[Senate Report 109-51]
[From the U.S. Government Publishing Office]
109th Congress Report
SENATE
1st Session 109-51
_______________________________________________________________________
Calendar No. 60
PERSONAL RESPONSIBILITY AND
INDIVIDUAL DEVELOPMENT FOR EVERYONE ACT (PRIDE)
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R E P O R T
[To accompany S. 667]
March 30, 2005.--Ordered to be printed
PERSONAL RESPONSIBILITY AND
INDIVIDUAL DEVELOPMENT FOR EVERYONE ACT (PRIDE)
109th Congress Report
SENATE
1st Session 109-51
_______________________________________________________________________
Calendar No. 60
PERSONAL RESPONSIBILITY AND
INDIVIDUAL DEVELOPMENT FOR EVERYONE ACT (PRIDE)
__________
R E P O R T
[To accompany S. 667]
March 30, 2005.--Ordered to be printed
Calendar No. 60
109th Congress Report
SENATE
1st Session 109-51
======================================================================
PERSONAL RESPONSIBILITY AND INDIVIDUAL DEVELOPMENT FOR EVERYONE ACT
(PRIDE)
_______
March 30, 2005.--Ordered to be printed
Filed under authority of the order of March 17, 2005
_______
Mr. Grassley, from the Committee on Finance, submitted the following
R E P O R T
[To accompany S. 667]
[Including cost estimate of the Congressional Budget Office]
The Committee on Finance reported an original bill (S. 667)
to reauthorize and improve the program of block grants to
States for temporary assistance for needy families, improve
access to quality child care, and for other purposes, having
considered the same, reports favorably thereon, and recommends
that the bill do pass.
I. BACKGROUND
The 1996 welfare reform law supplanted the main existing
welfare program for families, Aid to Families with Dependent
Children (AFDC) and its work/training component (JOBS), and
greatly changed most other federally supported aid to the poor.
It was enacted after debate stretching over 3 years and two
presidential vetoes.
The move to reform this system was prompted by soaring AFDC
rolls and higher costs, extant federal waivers for more than
half the states to undertake their own welfare reforms,
frustration with the long AFDC tenure and youth of many
recipient parents, concerns over the extent of unwed parenthood
among recipients, reaction to AFDC's unrestricted entitlement
nature, and disillusion with the most recent attempt at reform
(the 1988 Family Support Act).
The welfare portion of the House Republicans' Contract with
America agenda was introduced as the Personal Responsibility
Act in January 1995. The House and Senate both passed versions
of the legislation.
A preliminary House-Senate agreement on H.R. 4 was added to
the 1995 Balanced Budget Act (H.R. 2491) in late November 1995.
Excepting some small but controversial items, it contained the
gist of the final accord on H.R. 4. President Clinton vetoed it
on December 6, 1995--objecting to Medicaid provisions in the
larger measure. Then, on December 21-22, 1995, Congress
approved the final House-Senate H.R. 4 agreement (the Personal
Responsibility and Work Opportunity Act). The President vetoed
this H.R. 4 accord on January 9, 1996, citing insufficient
child care and work support provisions.
By the end of June 1996, House and Senate Republicans had
essentially incorporated the vetoed H.R. 4, with added money
for child care and contingencies, in H.R. 3734 (the FY1997
budget reconciliation bill). On August 22, 1996, President
Clinton signed the welfare reform law.
107TH CONGRESS
Programs authorized under PRWORA were scheduled to expire
on September 30, 2002. In February, 2002 President Bush
released his reauthorization proposal. The House of
Representatives passed a welfare bill very similar to the
President's proposal.
In the 107th Congress, the Senate Finance Committee
reported legislation based on a proposal crafted by a
bipartisan group of Senators on the Senate Finance Committee
which included a number of provisions adopted from the
President's proposal for welfare reform. The full Senate did
not pass a reauthorization of Temporary Assistance for Needy
Families (TANF).
108TH CONGRESS
The Finance Committee continued the work done in the 107th
Congress relative to welfare reform. In the 108th Congress, the
Finance Committee held a number of bipartisan briefings on:
fatherhood initiatives, data collection, state plans, workforce
attachment and advancement, work readiness, and family
formation policies. The committee made a sustained effort to
hear from stakeholders on the issue of welfare reform,
including policy experts, advocates, family groups,
organizations representing the states, and officials from the
Department of Health and Human Services.
The full committee held one field hearing and one committee
hearing and one subcommittee hearing.
On September 10, 2003, the Senate Finance Committee
favorably reported the Personal Responsibility and Individual
Development for Everyone (PRIDE) Act.
The legislation was considered by the full Senate during
the week of March 29, 2004 during which time an amendment
offered by Senator Olympia Snowe (R-ME) was agreed to which
would increase mandatory child care spending by $6 billion over
5 years.
The full Senate did not pass a reauthorization of Temporary
Assistance for Needy Families (TANF).
TANF has operated under a series of short term extensions
of federal law since September 30, 2002.
109TH CONGRESS
The Committee determined that after nearly four years of
debate, including three full committee hearings and two
subcommittee hearings in the 107th Congress and one full
committee hearing, one field hearing and one subcommittee
hearing in the 108th Congress, two markups and one week
consideration on the senate floor, that debate over the
reauthorization of TANF had been extensive. The Committee
determined that no more hearings on welfare reform were
necessary.
The Finance Committee began deliberations in the 109th
Congress by agreeing to many of the provisions negotiated in
the 108th Congress and which were subsequently included in the
PRIDE bill. The PRIDE bill, as reported out of the Senate
Finance Committee in the 109th Congress, was included as part
of the Senate Republican Leadership agenda in S. 6, sponsored
by Senator Rick Santorum (R-PA).
The following provisions are retained from the PRIDE bill
as reported from the Senate Finance Committee in 2003 and are
included in the PRIDE bill as reported from the Senate Finance
Committee in 2005. The PRIDE bill:
Increases the work participation rate for states 5
percent each year, from 50 percent in 2006 to 70 percent in
2010.
Phases out the caseload reduction credit, which
placed too much emphasis on caseload reduction and dramatically
diminished most states' work participation rates. The Committee
replaces the caseload reduction credit with an employment
credit which emphasizes moving TANF recipients into good jobs.
Caps the credit. The value of the credit is phased
down so that in FY 2010, all states must have a real work
participation rate of 50 percent.
Increases the minimum threshold for participation
in core work activities from 20 to 24 hours.
Increases the ``standard hour'' (when an adult
counts as ``one family'' for purposes of calculating a state's
participation rate) from 30 to 34 for a parent with a child six
and over. Provides states with increased flexibility to capture
partial and extra credit for adult participation in countable
activities below and above the standard hour, whereas under
PRWORA states could only count adults who met the standard hour
and provided no extra credit for adults who exceeded the
standard hour.
Increases the ``standard hour'' (when an adult
counts as ``one family'' for purposes of calculating a state's
participation rate) from 20 to 24 for a parent with a child
under six. Allows states to capture partial and extra credit
for adult participation in countable activities below and above
the standard hour.
Ensures that every family has a plan for achieving
self-sufficiency. States must prepare a plan for every family
receiving assistance and in most cases that plan should involve
some amount of work or work readiness activities.
Allows states to engage individuals in a broader
range of activities, including job search, substance abuse
treatment, post-secondary education and training and other
barrier removal activities after the 24 hour threshold of core
work activities is met.
Allows states to engage adult recipients in a
broad range of activities, including substance abuse treatment,
post-secondary education and other barrier removal activities
for a three-month period in each 24 month period.
Allows states to engage adult recipients in
education and rehabilitative activities combined with work or
work readiness activities for an additional three months out of
24 months for a total of 6 months.
Includes a provision allowing adult recipients to
attend longer duration vocational or post-secondary education.
The Committee bill also strengthens and improves
child support collection and gives states additional financing
options to pass-through more child support funding collected on
behalf of families receiving assistance and families who
formerly received assistance.
In the ongoing effort to achieve a bipartisan consensus on
the legislation, the PRIDE bill as reported by the Senate
Finance Committee in 2005 added additional provisions to the
bill considered in the previous Congress. These include:
Providing for mandatory spending and appropriating funding
for additional grants by:
Increasing mandatory child care spending an
additional $5 billion over five years, bringing the total
increase for mandatory child care spending to $6 billion over
five years;
Increasing funding for Title XX--the Social
Services Block Grant by $1 billion over five years;
Increasing annual mandatory funding by $20 million
for state demonstration and by $30 million for national
demonstrations to promote responsible fatherhood;
Providing $10 million annually for the development
of comprehensive indicators of child well-being;
Providing $5 million a year to be spent over 5
years for a national teen pregnancy prevention resource center
to provide technical assistance to state, tribal, local,
community, and faith based organizations seeking to reduce the
rates of teen pregnancy.
Providing additional state flexibility by:
Allowing states the option to receive work
participation rate credit for an individual whose plan
specifies that they have a continuing need for rehabilitative
services in order to engage in direct work activities. The
addition permits states the option of continuing to provide
rehabilitative services, if needed, beyond 6 months. To be
counted as working, recipients must be engaged in additional
work activities for at least half the time required to count
recipients without disabilities. Eligible individuals must be
determined, using a medically acceptable clinical or diagnostic
technique, as having a disability that impedes the individual's
ability to function in a work setting. To be eligible for the
state option state agencies must work collaboratively in
assisting the person with disabilities.
