Eligible recipient.--For purposes of
subparagraph (A), an eligible recipient is--
``(i)(I) a recipient of assistance under the
State program funded under this part or any
other State program funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)); or
``(II) a noncustodial parent of a minor child
who is receiving assistance referred to in
subclause (I);
``(ii) who, at the time the subsidy begins,
is unemployed; and
``(iii) whose income, at that time, is less
than 200 percent of the poverty line (as
defined by the Office of Management and Budget,
and revised annually in accordance with section
673(2) of the Omnibus Budget Reconciliation Act
of 1981 (42 U.S.C. 9902(2))).
``(4) Limitations.--
``(A) Nondisplacement.--A State to which a grant is
made under this subsection shall ensure that no
participant in a subsidized job program funded in whole
or in part under this subsection is employed or
assigned to a job under the program--
``(i) when any other individual is on layoff
from the same or any substantially equivalent
job; or
``(ii) if the employer has terminated the
employment of any regular employee or otherwise
caused an involuntary reduction of its
workforce in order to fill the vacancy so
created with an adult described in paragraph
(1).
``(B) Grievance procedure.--A State with a program
funded under this subsection shall establish and
maintain a grievance procedure for resolving complaints
of alleged violations of subparagraph (A).
``(C) No preemption.--Nothing in this paragraph shall
preempt or supersede any provision of State or local
law that provides greater protection for employees from
displacement.
``(5) Reports.--As a condition of receiving funds under this
subsection for a fiscal year, a State shall submit to the
Secretary, within 6 months after the end of the fiscal year, a
report that--
``(A) specifies, for each month of the fiscal year,
the number of individuals whose employment is
subsidized with these funds;
``(B) describes the structure of the State activities
to use the funds to subsidize employment, including the
amount and duration of the subsidies provided;
``(C) specifies the percentage of eligible recipients
who received a subsidy who are in unsubsidized
employment during the 2nd quarter after the subsidy
ended;
``(D) specifies the percentage of eligible recipients
who received a subsidy who are in unsubsidized
employment during the 4th quarter after the subsidy
ended; and
``(E) specifies the median earnings of eligible
recipients who received a subsidy who are in
unsubsidized employment during the 2nd quarter after
the subsidy ended.
``(6) Evaluation.--The Secretary, in consultation with each
State conducting a demonstration project, shall conduct a high-
quality evaluation of the demonstration project, and may
reserve funds made available under this subsection to conduct
the evaluation in accordance with the following:
``(A) Evaluator qualifications.--The Secretary may
not enter into a contract with an evaluator unless the
evaluator has demonstrated experience in conducting
rigorous evaluations of program effectiveness
including, where available and appropriate, well-
implemented randomized controlled trials.
``(B) Methodologies to be used.--The evaluation of a
demonstration project shall use experimental designs
using random assignment or other reliable, evidence-
based research methodologies that allow for the
strongest possible causal inferences when random
assignment is not feasible.
``(C) Public disclosure.--The Secretary shall publish
the results of the evaluation on the website of the
Department of Health and Human Services in a location
easily accessible by the public.
``(7) Recommendations to congress.--The Secretary shall
submit recommendations to the Congress on how to increase the
employment, retention, and advancement of individuals currently
or formerly receiving assistance under a State program funded
under this part or any other State program funded with
qualified State expenditures (as defined in section
409(a)(7)(B)(i)).
``(8) Funding.--Of the amounts made available to carry out
subsection (b) for fiscal year 2017, the Secretary shall
reserve $100,000,000 to carry out this subsection.
``(9) Use of certain funds for career pathways programs.--The
Secretary shall use 15 percent of the amounts reserved to carry
out this subsection, to fund programs that offer career pathway
(as defined in section 3(7) of the Workforce Innovation and
Opportunity Act) services.
``(10) Availability of funds.--Funds provided to a State
under this subsection in a fiscal year shall be expended by the
State in the fiscal year or in the succeeding fiscal year.''.
SEC. 3. EFFECTIVE DATE.
The amendment made by this Act shall take effect on October 1, 2016.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
H.R. 2990 as amended, the ``Accelerating Individuals into
the Workforce Act,'' as ordered reported by the Committee on
Ways and Means on May 11, 2016, encourages employer-led
partnerships to help people move from welfare to work.
B. Background and Need for Legislation
In 1996, Republicans reformed the safety net to better
support and reward work. As part of these reforms, the failed
New Deal-era Aid to Families with Dependent Children (AFDC)
program was replaced with today's Temporary Assistance for
Needy Families program (TANF), which established strong
requirements for states to help welfare recipients prepare for
work and find jobs.
The number of families receiving cash assistance under the
TANF program fell by more than 50 percent, and has generally
remained low over time. Employment rates of single mothers with
children increased by 15 percent through 2007 compared with
1995; while their work rates declined as a result of the 2007-
09 recession, they have risen again since 2011 and remain 10
percent higher than before. Child poverty also declined
dramatically during this period as more people went to work and
earnings increased, and poverty among African American
households with children reached record lows. Poverty among
female-headed households with children remains lower today than
before the 1996 reforms--despite two intervening recessions.
The TANF program has helped shield American families from
sinking deeper into poverty by providing temporary assistance
that is also linked to stable employment. But it's been at
least a decade since any meaningful changes have been made to
this law.
While moving welfare recipients into employment is a
central goal of TANF, some welfare recipients have a difficult
time transitioning from welfare into a job. In some cases,
employers may be reluctant to hire welfare recipients who may
have limited work experience or other barriers to working,
which can be better managed when the cost of hiring a TANF
recipient is decreased.
H.R. 2990, as amended, would encourage the following:
Employers would take the lead by partnering
with state and local agencies to hire TANF recipients,
providing recipients with highly-valued work experience
and on-the-job training.
Up to $100 million (reserved from the TANF
Contingency Fund in FY 2017) would be provided to
subsidize the wages of TANF recipients for up to 12
months.
No more than 50 percent of the wage for a
TANF recipient could be subsidized using funds from
this bill, while the other half of the wage would be
paid by the employer, or with state or local funds.
High-quality evaluations would be used to
determine whether these public-private partnerships
were effective in helping welfare recipients move into
jobs and retain work.
Based on what is learned from the projects,
the Department of Health and Human Services would have
to submit recommendations to Congress on how to
increase the employment of TANF recipients, as well as
how to help them retain their jobs and increase
earnings over time.
C. Legislative History
Background
H.R. 2990, the ``Accelerating Individuals into the
Workforce Act,'' was introduced on July 9, 2015, by
Representative Robert J. Dold, and was referred to the
Committee on Ways and Means.
Committee hearings
The Committee began a bipartisan, comprehensive review of
the TANF program at the beginning of the 114th Congress, in
early January 2015. Over the last fifteen months, the Human
Resources Subcommittee held a series of hearings with witnesses
ranging from current and former recipients to service providers
to employers to researchers. Members of the Human Resources
Subcommittee introduced a series of bills focused on smaller
provisions within TANF, and then they were compiled into a
larger, more comprehensive reauthorization draft bill. That
bipartisan draft was distributed for public comment and dozens
of stakeholders provided invaluable feedback, some incorporated
in H.R. 2990.
Throughout the 114th Congress, the Human Resources
Subcommittee held a series of hearings on reforms to the TANF
program, including discussions focused on the need for private
sector engagement, on-the-job training, and subsidized
employment programs. Those hearings included:
Challenges Facing Low-Income Individuals and
Families in Today's Economy, February 11, 2015
Expanding Opportunity by Funding What Works:
Using Evidence to Help Low-Income Individuals and
Families Get Ahead, March 17, 2015
Next Steps for Welfare Reform: Ideas to
Improve TANF to Help More Families Find Work and Escape
Poverty, April 30, 2015
Protecting the Safety Net from Waste, Fraud,
and Abuse, June 3, 2015
Joint Subcommittee Hearing on How Our
Welfare System Can Discourage Work, June 25, 2015
Welfare Reform Proposals, July 15, 2015
Better Coordinating Welfare Programs to
Serve Families in Need, November 3, 2015
Moving America's Families Forward: Lessons
Learned from Welfare Reform in Other Countries,
November 17, 2015
Getting Incentives Right: Connecting Low-
Income Individuals with Jobs, March 1, 2016
Committee action
The Committee on Ways and Means marked up H.R. 2990, the
``Accelerating Individuals into the Workforce Act,'' on May 11,
2016. The bill, H.R. 2990, was ordered favorably reported to
the House of Representatives as amended by a voice vote (with a
quorum being present).
II. EXPLANATION OF THE BILL
Section 1: Short Title
Present law
No provision.
Explanation of provision
This section contains the short title of the bill, the
``Accelerating Individuals into the Workforce Act.''
Reason for change
The Committee believes that the short title reflects the
policy actions included in the legislation.
Effective date
The provision is effective on October 1, 2016.
Section 2: Demonstration Projects to Support Subsidized Employment for
TANF Recipients
Present law
The Temporary Assistance for Needy Families (TANF) block
grant allows states to spend funds on activities that can be
``reasonably calculated'' to achieve the purpose of TANF,
including the goal of ending dependence of needy parents on
government benefits through work and job preparation. Federal
TANF funds may be spent on employment subsidies. States may
also count expenditures on employment subsidies toward the TANF
state spending (maintenance of effort, or MOE) requirement.
Employment subsidies are payments to employers or third parties
to help cover the costs of employee wages, benefits,
supervision, and training.\1\
---------------------------------------------------------------------------
\1\This is a regulatory definition of work subsidies at 45 C.F.R.
Sec. 260.31(b)(2).
---------------------------------------------------------------------------
Additionally, TANF measures state performance through a
``Work Participation Rate'' (WPR) that measures the percent of
families receiving assistance in the state who are considered
``engaged in work.'' To be considered ``engaged in work,'' a
work-eligible individual in the family must participate in
specific activities for a minimum number of hours per week in
the month. Two of the specific activities creditable toward the
WPR are subsidized private sector employment and subsidized
public sector employment.
Explanation of provision
The Committee bill, as amended, would establish a
subsidized employment demonstration program, administered by
the Department of Health and Human Services (HHS). The
Secretary of HHS would award grants to states for the
development of subsidized employment demonstration projects
that would evaluate strategies that provide wage subsidies to
help low-income individuals obtain and retain employment.
States applying for subsidized employment demonstration funds
would be required to describe the wage subsidy program, how the
state expects those participating in subsidized employment to
retain employment after the subsidy ends, and how the state
will coordinate subsidized employment funds with other efforts
to help low-income individuals enter the workforce.
The Committee bill, as amended, would provide that wage
subsidies extend for no more than 12 months, and that federal
funds account for no more than 50 percent of a participant's
wage. It would require that those participating in the
subsidized employment program:
1. be unemployed;
2. have income at the time of program entry of less
than 200% of the federal poverty guidelines; and
3. be either recipients of assistance funded from
TANF or state MOE dollars or noncustodial parents of
children receiving such assistance.
States in the subsidized employment demonstration would be
prohibited from displacing regular employees by placing
participants in subsidized jobs. States are also prohibited
from placing an individual with employers who have terminated
the job of a regular employee or have involuntarily reduced
their workforce to hire a subsidized employee. States would be
required to have a grievance procedure in place for regular
employees to resolve complaints of displacement. The non-
displacement provisions and procedures for the subsidized
employment demonstration would not pre-empt or supersede state
or local laws that provide greater protections for employees.
States receiving subsidized employment funds would be
required to report annually to HHS on the number of persons in
subsidized employment, the structure of activities of the
program, and the employment outcome measures following the end
of subsidized employment. The outcome measures would be
employment in the 2nd quarter and 4th quarter following exit
and median earnings in the second quarter following exit.
The Committee bill, as amended, would require HHS to
conduct an evaluation of the demonstration project using
experimental designs using random assignment, unless such
research design is not feasible. If a random assignment
experiment is not feasible, the research would be conducted
using other reliable evidence-based research methodologies.
HHS would be required to report to Congress recommendations
on how to increase employment, retention, and advancement of
individuals currently or formerly receiving TANF assistance.
The Committee bill, as amended, would require the Secretary
to reserve $100,000,000 of the Contingency Fund for State
Welfare Programs for FY2017 to carry out the demonstration. Of
that amount, 15 percent ($15,000,000) is reserved for the
operation of career pathways training programs. Career pathways
programs are a combination of education, training, and other
services that aligns with the skill needs of industries in the
economy of the state or regional economy involved. They are
designed to help an individual enter or advance within a
specific occupation or occupational cluster.
Funds for this demonstration must be expended by the end of
FY2018. The provisions in this bill would be effective October
1, 2016.
Reason for change
The Committee believes that while moving welfare recipients
into employment is a central goal of TANF, some welfare
recipients have a difficult time transitioning from welfare
into a job. In some cases, employers may be reluctant to hire
welfare recipients who may have limited work experience or
other barriers to working, which can be better managed when the
cost of hiring a TANF recipient is decreased. This provision
will enhance employer engagement, strengthen public-private
partnerships, and help move more individuals from welfare to
work quickly.
Effective date
The provision is effective on October 1, 2016.
Section 3: Effective Date
Present law
No provision.
Explanation of provision
This section includes an effective date of October 1, 2016.
Reason for change
The Committee believes it is appropriate to have an
effective date of October 1, 2016, i.e. the start of the next
fiscal year.
Effective date
The provision is effective on October 1, 2016.
III. VOTES OF THE COMMITTEE
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the vote of the Committee on Ways and Means in its
consideration of H.R. 2990, the ``Accelerating Individuals into
the Workforce Act,'' on May 11, 2016.
The amendment by Mr. Doggett to the amendment in the nature
of a substitute to H.R. 2990, which would provide a preference
for applicants that have spent substantial amounts of TANF
funds on certain benefits and services, was not agreed to by a
roll call vote of 13 yeas to 22 nays (with a quorum being
present). The vote was as follows:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
--------------------------------------------------------------------------------------------------------------------------------------------------------
Mr. Brady..................................... .......... X .......... Mr. Levin....................... X .......... ..........
Mr. Johnson................................... .......... X .......... Mr. Rangel...................... X .......... ..........
Mr. Nunes..................................... .......... X .......... Mr. McDermott................... .......... .......... ..........
Mr. Tiberi.................................... .......... X .......... Mr. Lewis....................... X .......... ..........
Mr. Reichert.................................. .......... X .......... Mr. Neal........................ X .......... ..........
Mr. Boustany.................................. .......... X .......... Mr. Becerra..................... .......... .......... ..........
Mr. Roskam.................................... .......... X .......... Mr. Doggett..................... X .......... ..........
Mr. Price..................................... .......... X .......... Mr. Thompson.................... X .......... ..........
Mr. Buchanan.................................. .......... X .......... Mr. Larson...................... X .......... ..........
Mr. Smith (NE)................................ .......... X .......... Mr. Blumenauer.................. X .......... ..........
Ms. Jenkins................................... .......... X .......... Mr. Kind........................ X .......... ..........
Mr. Paulsen................................... .......... X .......... Mr. Pascrell.................... X .......... ..........
Mr. Marchant.................................. .......... X .......... Mr. Crowley..................... X .......... ..........
Ms. Black..................................... .......... X .......... Mr. Davis....................... X .......... ..........
Mr. Reed...................................... .......... .......... .......... Ms. Sanchez..................... X .......... ..........
