[House Report 114-645]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-645
======================================================================
REDUCING POVERTY THROUGH EMPLOYMENT 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. 2966]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 2966) to amend the purposes of TANF to include
reducing poverty by increasing employment entry, retention, and
advancement, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
CONTENTS
I. SUMMARY AND BACKGROUND...........................................2
A. Purpose and Summary................................. 2
B. Background and Need for Legislation................. 2
C. Legislative History................................. 3
II. EXPLANATION OF THE BILL..........................................4
Section 1: Short Title................................. 4
Section 2: Purposes of the TANF Program to Include
Reducing Poverty Through Work...................... 4
Section 3: Effective Date.............................. 5
III. VOTES OF THE COMMITTEE...........................................5
IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES........................5
V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE........5
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......6
A. Committee Oversight Findings and Recommendations.... 6
B. Statement of General Performance Goals and
Objectives......................................... 6
C. Applicability of House Rule XXI 5(b)................ 7
D. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 7
E. Duplication of Federal Programs..................... 7
F. Disclosure of Directed Rule Makings................. 7
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............7
A. Text of Existing Law Amended or Repealed by the
Bill, as Reported.................................. 7
B. Changes in Existing Law Proposed by the Bill, as
Reported........................................... 8
VIII.ADDITIONAL VIEWS................................................10
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 ``Reducing Poverty through Employment
Act''.
SEC. 2. PURPOSES OF THE TANF PROGRAM TO INCLUDE REDUCING POVERTY
THROUGH WORK.
Section 401(a) of the Social Security Act (42 U.S.C. 601(a)) is
amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and
inserting ``; and''; and
(3) by adding at the end the following:
``(5) reduce child poverty by increasing employment entry,
retention, and advancement of needy parents.''.
SEC. 3. EFFECTIVE DATE.
The amendments made by this Act shall take effect on October 1, 2016.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
H.R. 2966 as amended, the ``Reducing Poverty through
Employment Act,'' as ordered reported by the Committee on Ways
and Means on May 11, 2016, amends the purposes of the Temporary
Assistance for Needy Families program to include reducing
poverty by increasing employment entry, retention, and
advancement.
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.
Under current law, TANF has the following four statutory
purposes:
Provide assistance to needy families so that
children may be cared for in their own homes or in the
homes of relatives;
End the dependence of needy parents on
government benefits by promoting job preparation, work,
and marriage;
Prevent and reduce the incidence of out-of-
wedlock pregnancies and establish annual numerical
goals for preventing and reducing the incidence of
these pregnancies; and
Encourage the formation and maintenance of
two-parent families.
While the overall goal of TANF is to help low-income
individuals and families achieve self-sufficiency and improve
their lives, the program does not currently have an explicit
focus on reducing poverty.
H.R. 2966, as amended, would add a new purpose to TANF to
explicitly recognize that the best way out of poverty is a job.
The new purpose of TANF would be to reduce child poverty by
increasing employment entry, retention, and advancement of low-
income parents, ensuring states keep the focus of the program
on promoting work to help families move up the economic ladder.
C. Legislative History
Background
H.R. 2966, the ``Reducing Poverty through Employment Act,''
was introduced on July 8, 2015, by Representative Jason Smith ,
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. 2966.
Throughout the Congress, the Human Resources Subcommittee
held a series of hearings on reforms to TANF, including
discussions on its core purposes. 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. 2966, the
``Reducing Poverty through Employment Act,'' on May 11, 2016.
The bill, H.R. 2966, 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
``Reducing Poverty through Employment 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: Purposes of the TANF Program to Include Reducing Poverty
Through Work
Present law
The purpose of the Temporary Assistance for Needy Families
(TANF) block grant is to increase the flexibility of states in
operating a program designed to achieve four statutory goals:
(1) provide assistance for needy families so that children may
reside in their own homes, or with relatives; (2) promote job
readiness, work, and marriage in order to decrease the
dependence of parents on government programs; (3) have states
establish goals to prevent and reduce the incidence of out-of-
wedlock pregnancies; and (4) encourage the formation and
maintenance of two-parent households. TANF's statutory purpose
is both an aspirational statement about the goals of the block
grant and a basis for how states may expend TANF funds.
Explanation of provision
The Committee bill would add ``to reduce child poverty by
increasing employment, retention, and advancement of needy
parents'' as a fifth main purpose of the TANF program.
Reason for change
The Committee believes that the new purpose of TANF would
encourage states to keep the focus of the program on promoting
work to help families move up the economic ladder.
Effective date
The provision is effective on October 1, 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.
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. 2966, the ``Reducing Poverty through
Employment Act,'' on May 11, 2016.
The Committee on Ways and Means marked up H.R. 2966, the
``Reducing Poverty through Employment Act,'' on May 11, 2016.
The bill, H.R. 2966, 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 expenditures
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 13, 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. 2966, the Reducing
Poverty through Employment 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. 2966--Reducing Poverty through Employment Act
H.R. 2966 would amend title IV of the Social Security Act
to add a statutory purpose to the Temporary Assistance for
Needy Families (TANF) program. That new purpose would be to
reduce child poverty by promoting employment opportunities for
low-income parents.
The budget authority for TANF is specified under current
law and is shown in the budget as direct spending; this bill
would not change the amount specified, but depending on how
states would address this new purpose, the rate of direct
spending for the program could change. Because enacting this
bill could affect direct spending, pay-as-you-go procedures
apply; however, based on information from the Department of
Health and Human Services, CBO estimates that those effects
would not be significant. Enacting H.R. 2966 would not affect
revenues.
CBO estimates that enacting H.R. 2966 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
H.R. 2966 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local or tribal
governments.
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 amends the
purposes of the Temporary Assistance for Needy Families program
to include reducing poverty by increasing employment entry,
retention, and advancement.
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. 401. PURPOSE.
(a) In General.--The purpose of this part is to increase the
flexibility of States in operating a program designed to--
(1) provide assistance to needy families so that
children may be cared for in their own homes or in the
homes of relatives;
(2) end the dependence of needy parents on government
benefits by promoting job preparation, work, and
marriage;
(3) prevent and reduce the incidence of out-of-
wedlock pregnancies and establish annual numerical
goals for preventing and reducing the incidence of
these pregnancies; and
(4) encourage the formation and maintenance of two-
parent families.
(b) No Individual Entitlement.--This part shall not be
interpreted to entitle any individual or family to assistance
under any State program funded under this part.
* * * * * * *
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
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italics, and existing law in
which no change is proposed is shown in roman):
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. 401. PURPOSE.
(a) In General.--The purpose of this part is to increase the
flexibility of States in operating a program designed to--
(1) provide assistance to needy families so that
children may be cared for in their own homes or in the
homes of relatives;
(2) end the dependence of needy parents on government
benefits by promoting job preparation, work, and
marriage;
(3) prevent and reduce the incidence of out-of-
wedlock pregnancies and establish annual numerical
goals for preventing and reducing the incidence of
these pregnancies; [and]
(4) encourage the formation and maintenance of two-
parent families[.]; and
(5) reduce child poverty by increasing employment
entry, retention, and advancement of needy parents.
(b) No Individual Entitlement.--This part shall not be
interpreted to entitle any individual or family to assistance
under any State program funded under this part.
* * * * * * *
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.
[all]