By clarifying that parenting skills building shall
count as a qualified work activity. The mark further clarifies
substance abuse counseling or treatment in the list of
qualified activities to mean drug and alcohol abuse counseling
or treatment.
ASSISTING INDIAN TRIBES
The Committee bill makes a number of improvements to assist
Indian tribes. The 1996 welfare law permitted Indian tribes to
operate their own welfare programs for the first time. The
Committee is informed that there are now currently 45 approved
Tribal TANF plans (38 tribals, 3 Alaskan native associations)
serving 230 tribes and Alaskan Native villages. Additionally,
there are currently 10 new plans in the review and negotiation
process and 15 additional letters of intent that have been
submitted.
These tribes and intertribal consortia have taken advantage
of the flexibility allowed under TANF to design culturally
appropriate programs to support low-income American Indians.
This important policy, allowing for tribal administration of
programs to tribal citizens, is consistent with the value of
tribal sovereignty. Although tribes have shown enthusiasm for
taking on TANF administration, there is more work to be done.
Less than \1/3\ of tribes are served by tribal TANF programs,
largely due to prohibitive start-up costs and insufficient
administrative support. Tribes that are administering TANF have
had to supplement the funding they receive to implement TANF.
Moreover, according to the Census Bureau, 25.7 percent of
American Indians live in poverty, more than twice the national
poverty rate. The average household income for American Indians
is only 72.9 percent of that of the rest of Americans.
The Committee bill contains critical provisions to support
tribes in setting up and improving tribal TANF programs while
exercising their sovereignty to adapt their programs to better
fit the needs of American Indians residing in tribal
communities. The Committee bill includes provisions to support
economic development and job creation in Indian Country, better
facilitating opportunities for tribal citizens to move from
welfare (whether served by state or tribal programs) to work.
Provisions supporting tribal capacity building, technical
assistance, and infrastructure development for tribal human
service programs bring much-needed resources to tribes
operating their own welfare programs. Funding to expand job
training programs and lock in tribal child care funding at the
current rate is also included. Another provision allows tribes
with high joblessness rates the continued flexibility to
determine how best to approach work requirements and terms of
assistance. The addition of a GAO study to identify barriers
for urban Indians accessing benefits and the new requirements
for HHS to collect more comprehensive data on receipt of
benefits among American Indians will contribute to the data
needed to address poverty and work supports in Indian Country.
ENCOURAGING HEALTHY MARRIAGE PROMOTION
The Committee intends that healthy marriage promotion
programs, will, by definition, help couples improve the skills
they need to form healthy, mutually respectful, non-violent
relationships that lead to more stable, loving and committed
marriages.
The Committee is aware that domestic violence is a problem
and a barrier to self-sufficiency for many TANF recipients as
well as those not receiving TANF, regardless of whether or not
couples are participating in counseling or in marriage
promotion activities. The Committee wants to ensure that
marriage promotion programs are supported in their efforts to
address the safety of domestic violence victims including the
need to escape violent relationships.
The Committee finds that social service programs should
better integrate an awareness of the larger issue of domestic
violence into their services and the TANF program represents a
particularly relevant avenue for identifying those who need or
are at risk of needing domestic violence services.
Provisions that enhance attention to Domestic Violence/Explanation of
Provisions
Given the high incidence of DV in many women's lives, this
program provides an opportunity to identify and provide
services that could help those who face multiple barriers to
self sufficiency including those in unhealthy relationships.
The Committee bill includes a number of provisions that
address the need to identify and respond to domestic violence
for families. The committee finds that these provisions are
integral features of any state marriage initiative. The
committee encourages states that have previously established
marriage promotion activities to incorporate these provisions
into their current programs as well as any future marriage
promotion activities states undertake with their TANF block
grant and MOE.
1. Voluntary Participation
The Committee bill requires that participation in all
marriage promotion programs must be voluntary. Therefore, TANF
recipients must be informed that participation in marriage
promotion is voluntary and if they elect to participate in such
programs and opt to discontinue, no sanction may be imposed
solely for nonparticipation or disenrollment in these
activities. However, the state may reassign TANF recipients at
any time to other activities in accordance with universal
engagement requirements. In addition, any grantee of funds for
marriage promotion must detail how they will ensure that
participation in their programs is voluntary and how they will
inform participants that their participation is voluntary.
2. Domestic Violence Consultation
The Committee bill stipulates that funding will not be
provided for marriage promotion activities unless the recipient
of funds consults with domestic violence organizations, which
the committee understands to be local, State or national
organizations with recognized expertise in the dynamics of
domestic violence and a history of working with survivors of
domestic violence and whose primary purpose is to provide
services to victims of domestic violence or engage in domestic
violence intervention or prevention activities. This
consultation will be for the purpose of developing policies,
procedures, programs and training necessary to appropriately
address domestic violence in families served by programs and
activities which promote marriage. The committee believes that
applicants should consider the issues and needs related to
domestic violence awareness in the overall design of their
services and proposals. An applicant for a grant will outline
in the application for funds how the funded program will
address issues of domestic violence. All marriage promotion
programs must establish protocols for helping identify
instances or risks of domestic violence and specify procedures
for making service referrals and providing protections and
appropriate assistance.
3. Reports
A bi-annual report is required from the Secretary of HHS
providing a detailed description of the programs and activities
funded by marriage promotion grants and how each program
addresses domestic violence. Annual reports are required of
grantees under Section 103 detailing how the program addresses
domestic violence.
4. Funding for domestic violence prevention grants
The Committee recognizes that TANF programs provide a
unique opportunity to identify and help address issues of
domestic violence among vulnerable families that these programs
serve. Accordingly, $10 million is authorized annually to
develop and implement programs designed to address domestic
violence as a barrier to healthy relationships, marriage, and
economic security. Such funding shall be used for grants,
contracts, and interagency agreements to provide training for
caseworkers administering TANF as well as technical assistance,
services for victims of domestic violence and activities
related to the prevention of domestic violence.
This funding would complement an authorization of $20
million for Domestic Violence Prevention Grants (Section 114)
that can be used for additional activities including developing
and disseminating best practices for addressing domestic and
sexual violence and disseminating research on the causes of
domestic violence and abuse. While discretionary in nature, it
is the Committee's intent that funding for these programs may
not be diverted from existing domestic violence prevention or
services programs.
CONCLUSION
The Committee finds that during the years of debate on the
issue of welfare reform, a number of different perspectives on
the best approach to take for the next phase of welfare reform
have been discussed. The Committee has heard arguments that the
most effective way to assist families make the transition from
welfare to work was to increase the time that adults receiving
assistance spent engaged in meaningful work activities. The
Committee finds that the correlation between full time work and
increased earning is compelling.
The Committee has heard arguments that increasing the
amount of time allowed for education and training led to
increased earnings and self-sufficiency. The Committee finds
that the correlation between increased education and increased
earnings is compelling as well.
The Committee has heard that encouraging marriage and
reducing out-of-wedlock births would net positive outcomes for
children.
The Committee has heard that increasing state flexibility
should be an integral part of any reform effort.
The Committee finds when working with vulnerable families
on assistance, or struggling to keep from having to go on
assistance, there is no such thing as ``one size fits all.''
While education may be the best approach for some, it may not
be for others. Encouraging healthy family formation may be what
one family needs, but perhaps this approach would not be in the
best interest of another family in difference circumstances.
The Committee bill takes a ``blended approach'' to welfare
reforms and strives to find balance among a number of
perspectives. PRIDE increases the emphasis on work and work
readiness activities as well as increases the flexibility for
states to engage adults in education and training activities.
PRIDE also provides resources to encourage states to develop
innovative family formation programs, while making it clear
that participation in these programs must be voluntary and the
program must be developed with domestic violence professionals.
The Committee finds that the PRIDE bill represents a number
of improvements over current law and that it would contribute
to moving families out of dependency and into greater self-
sufficiency.
II. SECTION-BY-SECTION ANALYSIS
TITLE I--TANF
Section 101--State Plans and Performance
State Plans
CURRENT LAW
To receive block grant funds, a state must have submitted a
TANF plan within the 27-month period that ends with the close
of the 1st quarter of the fiscal year. This plan must include
an outline of the program the state intends to operate to
provide assistance to needy families; provide job preparation,
work, and support services to enable them to leave the program;
and describe how the state will ensure that parents and
caretakers receiving assistance engage in work activities
(within 24 months of receiving assistance, or earlier at state
option). The plan must describe whether the state intends to
treat families migrating from another state differently from
others (and, if so, how) and whether it intends to provide
assistance to non-citizens (and, if so, to provide an overview
of aid). It also must establish goals to reduce the rate of
out-of-wedlock pregnancies, with special emphasis on teenage
pregnancies, and establish numerical goals for reducing the
illegitimacy ratio of the state. The plan must describe how the
state will provide education and training on statutory rape to
the law enforcement and educational systems, and it must
include a number of certifications (for example, equitable
access to Indians and establishment and enforcement of
standards against program fraud and abuse). States have the
option of including a certification regarding the treatment of
individuals with a history of domestic violence.
COMMITTEE BILL
The Committee Bill requires states to establish and provide
in their state plans specific measurable performance objectives
for pursuing TANF purposes. They are to describe the
methodology the state will use to measure performance in
programs funded by TANF and maintenance of effort (MOE) dollars
in relation to each objective. In developing the performance
measures, states are to consider the criteria used by the
Secretary of Health and Human Services (HHS) in establishing
performance measures for the employment achievement bonus
(workforce attachment and advancement) and with such other
criteria related to other (non-work) purposes of the program.