Mr. Young..................................... .......... X ..........
Mr. Kelly..................................... .......... .......... ..........
Mr. Renacci................................... .......... X ..........
Mr. Meehan.................................... .......... X ..........
Ms. Noem...................................... .......... X ..........
Mr. Holding................................... .......... X ..........
Mr. Smith (MO)................................ .......... X ..........
Mr. Dold...................................... .......... X ..........
Mr. Rice...................................... .......... X ..........
--------------------------------------------------------------------------------------------------------------------------------------------------------
The amendment by Mr. Doggett to the amendment in the nature
of a substitute to H.R. 2990, which would apply the same non-
displacement requirements to subsidized employment
demonstrations as are currently applied in other TANF-funded
employment programs, was agreed to by a voice vote (with a
quorum being present).
The amendment by Mr. Davis to the amendment in the nature
of a substitute to H.R. 2990, which would set aside 15 percent
of the total funding provided for career pathways, was agreed
to by a voice vote (with a quorum being present).
The Committee on Ways and Means marked up H.R. 2990, the
``Accelerating Individuals into the Workforce Act,'' on May 11,
2016. The bill, H.R. 2990, was ordered favorably reported to
the House of Representatives as amended by a voice vote (with a
quorum being present).
IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new budget authority or tax expenditure budget
authority.
V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the CBO, the Committee sets forth the following
estimate and comparison prepared by the Director of the
Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 16, 2016.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2990, the
Accelerating Individuals into the Workforce Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susanne S.
Mehlman.
Sincerely,
Keith Hall.
Enclosure.
H.R. 2990--Accelerating Individuals into the Workforce Act
H.R. 2990 would amend title IV of the Social Security Act
to enable the Department of Health and Human Services (NHS) to
provide grants to states to conduct demonstration projects that
would support subsidized employment for individuals who receive
aid under the Temporary Assistance for Needy Families (TANF)
program. Specifically, states could use grants to subsidize up
to 50 percent of the wages provided to a TANF recipient for up
to 12 months. HHS would be required to conduct evaluations of
those demonstration projects. This legislation also would
require HHS to fund programs that offer career pathways to
individuals receiving assistance under TANF. H.R. 2990 would
reserve $100 million of the $608 million already appropriated
for the TANF contingency fund for 2017 to fund the
demonstration projects and their evaluations. States would have
up to two years to spend any grant money provided by HHS.
Based on information from HHS, CBO estimates that direct
spending from the contingency fund under this legislation would
mostly follow similar patterns as spending from the fund under
current law. Thus, any net effect on direct spending would be
insignificant. Because enacting the legislation would affect
direct spending, pay-as-you-go procedures apply.
Enacting H.R. 2990 would not affect revenues. CBO estimates
that enacting H.R. 2990 would not increase net direct spending
or on-budget deficits in any of the four consecutive 10-year
periods beginning in 2027.
H.R. 2990 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act. Any
costs to states that result from implementing the demonstration
project authorized by the bill would be incurred voluntarily as
a condition of federal assistance.
The CBO staff contact for this estimate is Susanne S.
Mehlman. This estimate was approved by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
description portions of this report.
B. Statement of General Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation encourages
employer-led partnerships to help people move from welfare to
work.
C. Applicability of House Rule XXI 5(b)
Rule XXI 5(b) of the Rules of the House of Representatives
provides, in part, that ``A bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase may not be considered as passed or agreed to
unless so determined by a vote of not less than three-fifths of
the Members voting, a quorum being present.'' The Committee has
carefully reviewed the bill, and states that the bill does not
involve any Federal income tax rate increases within the
meaning of the rule.
D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
E. Duplication of Federal Programs
In compliance with Sec. 3(g)(2) of H. Res. 5 (114th
Congress), the Committee states that no provision of the bill
establishes or reauthorizes: (1) a program of the Federal
Government known to be duplicative of another Federal program;
(2) a program included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139; or (3) a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
F. Disclosure of Directed Rule Makings
In compliance with Sec. 3(i) of H. Res. 5 (114th Congress),
the following statement is made concerning directed rule
makings: The Committee estimates that the bill requires no
directed rule makings within the meaning of such section.
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
A. Text of Existing Law Amended or Repealed by the Bill, as Reported
In compliance with clause 3(e)(1)(A) of rule XIII of the
Rules of the House of Representatives, the text of each section
proposed to be amended or repealed by the bill, as reported, is
shown below:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e)(1)(A) of rule XIII of the
Rules of the House of Representatives, the text of each section
proposed to be amended or repealed by the bill, as reported, is
shown below:
SOCIAL SECURITY ACT
* * * * * * *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH
CHILDREN AND FOR CHILD-WELFARE SERVICES
PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
* * * * * * *
SEC. 403. GRANTS TO STATES.
(a) Grants.--
(1) Family assistance grant.--
(A) In general.--Each eligible State shall be
entitled to receive from the Secretary, for
fiscal year 2012, a grant in an amount equal to
the State family assistance grant.
(B) State family assistance grant.--The State
family assistance grant payable to a State for
a fiscal year shall be the amount that bears
the same ratio to the amount specified in
subparagraph (C) of this paragraph (as in
effect just before the enactment of the Welfare
Integrity and Data Improvement Act) as the
amount required to be paid to the State under
this paragraph (as so in effect) for fiscal
year 2002 (determined without regard to any
reduction pursuant to section 409 or 412(a)(1))
bears to the total amount required to be paid
under this paragraph for fiscal year 2002 (as
so determined).
(C) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
year 2012 $16,566,542,000 for grants under this
paragraph.
(2) Healthy marriage promotion and responsible
fatherhood grants.--
(A) In general.--
(i) Use of funds.--Subject to
subparagraphs (B), (C), and (E), the
Secretary may use the funds made
available under subparagraph (D) for
the purpose of conducting and
supporting research and demonstration
projects by public or private entities,
and providing technical assistance to
States, Indian tribes and tribal
organizations, and such other entities
as the Secretary may specify that are
receiving a grant under another
provision of this part.
(ii) Limitations.--The Secretary may
not award funds made available under
this paragraph on a noncompetitive
basis, and may not provide any such
funds to an entity for the purpose of
carrying out healthy marriage promotion
activities or for the purpose of
carrying out activities promoting
responsible fatherhood unless the
entity has submitted to the Secretary
an application (or, in the case of an
entity seeking funding to carry out
healthy marriage promotion activities
and activities promoting responsible
fatherhood, a combined application that
contains assurances that the entity
will carry out such activities under
separate programs and shall not combine
any funds awarded to carry out either
such activities) which--
(I) describes--
(aa) how the programs
or activities proposed
in the application will
address, as
appropriate, issues of
domestic violence; and
(bb) what the
applicant will do, to
the extent relevant, to
ensure that
participation in the
programs or activities
is voluntary, and to
inform potential
participants that their
participation is
voluntary; and
(II) contains a commitment by
the entity--
(aa) to not use the
funds for any other
purpose; and
(bb) to consult with
experts in domestic
violence or relevant
community domestic
violence coalitions in
developing the programs
and activities.
(iii) Healthy marriage promotion
activities.--In clause (ii), the term
``healthy marriage promotion
activities'' means the following:
(I) Public advertising
campaigns on the value of
marriage and the skills needed
to increase marital stability
and health.
(II) Education in high
schools on the value of
marriage, relationship skills,
and budgeting.
(III) Marriage education,
marriage skills, and
relationship skills programs,
that may include parenting
skills, financial management,
conflict resolution, and job
and career advancement.
(IV) Pre-marital education
and marriage skills training
for engaged couples and for
couples or individuals
interested in marriage.
(V) Marriage enhancement and
marriage skills training
programs for married couples.
(VI) Divorce reduction
programs that teach
relationship skills.
(VII) Marriage mentoring
programs which use married
couples as role models and
mentors in at-risk communities.
(VIII) Programs to reduce the
disincentives to marriage in
means-tested aid programs, if
offered in conjunction with any
activity described in this
subparagraph.
(B) Limitation on use of funds for
demonstration projects for coordination of
provision of child welfare and tanf services to
tribal families at risk of child abuse or
neglect.--
(i) In general.--Of the amounts made
available under subparagraph (D) for a
fiscal year, the Secretary may not
award more than $2,000,000 on a
competitive basis to fund demonstration
projects designed to test the
effectiveness of tribal governments or
tribal consortia in coordinating the
provision to tribal families at risk of
child abuse or neglect of child welfare
services and services under tribal
programs funded under this part.
(ii) Limitation on use of funds.--A
grant made pursuant to clause (i) to
such a project shall not be used for
any purpose other than--
(I) to improve case
management for families
eligible for assistance from
such a tribal program;
(II) for supportive services
and assistance to tribal
children in out-of-home
placements and the tribal
families caring for such
children, including families
who adopt such children; and
(III) for prevention services
and assistance to tribal
families at risk of child abuse
and neglect.
(iii) Reports.--The Secretary may
require a recipient of funds awarded
under this subparagraph to provide the
Secretary with such information as the
Secretary deems relevant to enable the
Secretary to facilitate and oversee the
administration of any project for which
funds are provided under this
subparagraph.
(C) Limitation on use of funds for activities
promoting responsible fatherhood.--
(i) In general.--Of the amounts made
available under subparagraph (D) for a
fiscal year, the Secretary may not
award more than $75,000,000 on a
competitive basis to States,
territories, Indian tribes and tribal
organizations, and public and nonprofit
community entities, including religious
organizations, for activities promoting
responsible fatherhood.
(ii) Activities promoting responsible
fatherhood.--In this paragraph, the
term ``activities promoting responsible
fatherhood'' means the following:
(I) Activities to promote
marriage or sustain marriage
through activities such as
counseling, mentoring,
disseminating information about
the benefits of marriage and 2-
parent involvement for
children, enhancing
relationship skills, education
regarding how to control
aggressive behavior,
disseminating information on
the causes of domestic violence
and child abuse, marriage
preparation programs,
premarital counseling, marital
inventories, skills-based
marriage education, financial
planning seminars, including
improving a family's ability to
effectively manage family
business affairs by means such
as education, counseling, or
mentoring on matters related to
family finances, including
household management,
budgeting, banking, and
handling of financial
transactions and home
maintenance, and divorce
education and reduction
programs, including mediation
and counseling.
(II) Activities to promote
responsible parenting through
activities such as counseling,
mentoring, and mediation,
disseminating information about
good parenting practices,
skills-based parenting
education, encouraging child
support payments, and other
methods.
(III) Activities to foster
economic stability by helping
fathers improve their economic
status by providing activities
such as work first services,
job search, job training,
subsidized employment, job
retention, job enhancement, and
encouraging education,
including career-advancing
education, dissemination of
employment materials,
coordination with existing
employment services such as
welfare-to-work programs,
referrals to local employment
training initiatives, and other
methods.
(IV) Activities to promote
responsible fatherhood that are
conducted through a contract
with a nationally recognized,
nonprofit fatherhood promotion
organization, such as the
development, promotion, and
distribution of a media
campaign to encourage the
appropriate involvement of
parents in the life of any
child and specifically the
issue of responsible
fatherhood, and the development
of a national clearinghouse to
assist States and communities
in efforts to promote and
support marriage and
responsible fatherhood.
(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
year 2012 for expenditure in accordance with
this paragraph--
(i) $75,000,000 for awarding funds
for the purpose of carrying out healthy
marriage promotion activities; and
(ii) $75,000,000 for awarding funds
for the purpose of carrying out
activities promoting responsible
fatherhood.
If the Secretary makes an award under
subparagraph (B)(i) for fiscal year 2012, the
funds for such award shall be taken in equal
portion from the amounts appropriated under
clauses (i) and (ii).
(E) Preference.--In awarding funds under this
paragraph for fiscal year 2011, the Secretary
shall give preference to entities that were
awarded funds under this paragraph for any
prior fiscal year and that have demonstrated
the ability to successfully carry out the
programs funded under this paragraph.
(3) Supplemental grant for population increases in
certain states.--
(A) In general.--Each qualifying State shall,
subject to subparagraph (F), be entitled to
receive from the Secretary--
(i) for fiscal year 1998 a grant in
an amount equal to 2.5 percent of the
total amount required to be paid to the
State under former section 403 (as in
effect during fiscal year 1994) for
fiscal year 1994; and
(ii) for each of fiscal years 1999,
2000, and 2001, a grant in an amount
equal to the sum of--
(I) the amount (if any)
required to be paid to the
State under this paragraph for
the immediately preceding
fiscal year; and
(II) 2.5 percent of the sum
of--
(aa) the total amount
required to be paid to
the State under former
section 403 (as in
effect during fiscal
year 1994) for fiscal
year 1994; and
(bb) the amount (if
any) required to be
paid to the State under
this paragraph for the
fiscal year preceding
the fiscal year for
which the grant is to
be made.
(B) Preservation of grant without increases
for states failing to remain qualifying
states.--Each State that is not a qualifying
State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State
for a prior fiscal year shall, subject to
subparagraph (F), be entitled to receive from
the Secretary for the specified fiscal year, a
grant in an amount equal to the amount required
to be paid to the State under this paragraph
for the most recent fiscal year for which the
State was a qualifying State.
(C) Qualifying state.--
(i) In general.--For purposes of this
paragraph, a State is a qualifying
State for a fiscal year if--
(I) the level of welfare
spending per poor person by the
State for the immediately
preceding fiscal year is less
than the national average level
of State welfare spending per
poor person for such preceding
fiscal year; and
(II) the population growth
rate of the State (as
determined by the Bureau of the
Census) for the most recent
fiscal year for which
information is available
exceeds the average population
growth rate for all States (as
so determined) for such most
recent fiscal year.
(ii) State must qualify in fiscal
year 1998.--Notwithstanding clause (i),
a State shall not be a qualifying State
for any fiscal year after 1998 by
reason of clause (i) if the State is
not a qualifying State for fiscal year
1998 by reason of clause (i).
(iii) Certain states deemed
qualifying states.--For purposes of
this paragraph, a State is deemed to be
a qualifying State for fiscal years
1998, 1999, 2000, and 2001 if--
(I) the level of welfare
spending per poor person by the
State for fiscal year 1994 is
less than 35 percent of the
national average level of State
welfare spending per poor
person for fiscal year 1994; or
(II) the population of the
State increased by more than 10
percent from April 1, 1990 to
July 1, 1994, according to the
population estimates in
publication CB94-204 of the
Bureau of the Census.
(D) Definitions.--As used in this paragraph:
(i) Level of welfare spending per
poor person.--The term ``level of State
welfare spending per poor person''
means, with respect to a State and a
fiscal year--
(I) the sum of--
(aa) the total amount
required to be paid to
the State under former
section 403 (as in
effect during fiscal
year 1994) for fiscal
year 1994; and
(bb) the amount (if
any) paid to the State
under this paragraph
for the immediately
preceding fiscal year;
divided by
(II) the number of
individuals, according to the
1990 decennial census, who were
residents of the State and
whose income was below the
poverty line.
(ii) National average level of state
welfare spending per poor person.--The
term ``national average level of State
welfare spending per poor person''
means, with respect to a fiscal year,
an amount equal to--
(I) the total amount required
to be paid to the States under
former section 403 (as in
effect during fiscal year 1994)
for fiscal year 1994; divided
by
(II) the number of
individuals, according to the
1990 decennial census, who were
residents of any State and
whose income was below the
poverty line.