The Secretary is to develop performance measures related to the
non-work purposes of TANF in consultation with the National
Governor's Association, the National Conference of State
Legislatures, and the American Public Human Services
Association.
The Committee Bill specifies that the plan must describe
any strategies and programs that the state plans to use
concerning employment retention and advancement; reduction of
teen pregnancy; services for struggling and noncompliant
families, and for clients with special problems; program
integration, including provision of services through the One-
Stop delivery system under WIA; and if the state is undertaking
any strategies or programs to engage faith based organizations
in the delivery of services funded under this part or that
relate to section 104 of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, the document should
describe such strategies and programs. It requires state plans
to describe how the state intends to encourage equitable
treatment of healthy, married, two-parent families under TANF.
The Committee Bill also adds to the state plan additional
descriptive information about state programs. It requires
states to describe in their plans financial and nonfinancial
eligibility rules for assistance (including income eligibility
thresholds, treatment of earnings, asset eligibility rules, and
excluded forms of income), the amount of assistance, and
applicable time limits on providing assistance (including
exemption and extension policies). It requires state plans to
set forth the criteria for counting care of a disabled family
member as a work activity. Section 109 of this Committee Bill
makes caring for a disabled family member a work activity under
specified conditions. The Committee Bill requires states to
describe how they will inform ``child-only'' families (families
without an adult recipient) receiving assistance of the work
supports and other assistance for which the family may be
eligible. It deletes the requirement to indicate whether the
state intends to treat incoming families differently from
residents (found unconstitutional) and drops the rule that
community service be required from adults who fail to work
after two months of aid, unless the governor opts out.
The Committee Bill directs the Secretary to develop a
proposed Standard State Plan Form for use by states nine months
from enactment and requires states, by October 1, 2006 to
submit their plans on the standard form. It requires states to
make available to the public through an appropriate State-
maintained Internet website and through other means that the
state deems appropriate several documents: the proposed state
plan (with at least 45 days for comment), comments received
concerning the plan (or, at the state's discretion, a summary
of the comments), and proposed amendments to the plan. It also
requires that state plans in effect for any fiscal year be
available to the public by the means listed above. States
required to renew their state plans between the date of
enactment and October 1, 2006 may wait until October 1, 2006 to
submit their new plans in the Standard Form.
The Committee Bill adds a requirement that tribal
governments be consulted about the TANF plan and its service
design. It also adds a requirement that states that provide
transportation aid under TANF certify that state and local
transportation agencies have been consulted in the development
of the TANF state plan.
Sections 107, 109, 110, and 113 of the Committee Bill
contain other state TANF plan provisions. Section 107 requires
a state that takes the option to establish an undergraduate
post-secondary or vocational education program to describe, in
an addendum to the TANF state plan, eligibility criteria that
will restrict enrollment in the program to persons whose past
earnings indicate they cannot qualify for employment that will
make them self-sufficient and who, by enrolling, will be
prepared for higher paying occupations in demand in the state.
Section 109 permits a state, if it includes in its TANF plan a
description of policies for areas of Indian country with high
joblessness, to define countable work activities for persons
complying with individual responsibility plans and living in
these areas. Section 110 requires state plans to outline how
the state intends to require parent or caretaker recipients to
engage in work or alternative self-sufficiency activities, as
defined by the state, and to require recipient families to
engage in activities in accordance with family self-sufficiency
plans. It further requires a stateplan addendum if the state
opts to receive work participation rate credit for an individual whose
family self sufficiency plan specifies a need for ongoing,
rehabilitative activities. Section 113 has provisions to increase the
coordination and consultation between states and tribes in developing
TANF plans.
REASON FOR CHANGE
The Committee Bill includes provisions to clarify what
states are doing to move welfare clients into self sufficiency
and to make the plans more meaningful. The Committee Bill would
require states to establish performance objectives and
encourage an ongoing review of these objectives while
maintaining state flexibility.
Annual Ranking of States' Performance
CURRENT LAW
The Secretary of HHS is required to annually rank states on
the success of their welfare to work programs. The ranking
considers state performance on placing recipients into long-
term private sector jobs; reducing the overall welfare
caseload; and, when a practical method for calculating
information becomes available, diverting individuals from
formally applying for and receiving assistance. In this
ranking, the Secretary is to take into account the average
number of poor children in the state.
COMMITTEE BILL
The Committee Bill requires the Secretary, in consultation
with states, to develop uniform performance measures designed
to evaluate TANF- and MOE-funded state programs. It modifies
the criteria for the Secretary's annual ranking of the success
of states' welfare-to-work programs to include placement of
assistance recipients in unsubsidized employment, success of
recipients in retaining employment and increase in wages, and
the degree to which recipients have workplace attachment and
advancement. It requires the Secretary's ranking to consider
the number of poor children and child poverty rate in each
state.
REASON FOR CHANGE
The Committee Bill updates the factors used in the annual
ranking of states on the success of their programs.
Section 102--Family Assistance Grants
CURRENT LAW
The law appropriated $16.5 billion annually for family
assistance grants to the states and the District of Columbia
(D.C.) for FYs 1997-2002. It also appropriated $77.9 million
annually for family assistance grants to the territories (and,
within overall ceilings, such sums as needed for matching
grants to the territories). Family assistance grants have been
extended at FY2002 funding levels through March 31, 2005 by a
series of temporary extensions. Basic state grants are based on
federal expenditures for TANF's predecessor programs during
FY1992 through FY1995.
COMMITTEE BILL
The Committee Bill appropriates family assistance grants,
at current levels, for the states, the District of Columbia,
and the territories for fiscal years 2006 through 2010. The
Committee Bill also appropriates matching grants for the
territories for fiscal years 2006 through 2010.
REASON FOR CHANGE
(No change)
Section 103--Promotion of Family Formation and Healthy Marriage
CURRENT LAW
The purposes of TANF include encouraging the formation and
maintenance of two-parent families, ending the dependence of
needy parents on government benefits by promoting . . .
marriage, and reducing the incidence of out-of-wedlock
pregnancies. The law established a bonus (up to $100 million
annually) for 5 jurisdictions with the greatest percentage
decease in nonmarital birth ratios and a decline from 1995
levels in abortion rates.
COMMITTEE BILL
The Committee Bill repeals the bonus for reduction of the
illegitimacy ratio. It appropriates $100 million a year for
five years (FYs 2006-2010) for competitive grants (50 percent
matching rate) to states, Indian tribes, and tribal
organizations to develop and implement innovative programs to
promote and support healthy, married, two-parent families and
to encourage responsible fatherhood. Grant and matching funds
must be used to support any of the following: public
advertising campaigns on the value of marriage and the skills
needed to increase marital stability and health; education in
high schools on the importance of healthy marriages and
characteristics of other healthy relationships experienced
throughout life, including the importance of grounding
relationships in mutual respect; voluntary marriage education,
marriage skills, and relationship skills programs, which may
include parenting skills, financial management, conflict
resolution, and job and career advancement, for non-married
expectant and recent mothers and fathers; voluntary pre-marital
education and marriage skills training for engaged couples and
for couples or persons interested in marriage; voluntary
marriage enhancement and marriage skills training programs for
married couples; voluntary divorce reduction programs that
teach relationship skills; voluntary marriage mentoring
programs which use married couples as role models and mentors;
and programs to reduce the marriage disincentive in means-
tested aid programs, if offered in conjunction with any
activity described above. The Committee Bill exempts marriage
promotion grants from the general rules governing use of TANF
funds (Section 404 of the Social Security Act), but not from
the percentage cap on administrative costs. To be eligible for
a grant, applicants must consult with domestic violence
organizations that have demonstrated expertise working with
survivors of domestic violence in developing policies,
procedures, programs and training necessary to appropriately
address domestic violence in families served by programs and
activities funded through the grant; describe in their
applications how their proposed programs or activities will
deal with issues of domestic violence; establish protocols for
helping identify instances or risks of domestic violence and
specify procedures for making service referrals and providing
protections and appropriate assistance; and what they will do,
to the extent relevant, to ensurethat participation in the
programs is voluntary and to inform potential participants that
participation is voluntary.
The Committee Bill requires the Secretary of HHS to submit
a biannual report to Congress, providing a detailed description
of the programs and activities funded by the grants and how
they address domestic violence.
The Committee Bill requires each State, tribe, or tribal
organization that carries out marriage promotion activities to
provide the Secretary of HHS with an assurance that TANF
assistance recipients who elect to participate in these
activities are informed that participation is voluntary; that
the recipient may disenroll from such programs or activities;
and that there be a process that provides recipients who
withdraw from or fail to participate in marriage promotion
activities to be reassigned to other activities. There is no
sanction for failure to participate in marriage promotion
activities. The state may reassign TANF recipients at any time
to other activities in accordance with universal engagement
requirements (See Section 110).
The Committee Bill provides that marriage promotion funds
appropriated for each of fiscal years 2006 through 2010 shall
remain available to the Secretary until spent. The Committee
Bill provides that TANF funds can be used as all or part of the
required state match for marriage promotion grants, but that
these federal funds cannot count towards a state's MOE. The
Committee Bill also includes conforming language relative to
the fourth purpose of TANF, specifying that it is to encourage
the formation and maintenance of healthy, two-parent married
families and to encourage responsible fatherhood.