(iii) State.--The term ``State''
means each of the 50 States of the
United States and the District of
Columbia.
(E) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1998, 1999, 2000, and 2001 such sums as
are necessary for grants under this paragraph,
in a total amount not to exceed $800,000,000.
(F) Grants reduced pro rata if insufficient
appropriations.--If the amount appropriated
pursuant to this paragraph for a fiscal year
(or portion of a fiscal year) is less than the
total amount of payments otherwise required to
be made under this paragraph for the fiscal
year (or portion of the fiscal year), then the
amount otherwise payable to any State for the
fiscal year (or portion of the fiscal year)
under this paragraph shall be reduced by a
percentage equal to the amount so appropriated
divided by such total amount.
(G) Budget scoring.--Notwithstanding section
257(b)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985, the baseline shall
assume that no grant shall be made under this
paragraph after fiscal year 2001.
(H) Reauthorization.--Notwithstanding any
other provision of this paragraph--
(i) any State that was a qualifying
State under this paragraph for fiscal
year 2001 or any prior fiscal year
shall be entitled to receive from the
Secretary for each of fiscal years 2002
and 2003 a grant in an amount equal to
the amount required to be paid to the
State under this paragraph for the most
recent fiscal year in which the State
was a qualifying State;
(ii) subparagraph (G) shall be
applied as if ``fiscal year 2011'' were
substituted for ``fiscal year 2001'';
(iii) out of any money in the
Treasury of the United States not
otherwise appropriated, there are
appropriated for each of fiscal years
2002 and 2003 such sums as are
necessary for grants under this
subparagraph.
(4) Bonus to reward high performance states.--
(A) In general.--The Secretary shall make a
grant pursuant to this paragraph to each State
for each bonus year for which the State is a
high performing State.
(B) Amount of grant.--
(i) In general.--Subject to clause
(ii) of this subparagraph, the
Secretary shall determine the amount of
the grant payable under this paragraph
to a high performing State for a bonus
year, which shall be based on the score
assigned to the State under
subparagraph (D)(i) for the fiscal year
that immediately precedes the bonus
year.
(ii) Limitation.--The amount payable
to a State under this paragraph for a
bonus year shall not exceed 5 percent
of the State family assistance grant.
(C) Formula for measuring state
performance.--Not later than 1 year after the
date of the enactment of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, the Secretary, in
consultation with the National Governors'
Association and the American Public Welfare
Association, shall develop a formula for
measuring State performance in operating the
State program funded under this part so as to
achieve the goals set forth in section 401(a).
(D) Scoring of state performance; setting of
performance thresholds.--For each bonus year,
the Secretary shall--
(i) use the formula developed under
subparagraph (C) to assign a score to
each eligible State for the fiscal year
that immediately precedes the bonus
year; and
(ii) prescribe a performance
threshold in such a manner so as to
ensure that--
(I) the average annual total
amount of grants to be made
under this paragraph for each
bonus year equals $200,000,000;
and
(II) the total amount of
grants to be made under this
paragraph for all bonus years
equals $1,000,000,000.
(E) Definitions.--As used in this paragraph:
(i) Bonus year.--The term ``bonus
year'' means fiscal years 1999, 2000,
2001, 2002, and 2003.
(ii) High performing state.--The term
``high performing State'' means, with
respect to a bonus year, an eligible
State whose score assigned pursuant to
subparagraph (D)(i) for the fiscal year
immediately preceding the bonus year
equals or exceeds the performance
threshold prescribed under subparagraph
(D)(ii) for such preceding fiscal year.
(F) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1999 through 2003 $1,000,000,000 for
grants under this paragraph.
(5) Welfare-to-work grants.--
(A) Formula grants.--
(i) Entitlement.--A State shall be
entitled to receive from the Secretary
of Labor a grant for each fiscal year
specified in subparagraph (H) of this
paragraph for which the State is a
welfare-to-work State, in an amount
that does not exceed the lesser of--
(I) 2 times the total of the
expenditures by the State
(excluding qualified State
expenditures (as defined in
section 409(a)(7)(B)(i)) and
any expenditure described in
subclause (I), (II), or (IV) of
section 409(a)(7)(B)(iv))
during the period permitted
under subparagraph (C)(vii) of
this paragraph for the
expenditure of funds under the
grant for activities described
in subparagraph (C)(i) of this
paragraph; or
(II) the allotment of the
State under clause (iii) of
this subparagraph for the
fiscal year.
(ii) Welfare-to-work state.--A State
shall be considered a welfare-to-work
State for a fiscal year for purposes of
this paragraph if the Secretary of
Labor determines that the State meets
the following requirements:
(I) The State has submitted
to the Secretary of Labor and
the Secretary of Health and
Human Services (in the form of
an addendum to the State plan
submitted under section 402) a
plan which--
(aa) describes how,
consistent with this
subparagraph, the State
will use any funds
provided under this
subparagraph during the
fiscal year;
(bb) specifies the
formula to be used
pursuant to clause (vi)
to distribute funds in
the State, and
describes the process
by which the formula
was developed;
(cc) contains
evidence that the plan
was developed in
consultation and
coordination with
appropriate entitites
in sub-State areas;
(dd) contains
assurances by the
Governor of the State
that the private
industry council (and
any alternate agency
designated by the
Governor under item
(ee)) for a service
delivery area in the
State will coordinate
the expenditure of any
funds provided under
this subparagraph for
the benefit of the
service delivery area
with the expenditure of
the funds provided to
the State under section
403(a)(1);
(ee) if the Governor
of the State desires to
have an agency other
than a private industry
council administer the
funds provided under
this subparagraph for
the benefit of 1 or
more service delivery
areas in the State,
contains an application
to the Secretary of
Labor for a waiver of
clause (vii)(I) with
respect to the area or
areas in order to
permit an alternate
agency designated by
the Governor to so
administer the funds;
and
(ff) describes how
the State will ensure
that a private industry
council to which
information is
disclosed pursuant to
section 403(a)(5)(K) or
454A(f)(5) has
procedures for
safeguarding the
information and for
ensuring that the
information is used
solely for the purpose
described in that
section.
(II) The State has provided
to the Secretary of Labor an
estimate of the amount that the
State intends to expend during
the period permitted under
subparagraph (C)(vii) of this
paragraph for the expenditure
of funds under the grant
(excluding expenditures
described in section
409(a)(7)(B)(iv) (other than
subclause (III) thereof))
pursuant to this paragraph.
(III) The State has agreed to
negotiate in good faith with
the Secretary of Health and
Human Services with respect to
the substance and funding of
any evaluation under section
413(j), and to cooperate with
the conduct of any such
evaluation.
(IV) The State is an eligible
State for the fiscal year.
(V) The State certifies that
qualified State expenditures
(within the meaning of section
409(a)(7)) for the fiscal year
will be not less than the
applicable percentage of
historic State expenditures
(within the meaning of section
409(a)(7)) with respect to the
fiscal year.
(iii) Allotments to welfare-to-work
states.--
(I) In general.--Subject to
this clause, the allotment of a
welfare-to-work State for a
fiscal year shall be the
available amount for the fiscal
year, multiplied by the State
percentage for the fiscal year.
(II) Minimum allotment.--The
allotment of a welfare-to-work
State (other than Guam, the
Virgin Islands, or American
Samoa) for a fiscal year shall
not be less than 0.25 percent
of the available amount for the
fiscal year.
(III) Pro rata reduction.--
Subject to subclause (II), the
Secretary of Labor shall make
pro rata reductions in the
allotments to States under this
clause for a fiscal year as
necessary to ensure that the
total of the allotments does
not exceed the available amount
for the fiscal year.
(iv) Available amount.--As used in
this subparagraph, the term ``available
amount'' means, for a fiscal year, the
sum of--
(I) 75 percent of the sum
of--
(aa) the amount
specified in
subparagraph (H) for
the fiscal year, minus
the total of the
amounts reserved
pursuant to
subparagraphs (E), (F),
and (G) for the fiscal
year; and
(bb) any amount
reserved pursuant to
subparagraph (E) for
the immediately
preceding fiscal year
that has not been
obligated; and
(II) any available amount for
the immediately preceding
fiscal year that has not been
obligated by a State, other
than funds reserved by the
State for distribution under
clause (vi)(III) and funds
distributed pursuant to clause
(vi)(I) in any State in which
the service delivery area is
the State.
(v) State percentage.--As used in
clause (iii), the term ``State
percentage'' means, with respect to a
fiscal year, \1/2\ of the sum of--
(I) the percentage
represented by the number of
individuals in the State whose
income is less than the poverty
line divided by the number of
such individuals in the United
States; and
(II) the percentage
represented by the number of
adults who are recipients of
assistance under the State
program funded under this part
divided by the number of adults
in the United States who are
recipients of assistance under
any State program funded under
this part.
(vi) Procedure for distribution of
funds within states.--
(I) Allocation formula.--A
State to which a grant is made
under this subparagraph shall
devise a formula for allocating
not less than 85 percent of the
amount of the grant among the
service delivery areas in the
State, which--
(aa) determines the
amount to be allocated
for the benefit of a
service delivery area
in proportion to the
number (if any) by
which the population of
the area with an income
that is less than the
poverty line exceeds
7.5 percent of the
total population of the
area, relative to such
number for all such
areas in the State with
such an excess, and
accords a weight of not
less than 50 percent to
this factor;
(bb) may determine
the amount to be
allocated for the
benefit of such an area
in proportion to the
number of adults
residing in the area
who have been
recipients of
assistance under the
State program funded
under this part
(whether in effect
before or after the
amendments made by
section 103(a) of the
Personal Responsibility
and Work Opportunity
Reconciliation Act of
1996 first applied to
the State) for at least
30 months (whether or
not consecutive)
relative to the number
of such adults residing
in the State; and
(cc) may determine
the amount to be
allocated for the
benefit of such an area
in proportion to the
number of unemployed
individuals residing in
the area relative to
the number of such
individuals residing in
the State.
(II) Distribution of funds.--
(aa) In general.--If
the amount allocated by
the formula to a
service delivery area
is at least $100,000,
the State shall
distribute the amount
to the entity
administering the grant
in the area.
(bb) Special rule.--
If the amount allocated
by the formula to a
service delivery area
is less than $100,000,
the sum shall be
available for
distribution in the
State under subclause
(III) during the fiscal
year.
(III) Projects to help long-
term recipients of assistance
enter unsubsidized jobs.--The
Governor of a State to which a
grant is made under this
subparagraph may distribute not
more than 15 percent of the
grant funds (plus any amount
required to be distributed
under this subclause by reason
of subclause (II)(bb)) to
projects that appear likely to
help long-term recipients of
assistance under the State
program funded under this part
(whether in effect before or
after the amendments made by
section 103(a) of the Personal
Responsibility and Work
Opportunity Reconciliation Act
of 1996 first applied to the
State) enter unsubsidized
employment.
(vii) Administration.--
(I) Private industry
councils.--The private industry
council for a service delivery
area in a State shall have sole
authority, in coordination with
the chief elected official (as
defined in section 3 of the
Workforce Innovation and
Opportunity Act) of the area,
to expend the amounts
distributed under clause
(vi)(II)(aa) for the benefit of
the service delivery area, in
accordance with the assurances
described in clause (ii)(I)(dd)
provided by the Governor of the
State.
(II) Enforcement of
coordination of expenditures
with other expenditures under
this part.--Notwithstanding
subclause (I) of this clause,
on a determination by the
Governor of a State that a
private industry council (or an
alternate agency described in
clause (ii)(I)(dd)) has used
funds provided under this
subparagraph in a manner
inconsistent with the
assurances described in clause
(ii)(I)(dd)--
(aa) the private
industry council (or
such alternate agency)
shall remit the funds
to the Governor; and
(bb) the Governor
shall apply to the
Secretary of Labor for
a waiver of subclause
(I) of this clause with
respect to the service
delivery area or areas
involved in order to
permit an alternate
agency designated by
the Governor to
administer the funds in
accordance with the
assurances.
(III) Authority to permit use
of alternate administering
agency.--The Secretary of Labor
shall approve an application
submitted under clause
(ii)(I)(ee) or subclause
(II)(bb) of this clause to
waive subclause (I) of this
clause with respect to 1 or
more service delivery areas if
the Secretary determines that
the alternate agency designated
in the application would
improve the effectiveness or
efficiency of the
administration of amounts
distributed under clause
(vi)(II)(aa) for the benefit of
the area or areas.
(viii) Data to be used in determining
the number of adult tanf recipients.--
For purposes of this subparagraph, the
number of adult recipients of
assistance under a State program funded
under this part for a fiscal year shall
be determined using data for the most
recent 12-month period for which such
data is available before the beginning
of the fiscal year.
(ix) Reversion of unallotted formula
funds.--If at the end of any fiscal
year any funds available under this
subparagraph have not been allotted due
to a determination by the Secretary
that any State has not met the
requirements of clause (ii), such funds
shall be transferred to the General
Fund of the Treasury of the United
States.
(B) Competitive grants.--
(i) In general.--The Secretary of
Labor shall award grants in accordance
with this subparagraph, in fiscal years
1998 and 1999, for projects proposed by
eligible applicants, based on the
following:
(I) The effectiveness of the
proposal in--
(aa) expanding the
base of knowledge about
programs aimed at
moving recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment.
(bb) moving
recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment; and
(cc) moving
recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment, even in
labor markets that have
a shortage of low-skill
jobs.
(II) At the discretion of the
Secretary of Labor, any of the
following:
(aa) The history of
success of the
applicant in moving
individuals with
multiple barriers into
work.
(bb) Evidence of the
applicant's ability to
leverage private,
State, and local
resources.
(cc) Use by the
applicant of State and
local resources beyond
those required by
subparagraph (A).
(dd) Plans of the
applicant to coordinate
with other
organizations at the
local and State level.
(ee) Use by the
applicant of current or
former recipients of
assistance under a
State program funded
under this part as
mentors, case managers,
or service providers.
(ii) Eligible applicants.--As used in
clause (i), the term ``eligible
applicant'' means a private industry
council for a service delivery area in
a State, a political subdivision of a
State, or a private entity applying in
conjunction with the private industry
council for such a service delivery
area or with such a political
subdivision, that submits a proposal
developed in consultation with the
Governor of the State.
(iii) Determination of grant
amount.--In determining the amount of a
grant to be made under this
subparagraph for a project proposed by
an applicant, the Secretary of Labor
shall provide the applicant with an
amount sufficient to ensure that the
project has a reasonable opportunity to
be successful, taking into account the
number of long-term recipients of
assistance under a State program funded
under this part, the level of
unemployment, the job opportunities and
job growth, the poverty rate, and such
other factors as the Secretary of Labor
deems appropriate, in the area to be
served by the project.
(iv) Consideration of needs of rural
areas and cities with large
concentrations of poverty.--In making
grants under this subparagraph, the
Secretary of Labor shall consider the
needs of rural areas and cities with
large concentrations of residents with
an income that is less than the poverty
line.
(v) Funding.--For grants under this
subparagraph for each fiscal year
specified in subparagraph (H), there
shall be available to the Secretary of
Labor an amount equal to the sum of--
(I) 25 percent of the sum
of--
(aa) the amount
specified in
subparagraph (H) for
the fiscal year, minus
the total of the
amounts reserved
pursuant to
subparagraphs (E), (F),
and (G) for the fiscal
year; and
(bb) any amount
reserved pursuant to
subparagraph (E) for
the immediately
preceding fiscal year
that has not been
obligated; and
(II) any amount available for
grants under this subparagraph
for the immediately preceding
fiscal year that has not been
obligated.
(C) Limitations on use of funds.--
(i) Allowable activities.--An entity
to which funds are provided under this
paragraph shall use the funds to move
individuals into and keep individuals
in lasting unsubsidized employment by
means of any of the following:
(I) The conduct and
administration of community
service or work experience
programs.
(II) Job creation through
public or private sector
employment wage subsidies.
(III) On-the-job training.
(IV) Contracts with public or
private providers of readiness,
placement, and post-employment
services, or if the entity is
not a private industry council
or workforce investment board,
the direct provision of such
services.
(V) Job vouchers for
placement, readiness, and
postemployment services.
(VI) Job retention or support
services if such services are
not otherwise available.
(VII) Not more than 6 months
of vocational educational or
job training.
Contracts or vouchers for job placement
services supported by such funds must
require that at least \1/2\ of the
payment occur after an eligible
individual placed into the workforce
has been in the workforce for 6 months.
(ii) General eligibility.--An entity
that operates a project with funds
provided under this paragraph may
expend funds provided to the project
for the benefit of recipients of
assistance under the program funded
under this part of the State in which
the entity is located who--
(I) has received assistance
under the State program funded
under this part (whether in
effect before or after the
amendments made by section 103
of the Personal Responsibility
and Work Opportunity
Reconciliation Act of 1996
first apply to the State) for
at least 30 months (whether or
not consecutive); or
(II) within 12 months, will
become ineligible for
assistance under the State
program funded under this part
by reason of a durational limit
on such assistance, without
regard to any exemption
provided pursuant to section
408(a)(7)(C) that may apply to
the individual.
(iii) Noncustodial parents.--An
entity that operates a project with
funds provided under this paragraph may
use the funds to provide services in a
form described in clause (i) to
noncustodial parents with respect to
whom the requirements of the following
subclauses are met:
(I) The noncustodial parent
is unemployed, underemployed,
or having difficulty in paying
child support obligations.
(II) At least 1 of the
following applies to a minor
child of the noncustodial
parent (with preference in the
determination of the
noncustodial parents to be
provided services under this
paragraph to be provided by the
entity to those noncustodial
parents with minor children who
meet, or who have custodial
parents who meet, the
requirements of item (aa)):
(aa) The minor child
or the custodial parent
of the minor child
meets the requirements
of subclause (I) or
(II) of clause (ii).
(bb) The minor child
is eligible for, or is
receiving, benefits
under the program
funded under this part.
(cc) The minor child
received benefits under
the program funded
under this part in the
12-month period
preceding the date of
the determination but
no longer receives such
benefits.
(dd) The minor child
is eligible for, or is
receiving, assistance
under the Food and
Nutrition Act of 2008,
benefits under the
supplemental security
income program under
title XVI of this Act,
medical assistance
under title XIX of this
Act, or child health
assistance under title
XXI of this Act.
(III) In the case of a
noncustodial parent who becomes
enrolled in the project on or
after the date of the enactment
of this clause, the
noncustodial parent is in
compliance with the terms of an
oral or written personal
responsibility contract entered
into among the noncustodial
parent, the entity, and (unless
the entity demonstrates to the
Secretary that the entity is
not capable of coordinating
with such agency) the agency
responsible for administering
the State plan under part D,
which was developed taking into
account the employment and
child support status of the
noncustodial parent, which was
entered into not later than 30
(or, at the option of the
entity, not later than 90) days
after the noncustodial parent
was enrolled in the project,
and which, at a minimum,
includes the following:
(aa) A commitment by
the noncustodial parent
to cooperate, at the
earliest opportunity,
in the establishment of
the paternity of the
minor child, through
voluntary
acknowledgement or
other procedures, and
in the establishment of
a child support order.
(bb) A commitment by
the noncustodial parent
to cooperate in the
payment of child
support for the minor
child, which may
include a modification
of an existing support
order to take into
account the ability of
the noncustodial parent
to pay such support and
the participation of
such parent in the
project.
(cc) A commitment by
the noncustodial parent
to participate in
employment or related
activities that will
enable the noncustodial
parent to make regular
child support payments,
and if the noncustodial
parent has not attained
20 years of age, such
related activities may
include completion of
high school, a general
equivalency degree, or
other education
directly related to
employment.
(dd) A description of
the services to be
provided under this
paragraph, and a
commitment by the
noncustodial parent to
participate in such
services, that are
designed to assist the
noncustodial parent
obtain and retain
employment, increase
earnings, and enhance
the financial and
emotional contributions
to the well-being of
the minor child.
In order to protect custodial
parents and children who may be
at risk of domestic violence,
the preceding provisions of
this subclause shall not be
construed to affect any other
provision of law requiring a
custodial parent to cooperate
in establishing the paternity
of a child or establishing or
enforcing a support order with
respect to a child, or
entitling a custodial parent to
refuse, for good cause, to
provide such cooperation as a
condition of assistance or
benefit under any program,
shall not be construed to
require such cooperation by the
custodial parent as a condition
of participation of either
parent in the program
authorized under this
paragraph, and shall not be
construed to require a
custodial parent to cooperate
with or participate in any
activity under this clause. The
entity operating a project
under this clause with funds
provided under this paragraph
shall consult with domestic
violence prevention and
intervention organizations in
the development of the project.
(iv) Targeting of hard to employ
individuals with characteristics
associated with long-term welfare
dependence.--An entity that operates a
project with funds provided under this
paragraph may expend not more than 30
percent of all funds provided to the
project for programs that provide
assistance in a form described in
clause (i)--
(I) to recipients of
assistance under the program
funded under this part of the
State in which the entity is
located who have
characteristics associated with
long-term welfare dependence
(such as school dropout, teen
pregnancy, or poor work
history), including, at the
option of the State, by
providing assistance in such
form as a condition of
receiving assistance under the
State program funded under this
part;
(II) to children--
(aa) who have
attained 18 years of
age but not 25 years of
age; and
(bb) who, before
attaining 18 years of
age, were recipients of
foster care maintenance
payments (as defined in
section 475(4)) under
part E or were in
foster care under the
responsibility of a
State;
(III) to recipients of
assistance under the State
program funded under this part,
determined to have significant
barriers to self-sufficiency,
pursuant to criteria
established by the local
private industry council; or
(IV) to custodial parents
with incomes below 100 percent
of the poverty line (as defined
in section 673(2) of the
Omnibus Budget Reconciliation
Act of 1981, including any
revision required by such
section, applicable to a family
of the size involved).
To the extent that the entity does not
expend such funds in accordance with
the preceding sentence, the entity
shall expend such funds in accordance
with clauses (ii) and (iii) and, as
appropriate, clause (v).
(v) Authority to provide work-related
services to individuals who have
reached the 5 year limit.--An entity
that operates a project with funds
provided under this paragraph may use
the funds to provide assistance in a
form described in clause (i) of this
subparagraph to, or for the benefit of,
individuals who (but for section
408(a)(7)) would be eligible for
assistance under the program funded
under this part of the State in which
the entity is located.
(vi) Relationship to other provisions
of this part.--
(I) Rules governing use of
funds.--The rules of section
404, other than subsections
(b), (f), and (h) of section
404, shall not apply to a grant
made under this paragraph.
(II) Rules governing payments
to states.--The Secretary of
Labor shall carry out the
functions otherwise assigned by
section 405 to the Secretary of
Health and Human Services with
respect to the grants payable
under this paragraph.
(III) Administration.--
Section 416 shall not apply to
the programs under this
paragraph.
(vii) Prohibition against use of
grant funds for any other fund matching
requirement.--An entity to which funds
are provided under this paragraph shall
not use any part of the funds, nor any
part of State expenditures made to
match the funds, to fulfill any
obligation of any State, political
subdivision, or private industry
council to contribute funds under
section 403(b) or 418 or any other
provision of this Act or other Federal
law.
(viii) Deadline for expenditure.--An
entity to which funds are provided
under this paragraph shall remit to the
Secretary of Labor any part of the
funds that are not expended within 5
years after the date the funds are so
provided.
(ix) Regulations.--Within 90 days
after the date of the enactment of this
paragraph, the Secretary of Labor,
after consultation with the Secretary
of Health and Human Services and the
Secretary of Housing and Urban
Development, shall prescribe such
regulations as may be necessary to
implement this paragraph.
(x) Reporting requirements.--The
Secretary of Labor, in consultation
with the Secretary of Health and Human
Services, States, and organizations
that represent State or local
governments, shall establish
requirements for the collection and
maintenance of financial and
participant information and the
reporting of such information by
entities carrying out activities under
this paragraph.
(D) Definitions.--
(i) Individuals with income less than
the poverty line.--For purposes of this
paragraph, the number of individuals
with an income that is less than the
poverty line shall be determined for a
fiscal year--
(I) based on the methodology
used by the Bureau of the
Census to produce and publish
intercensal poverty data for
States and counties (or, in the
case of Puerto Rico, the Virgin
Islands, Guam, and American
Samoa, other poverty data
selected by the Secretary of
Labor); and
(II) using data for the most
recent year for which such data
is available before the
beginning of the fiscal year.
(ii) Private industry council.--As
used in this paragraph, the term
``private industry council'' means,
with respect to a service delivery
area, the private industry council or
local workforce development board
established for the local workforce
development area pursuant to title I of
the Workforce Innovation and
Opportunity Act, as appropriate.
(iii) Service delivery area.--As used
in this paragraph, the term ``service
delivery area'' shall have the meaning
given such term for purposes of the Job
Training Partnership Act or.
(E) Funding for indian tribes.--1 percent of
the amount specified in subparagraph (H) for
fiscal year 1998 and $15,000,000 of the amount
so specified for fiscal year 1999 shall be
reserved for grants to Indian tribes under
section 412(a)(3).
(F) Funding for evaluations of welfare-to-
work programs.--0.6 percent of the amount
specified in subparagraph (H) for fiscal year
1998 and $9,000,000 of the amount so specified
for fiscal year 1999 shall be reserved for use
by the Secretary to carry out section 413(j).
(G) Funding for evaluation of abstinence
education programs.--
(i) In general.--0.2 percent of the
amount specified in subparagraph (H)
for fiscal year 1998 and $3,000,000 of
the amount so specified for fiscal year
1999 shall be reserved for use by the
Secretary to evaluate programs under
section 510, directly or through
grants, contracts, or interagency
agreements.
(ii) Authority to use funds for
evaluations of welfare-to-work
programs.--Any such amount not required
for such evaluations shall be available
for use by the Secretary to carry out
section 413(j).
(iii) Deadline for outlays.--Outlays
from funds used pursuant to clause (i)
for evaluation of programs under
section 510 shall not be made after
fiscal year 2005.
(iv) Interim report.--Not later than
January 1, 2002, the Secretary shall
submit to the Congress an interim
report on the evaluations referred to
in clause (i).
(H) Appropriations.--
(i) In general.--Out of any money in
the Treasury of the United States not
otherwise appropriated, there are
appropriated for grants under this
paragraph--
(I) $1,500,000,000 for fiscal
year 1998; and
(II) $1,400,000,000 for
fiscal year 1999.
(ii) Availability.--The amounts made
available pursuant to clause (i) shall
remain available for such period as is
necessary to make the grants provided
for in this paragraph.
(I) Worker protections.--
(i) Nondisplacement in work
activities.--
(I) General prohibition.--
Subject to this clause, an
adult in a family receiving
assistance attributable to
funds provided under this
paragraph may fill a vacant
employment position in order to
engage in a work activity.
(II) Prohibition against
violation of contracts.--A work
activity engaged in under a
program operated with funds
provided under this paragraph
shall not violate an existing
contract for services or a
collective bargaining
agreement, and such a work
activity that would violate a
collective bargaining agreement
shall not be undertaken without
the written concurrence of the
labor organization and employer
concerned.
(III) Other prohibitions.--An
adult participant in a work
activity engaged in under a
program operated with funds
provided under this paragraph
shall not be employed or
assigned--
(aa) when any other
individual is on layoff
from the same or any
substantially
equivalent job;
(bb) if the employer
has terminated the
employment of any
regular employee or
otherwise caused an
involuntary reduction
in its workforce with
the intention of
filling the vacancy so
created with the
participant; or
(cc) if the employer
has caused an
involuntary reduction
to less than full time
in hours of any
employee in the same or
a substantially
equivalent job.
(ii) Health and safety.--Health and
safety standards established under
Federal and State law otherwise
applicable to working conditions of
employees shall be equally applicable
to working conditions of other
participants engaged in a work activity
under a program operated with funds
provided under this paragraph.
(iii) Nondiscrimination.--In addition
to the protections provided under the
provisions of law specified in section
408(c), an individual may not be
discriminated against by reason of
gender with respect to participation in
work activities engaged in under a
program operated with funds provided
under this paragraph.
(iv) Grievance procedure.--
(I) In general.--Each State
to which a grant is made under
this paragraph shall establish
and maintain a procedure for
grievances or complaints from
employees alleging violations
of clause (i) and participants
in work activities alleging
violations of clause (i), (ii),
or (iii).
(II) Hearing.--The procedure
shall include an opportunity
for a hearing.
(III) Remedies.--The
procedure shall include
remedies for violation of
clause (i), (ii), or (iii),
which may continue during the
pendency of the procedure, and
which may include--
(aa) suspension or
termination of payments
from funds provided
under this paragraph;
(bb) prohibition of
placement of a
participant with an
employer that has
violated clause (i),
(ii), or (iii);
(cc) where
applicable,
reinstatement of an
employee, payment of
lost wages and
benefits, and
reestablishment of
other relevant terms,
conditions and
privileges of
employment; and
(dd) where
appropriate, other
equitable relief.
(IV) Appeals.--
(aa) Filing.--Not
later than 30 days
after a grievant or
complainant receives an
adverse decision under
the procedure
established pursuant to
subclause (I), the
grievant or complainant
may appeal the decision
to a State agency
designated by the State
which shall be
independent of the
State or local agency
that is administering
the programs operated
with funds provided
under this paragraph
and the State agency
administering, or
supervising the
administration of, the
State program funded
under this part.
(bb) Final
determination.--Not
later than 120 days
after the State agency
designated under item
(aa) receives a
grievance or complaint
made under the
procedure established
by a State pursuant to
subclause (I), the
State agency shall make
a final determination
on the appeal.
(v) Rule of interpretation.--This
subparagraph shall not be construed to
affect the authority of a State to
provide or require workers'
compensation.
(vi) Nonpreemption of state law.--The
provisions of this subparagraph shall
not be construed to preempt any
provision of State law that affords
greater protections to employees or to
other participants engaged in work
activities under a program funded under
this part than is afforded by such
provisions of this subparagraph.