The Committee Bill also authorizes $10 million annually for
FY2006 through FY2010 for the Secretary of HHS to develop and
implement programs designed to address domestic violence as a
barrier to healthy relationships, marriage, and economic
security. Grants, contracts, and interagency agreements shall
provide training for caseworkers administering TANF, technical
assistance, the provision of voluntary services for victims of
domestic violence, and activities related to the prevention of
domestic violence. Funding for these programs may not be
diverted from existing domestic violence prevention programs.
REASON FOR CHANGE
Two of the four original purposes of PRWORA are directly
related to ending out-of-wedlock births and encouraging the
formation and maintenance of two-parent families. The bonus to
reduce out of wedlock births was initially developed to enhance
these purposes. This bonus has not proven to be an effective
mechanism for motivating state action. A correlation between
state action and a reduction in out of wedlock births and
family formation has not been established.
The Committee Bill would redirect the funding to address
the underlying purposes of PRWORA. The Committee Bill would
provide optional grants to states to explore innovative and
creative approaches to promote healthy family formation
activities. The Committee Bill stipulates that participation in
these programs is voluntary and that to be eligible for a grant
applicants must consult with domestic violence organizations
that have demonstrated expertise working with survivors of
domestic violence in developing policies, procedures, programs
and training necessary to appropriately address domestic
violence in families served by programs and activities funded
through the grant; describe in their applications how their
proposed programs or activities will deal with issues of
domestic violence; establish protocols for helping identify
instances or risks of domestic violence and specify procedures
for making service referrals and providing protections and
appropriate assistance; and what they will do, to the extent
relevant, to ensure that participation in the programs is
voluntary and to inform potential participants that
participation is voluntary.
The Committee Bill also includes a provision (in Section
114) which would redirect a portion of the funds for research
and demonstration programs and technical assistance related to
healthy family formation activities. These funds would be in
addition to grants to states for healthy family formation
activities. Currently, there is a 25 year body of research
related to work activities and welfare. The Committee Bill
would encourage a focus on research centered on marriage and
family assistance so that states can learn from rigorous
evaluations of activities to promote marriage and family
formation.
Section 104--Supplemental Grant for Population Increases in Certain
States
CURRENT LAW
The law provides supplemental grants for (17) states with
exceptionally high population growth during the early 1990s,
benefits lower than 35 percent of the national average, or a
combination of above-average growth and below-average AFDC
benefits. Grants were authorized for a total of $800 million
over FYs 1998 through 2001, and annual grants grew from $79
million to $319.5 million over this period. Congress froze
grants at the fiscal year 2001 level when it extended
supplemental grants for FYs 2002-2005.
COMMITTEE BILL
The Committee Bill extends supplemental grants for the 17
states that currently receive them at their FY 2001 level, for
FYs 2006 through 2009.
REASON FOR CHANGE
The Committee Bill extends the supplemental grant program
for certain states.
Section 105--Bonus To Reward Employment Achievement
CURRENT LAW
The Secretary of HHS, in consultation with the National
Governors Association (NGA) and the American Public Human
Services Association (APHSA) was required to develop a formula
for measuring state performance relative to block grant goals.
Awards for performance years 1998-2000 were based on work-
related measures (and were paid to 38 jurisdictions). For later
years, non-work measures--including food stamp and Medicaid
coverage of low-income families--were added. States can receive
a bonus based on their absolute score in the current
(performance) year and/or their improvement from the previous
year, but the bonus cannot exceed 5 percent of the family
assistance grant. $200 million per year was available for
performance bonuses, for a total of $1 billion between FYs 1999
and 2003. Bonuses were awarded in FY2004 under TANF temporary
extension legislation.
COMMITTEE BILL
The Committee Bill appropriates $450 million for FYs 2006
through 2011 for bonuses to states that qualify as ``employment
achievement'' states by meeting standards to be developed by
the Secretary in consultation with the states. Bonuses for
FY2006 through FY2008 are to average $50 million per year;
bonuses for FY2009 through FY2011 are to average $100 million
per year. The Committee Bill specifies that the employment
achievement formula is to measure workplace attachment and
advancement of assistance recipients and, if the Secretary
determines it is possible, those diverted from assistance. It
caps a state's bonus at 5 percent of its family assistance
grant. For FYs 2006 and 2007, the employment achievement bonus
may be based on three components of the repealed high
performance bonus--job entry rate, job retention rate, and
earnings gain rate. The Committee Bill makes Indian tribes
eligible for the bonus, sets aside 2 percent of bonus funds for
them, and directs the Secretary to consult with tribes in
determining criteria for awards to them.
Section 702 of the Committee Bill eliminates the FY2005
High Performance Bonus.
REASON FOR CHANGE
The Committee Bill provides for states to continue their
successful efforts to move welfare recipients into good jobs.
States have directed considerable resources into moving welfare
recipients into meaningful employment. The Committee Bill would
continue to provide incentives for states to focus on
employment achievement and would continue the policy of
rewarding states for doing so. The Committee Bill would
preserve the concept of the High Performance Bonus focused on
employment achievement.
Section 106--Contingency Fund
CURRENT LAW
The TANF law established a $2 billion contingency fund for
matching grants at the Medicaid matching rate (which ranges
from 50 percent to 77 percent) to ``needy'' states that expect
during the fiscal year to spend under the TANF program (not
counting child care) 100 percent of their FY1994 level of
spending on TANF-predecessor programs (not counting child
care). States can access the contingency fund by meeting one of
two ``needy'' state triggers: (1) an unemployment rate for a 3-
month period that is at least 6.5 percent and at least 10
percent higher than the rate for the corresponding period in
either of the two preceding calendar years; or (2) a food stamp
caseload increase of 10 percent over the FY 1994-1995 level
(adjusted for the impact of immigrant and food stamp
constraints in the 1996 welfare law). Contingency payments for
any fiscal year are limited to 20 percent of the state's base
grant, and a state can draw down no more than \1/12\ of its
maximum annual contingency fund amount in a given month. Under
a final reconciliation process, a state's federal match rate
(for drawing down contingency funds) is reduced if it received
funds for fewer than 12 months in any year.
COMMITTEE BILL
The Committee Bill appropriates such sums as are needed for
contingency fund grants, up to $2 billion over 5 years, FYs
2006-2010. It eliminates the requirement that states spend 100
percent of their historic level to qualify for contingency
funds (instead applying the TANF MOE, 75 percent-80 percent).
It entitles states to a contingency fund grant reflecting costs
of TANF caseloads when they are ``needy'' under a revised
definition. To trigger as needy: (a) a state must have an
increase of 5 percent in the monthly average unduplicated
number of families receiving assistance under its TANF program
in the most recently concluded 3-month period with data,
compared with the corresponding period in either of the two
most recent preceding fiscal years; (b) the TANF caseload
increase must be due, in large measure, to economic conditions
rather than state policy changes, and (c) for the most recent
three-month period with data, the average rate of seasonally
adjusted total unemployment must be at least 1.5 percentage
points or 50 percent higher than in the corresponding period in
either of the two most recent preceding fiscal years; or, for
the most recent 13 weeks with data, the average rate of insured
unemployment must be at least 1 percentage point higher than in
the corresponding period in either of the two most recent
fiscal years; or, for the most recently concluded 3-months with
national data, the monthly average number of food stamp
recipient households, as of the last day of each month, exceeds
by at least 15 percent the corresponding caseload number in the
comparable period in either of the two most recent preceding
fiscal years, provided the HHS Secretary and the Secretary of
Agriculture agree that the increased caseload was due, in large
measure, to economic conditions rather than to policy change.
The Committee Bill provides that a state that initially
qualifies as needy because of its TANF caseload plus its food
stamp caseload shall continue to be considered needy as long as
the state meets the original qualifying conditions. A state
that initially qualifies as needy because of its TANF caseload
plus its total or insured unemployment rate shall not trigger
off until its rate falls below the original qualifying level.
The contingency fund grant is based on the maximum cash
benefit level for a family of 3 persons (if the state has more
than one maximum cash benefit level, the grant is based on the
maximum benefit for the largest number of 3-person families)
and is payable for TANF caseload increases above 5 percent. The
grant equals the state's federal Medicaid matching rate times
the benefit cost of an increase in the TANF family caseload
above 5 percent in the most recently concluded 3-month period
with data, compared with the corresponding period in either of
the two most recent preceding fiscal years. A state's total
contingency grant cannot exceed 10 percent of its family
assistance grant. To receive a contingency fund grant, a state
must have spent 70 percent of its TANF grants (excluding
welfare-to-work funds from the Department of Labor). Unexpended
balances are the total amount of TANF grants not yet spent by
the state as of the end of the preceding fiscal year minus
current year expenditures through the end of the most recent
quarter that exceed the pro rata share of the current fiscal
year TANF grant. The Committee Bill repeals the fiscal penalty
for failure of a state that receives contingency funds to
maintain 100 percent of its historic spending level (MOE), but
provides that a state shall not be eligible for a contingency
fund grant unless its MOE spending equals 75 percent (80
percent, if it fails work participation rates).
The Committee Bill also sets aside $25 million from the
contingency fund for payment to tribes with approved tribal
family assistance plans operating during periods of economic
hardship. The Secretary of HHS, in consultation with the
tribes, is required to develop the criteria for access by
tribes to the fund.