(J) Information disclosure.--If a State to
which a grant is made under section 403
establishes safeguards against the use or
disclosure of information about applicants or
recipients of assistance under the State
program funded under this part, the safeguards
shall not prevent the State agency
administering the program from furnishing to a
private industry council the names, addresses,
telephone numbers, and identifying case number
information in the State program funded under
this part, of noncustodial parents residing in
the service delivery area of the private
industry council, for the purpose of
identifying and contacting noncustodial parents
regarding participation in the program under
this paragraph.
(b) Contingency Fund.--
(1) Establishment.--There is hereby established in
the Treasury of the United States a fund which shall be
known as the ``Contingency Fund for State Welfare
Programs'' (in this section referred to as the
``Fund'').
(2) Deposits into fund.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal years
2013 and 2014 such sums as are necessary for payment to
the Fund in a total amount not to exceed $612,000,000
for each fiscal year, of which $2,000,000 shall be
reserved for carrying out the activities of the
commission established by the Protect our Kids Act of
2012 to reduce fatalities resulting from child abuse
and neglect.
(3) Grants.--
(A) Provisional payments.--If an eligible
State submits to the Secretary a request for
funds under this paragraph during an eligible
month, the Secretary shall, subject to this
paragraph, pay to the State, from amounts
appropriated pursuant to paragraph (2), an
amount equal to the amount of funds so
requested.
(B) Payment priority.--The Secretary shall
make payments under subparagraph (A) in the
order in which the Secretary receives requests
for such payments.
(C) Limitations.--
(i) Monthly payment to a state.--The
total amount paid to a single State
under subparagraph (A) during a month
shall not exceed \1/12\ of 20 percent
of the State family assistance grant.
(ii) Payments to all states.--The
total amount paid to all States under
subparagraph (A) during fiscal year
2011 and 2012, respectively, shall not
exceed the total amount appropriated
pursuant to paragraph (2) for each such
fiscal year.
(4) Eligible month.--As used in paragraph (3)(A), the
term ``eligible month'' means, with respect to a State,
a month in the 2-month period that begins with any
month for which the State is a needy State.
(5) Needy state.--For purposes of paragraph (4), a
State is a needy State for a month if--
(A) the average rate of--
(i) total unemployment in such State
(seasonally adjusted) for the period
consisting of the most recent 3 months
for which data for all States are
published equals or exceeds 6.5
percent; and
(ii) total unemployment in such State
(seasonally adjusted) for the 3-month
period equals or exceeds 110 percent of
such average rate for either (or both)
of the corresponding 3-month periods
ending in the 2 preceding calendar
years; or
(B) as determined by the Secretary of
Agriculture (in the discretion of the Secretary
of Agriculture), the monthly average number of
individuals (as of the last day of each month)
participating in the supplemental nutrition
assistance program in the State in the then
most recently concluded 3-month period for
which data are available exceeds by not less
than 10 percent the lesser of--
(i) the monthly average number of
individuals (as of the last day of each
month) in the State that would have
participated in the supplemental
nutrition assistance program in the
corresponding 3-month period in fiscal
year 1994 if the amendments made by
titles IV and VIII of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 had been in
effect throughout fiscal year 1994; or
(ii) the monthly average number of
individuals (as of the last day of each
month) in the State that would have
participated in the supplemental
nutrition assistance program in the
corresponding 3-month period in fiscal
year 1995 if the amendments made by
titles IV and VIII of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 had been in
effect throughout fiscal year 1995.
(6) Annual reconciliation.--
(A) In general.--Notwithstanding paragraph
(3), if the Secretary makes a payment to a
State under this subsection in a fiscal year,
then the State shall remit to the Secretary,
within 1 year after the end of the first
subsequent period of 3 consecutive months for
which the State is not a needy State, an amount
equal to the amount (if any) by which--
(i) the total amount paid to the
State under paragraph (3) of this
subsection in the fiscal year; exceeds
(ii) the product of--
(I) the Federal medical
assistance percentage for the
State (as defined in section
1905(b), as such section was in
effect on September 30, 1995);
(II) the State's reimbursable
expenditures for the fiscal
year; and
(III) \1/12\ times the number
of months during the fiscal
year for which the Secretary
made a payment to the State
under such paragraph (3).
(B) Definitions.--As used in subparagraph
(A):
(i) Reimbursable expenditures.--The
term ``reimbursable expenditures''
means, with respect to a State and a
fiscal year, the amount (if any) by
which--
(I) countable State
expenditures for the fiscal
year; exceeds
(II) historic State
expenditures (as defined in
section 409(a)(7)(B)(iii)),
excluding any amount expended
by the State for child care
under subsection (g) or (i) of
section 402 (as in effect
during fiscal year 1994) for
fiscal year 1994.
(ii) Countable state expenditures.--
The term ``countable expenditures''
means, with respect to a State and a
fiscal year--
(I) the qualified State
expenditures (as defined in
section 409(a)(7)(B)(i) (other
than the expenditures described
in subclause (I)(bb) of such
section)) under the State
program funded under this part
for the fiscal year; plus
(II) any amount paid to the
State under paragraph (3)
during the fiscal year that is
expended by the State under the
State program funded under this
part.
(C) Adjustment of state remittances.--
(i) In general.--The amount otherwise
required by subparagraph (A) to be
remitted by a State for a fiscal year
shall be increased by the lesser of--
(I) the total adjustment for
the fiscal year, multiplied by
the adjustment percentage for
the State for the fiscal year;
or
(II) the unadjusted net
payment to the State for the
fiscal year.
(ii) Total adjustment.--As used in
clause (i), the term ``total
adjustment'' means--
(I) in the case of fiscal
year 1998, $2,000,000;
(II) in the case of fiscal
year 1999, $9,000,000;
(III) in the case of fiscal
year 2000, $16,000,000; and
(IV) in the case of fiscal
year 2001, $13,000,000.
(iii) Adjustment percentage.--As used
in clause (i), the term ``adjustment
percentage'' means, with respect to a
State and a fiscal year--
(I) the unadjusted net
payment to the State for the
fiscal year; divided by
(II) the sum of the
unadjusted net payments to all
States for the fiscal year.
(iv) Unadjusted net payment.--As used
in this subparagraph, the term,
``unadjusted net payment'' means with
respect to a State and a fiscal year--
(I) the total amount paid to
the State under paragraph (3)
in the fiscal year; minus
(II) the amount that, in the
absence of this subparagraph,
would be required by
subparagraph (A) or by section
409(a)(10) to be remitted by
the State in respect of the
payment.
(7) State defined.--As used in this subsection, the
term ``State'' means each of the 50 States and the
District of Columbia.
(8) Annual reports.--The Secretary shall annually
report to the Congress on the status of the Fund.
* * * * * * *
B. Changes in Existing Law Proposed by the Bill, as Reported
In compliance with clause 3(e)(1)(B) of rule XIII of the
Rules of the House of Representatives, changes in existing law
proposed by the bill, as reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italics, existing law in
which no change is proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e)(1)(B) of rule XIII of the
Rules of the House of Representatives, changes in existing law
proposed by the bill, as reported, are shown as follows (new
matter is printed in italics and existing law in which no
change is proposed is shown in roman):
SOCIAL SECURITY ACT
* * * * * * *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH
CHILDREN AND FOR CHILD-WELFARE SERVICES
PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
* * * * * * *
SEC. 403. GRANTS TO STATES.
(a) Grants.--
(1) Family assistance grant.--
(A) In general.--Each eligible State shall be
entitled to receive from the Secretary, for
fiscal year 2012, a grant in an amount equal to
the State family assistance grant.
(B) State family assistance grant.--The State
family assistance grant payable to a State for
a fiscal year shall be the amount that bears
the same ratio to the amount specified in
subparagraph (C) of this paragraph (as in
effect just before the enactment of the Welfare
Integrity and Data Improvement Act) as the
amount required to be paid to the State under
this paragraph (as so in effect) for fiscal
year 2002 (determined without regard to any
reduction pursuant to section 409 or 412(a)(1))
bears to the total amount required to be paid
under this paragraph for fiscal year 2002 (as
so determined).
(C) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
year 2012 $16,566,542,000 for grants under this
paragraph.
(2) Healthy marriage promotion and responsible
fatherhood grants.--
(A) In general.--
(i) Use of funds.--Subject to
subparagraphs (B), (C), and (E), the
Secretary may use the funds made
available under subparagraph (D) for
the purpose of conducting and
supporting research and demonstration
projects by public or private entities,
and providing technical assistance to
States, Indian tribes and tribal
organizations, and such other entities
as the Secretary may specify that are
receiving a grant under another
provision of this part.
(ii) Limitations.--The Secretary may
not award funds made available under
this paragraph on a noncompetitive
basis, and may not provide any such
funds to an entity for the purpose of
carrying out healthy marriage promotion
activities or for the purpose of
carrying out activities promoting
responsible fatherhood unless the
entity has submitted to the Secretary
an application (or, in the case of an
entity seeking funding to carry out
healthy marriage promotion activities
and activities promoting responsible
fatherhood, a combined application that
contains assurances that the entity
will carry out such activities under
separate programs and shall not combine
any funds awarded to carry out either
such activities) which--
(I) describes--
(aa) how the programs
or activities proposed
in the application will
address, as
appropriate, issues of
domestic violence; and
(bb) what the
applicant will do, to
the extent relevant, to
ensure that
participation in the
programs or activities
is voluntary, and to
inform potential
participants that their
participation is
voluntary; and
(II) contains a commitment by
the entity--
(aa) to not use the
funds for any other
purpose; and
(bb) to consult with
experts in domestic
violence or relevant
community domestic
violence coalitions in
developing the programs
and activities.
(iii) Healthy marriage promotion
activities.--In clause (ii), the term
``healthy marriage promotion
activities'' means the following:
(I) Public advertising
campaigns on the value of
marriage and the skills needed
to increase marital stability
and health.
(II) Education in high
schools on the value of
marriage, relationship skills,
and budgeting.
(III) Marriage education,
marriage skills, and
relationship skills programs,
that may include parenting
skills, financial management,
conflict resolution, and job
and career advancement.
(IV) Pre-marital education
and marriage skills training
for engaged couples and for
couples or individuals
interested in marriage.
(V) Marriage enhancement and
marriage skills training
programs for married couples.
(VI) Divorce reduction
programs that teach
relationship skills.
(VII) Marriage mentoring
programs which use married
couples as role models and
mentors in at-risk communities.
(VIII) Programs to reduce the
disincentives to marriage in
means-tested aid programs, if
offered in conjunction with any
activity described in this
subparagraph.
(B) Limitation on use of funds for
demonstration projects for coordination of
provision of child welfare and tanf services to
tribal families at risk of child abuse or
neglect.--
(i) In general.--Of the amounts made
available under subparagraph (D) for a
fiscal year, the Secretary may not
award more than $2,000,000 on a
competitive basis to fund demonstration
projects designed to test the
effectiveness of tribal governments or
tribal consortia in coordinating the
provision to tribal families at risk of
child abuse or neglect of child welfare
services and services under tribal
programs funded under this part.
(ii) Limitation on use of funds.--A
grant made pursuant to clause (i) to
such a project shall not be used for
any purpose other than--
(I) to improve case
management for families
eligible for assistance from
such a tribal program;
(II) for supportive services
and assistance to tribal
children in out-of-home
placements and the tribal
families caring for such
children, including families
who adopt such children; and
(III) for prevention services
and assistance to tribal
families at risk of child abuse
and neglect.
(iii) Reports.--The Secretary may
require a recipient of funds awarded
under this subparagraph to provide the
Secretary with such information as the
Secretary deems relevant to enable the
Secretary to facilitate and oversee the
administration of any project for which
funds are provided under this
subparagraph.
(C) Limitation on use of funds for activities
promoting responsible fatherhood.--
(i) In general.--Of the amounts made
available under subparagraph (D) for a
fiscal year, the Secretary may not
award more than $75,000,000 on a
competitive basis to States,
territories, Indian tribes and tribal
organizations, and public and nonprofit
community entities, including religious
organizations, for activities promoting
responsible fatherhood.
(ii) Activities promoting responsible
fatherhood.--In this paragraph, the
term ``activities promoting responsible
fatherhood'' means the following:
(I) Activities to promote
marriage or sustain marriage
through activities such as
counseling, mentoring,
disseminating information about
the benefits of marriage and 2-
parent involvement for
children, enhancing
relationship skills, education
regarding how to control
aggressive behavior,
disseminating information on
the causes of domestic violence
and child abuse, marriage
preparation programs,
premarital counseling, marital
inventories, skills-based
marriage education, financial
planning seminars, including
improving a family's ability to
effectively manage family
business affairs by means such
as education, counseling, or
mentoring on matters related to
family finances, including
household management,
budgeting, banking, and
handling of financial
transactions and home
maintenance, and divorce
education and reduction
programs, including mediation
and counseling.
(II) Activities to promote
responsible parenting through
activities such as counseling,
mentoring, and mediation,
disseminating information about
good parenting practices,
skills-based parenting
education, encouraging child
support payments, and other
methods.
(III) Activities to foster
economic stability by helping
fathers improve their economic
status by providing activities
such as work first services,
job search, job training,
subsidized employment, job
retention, job enhancement, and
encouraging education,
including career-advancing
education, dissemination of
employment materials,
coordination with existing
employment services such as
welfare-to-work programs,
referrals to local employment
training initiatives, and other
methods.
(IV) Activities to promote
responsible fatherhood that are
conducted through a contract
with a nationally recognized,
nonprofit fatherhood promotion
organization, such as the
development, promotion, and
distribution of a media
campaign to encourage the
appropriate involvement of
parents in the life of any
child and specifically the
issue of responsible
fatherhood, and the development
of a national clearinghouse to
assist States and communities
in efforts to promote and
support marriage and
responsible fatherhood.
(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
year 2012 for expenditure in accordance with
this paragraph--
(i) $75,000,000 for awarding funds
for the purpose of carrying out healthy
marriage promotion activities; and
(ii) $75,000,000 for awarding funds
for the purpose of carrying out
activities promoting responsible
fatherhood.
If the Secretary makes an award under
subparagraph (B)(i) for fiscal year 2012, the
funds for such award shall be taken in equal
portion from the amounts appropriated under
clauses (i) and (ii).
(E) Preference.--In awarding funds under this
paragraph for fiscal year 2011, the Secretary
shall give preference to entities that were
awarded funds under this paragraph for any
prior fiscal year and that have demonstrated
the ability to successfully carry out the
programs funded under this paragraph.
(3) Supplemental grant for population increases in
certain states.--
(A) In general.--Each qualifying State shall,
subject to subparagraph (F), be entitled to
receive from the Secretary--
(i) for fiscal year 1998 a grant in
an amount equal to 2.5 percent of the
total amount required to be paid to the
State under former section 403 (as in
effect during fiscal year 1994) for
fiscal year 1994; and
(ii) for each of fiscal years 1999,
2000, and 2001, a grant in an amount
equal to the sum of--
(I) the amount (if any)
required to be paid to the
State under this paragraph for
the immediately preceding
fiscal year; and
(II) 2.5 percent of the sum
of--
(aa) the total amount
required to be paid to
the State under former
section 403 (as in
effect during fiscal
year 1994) for fiscal
year 1994; and
(bb) the amount (if
any) required to be
paid to the State under
this paragraph for the
fiscal year preceding
the fiscal year for
which the grant is to
be made.
(B) Preservation of grant without increases
for states failing to remain qualifying
states.--Each State that is not a qualifying
State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State
for a prior fiscal year shall, subject to
subparagraph (F), be entitled to receive from
the Secretary for the specified fiscal year, a
grant in an amount equal to the amount required
to be paid to the State under this paragraph
for the most recent fiscal year for which the
State was a qualifying State.
(C) Qualifying state.--
(i) In general.--For purposes of this
paragraph, a State is a qualifying
State for a fiscal year if--
(I) the level of welfare
spending per poor person by the
State for the immediately
preceding fiscal year is less
than the national average level
of State welfare spending per
poor person for such preceding
fiscal year; and
(II) the population growth
rate of the State (as
determined by the Bureau of the
Census) for the most recent
fiscal year for which
information is available
exceeds the average population
growth rate for all States (as
so determined) for such most
recent fiscal year.
(ii) State must qualify in fiscal
year 1998.--Notwithstanding clause (i),
a State shall not be a qualifying State
for any fiscal year after 1998 by
reason of clause (i) if the State is
not a qualifying State for fiscal year
1998 by reason of clause (i).
(iii) Certain states deemed
qualifying states.--For purposes of
this paragraph, a State is deemed to be
a qualifying State for fiscal years
1998, 1999, 2000, and 2001 if--
(I) the level of welfare
spending per poor person by the
State for fiscal year 1994 is
less than 35 percent of the
national average level of State
welfare spending per poor
person for fiscal year 1994; or
(II) the population of the
State increased by more than 10
percent from April 1, 1990 to
July 1, 1994, according to the
population estimates in
publication CB94-204 of the
Bureau of the Census.
(D) Definitions.--As used in this paragraph:
(i) Level of welfare spending per
poor person.--The term ``level of State
welfare spending per poor person''
means, with respect to a State and a
fiscal year--
(I) the sum of--
(aa) the total amount
required to be paid to
the State under former
section 403 (as in
effect during fiscal
year 1994) for fiscal
year 1994; and
(bb) the amount (if
any) paid to the State
under this paragraph
for the immediately
preceding fiscal year;
divided by
(II) the number of
individuals, according to the
1990 decennial census, who were
residents of the State and
whose income was below the
poverty line.
(ii) National average level of state
welfare spending per poor person.--The
term ``national average level of State
welfare spending per poor person''
means, with respect to a fiscal year,
an amount equal to--
(I) the total amount required
to be paid to the States under
former section 403 (as in
effect during fiscal year 1994)
for fiscal year 1994; divided
by
(II) the number of
individuals, according to the
1990 decennial census, who were
residents of any State and
whose income was below the
poverty line.
(iii) State.--The term ``State''
means each of the 50 States of the
United States and the District of
Columbia.
(E) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1998, 1999, 2000, and 2001 such sums as
are necessary for grants under this paragraph,
in a total amount not to exceed $800,000,000.
(F) Grants reduced pro rata if insufficient
appropriations.--If the amount appropriated
pursuant to this paragraph for a fiscal year
(or portion of a fiscal year) is less than the
total amount of payments otherwise required to
be made under this paragraph for the fiscal
year (or portion of the fiscal year), then the
amount otherwise payable to any State for the
fiscal year (or portion of the fiscal year)
under this paragraph shall be reduced by a
percentage equal to the amount so appropriated
divided by such total amount.
(G) Budget scoring.--Notwithstanding section
257(b)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985, the baseline shall
assume that no grant shall be made under this
paragraph after fiscal year 2001.
(H) Reauthorization.--Notwithstanding any
other provision of this paragraph--
(i) any State that was a qualifying
State under this paragraph for fiscal
year 2001 or any prior fiscal year
shall be entitled to receive from the
Secretary for each of fiscal years 2002
and 2003 a grant in an amount equal to
the amount required to be paid to the
State under this paragraph for the most
recent fiscal year in which the State
was a qualifying State;
(ii) subparagraph (G) shall be
applied as if ``fiscal year 2011'' were
substituted for ``fiscal year 2001'';
(iii) out of any money in the
Treasury of the United States not
otherwise appropriated, there are
appropriated for each of fiscal years
2002 and 2003 such sums as are
necessary for grants under this
subparagraph.
(4) Bonus to reward high performance states.--
(A) In general.--The Secretary shall make a
grant pursuant to this paragraph to each State
for each bonus year for which the State is a
high performing State.
(B) Amount of grant.--
(i) In general.--Subject to clause
(ii) of this subparagraph, the
Secretary shall determine the amount of
the grant payable under this paragraph
to a high performing State for a bonus
year, which shall be based on the score
assigned to the State under
subparagraph (D)(i) for the fiscal year
that immediately precedes the bonus
year.
(ii) Limitation.--The amount payable
to a State under this paragraph for a
bonus year shall not exceed 5 percent
of the State family assistance grant.
(C) Formula for measuring state
performance.--Not later than 1 year after the
date of the enactment of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, the Secretary, in
consultation with the National Governors'
Association and the American Public Welfare
Association, shall develop a formula for
measuring State performance in operating the
State program funded under this part so as to
achieve the goals set forth in section 401(a).
(D) Scoring of state performance; setting of
performance thresholds.--For each bonus year,
the Secretary shall--
(i) use the formula developed under
subparagraph (C) to assign a score to
each eligible State for the fiscal year
that immediately precedes the bonus
year; and
(ii) prescribe a performance
threshold in such a manner so as to
ensure that--
(I) the average annual total
amount of grants to be made
under this paragraph for each
bonus year equals $200,000,000;
and
(II) the total amount of
grants to be made under this
paragraph for all bonus years
equals $1,000,000,000.
(E) Definitions.--As used in this paragraph:
(i) Bonus year.--The term ``bonus
year'' means fiscal years 1999, 2000,
2001, 2002, and 2003.
(ii) High performing state.--The term
``high performing State'' means, with
respect to a bonus year, an eligible
State whose score assigned pursuant to
subparagraph (D)(i) for the fiscal year
immediately preceding the bonus year
equals or exceeds the performance
threshold prescribed under subparagraph
(D)(ii) for such preceding fiscal year.
(F) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1999 through 2003 $1,000,000,000 for
grants under this paragraph.
(5) Welfare-to-work grants.--
(A) Formula grants.--
(i) Entitlement.--A State shall be
entitled to receive from the Secretary
of Labor a grant for each fiscal year
specified in subparagraph (H) of this
paragraph for which the State is a
welfare-to-work State, in an amount
that does not exceed the lesser of--
(I) 2 times the total of the
expenditures by the State
(excluding qualified State
expenditures (as defined in
section 409(a)(7)(B)(i)) and
any expenditure described in
subclause (I), (II), or (IV) of
section 409(a)(7)(B)(iv))
during the period permitted
under subparagraph (C)(vii) of
this paragraph for the
expenditure of funds under the
grant for activities described
in subparagraph (C)(i) of this
paragraph; or
(II) the allotment of the
State under clause (iii) of
this subparagraph for the
fiscal year.
(ii) Welfare-to-work state.--A State
shall be considered a welfare-to-work
State for a fiscal year for purposes of
this paragraph if the Secretary of
Labor determines that the State meets
the following requirements:
(I) The State has submitted
to the Secretary of Labor and
the Secretary of Health and
Human Services (in the form of
an addendum to the State plan
submitted under section 402) a
plan which--
(aa) describes how,
consistent with this
subparagraph, the State
will use any funds
provided under this
subparagraph during the
fiscal year;
(bb) specifies the
formula to be used
pursuant to clause (vi)
to distribute funds in
the State, and
describes the process
by which the formula
was developed;
(cc) contains
evidence that the plan
was developed in
consultation and
coordination with
appropriate entitites
in sub-State areas;
(dd) contains
assurances by the
Governor of the State
that the private
industry council (and
any alternate agency
designated by the
Governor under item
(ee)) for a service
delivery area in the
State will coordinate
the expenditure of any
funds provided under
this subparagraph for
the benefit of the
service delivery area
with the expenditure of
the funds provided to
the State under section
403(a)(1);
(ee) if the Governor
of the State desires to
have an agency other
than a private industry
council administer the
funds provided under
this subparagraph for
the benefit of 1 or
more service delivery
areas in the State,
contains an application
to the Secretary of
Labor for a waiver of
clause (vii)(I) with
respect to the area or
areas in order to
permit an alternate
agency designated by
the Governor to so
administer the funds;
and
(ff) describes how
the State will ensure
that a private industry
council to which
information is
disclosed pursuant to
section 403(a)(5)(K) or
454A(f)(5) has
procedures for
safeguarding the
information and for
ensuring that the
information is used
solely for the purpose
described in that
section.
(II) The State has provided
to the Secretary of Labor an
estimate of the amount that the
State intends to expend during
the period permitted under
subparagraph (C)(vii) of this
paragraph for the expenditure
of funds under the grant
(excluding expenditures
described in section
409(a)(7)(B)(iv) (other than
subclause (III) thereof))
pursuant to this paragraph.
(III) The State has agreed to
negotiate in good faith with
the Secretary of Health and
Human Services with respect to
the substance and funding of
any evaluation under section
413(j), and to cooperate with
the conduct of any such
evaluation.
(IV) The State is an eligible
State for the fiscal year.
(V) The State certifies that
qualified State expenditures
(within the meaning of section
409(a)(7)) for the fiscal year
will be not less than the
applicable percentage of
historic State expenditures
(within the meaning of section
409(a)(7)) with respect to the
fiscal year.
(iii) Allotments to welfare-to-work
states.--
(I) In general.--Subject to
this clause, the allotment of a
welfare-to-work State for a
fiscal year shall be the
available amount for the fiscal
year, multiplied by the State
percentage for the fiscal year.
(II) Minimum allotment.--The
allotment of a welfare-to-work
State (other than Guam, the
Virgin Islands, or American
Samoa) for a fiscal year shall
not be less than 0.25 percent
of the available amount for the
fiscal year.
(III) Pro rata reduction.--
Subject to subclause (II), the
Secretary of Labor shall make
pro rata reductions in the
allotments to States under this
clause for a fiscal year as
necessary to ensure that the
total of the allotments does
not exceed the available amount
for the fiscal year.
(iv) Available amount.--As used in
this subparagraph, the term ``available
amount'' means, for a fiscal year, the
sum of--
(I) 75 percent of the sum
of--
(aa) the amount
specified in
subparagraph (H) for
the fiscal year, minus
the total of the
amounts reserved
pursuant to
subparagraphs (E), (F),
and (G) for the fiscal
year; and
(bb) any amount
reserved pursuant to
subparagraph (E) for
the immediately
preceding fiscal year
that has not been
obligated; and
(II) any available amount for
the immediately preceding
fiscal year that has not been
obligated by a State, other
than funds reserved by the
State for distribution under
clause (vi)(III) and funds
distributed pursuant to clause
(vi)(I) in any State in which
the service delivery area is
the State.
(v) State percentage.--As used in
clause (iii), the term ``State
percentage'' means, with respect to a
fiscal year, \1/2\ of the sum of--
(I) the percentage
represented by the number of
individuals in the State whose
income is less than the poverty
line divided by the number of
such individuals in the United
States; and
(II) the percentage
represented by the number of
adults who are recipients of
assistance under the State
program funded under this part
divided by the number of adults
in the United States who are
recipients of assistance under
any State program funded under
this part.
(vi) Procedure for distribution of
funds within states.--
(I) Allocation formula.--A
State to which a grant is made
under this subparagraph shall
devise a formula for allocating
not less than 85 percent of the
amount of the grant among the
service delivery areas in the
State, which--
(aa) determines the
amount to be allocated
for the benefit of a
service delivery area
in proportion to the
number (if any) by
which the population of
the area with an income
that is less than the
poverty line exceeds
7.5 percent of the
total population of the
area, relative to such
number for all such
areas in the State with
such an excess, and
accords a weight of not
less than 50 percent to
this factor;
(bb) may determine
the amount to be
allocated for the
benefit of such an area
in proportion to the
number of adults
residing in the area
who have been
recipients of
assistance under the
State program funded
under this part
(whether in effect
before or after the
amendments made by
section 103(a) of the
Personal Responsibility
and Work Opportunity
Reconciliation Act of
1996 first applied to
the State) for at least
30 months (whether or
not consecutive)
relative to the number
of such adults residing
in the State; and
(cc) may determine
the amount to be
allocated for the
benefit of such an area
in proportion to the
number of unemployed
individuals residing in
the area relative to
the number of such
individuals residing in
the State.
(II) Distribution of funds.--
(aa) In general.--If
the amount allocated by
the formula to a
service delivery area
is at least $100,000,
the State shall
distribute the amount
to the entity
administering the grant
in the area.
(bb) Special rule.--
If the amount allocated
by the formula to a
service delivery area
is less than $100,000,
the sum shall be
available for
distribution in the
State under subclause
(III) during the fiscal
year.
(III) Projects to help long-
term recipients of assistance
enter unsubsidized jobs.--The
Governor of a State to which a
grant is made under this
subparagraph may distribute not
more than 15 percent of the
grant funds (plus any amount
required to be distributed
under this subclause by reason
of subclause (II)(bb)) to
projects that appear likely to
help long-term recipients of
assistance under the State
program funded under this part
(whether in effect before or
after the amendments made by
section 103(a) of the Personal
Responsibility and Work
Opportunity Reconciliation Act
of 1996 first applied to the
State) enter unsubsidized
employment.
(vii) Administration.--
(I) Private industry
councils.--The private industry
council for a service delivery
area in a State shall have sole
authority, in coordination with
the chief elected official (as
defined in section 3 of the
Workforce Innovation and
Opportunity Act) of the area,
to expend the amounts
distributed under clause
(vi)(II)(aa) for the benefit of
the service delivery area, in
accordance with the assurances
described in clause (ii)(I)(dd)
provided by the Governor of the
State.
(II) Enforcement of
coordination of expenditures
with other expenditures under
this part.--Notwithstanding
subclause (I) of this clause,
on a determination by the
Governor of a State that a
private industry council (or an
alternate agency described in
clause (ii)(I)(dd)) has used
funds provided under this
subparagraph in a manner
inconsistent with the
assurances described in clause
(ii)(I)(dd)--
(aa) the private
industry council (or
such alternate agency)
shall remit the funds
to the Governor; and
(bb) the Governor
shall apply to the
Secretary of Labor for
a waiver of subclause
(I) of this clause with
respect to the service
delivery area or areas
involved in order to
permit an alternate
agency designated by
the Governor to
administer the funds in
accordance with the
assurances.
(III) Authority to permit use
of alternate administering
agency.--The Secretary of Labor
shall approve an application
submitted under clause
(ii)(I)(ee) or subclause
(II)(bb) of this clause to
waive subclause (I) of this
clause with respect to 1 or
more service delivery areas if
the Secretary determines that
the alternate agency designated
in the application would
improve the effectiveness or
efficiency of the
administration of amounts
distributed under clause
(vi)(II)(aa) for the benefit of
the area or areas.
(viii) Data to be used in determining
the number of adult tanf recipients.--
For purposes of this subparagraph, the
number of adult recipients of
assistance under a State program funded
under this part for a fiscal year shall
be determined using data for the most
recent 12-month period for which such
data is available before the beginning
of the fiscal year.