REASON FOR CHANGE
Because of a ``super'' MOE provision in PRWORA, states have
been unable to access contingency funds in the manner in which
they were intended in times of economic downturn. The Committee
Bill would liberalize the contingency fund so that states are
better able to draw down those dollars.
Section 107--Use of Funds
CARRYOVER FUNDS
CURRENT LAW
The law permits states or tribes to use TANF funds received
for any fiscal year for ``assistance'' in any later year,
without fiscal year limitation. Regulations define assistance
as ongoing aid for basic needs, plus supportive services such
as child care and transportation for families who are not
employed.
COMMITTEE BILL
The Committee Bill permits carryover of TANF funds granted
to the state or tribe for any fiscal year to provide any
benefit or service under the state or tribal TANF program
without fiscal year limitation. The Committee Bill also allows
a state or tribe to designate a portion of the TANF grant as a
contingency reserve, which may be used without fiscal year
limitation, to provide any benefit or service. If the state or
tribe designates reserve funds, it must include the amount in
its annual report. Additionally, the Committee Bill would
permit states to designate an amount of unused dollars in a
contingency reserve fund. Section 117 of the Committee Bill
revises the definition of assistance.
REASON FOR CHANGE
Currently, carry over funds can be spent only on cash
assistance. The Committee Bill would allow carry over funds to
be spent on any activity authorized under PRWORA, including
child care. This provides additional flexibility for the
states. Permitting states to designate unused funds as a
contingency reserve clarifies that, while unspent, these funds
have been earmarked for purposes associated with the
legislation.
Social Services Block Grant Transfers
CURRENT LAW
The original 1996 welfare reform law provided that states
could transfer up to 10 percent of their TANF grants to the
Social Services Block Grant (Title XX). P.L. 105-178
(Transportation Equity Act for the 21st Century) reduced
funding for the Social Services Block Grant and called for the
transfer authority from TANF to SSBG to be reduced to 4.25
percent of the block grant, effective FY2001. However, annual
appropriation bills through FY2005 have superceded, maintaining
the 10 percent transfer limit for each year.
COMMITTEE BILL
The Committee Bill restores the transferability of TANF
funds to SSBG to 10 percent.
REASON FOR CHANGE
This increases state flexibility for assisting low-income
families.
Social Services Block Grant
CURRENT LAW
The current funding level for the Social Services Block
Grant (Title XX) is $1.7 billion per year.
COMMITTEE BILL
The Committee Bill increases funding for the Social
Services Block Grant by $1 billion over the 5-year period, to
$1.9 billion per year for FY2006 through FY2010. Funding will
revert to $1.7 billion per year in FY2011.
REASON FOR CHANGE
The Committee intends for states to refocus their efforts
to move adult recipients from welfare to work and intends for
states to use their TANF block grant for those purposes. The
Committee finds that Title XX funds support needed services for
children and families in crisis. SSBG funds are used to support
a number of child welfare programs including, child protective
services, children's foster care and prevention and
intervention services. These are services that a number of
states are currently funding through their TANF block grants.
The Committee bill would provide an increase of funding for
SSBG so that states do not have curtail their efforts to
improve child welfare, as they redirect their TANF funds to
provide services to move adults into meaningful employment.
Post-Secondary Education Option (``Parents as Scholars'')
CURRENT LAW
TANF permits states to use TANF funds in ``any manner
reasonably calculated'' to achieve the goals of TANF, including
reducing ending the dependence of needy parents through job
preparation. Post-secondary education is an allowable use of
TANF funds, though participation in such education is generally
limited to vocational education countable for only up to 12
months.
COMMITTEE BILL
The Committee Bill permits states to use TANF and MOE funds
to establish an undergraduate 2- or 4-year degree postsecondary
education or vocational educational program for students in
families receiving TANF assistance, who formerly received
assistance, or needy parents who are eligible for TANF
services. The program may provide the following services: child
care, transportation, payment for books and supplies, and other
services provided by the state to ensure coordination and lack
of duplication.
The Committee Bill requires states that opt to run a
postsecondary education program to file an addendum with their
TANF state plan with the applicable eligibility requirements of
the program. Eligibility requirements must be designed to limit
the program to individuals whose past earnings indicate that
they cannot qualify for employment that pays enough to allow
them to obtain self-sufficiency (as defined by the state) and
for whom enrollment in the program will prepare individuals for
higher paying occupations in demand in the state.
The Committee Bill would permit states to count the
participation of TANF assistance recipients in the post-
secondary program, with participation capped at 10 percent of a
state's TANF caseload. There are two options for counting hours
of participation for students in the post-secondary education
program. Under the first option, total hours would be the sum
of those in the priority activities in current law; in work-
study, practicums, internships, clinical placement, laboratory
or field work, or other activities that would enhance
employability in the recipient's field of study; and study
time. These hours would be counted toward the participation
standards (e.g. the 34-hour requirement), and the state would
be given either full (maximum counted as 1 family) or partial
credit for that family's participation. Under the second
option, a student's family would be counted as a fully
participating (one family) if, in addition to complying with
the full-time educational participation requirement of the
program, the student is participating in TANF priority work
activities and work study, practicums, etc. for at least the
following number of hours: 6 hours in the first year, 8 hours
in the second year, 10 hours in the third year, and 12 hours in
the fourth and later years.
The rules for this program apply only for states that opt
to operate it and only for students participating in the
program. These rules do not limit the discretion states
otherwise have under TANF to support postsecondary or
vocational education for needy parents.
REASON FOR CHANGE
The Committee Bill permits a subset of recipients to
benefit from a postsecondary education strategy while
maintaining an overall work orientation. The option is modeled
on a Maine program known as ``Parents as Scholars.''
Section 108--Repeal of Federal Loan for State Welfare Programs
CURRENT LAW
The law provides a $1.7 billion revolving and interest-
bearing federal loan fund for state TANF programs.
COMMITTEE BILL
The Committee Bill repeals the loan fund.
REASON FOR CHANGE
The fund did not function effectively.
Section 109--Work Participation Requirements
Participation standards
CURRENT LAW
States must have a specified percentage of their adult
recipients engaged in creditable work activities. Since FY 2002
the participation standard has been 50 percent for all families
(and since FY 1999 it has been 90 percent for the two-parent
component of the caseload). Participation standards are reduced
by a caseload reduction credit (below). In tribal family
assistance programs, work participation standards are set by
the HHS Secretary, with the tribe's participation.
COMMITTEE BILL
The Committee Bill increases the all-family standard from
the current 50 percent level to the following levels: FY 2007,
55 percent; FY 2008, 60 percent; FY 2009, 65 percent; and FY
2010 and thereafter, 70 percent. The Committee Bill eliminates
the separate rate for two parent families. The Committee Bill
also forgives penalties for states' failure to meet the two-
parent work requirement in FY2002 through FY2004.
REASON FOR CHANGE
PRWORA included a credit states could take for purposes of
establishing their work participation rate based on a state's
caseload reduction. Because caseloads have fallen so
dramatically, the effect of the caseload reduction credit has
been to diminish states' work participation rates. The
Committee Bill increases work participation requirements to
move towards universal engagement policies under which states
actively engage all welfare recipients in moving towards self
sufficiency.
Calculation of participation rates
CURRENT LAW
A state's monthly participation rate, expressed as a
percentage, equals (a) the number of all recipient families in
which an individual is engaged in work activities for the
month, divided by (b) the number of recipient families with a
recipient who is an adult or minor head of household, but
excluding families subject that month to a penalty for work
refusal (provided they have not been penalized for more than 3
months), single-parent families with children under 1 (limited
to 12 months in a lifetime) and, at state option, families in
tribal family assistance programs.
COMMITTEE BILL
The Committee Bill permits a state to exclude all families
from work participation calculations during their first month
of TANF assistance and to exclude families with a child under
age 1 (subject to a 12 month in a lifetime limit) from work
requirements and calculations of work participation rates on a
case-by-case basis.
REASON FOR CHANGE
The initial assessment and development of a family self
sufficiency plan may take some time, during which the family
may not be participating in countable activities. In addition,
the Committee Bill would ensure that states receive credit for
families with young children who are engaged in countable
activities.
Caseload reduction credit
CURRENT LAW
For each percent decline in the caseload from the FY 1995
level (not attributable to policy changes), the work
participation standard is lowered by 1 percentage point. (In FY
2003, caseload reduction credits cut required work rates of 20
states to zero.)
COMMITTEE BILL
The Committee Bill replaces the current caseload reduction
credit with an employment credit. In a separate provision, it
places the same limits on the extent to which any employment,
caseload reduction, or other credit could reduce a state's
required participation rate. Under these limitations, credits
could not exceed 40 percentage points for fiscal year 2006; 35
percentage points for fiscal year 2007; 30 percentage points
for fiscal year 2008; 25 percentage points for fiscal year
2009; and 20 percentage points for fiscal year 2010 or
thereafter.
REASON FOR CHANGE
PRWORA included a credit states could take for purposes of
establishing their work participation rate based on a state's
caseload reduction. Because caseloads have fallen so
dramatically, the effect of the caseload reduction credit has
been to diminish states' work participation rates. The cap on
the employment credit ensures that while policy priorities
relative to encouraging states to work to move clients into
good paying jobs are achieved, participation rates are not
undermined by the credit.
Employment credit
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill establishes a percentage point credit
against the work participation standard (subject to the limits
described immediately below). Essentially, the credit equals
the percentage of TANF families who leave ongoing cash
assistance with a job. It is calculated by dividing (a) twice
the quarterly average unduplicated number of families
(excluding child-only families) that received TANF assistance
during the preceding fiscal year but who ceased to receive
TANF--and did not receive cash assistance from a separate
state-funded program--for at least two consecutive months
following case closure during the applicable period (most
recent 4 quarters with data) and were employed during the
calendar quarter immediately after leaving TANF by (b) the
average monthly number of families (again excluding child-only
families) who received cash payments under TANF during the
preceding fiscal year. At state option, calculations could
include in the numerator: (1) twice the quarterly average
number of families that received non-recurring short term
benefits rather than ongoing cash and who earned at least
$1,000 in the quarter after receiving the benefit, and (2)
twice the quarterly average number of working families (earned
at least $1,000 in the quarter) that included an adult who
received TANF-funded substantial child care or transportation
assistance. TANF-funded child care includes child care funded
through transfers from TANF to the Child Care and Development
Block Grant (CCDBG). If both these options were taken, the
denominator would be increased by twice the number of families
that received non-recurring short-term benefits during the year
and by twice the quarterly average number of families with an
adult who received substantial child care or transportation
assistance. In consultation with directors of state TANF
programs, the Secretary is to define substantial child care or
transportation assistance, specifying a threshold for each type
of aid a dollar value or a time duration. The definition is to
take account of large one-time transition payments.
Extra credit--as 1.5 families--would be given to a family
whose earnings during the preceding fiscal year equaled at
least 33 percent of the state's average wage.
Employment credits or caseload reduction credits or a
combination of the two could not exceed 40 percentage points
for fiscal year 2006; 35 percentage points for fiscal year
2007; 30 percentage points for fiscal year 2008; 25 percentage
points for fiscal year 2009; and 20 percentage points for
fiscal year 2010 or thereafter. (As a result, credits could not
cut effective work participation rates below these floors: 10
percent for fiscal year 2006, 20 percent for fiscal year 2007;
30 percent for fiscal year 2008; 40 percent for fiscal year
2009, and 50 percent for fiscal year 2010 and thereafter.)
The Committee Bill requires the Secretary to issue
regulations to implement the employment credit. It also
requires the HHS Secretary to use information in the National
Directory of New Hires to calculate state employment credits.
If the TANF leaver's employer is not required to report new
hires, the Secretary must use quarterly wage information
submitted by the state. To calculate employment credits for
families who received non-recurring short term benefits and for
those who received substantial child care and transportation
assistance, the Secretary is to use other required data. The
Committee Bill requires the Secretary by August 31 each year to
determine--and to notify each state of--the amount of the
employment credit that will be used in calculating
participation rates for the immediately succeeding fiscal year.
States would continue to receive the current law caseload
reduction credit through FY2007 (subject to the cap, described
above). In FY2008, states would be given the option to either
take the employment credit or have their participation standard
reduced by a credit based \1/2\ on the current law caseload
reduction credit and \1/2\ based on the employment credit. The
employment credit would apply to all states beginning in
FY2009.
``The Senator Blanche L. Lincoln Employment Credit Study.''
The Committee Bill also provides that the Secretary of HHS will
report to the Senate Finance and House Ways and Means
Committees findings from a study, known as ``The Senator
Blanche L. Lincoln Employment Credit Study'' examining the
policy implications of modifying the design of the employment
credit. ``The Senator Blanche L. Lincoln Employment Credit
Study'' will include a discussion of the implications of
crediting the states for families receiving TANF-funded work
supports (child care and transportation aid), crediting
families diverted from the rolls who become employed, and
potential different thresholds for the ``good jobs'' bonus.
``The Senator Blanche L. Lincoln Employment Credit Study'' is
due July, 2009.
REASON FOR CHANGE
The current caseload reduction credit contains a flawed
incentive under which a state may receive credit toward the
work participation requirements for families who leave
assistance but do not become employed. The Committee Bill
substitutes an employment credit for families that leave
assistance for gainful employment.
Work activities
CURRENT LAW
The law lists 12 activities that can be credited toward
meeting participation standards. Nine activities have priority
status: unsubsidized jobs, subsidized private jobs, subsidized
public jobs, work experience, on-the-job training; job search
(6 weeks usual maximum, with no more than 4 consecutive weeks),
community service, vocational educational training (12 month
limit), and providing child care for TANF recipients in
community service. Three non-priority activities are countable:
job skills training directly related to employment; and (for
high-school dropouts only) education directly related to work
and completion of secondary school. The 6-week time limit on
countable job search is doubled during high unemployment. No
more than 30% of persons credited with work may consist of
persons engaged in vocational educational training and teen
parents without high school diplomas who are deemed to be
engaged in work through education. In tribal family assistance
programs, work activities are set by the HHS Secretary, with
the tribe's participation.
COMMITTEE BILL
The Committee Bill lists 20 activities that can be credited
toward meeting participation standards. It retains the 12 work
activities in current law, with the 9 priority activities
considered ``direct work'' activities, adds one new nonpriority
activity, and lists seven additional ``qualified activities''
that may be counted under certain conditions (see below). The
new nonpriority activity (countable after the family meets
minimum hours requirements in direct work activities, see
below) is marriage education, training, and conflict
resolution. The qualified activities are postsecondary
education; adult literacy programs or activities, including
participation in a program to increase proficiency in the
English language; substance abuse counseling or treatment
(including drug or alcohol abuse counseling or treatment);
programs or activities designed to remove work barriers, as
defined by the state; programs or activities authorized under a
waiver approved for any state after August 22, 1996 (regardless
of the expiration date of the waiver); financial literacy
training (limited to 5 hours per week); and programs or
activities designed to develop parenting skills. The Committee
Bill deletes the requirement that only four consecutive weeks
of job search can be counted within the normal 6 week limit.
The Committee Bill permits a state to define countable work
activities for persons complying with a family self sufficiency
plan and living in areas of Indian country or an Alaskan native
village with high ``joblessness.'' To qualify for this option,
the state must include in its TANF plan a description of its
policies for these areas.
REASON FOR CHANGE
The Committee Bill includes activities proposed to maintain
all the flexibility of current law and adds new flexibility in
countable activities. Expanding the list of allowable
activities would permit states to provide up-front job
preparedness for families who need specialized services. It
would allow states to engage recipients in short-term ``barrier
removal'' activities. Many states have such programs and some
have done these under waivers. Hours in such activities would
now count toward the federal participation standards.
Required work hours
CURRENT LAW
Generally, to count toward the all-family rate,
participation of 30 hours (20 hours in priority work
activities) is required. For two-parent families the standard
is 35 hours (30 in priority work activities), but increases to
55 hours (50 in priority activities) if the family receives
federally subsidized child care. Teen parents are deemed to
meet the weekly hour participation standard by maintaining
satisfactory attendance in secondary school (or the equivalent
in the month) or by participating in education directly related
to employment for an average of 20 hours weekly. In tribal
family assistance programs, required work hours are set by the
HHS Secretary, with the tribe's participation. [Note: except
for teen parents, single parents with a child under 6, and
participants in a tribal program with different hour
requirements, families must work an average of at least 30
hours weekly to be counted as working.]
COMMITTEE BILL
The Committee Bill adopts a standard work week of 24 hours
for a single parent with a child under age 6; 34 hours for a
single parent with a child over 6; 39 hours for a two-parent
family (but 55 hours for a two-parent family that receives
child care. The calculation of weekly work hours is made by
dividing monthly hours of work by 4. Families meeting the
standard are counted as 1.0 family in calculating the state's
work participation rate. Extra credit is given for work by a
single parent family (with or without a pre-schooler) above 34
hours, and by two-parent families above their 39- and 55-hour
standards. All schedules provide partial credit--provided
sufficient hours are spent in direct work activities--for hours
below the standard, as follows:
----------------------------------------------------------------------------------------------------------------
Single-parent family Two-parent family
Partial/full/extra work credit -------------------------------------------------------------------------------
Child under 6 No child under 6 With child care
----------------------------------------------------------------------------------------------------------------
.675 of a family................ 20-23 hours....... 20-23 hours....... 26-29 hours....... 40-44 hours.
.75 of a family................. .................. 24-29 hours....... 30-34 hours....... 45-50 hours.
.875 of a family................ .................. 30-33 hours....... 35-38 hours....... 51-54 hours.
1.0 family...................... 24-34 hours....... 34 hours.......... 39 hours.......... 55+ hours.
1.05 family..................... 35-37 hours....... 35-37 hours....... 40-42 hours....... 56-58 hours.
1.08 family..................... 38 + hours........ 38+ hours......... 43 + hours........ 59+ hours.
----------------------------------------------------------------------------------------------------------------
Generally, to receive any credit for hours at or below 24,
a single-parent family must engage for all of these hours in
direct work activities--unsubsidized job, subsidized private
job, subsidized public job, work experience, on-the-job
training; job search and job readiness assistance, community
service, vocational educational training, and providing child
care for TANF recipients in community service. For work credit,
a two-parent family generally must spend all hours at or below
34 weekly in direct work activities (50 hours if the family
receives federally funded child care and has no disabled
member). Once a family has reached the work hours threshold in
direct work activities, additional hours in unlimited job
search or vocational educational training or any of the six
``qualified activities'' would be counted.