(ix) Reversion of unallotted formula
funds.--If at the end of any fiscal
year any funds available under this
subparagraph have not been allotted due
to a determination by the Secretary
that any State has not met the
requirements of clause (ii), such funds
shall be transferred to the General
Fund of the Treasury of the United
States.
(B) Competitive grants.--
(i) In general.--The Secretary of
Labor shall award grants in accordance
with this subparagraph, in fiscal years
1998 and 1999, for projects proposed by
eligible applicants, based on the
following:
(I) The effectiveness of the
proposal in--
(aa) expanding the
base of knowledge about
programs aimed at
moving recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment.
(bb) moving
recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment; and
(cc) moving
recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment, even in
labor markets that have
a shortage of low-skill
jobs.
(II) At the discretion of the
Secretary of Labor, any of the
following:
(aa) The history of
success of the
applicant in moving
individuals with
multiple barriers into
work.
(bb) Evidence of the
applicant's ability to
leverage private,
State, and local
resources.
(cc) Use by the
applicant of State and
local resources beyond
those required by
subparagraph (A).
(dd) Plans of the
applicant to coordinate
with other
organizations at the
local and State level.
(ee) Use by the
applicant of current or
former recipients of
assistance under a
State program funded
under this part as
mentors, case managers,
or service providers.
(ii) Eligible applicants.--As used in
clause (i), the term ``eligible
applicant'' means a private industry
council for a service delivery area in
a State, a political subdivision of a
State, or a private entity applying in
conjunction with the private industry
council for such a service delivery
area or with such a political
subdivision, that submits a proposal
developed in consultation with the
Governor of the State.
(iii) Determination of grant
amount.--In determining the amount of a
grant to be made under this
subparagraph for a project proposed by
an applicant, the Secretary of Labor
shall provide the applicant with an
amount sufficient to ensure that the
project has a reasonable opportunity to
be successful, taking into account the
number of long-term recipients of
assistance under a State program funded
under this part, the level of
unemployment, the job opportunities and
job growth, the poverty rate, and such
other factors as the Secretary of Labor
deems appropriate, in the area to be
served by the project.
(iv) Consideration of needs of rural
areas and cities with large
concentrations of poverty.--In making
grants under this subparagraph, the
Secretary of Labor shall consider the
needs of rural areas and cities with
large concentrations of residents with
an income that is less than the poverty
line.
(v) Funding.--For grants under this
subparagraph for each fiscal year
specified in subparagraph (H), there
shall be available to the Secretary of
Labor an amount equal to the sum of--
(I) 25 percent of the sum
of--
(aa) the amount
specified in
subparagraph (H) for
the fiscal year, minus
the total of the
amounts reserved
pursuant to
subparagraphs (E), (F),
and (G) for the fiscal
year; and
(bb) any amount
reserved pursuant to
subparagraph (E) for
the immediately
preceding fiscal year
that has not been
obligated; and
(II) any amount available for
grants under this subparagraph
for the immediately preceding
fiscal year that has not been
obligated.
(C) Limitations on use of funds.--
(i) Allowable activities.--An entity
to which funds are provided under this
paragraph shall use the funds to move
individuals into and keep individuals
in lasting unsubsidized employment by
means of any of the following:
(I) The conduct and
administration of community
service or work experience
programs.
(II) Job creation through
public or private sector
employment wage subsidies.
(III) On-the-job training.
(IV) Contracts with public or
private providers of readiness,
placement, and post-employment
services, or if the entity is
not a private industry council
or workforce investment board,
the direct provision of such
services.
(V) Job vouchers for
placement, readiness, and
postemployment services.
(VI) Job retention or support
services if such services are
not otherwise available.
(VII) Not more than 6 months
of vocational educational or
job training.
Contracts or vouchers for job placement
services supported by such funds must
require that at least \1/2\ of the
payment occur after an eligible
individual placed into the workforce
has been in the workforce for 6 months.
(ii) General eligibility.--An entity
that operates a project with funds
provided under this paragraph may
expend funds provided to the project
for the benefit of recipients of
assistance under the program funded
under this part of the State in which
the entity is located who--
(I) has received assistance
under the State program funded
under this part (whether in
effect before or after the
amendments made by section 103
of the Personal Responsibility
and Work Opportunity
Reconciliation Act of 1996
first apply to the State) for
at least 30 months (whether or
not consecutive); or
(II) within 12 months, will
become ineligible for
assistance under the State
program funded under this part
by reason of a durational limit
on such assistance, without
regard to any exemption
provided pursuant to section
408(a)(7)(C) that may apply to
the individual.
(iii) Noncustodial parents.--An
entity that operates a project with
funds provided under this paragraph may
use the funds to provide services in a
form described in clause (i) to
noncustodial parents with respect to
whom the requirements of the following
subclauses are met:
(I) The noncustodial parent
is unemployed, underemployed,
or having difficulty in paying
child support obligations.
(II) At least 1 of the
following applies to a minor
child of the noncustodial
parent (with preference in the
determination of the
noncustodial parents to be
provided services under this
paragraph to be provided by the
entity to those noncustodial
parents with minor children who
meet, or who have custodial
parents who meet, the
requirements of item (aa)):
(aa) The minor child
or the custodial parent
of the minor child
meets the requirements
of subclause (I) or
(II) of clause (ii).
(bb) The minor child
is eligible for, or is
receiving, benefits
under the program
funded under this part.
(cc) The minor child
received benefits under
the program funded
under this part in the
12-month period
preceding the date of
the determination but
no longer receives such
benefits.
(dd) The minor child
is eligible for, or is
receiving, assistance
under the Food and
Nutrition Act of 2008,
benefits under the
supplemental security
income program under
title XVI of this Act,
medical assistance
under title XIX of this
Act, or child health
assistance under title
XXI of this Act.
(III) In the case of a
noncustodial parent who becomes
enrolled in the project on or
after the date of the enactment
of this clause, the
noncustodial parent is in
compliance with the terms of an
oral or written personal
responsibility contract entered
into among the noncustodial
parent, the entity, and (unless
the entity demonstrates to the
Secretary that the entity is
not capable of coordinating
with such agency) the agency
responsible for administering
the State plan under part D,
which was developed taking into
account the employment and
child support status of the
noncustodial parent, which was
entered into not later than 30
(or, at the option of the
entity, not later than 90) days
after the noncustodial parent
was enrolled in the project,
and which, at a minimum,
includes the following:
(aa) A commitment by
the noncustodial parent
to cooperate, at the
earliest opportunity,
in the establishment of
the paternity of the
minor child, through
voluntary
acknowledgement or
other procedures, and
in the establishment of
a child support order.
(bb) A commitment by
the noncustodial parent
to cooperate in the
payment of child
support for the minor
child, which may
include a modification
of an existing support
order to take into
account the ability of
the noncustodial parent
to pay such support and
the participation of
such parent in the
project.
(cc) A commitment by
the noncustodial parent
to participate in
employment or related
activities that will
enable the noncustodial
parent to make regular
child support payments,
and if the noncustodial
parent has not attained
20 years of age, such
related activities may
include completion of
high school, a general
equivalency degree, or
other education
directly related to
employment.
(dd) A description of
the services to be
provided under this
paragraph, and a
commitment by the
noncustodial parent to
participate in such
services, that are
designed to assist the
noncustodial parent
obtain and retain
employment, increase
earnings, and enhance
the financial and
emotional contributions
to the well-being of
the minor child.
In order to protect custodial
parents and children who may be
at risk of domestic violence,
the preceding provisions of
this subclause shall not be
construed to affect any other
provision of law requiring a
custodial parent to cooperate
in establishing the paternity
of a child or establishing or
enforcing a support order with
respect to a child, or
entitling a custodial parent to
refuse, for good cause, to
provide such cooperation as a
condition of assistance or
benefit under any program,
shall not be construed to
require such cooperation by the
custodial parent as a condition
of participation of either
parent in the program
authorized under this
paragraph, and shall not be
construed to require a
custodial parent to cooperate
with or participate in any
activity under this clause. The
entity operating a project
under this clause with funds
provided under this paragraph
shall consult with domestic
violence prevention and
intervention organizations in
the development of the project.
(iv) Targeting of hard to employ
individuals with characteristics
associated with long-term welfare
dependence.--An entity that operates a
project with funds provided under this
paragraph may expend not more than 30
percent of all funds provided to the
project for programs that provide
assistance in a form described in
clause (i)--
(I) to recipients of
assistance under the program
funded under this part of the
State in which the entity is
located who have
characteristics associated with
long-term welfare dependence
(such as school dropout, teen
pregnancy, or poor work
history), including, at the
option of the State, by
providing assistance in such
form as a condition of
receiving assistance under the
State program funded under this
part;
(II) to children--
(aa) who have
attained 18 years of
age but not 25 years of
age; and
(bb) who, before
attaining 18 years of
age, were recipients of
foster care maintenance
payments (as defined in
section 475(4)) under
part E or were in
foster care under the
responsibility of a
State;
(III) to recipients of
assistance under the State
program funded under this part,
determined to have significant
barriers to self-sufficiency,
pursuant to criteria
established by the local
private industry council; or
(IV) to custodial parents
with incomes below 100 percent
of the poverty line (as defined
in section 673(2) of the
Omnibus Budget Reconciliation
Act of 1981, including any
revision required by such
section, applicable to a family
of the size involved).
To the extent that the entity does not
expend such funds in accordance with
the preceding sentence, the entity
shall expend such funds in accordance
with clauses (ii) and (iii) and, as
appropriate, clause (v).
(v) Authority to provide work-related
services to individuals who have
reached the 5 year limit.--An entity
that operates a project with funds
provided under this paragraph may use
the funds to provide assistance in a
form described in clause (i) of this
subparagraph to, or for the benefit of,
individuals who (but for section
408(a)(7)) would be eligible for
assistance under the program funded
under this part of the State in which
the entity is located.
(vi) Relationship to other provisions
of this part.--
(I) Rules governing use of
funds.--The rules of section
404, other than subsections
(b), (f), and (h) of section
404, shall not apply to a grant
made under this paragraph.
(II) Rules governing payments
to states.--The Secretary of
Labor shall carry out the
functions otherwise assigned by
section 405 to the Secretary of
Health and Human Services with
respect to the grants payable
under this paragraph.
(III) Administration.--
Section 416 shall not apply to
the programs under this
paragraph.
(vii) Prohibition against use of
grant funds for any other fund matching
requirement.--An entity to which funds
are provided under this paragraph shall
not use any part of the funds, nor any
part of State expenditures made to
match the funds, to fulfill any
obligation of any State, political
subdivision, or private industry
council to contribute funds under
section 403(b) or 418 or any other
provision of this Act or other Federal
law.
(viii) Deadline for expenditure.--An
entity to which funds are provided
under this paragraph shall remit to the
Secretary of Labor any part of the
funds that are not expended within 5
years after the date the funds are so
provided.
(ix) Regulations.--Within 90 days
after the date of the enactment of this
paragraph, the Secretary of Labor,
after consultation with the Secretary
of Health and Human Services and the
Secretary of Housing and Urban
Development, shall prescribe such
regulations as may be necessary to
implement this paragraph.
(x) Reporting requirements.--The
Secretary of Labor, in consultation
with the Secretary of Health and Human
Services, States, and organizations
that represent State or local
governments, shall establish
requirements for the collection and
maintenance of financial and
participant information and the
reporting of such information by
entities carrying out activities under
this paragraph.
(D) Definitions.--
(i) Individuals with income less than
the poverty line.--For purposes of this
paragraph, the number of individuals
with an income that is less than the
poverty line shall be determined for a
fiscal year--
(I) based on the methodology
used by the Bureau of the
Census to produce and publish
intercensal poverty data for
States and counties (or, in the
case of Puerto Rico, the Virgin
Islands, Guam, and American
Samoa, other poverty data
selected by the Secretary of
Labor); and
(II) using data for the most
recent year for which such data
is available before the
beginning of the fiscal year.
(ii) Private industry council.--As
used in this paragraph, the term
``private industry council'' means,
with respect to a service delivery
area, the private industry council or
local workforce development board
established for the local workforce
development area pursuant to title I of
the Workforce Innovation and
Opportunity Act, as appropriate.
(iii) Service delivery area.--As used
in this paragraph, the term ``service
delivery area'' shall have the meaning
given such term for purposes of the Job
Training Partnership Act or.
(E) Funding for indian tribes.--1 percent of
the amount specified in subparagraph (H) for
fiscal year 1998 and $15,000,000 of the amount
so specified for fiscal year 1999 shall be
reserved for grants to Indian tribes under
section 412(a)(3).
(F) Funding for evaluations of welfare-to-
work programs.--0.6 percent of the amount
specified in subparagraph (H) for fiscal year
1998 and $9,000,000 of the amount so specified
for fiscal year 1999 shall be reserved for use
by the Secretary to carry out section 413(j).
(G) Funding for evaluation of abstinence
education programs.--
(i) In general.--0.2 percent of the
amount specified in subparagraph (H)
for fiscal year 1998 and $3,000,000 of
the amount so specified for fiscal year
1999 shall be reserved for use by the
Secretary to evaluate programs under
section 510, directly or through
grants, contracts, or interagency
agreements.
(ii) Authority to use funds for
evaluations of welfare-to-work
programs.--Any such amount not required
for such evaluations shall be available
for use by the Secretary to carry out
section 413(j).
(iii) Deadline for outlays.--Outlays
from funds used pursuant to clause (i)
for evaluation of programs under
section 510 shall not be made after
fiscal year 2005.
(iv) Interim report.--Not later than
January 1, 2002, the Secretary shall
submit to the Congress an interim
report on the evaluations referred to
in clause (i).
(H) Appropriations.--
(i) In general.--Out of any money in
the Treasury of the United States not
otherwise appropriated, there are
appropriated for grants under this
paragraph--
(I) $1,500,000,000 for fiscal
year 1998; and
(II) $1,400,000,000 for
fiscal year 1999.
(ii) Availability.--The amounts made
available pursuant to clause (i) shall
remain available for such period as is
necessary to make the grants provided
for in this paragraph.
(I) Worker protections.--
(i) Nondisplacement in work
activities.--
(I) General prohibition.--
Subject to this clause, an
adult in a family receiving
assistance attributable to
funds provided under this
paragraph may fill a vacant
employment position in order to
engage in a work activity.
(II) Prohibition against
violation of contracts.--A work
activity engaged in under a
program operated with funds
provided under this paragraph
shall not violate an existing
contract for services or a
collective bargaining
agreement, and such a work
activity that would violate a
collective bargaining agreement
shall not be undertaken without
the written concurrence of the
labor organization and employer
concerned.
(III) Other prohibitions.--An
adult participant in a work
activity engaged in under a
program operated with funds
provided under this paragraph
shall not be employed or
assigned--
(aa) when any other
individual is on layoff
from the same or any
substantially
equivalent job;
(bb) if the employer
has terminated the
employment of any
regular employee or
otherwise caused an
involuntary reduction
in its workforce with
the intention of
filling the vacancy so
created with the
participant; or
(cc) if the employer
has caused an
involuntary reduction
to less than full time
in hours of any
employee in the same or
a substantially
equivalent job.
(ii) Health and safety.--Health and
safety standards established under
Federal and State law otherwise
applicable to working conditions of
employees shall be equally applicable
to working conditions of other
participants engaged in a work activity
under a program operated with funds
provided under this paragraph.