However, for three months in any 24-month period, a state
may give work credit for any hours spent in one of the six
``qualified activities''--(1) postsecondary education; (2)
adult literacy programs or activities, including those to
increase proficiency in the English language; (3) substance
abuse counseling or treatment; (4) programs or activities
designed to remove work barriers, as defined by the state; (5)
programs or activities authorized under a waiver approved for
any state after August 22, 1996; and (6) financial literacy
training (for up to 5 hours per week). These ``qualified
activities'' may be combined with direct work activities to
meet hours requirements. An additional 3 months (within the 24
month period) would also be counted for recipients
participating in adult literacy programs (including programs to
increase proficiency in the English language) or recipients
participating in a service if the recipient is certified by a
qualified medical, mental health, or social services
professional as having a physical or mental disability,
substance abuse problem, or other problem that requires a
rehabilitative service.
A parent who provides continuous care for a child or
dependent with a physical or mental impairment may receive
credit as engaged in work under certain conditions. The
qualifying conditions include: the state must determine that
the child or dependent has an impairment that requires that he/
she have substantial continuous care, that the parent is the
only reasonable provider of the care, that the recipient is in
compliance with her self-sufficiency plan. The state must
conduct regular periodic evaluations of the recipient's family
and regularly update her self-sufficiency plan. (Section 101
requires state TANF plans to set forth criteria for deeming the
parent providing care for a disabled child or dependent to be
meeting all or part of that family's work requirements.)
The Committee Bill retains the (30 percent) limitation on
persons who may be credited with work by virtue of vocational
educational training (countable toward the direct work hours
requirement) or (if teen parents) by high school attendance or
work directly related to education. As discussed above,
vocational education done as a supplementary activity for
families meeting the priority hours threshold is not subject to
the 30 percent limitation. Teen parents who maintain
satisfactory secondary school attendance or participate in
education directly related to work for an average of 20 hours
weekly are deemed to count as one family.
REASON FOR CHANGE
The Committee Bill recognizes that the success achieved by
TANF and Work First programs are a result of a sustained
emphasis on adult attachment to the workforce. The Committee
Bill attempts to the build on the success of the past by
increasing work and reducing the welfare rolls. Successes thus
far come primarily from experiments and initiatives undertaken
at the state level under waivers or TANF to move recipients
from welfare-to-work. The Committee Bill establishes clearly
defined goals and benchmarks for hours of participation.
Under the Committee Bill, states would have flexibility to
engage single moms with preschoolers at fewer hours than the
overall ``standard'' and to offset this by engaging others full
time.
The Committee Bill would expand the list of activities that
count after a recipient has engaged in core work activities for
24 hours--allowing states to count ``supplemental'' hours spent
in post-secondary education, vocational education beyond 1
year; and other education and barrier removal activities.
It would encourage states to provide post-employment
activities, particularly education or additional job search,
for working recipients to help recipients enhance their job
skills and training to advance and leave welfare.
The Committee Bill provides a ``Tiered Approach'' to
calculating hours of work activity counted towards meeting the
participation rate.
``Partial credit'' recognizes that some recipients might
not meet the full-time standard; for example, persons in
unsubsidized employment might be employed part-time or part of
the month.
The Committee Bill recognizes that parents who must engage
in substantial, continuous care of a disabled child or family
member are engaged in meaningful activity. States should work
with these families to monitor their progress and development.
Section 110--Universal Engagement and Family Self Sufficiency Plan
Requirements; Other Prohibitions and Requirements
Universal Engagement
CURRENT LAW
State plan must require that a parent or caretaker engage
in work (as defined by the state) after, at most, 24 months of
assistance. (This requirement is not enforced by a specific
penalty.)
COMMITTEE BILL
The Committee Bill deletes the 24-month work trigger
provision. It requires that state plans outline how they intend
to require adult or minor heads of households to engage in work
or alternative sufficiency activities, as defined by the
state--while observing the prohibition against penalizing work
refusal by a single parent of a preschool child if she has a
demonstrated inability to obtain needed child care for
specified reasons. It also requires state plans to outline how
they intend to require families to engage in activities
according to their self-sufficiency plans. The Committee Bill
allows, but does not require, states to develop self-
sufficiency plans for child-only cases.
REASON FOR CHANGE
By requiring states to outline how they intend to engage in
self-sufficiency efforts all TANF families--not just those
included in the work participation rate--the Committee Bill
would promote movement of all families from dependence to self-
sufficiency.
Family Self-Sufficiency Plan Requirements
CURRENT LAW
Within 30 days, states must make an initial assessment of
the skills, work experience, and employability of each
recipient 18 or older or those who have not completed high
school. States may, but need not, establish an individual
responsibility plan for each family.
COMMITTEE BILL
The Committee Bill requires states to make an initial
screening and assessment, in a manner they deem appropriate, of
the skills, work experience, education, work readiness, work
barriers and employability of each adult or minor head of
household recipient who has attained age 18 or who has not
completed high school and to assess, in a manner they deem
appropriate, the work support and other assistance and family
support services for which families are eligible and the well-
being of the family's children and, where appropriate,
activities or resources to improve their well being. The
Committee Bill requires states, in a manner they deem
appropriate, to establish a self-sufficiency plan for each
family with an adult recipient or minor head of household
recipient. (States may establish self-sufficiency plans
describing services only for child-only cases.) Required plan
contents: activities designed to assist the family to achieve
their maximum degree of self-sufficiency; requirement that the
recipient participate in activities in accordance with the
plan; supportive services that the state intends to provide;
steps to promote child well-being and, when appropriate,
adolescent well-being; and information about work support
assistance for which the family may be eligible (such as food
stamps, Medicaid, SCRIP, federal or state funded child care--
including that provided under the Child Care and Development
Block Grant and the Social Services Block Grant), EITC, low-
income home energy assistance, WIC, WIA program, and housing
assistance). The state must monitor the participation of adults
and minor child household heads in the self-sufficiency plans
and, using methods it determines appropriate, regularly review
the family's progress and revise the plan when appropriate.
Before imposing a sanction against a family for failing to
comply with a TANF rule or requirement of the self-sufficiency
plan, the state must, to the extent deemed appropriate by the
state, review the plan and make a good faith effort (defined by
the state) to consult with the family.
States must comply with self-sufficiency plan requirement
within one year after enactment (for families then receiving
TANF). For families not enrolled on the date of enactment, the
deadline for self-sufficiency plans is the later of: 60 days
after the family first receives assistance on the basis of its
most recent application, or 1 year after enactment. The
Committee Bill provides that nothing in the self-sufficiency
plan subsection or amendments made shall be construed to
establish a private right or cause of action against a state
for failure to comply with the provisions or to limit claims
that might be available under other federal or state laws. The
Government Accountability Office is required to submit a report
to the Ways and Means and Finance Committees evaluating the
implementation of the universal engagement provisions of the
bill.
The Committee Bill adds failure to comply with family self-
sufficiency plan requirements to the penalty paragraph
regarding failure to comply with minimum participation
standards (see above for penalty schedule). For fiscal year
2007 and later, it provides that the penalty shall be based on
the degree of substantial noncompliance. The Secretary must
take into account factors such as the number or percentage of
families for whom a plan is not established in a timely
fashion, the duration of delays, whether the failure is
isolated and nonrecurring, and the existence of systems to
ensure establishment and monitoring of plans. The Secretary may
reduce the penalty if the noncompliance is due to circumstances
that made the state needy under the contingency fund definition
or due to extraordinary circumstances such as a natural
disaster or regional recession.
REASON FOR CHANGE
The Committee Bill would require states to make families on
assistance aware of additional work supports and assistance for
which they are eligible. The Committee Bill adds a penalty
provision to enforce the new requirement that states develop
family self-sufficiency plans for recipients, while stipulating
that states will not be subject to penalty unless they are in
substantial noncompliance with the law.
State Option To Receive Work Credit for Individual With Continuing Need
for Rehabilitative Services
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill permits states the option of continuing
to provide rehabilitative services, if needed, beyond 6 months.
To be counted as working, recipients must be engaged in
additional work activities for at least half the time required
to count recipients without disabilities. Eligible individuals
must be determined, using a medically acceptable clinical or
diagnostic technique, as having a disability that impedes the
individual's ability to function in a work setting. To be
eligible for the state option state agencies must work
collaboratively in assisting the person with disabilities.
REASON FOR CHANGE
To provide states with the option to receive work
participation rate credit for a recipient whose self-
sufficiency plan specifies that they have a continuing need for
rehabilitative services in order to engage in direct work
activities.
Transitional Compliance for Teen Parents
CURRENT LAW
The law makes an unmarried teenage parent (under age 18)
ineligible for federally funded TANF assistance if she has a
minor child at least 12 weeks old and no high school diploma
unless she participates in a high school diploma program (or
equivalent) or in an alternative educational or training
program approved by the state. To receive TANF, she also must
live with her child in an adult-supervised setting (a residence
maintained by her parent, legal guardian, or other adult
relative). If the teen parent has no available relative or
guardian with whom to live, or if the state determines that the
relative's home might be harmful, the state must provide, or
assist the teen mother in locating, a second chance home,
maternity home, or other appropriate adult-supervised living
arrangement. TANF funds may be used to help operate second-
chance homes.