(iii) Nondiscrimination.--In addition
to the protections provided under the
provisions of law specified in section
408(c), an individual may not be
discriminated against by reason of
gender with respect to participation in
work activities engaged in under a
program operated with funds provided
under this paragraph.
(iv) Grievance procedure.--
(I) In general.--Each State
to which a grant is made under
this paragraph shall establish
and maintain a procedure for
grievances or complaints from
employees alleging violations
of clause (i) and participants
in work activities alleging
violations of clause (i), (ii),
or (iii).
(II) Hearing.--The procedure
shall include an opportunity
for a hearing.
(III) Remedies.--The
procedure shall include
remedies for violation of
clause (i), (ii), or (iii),
which may continue during the
pendency of the procedure, and
which may include--
(aa) suspension or
termination of payments
from funds provided
under this paragraph;
(bb) prohibition of
placement of a
participant with an
employer that has
violated clause (i),
(ii), or (iii);
(cc) where
applicable,
reinstatement of an
employee, payment of
lost wages and
benefits, and
reestablishment of
other relevant terms,
conditions and
privileges of
employment; and
(dd) where
appropriate, other
equitable relief.
(IV) Appeals.--
(aa) Filing.--Not
later than 30 days
after a grievant or
complainant receives an
adverse decision under
the procedure
established pursuant to
subclause (I), the
grievant or complainant
may appeal the decision
to a State agency
designated by the State
which shall be
independent of the
State or local agency
that is administering
the programs operated
with funds provided
under this paragraph
and the State agency
administering, or
supervising the
administration of, the
State program funded
under this part.
(bb) Final
determination.--Not
later than 120 days
after the State agency
designated under item
(aa) receives a
grievance or complaint
made under the
procedure established
by a State pursuant to
subclause (I), the
State agency shall make
a final determination
on the appeal.
(v) Rule of interpretation.--This
subparagraph shall not be construed to
affect the authority of a State to
provide or require workers'
compensation.
(vi) Nonpreemption of state law.--The
provisions of this subparagraph shall
not be construed to preempt any
provision of State law that affords
greater protections to employees or to
other participants engaged in work
activities under a program funded under
this part than is afforded by such
provisions of this subparagraph.
(J) Information disclosure.--If a State to
which a grant is made under section 403
establishes safeguards against the use or
disclosure of information about applicants or
recipients of assistance under the State
program funded under this part, the safeguards
shall not prevent the State agency
administering the program from furnishing to a
private industry council the names, addresses,
telephone numbers, and identifying case number
information in the State program funded under
this part, of noncustodial parents residing in
the service delivery area of the private
industry council, for the purpose of
identifying and contacting noncustodial parents
regarding participation in the program under
this paragraph.
(b) Contingency Fund.--
(1) Establishment.--There is hereby established in
the Treasury of the United States a fund which shall be
known as the ``Contingency Fund for State Welfare
Programs'' (in this section referred to as the
``Fund'').
(2) Deposits into fund.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal years
2013 and 2014 such sums as are necessary for payment to
the Fund in a total amount not to exceed $612,000,000
for each fiscal year, of which $2,000,000 shall be
reserved for carrying out the activities of the
commission established by the Protect our Kids Act of
2012 to reduce fatalities resulting from child abuse
and neglect.
(3) Grants.--
(A) Provisional payments.--If an eligible
State submits to the Secretary a request for
funds under this paragraph during an eligible
month, the Secretary shall, subject to this
paragraph, pay to the State, from amounts
appropriated pursuant to paragraph (2), an
amount equal to the amount of funds so
requested.
(B) Payment priority.--The Secretary shall
make payments under subparagraph (A) in the
order in which the Secretary receives requests
for such payments.
(C) Limitations.--
(i) Monthly payment to a state.--The
total amount paid to a single State
under subparagraph (A) during a month
shall not exceed \1/12\ of 20 percent
of the State family assistance grant.
(ii) Payments to all states.--The
total amount paid to all States under
subparagraph (A) during fiscal year
2011 and 2012, respectively, shall not
exceed the total amount appropriated
pursuant to paragraph (2) for each such
fiscal year.
(4) Eligible month.--As used in paragraph (3)(A), the
term ``eligible month'' means, with respect to a State,
a month in the 2-month period that begins with any
month for which the State is a needy State.
(5) Needy state.--For purposes of paragraph (4), a
State is a needy State for a month if--
(A) the average rate of--
(i) total unemployment in such State
(seasonally adjusted) for the period
consisting of the most recent 3 months
for which data for all States are
published equals or exceeds 6.5
percent; and
(ii) total unemployment in such State
(seasonally adjusted) for the 3-month
period equals or exceeds 110 percent of
such average rate for either (or both)
of the corresponding 3-month periods
ending in the 2 preceding calendar
years; or
(B) as determined by the Secretary of
Agriculture (in the discretion of the Secretary
of Agriculture), the monthly average number of
individuals (as of the last day of each month)
participating in the supplemental nutrition
assistance program in the State in the then
most recently concluded 3-month period for
which data are available exceeds by not less
than 10 percent the lesser of--
(i) the monthly average number of
individuals (as of the last day of each
month) in the State that would have
participated in the supplemental
nutrition assistance program in the
corresponding 3-month period in fiscal
year 1994 if the amendments made by
titles IV and VIII of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 had been in
effect throughout fiscal year 1994; or
(ii) the monthly average number of
individuals (as of the last day of each
month) in the State that would have
participated in the supplemental
nutrition assistance program in the
corresponding 3-month period in fiscal
year 1995 if the amendments made by
titles IV and VIII of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 had been in
effect throughout fiscal year 1995.
(6) Annual reconciliation.--
(A) In general.--Notwithstanding paragraph
(3), if the Secretary makes a payment to a
State under this subsection in a fiscal year,
then the State shall remit to the Secretary,
within 1 year after the end of the first
subsequent period of 3 consecutive months for
which the State is not a needy State, an amount
equal to the amount (if any) by which--
(i) the total amount paid to the
State under paragraph (3) of this
subsection in the fiscal year; exceeds
(ii) the product of--
(I) the Federal medical
assistance percentage for the
State (as defined in section
1905(b), as such section was in
effect on September 30, 1995);
(II) the State's reimbursable
expenditures for the fiscal
year; and
(III) \1/12\ times the number
of months during the fiscal
year for which the Secretary
made a payment to the State
under such paragraph (3).
(B) Definitions.--As used in subparagraph
(A):
(i) Reimbursable expenditures.--The
term ``reimbursable expenditures''
means, with respect to a State and a
fiscal year, the amount (if any) by
which--
(I) countable State
expenditures for the fiscal
year; exceeds
(II) historic State
expenditures (as defined in
section 409(a)(7)(B)(iii)),
excluding any amount expended
by the State for child care
under subsection (g) or (i) of
section 402 (as in effect
during fiscal year 1994) for
fiscal year 1994.
(ii) Countable state expenditures.--
The term ``countable expenditures''
means, with respect to a State and a
fiscal year--
(I) the qualified State
expenditures (as defined in
section 409(a)(7)(B)(i) (other
than the expenditures described
in subclause (I)(bb) of such
section)) under the State
program funded under this part
for the fiscal year; plus
(II) any amount paid to the
State under paragraph (3)
during the fiscal year that is
expended by the State under the
State program funded under this
part.
(C) Adjustment of state remittances.--
(i) In general.--The amount otherwise
required by subparagraph (A) to be
remitted by a State for a fiscal year
shall be increased by the lesser of--
(I) the total adjustment for
the fiscal year, multiplied by
the adjustment percentage for
the State for the fiscal year;
or
(II) the unadjusted net
payment to the State for the
fiscal year.
(ii) Total adjustment.--As used in
clause (i), the term ``total
adjustment'' means--
(I) in the case of fiscal
year 1998, $2,000,000;
(II) in the case of fiscal
year 1999, $9,000,000;
(III) in the case of fiscal
year 2000, $16,000,000; and
(IV) in the case of fiscal
year 2001, $13,000,000.
(iii) Adjustment percentage.--As used
in clause (i), the term ``adjustment
percentage'' means, with respect to a
State and a fiscal year--
(I) the unadjusted net
payment to the State for the
fiscal year; divided by
(II) the sum of the
unadjusted net payments to all
States for the fiscal year.
(iv) Unadjusted net payment.--As used
in this subparagraph, the term,
``unadjusted net payment'' means with
respect to a State and a fiscal year--
(I) the total amount paid to
the State under paragraph (3)
in the fiscal year; minus
(II) the amount that, in the
absence of this subparagraph,
would be required by
subparagraph (A) or by section
409(a)(10) to be remitted by
the State in respect of the
payment.
(7) State defined.--As used in this subsection, the
term ``State'' means each of the 50 States and the
District of Columbia.
(8) Annual reports.--The Secretary shall annually
report to the Congress on the status of the Fund.
(c) Subsidized Employment Demonstration Projects.--
(1) In general.--The Secretary shall make grants to
States to conduct demonstration projects designed to
implement and evaluate strategies that provide wage
subsidies to enable low-income individuals to enter
into and retain employment.
(2) Application requirements.--The Secretary shall
require each State that applies for a grant under this
subsection to do the following:
(A) Describe how wage subsidies will be
provided (such as whether paid directly to the
employer or the individual), the duration of
the subsidies, the amount of the subsidies, the
structure of the subsidies, and how employers
will be recruited to participate in the
subsidized employment program.
(B) Describe how the State expects those
participating in subsidized employment to be
able to retain employment after the subsidy
ends.
(C) Describe how the State will coordinate
subsidized employment funded under this
subsection with other efforts to help low-
income individuals enter work as conducted by
the State.
(3) Use of funds.--
(A) In general.--A State to which a grant is
made under this subsection may use the grant to
subsidize the wages of an eligible recipient
for a period not exceeding 12 months, and only
to the extent that the total of the funds paid
under this project and any other Federal funds
so used with respect to the recipient does not
exceed 50 percent of the amount of the wages
received by the recipient during the period.
(B) Eligible recipient.--For purposes of
subparagraph (A), an eligible recipient is--
(i)(I) a recipient of assistance
under the State program funded under
this part or any other State program
funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)); or
(II) a noncustodial parent of a minor
child who is receiving assistance
referred to in subclause (I);
(ii) who, at the time the subsidy
begins, is unemployed; and
(iii) whose income, at that time, is
less than 200 percent of the poverty
line (as defined by the Office of
Management and Budget, and revised
annually in accordance with section
673(2) of the Omnibus Budget
Reconciliation Act of 1981 (42 U.S.C.
9902(2))).
(4) Limitations.--
(A) Nondisplacement.--A State to which a
grant is made under this subsection shall
ensure that no participant in a subsidized job
program funded in whole or in part under this
subsection is employed or assigned to a job
under the program--
(i) when any other individual is on
layoff from the same or any
substantially equivalent job; or
(ii) if the employer has terminated
the employment of any regular employee
or otherwise caused an involuntary
reduction of its workforce in order to
fill the vacancy so created with an
adult described in paragraph (1).
(B) Grievance procedure.--A State with a
program funded under this subsection shall
establish and maintain a grievance procedure
for resolving complaints of alleged violations
of subparagraph (A).
(C) No preemption.--Nothing in this paragraph
shall preempt or supersede any provision of
State or local law that provides greater
protection for employees from displacement.
(5) Reports.--As a condition of receiving funds under
this subsection for a fiscal year, a State shall submit
to the Secretary, within 6 months after the end of the
fiscal year, a report that--
(A) specifies, for each month of the fiscal
year, the number of individuals whose
employment is subsidized with these funds;
(B) describes the structure of the State
activities to use the funds to subsidize
employment, including the amount and duration
of the subsidies provided;
(C) specifies the percentage of eligible
recipients who received a subsidy who are in
unsubsidized employment during the 2nd quarter
after the subsidy ended;
(D) specifies the percentage of eligible
recipients who received a subsidy who are in
unsubsidized employment during the 4th quarter
after the subsidy ended; and
(E) specifies the median earnings of eligible
recipients who received a subsidy who are in
unsubsidized employment during the 2nd quarter
after the subsidy ended.
(6) Evaluation.--The Secretary, in consultation with
each State conducting a demonstration project, shall
conduct a high-quality evaluation of the demonstration
project, and may reserve funds made available under
this subsection to conduct the evaluation in accordance
with the following:
(A) Evaluator qualifications.--The Secretary
may not enter into a contract with an evaluator
unless the evaluator has demonstrated
experience in conducting rigorous evaluations
of program effectiveness including, where
available and appropriate, well-implemented
randomized controlled trials.
(B) Methodologies to be used.--The evaluation
of a demonstration project shall use
experimental designs using random assignment or
other reliable, evidence-based research
methodologies that allow for the strongest
possible causal inferences when random
assignment is not feasible.
(C) Public disclosure.--The Secretary shall
publish the results of the evaluation on the
website of the Department of Health and Human
Services in a location easily accessible by the
public.
(7) Recommendations to congress.--The Secretary shall
submit recommendations to the Congress on how to
increase the employment, retention, and advancement of
individuals currently or formerly receiving assistance
under a State program funded under this part or any
other State program funded with qualified State
expenditures (as defined in section 409(a)(7)(B)(i)).
(8) Funding.--Of the amounts made available to carry
out subsection (b) for fiscal year 2017, the Secretary
shall reserve $100,000,000 to carry out this
subsection.
(9) Use of certain funds for career pathways
programs.--The Secretary shall use 15 percent of the
amounts reserved to carry out this subsection, to fund
programs that offer career pathway (as defined in
section 3(7) of the Workforce Innovation and
Opportunity Act) services.
(10) Availability of funds.--Funds provided to a
State under this subsection in a fiscal year shall be
expended by the State in the fiscal year or in the
succeeding fiscal year.
* * * * * * *
VIII. ADDITIONAL VIEWS
This legislation represents a missed opportunity to
seriously address the ongoing challenge of poverty in America.
Over the past 50 years, Congress has enacted laws that
lifted tens of millions of Americans out of poverty, making our
anti-poverty programs ten times more effective than they were
when the War on Poverty began.
But nearly 47 million Americans are still living in
poverty, including one in five children. These families, and
the millions of families at risk of falling into poverty, face
impossible choices every day: transportation to work, child
care, school supplies, food for dinner, and a place to live.
They worry about what they will do if they or their children
get sick and they have no paid leave at work, or how they will
get to work if the car breaks down. And they have nothing left
at the end of the month to save for college or retirement.
A serious attempt to fight poverty would include action on
the basic supports needed to support work and sustain
employment--paid leave, access to quality child care, equal pay
for women and a decent minimum wage, and an Earned Income Tax
Credit that reaches all workers who need it.
A serious attempt to fight poverty would include action on
affordable housing, access to early childhood education, and an
effort to make college more affordable to help struggling
families raise their children and help them toward a better
life.
A serious attempt to fight poverty would build on
successful programs like the Supplemental Nutrition Assistance
Program (SNAP), which lifts nearly 10 million Americans out of
poverty, and the Social Services Block Grant (SSBG), which
provides critical help to nearly 30 million Americans. And it
would build on the Affordable Health Care, which has given
families long-awaited peace of mind about high medical bills.
The millions of families that are struggling deserve more
than this legislation.
Sander M. Levin,
Ranking Member.
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