COMMITTEE BILL
The Committee Bill would allow 60 days for a teen parent to
comply with these requirements--permitting states to give
federally funded TANF for up to 60 days to a teen parent not
yet participating in education or training or not yet living in
an adult-supervised arrangement. It also would add to allowable
living arrangements transitional living youth projects funded
under section 321 of the Runaway and Homeless Youth Act.
REASON FOR CHANGE
The Committee Bill includes a ``transitional compliance''
period for minor parents, so that income-eligible minor parents
who at the time of application are having trouble meeting the
rules and eligibility conditions related to education and
living arrangements (such as school dropouts and homeless
youth) are brought into the program where they can get the case
management they need to meet the requirements.
TANF Time Limit in Areas of Indian Country With High Joblessness
CURRENT LAW
In applying TANF's 60-month limit on the use of Federal
funds for assistance to a family with an adult, the law
requires disregard of months of assistance provided to adults
living in Indian country in which at least 50 percent of the
adults are unemployed.
COMMITTEE BILL
For the purposes of TANF's 60 month time limit, the
Committee Bill requires disregard of months of assistance
received by an adult living in Indian country if at least 40
percent of adult recipients are jobless. The 40 percent
threshold is reduced to 35 percent if the adult is in a state
that meets the TANF contingency fund ``needy state'' criteria
or the tribe meets criteria for access to the contingency fund.
REASON FOR CHANGE
Many areas of Indian Country face substantial challenges to
sustainable employment. Further, areas of Indian Country have
significant differences with what constitutes work and how much
work is available. The provision to change the threshold and
continue flexibility in applying time limits in Indian Country
is intended to better serve the needs of tribes so they can
effectively operate tribal TANF programs.
Section 111--Penalties Against States
Maintenance of Effort Requirement
CURRENT LAW
To receive a full TANF grant, state spending under all
state programs in the previous year on behalf of TANF-eligible
families (defined to include those ineligible because of the 5-
year time limit or the federal ban on benefits to new
immigrants) must equal at least 75 percent of the state's
historic level (sum spent in FY1994 on AFDC and related
programs). If a state fails work participation requirements,
the required spending level rises to 80 percent. State
expenditures that qualify for maintenance-of-effort credit are
cash aid, child care, educational activities designed to
increase self-sufficiency, job training, and work (but not
generally available to non-TANF families) administrative costs
(15 percent limit), child support collection passed through to
the familywithout benefit reduction, and any other use of funds
reasonably calculated to accomplish a TANF purpose.
COMMITTEE BILL
The Committee Bill extends the requirement that states
maintain their own funding at 75 percent of its historic level
(80 percent in case of failure to satisfy work standards) to
cover FYs 2006 through 2011. It also specifies that a state's
required MOE percentage for a given year is to be based on its
meeting or failing the work requirement for the preceding
fiscal year.
REASON FOR CHANGE
By basing the MOE requirement on the state's work
performance in the preceding year, the Committee Bill ensures
that states know the MOE requirement they will need to meet at
the start of the year.
States With Work Program Improvement
CURRENT LAW
States are penalized for failure to meet work participation
standards through a reduction in their block grant. States that
fail the TANF work standards may enter into a corrective
compliance plan with HHS which outlines how the state will come
into compliance with the standards.
COMMITTEE BILL
The Committee Bill provides that a state with a corrective
compliance plan accepted by the Secretary that also has had a 5
percentage point improvement in its work participation rate
from the previous year will not be assessed a financial penalty
for failure to meet TANF work participation standards.
REASON FOR CHANGE
To ensure that states that are making improvement towards
increasing their participation rate are not penalized.
Section 112--Data Collection and Reporting
CURRENT LAW
The law requires states to collect monthly, and report
quarterly, disaggregated case record information (sample case
record information may be used) about families who receive
assistance under the state TANF program (except for information
relating to activities carried out with welfare-to-work grants
from the Department of Labor [DOL]). Required information
includes ages of family members, size of family, employment
status and earnings of the employed adult, marital status of
adults, race and educational level of each adult and child,
whether the family received subsidized housing, Medicaid, food
stamps, or subsidized child care (and if the latter two, the
amount). Also required are the number of hours per week that an
adult participated in specified activities, information needed
to calculate participation rates, type and amount of assistance
received under TANF, unearned income received, and citizenship
of family members.
Quarterly reports also must include the percentage of funds
used for administrative costs or overhead, the total amount
spent on programs for needy families, the number of
noncustodial parents who participated in work activities, and
the total amount spent on transitional services (with separate
accounting for welfare-to-work grants). Quarterly reports also
must provide the number of families and persons who received
assistance each month and the total value of this assistance
(with a breakdown for welfare-to-work grants). From a sample of
closed cases, the report must provide the number of case
closures attributed to employment, marriage, time limit
sanction or state policy. The law requires the Secretary to
submit annual reports to Congress that include state progress
in meeting TANF objectives, demographic and financial
characteristics of applicants, recipients, and ex-recipients,
characteristics of each TANF-funded program, and trends in
employment and earnings of needy families with children.
COMMITTEE BILL
The Committee Bill extends quarterly reporting requirements
to cover families in MOE-funded separate state programs. It
requires monthly reports from states on the TANF and separate
state program caseload and annual reports from states on the
characteristics of their state TANF program and their MOE
separate state programs. Annual state reports must include
names of programs, their activities and purpose, eligibility
criteria, funding sources, number of beneficiaries, sanction
policies, and work requirements, if any. The Committee Bill
qualifies the use of samples to provide disaggregated case
record information, permitting the Secretary to designate core
data elements that must be reported for all families. The
Committee Bill also changes some of the data elements required
in the quarterly reports. It adds the race and educational
level of each minor parent, deletes the educational level of
each child, and adds the reason for receipt of assistance for a
total of more than 60 months. It conforms the reporting of
hours in work activities to the expanded definition of
activities that count toward the work participation standards.
It also requires information needed to calculate progress
toward universal engagement of each family, the date the family
first received TANF, whether a self-sufficiency plan is
established for the family; the marital status of the parents
at the birth of each child in the family, and whether paternity
has been established for those who were unwed. Quarterly
reports must include information on families that became
ineligible for assistance from TANF- or MOE-funded separate
state programs during the month, broken down by reason
(earnings, changes in family composition that result in
increased earnings, sanctions, time limits, or other specified
reasons). The Committee Bill requires the Secretary to
prescribe regulations needed to collect data and to consult
with the NGA, APHSA, and the National Conference of State
Legislatures (as well as the Secretary of Labor) in defining
data elements for required reports. The Committee Bill changes
the requirements for the Secretary's annual TANF reportsto
Congress by setting July 1 as the deadline, deleting the requirement
for information about applicants and requiring that the report include
information about separate state MOE programs.
The Committee Bill requires states to report to the
Secretary annually, beginning with FY2005, on achievement and
improvement in TANF and MOE-funded separate state programs
during the past fiscal year under the state's performance goals
and measures. It also requires states to file annual reports on
their progress toward the achievement of ``universal
engagement.''
The Committee Bill also extends CCDBG case-level reporting
to TANF-funded child care. It requires the Secretary to
coordinate reporting so that states are not required to submit
duplicate information to meet both TANF and CCDBG reporting and
allows the Secretary to permit a state to fulfill reporting
requirements with a consolidated TANF/CCDBG report on families
receiving child care. It also allows the Secretary to waive
this requirement if the Secretary determines that it would be
administratively or financially burdensome to a state, but
states granted such waivers must post data on TANF-funded child
care on a web site. The Committee Bill provides 2 years for
states to comply with this requirement.
REASON FOR CHANGE
The Committee Bill extends quarterly reporting requirements
to ensure consistent data reporting and monitoring of all
qualified state programs. Annual reports on all TANF and MOE
programs are needed to provide information (e.g., number of
beneficiaries) that is not otherwise available on non-cash
assistance programs. Designation of a few core data elements
for universal reporting would facilitate performance
measurement and accountability. These elements are already
submitted by states as part of the High Performance Bonus data
collection. Data elements that have been difficult for the TANF
agency to collect and report, or are not used to any
significant extent, would be dropped to reduce burden on state
agencies. A few data elements would be added to monitor
compliance with universal engagement requirements.
Section 113--Direct Funding and Administration by Indian Tribes
CURRENT LAW
The allows Indian tribes to operate their own tribal family
assistance plans. Tribes that opt to operate their own programs
receive an amount equal to federal pre-TANF payments received
by the state attributable to Indians for administration of the
programs. These sums ($115 million in FY2003) are deducted from
state TANF grants. It also appropriates $7.6 million annually
for work and training activities (now known as Native
Employment Works [NEW]) to tribes that operated a pre-TANF work
and training program.
COMMITTEE BILL
The Committee Bill reauthorizes tribal family assistance
grants for FY2006-FY2010. It reauthorizes and increases funding
for the NEW work program to $12.6 million annually for FY2006
through FY2010. Each NEW program will receive the same percent
of the $12.6 million appropriation as it received of the $7.6
million appropriation under current law. The Committee Bill
also provides that if a tribe elects to incorporate its TANF
program into a job training, tribal work experience, employment
opportunities and skill development demonstration project, it
would be subject to the requirements of the Indian Employment,
Training, and Related Services Demonstration Act of 1992.
The Committee Bill establishes tribal improvement grants
and appropriates $80 million for them to support:
Tribal capacity grants for tribal human services
infrastructure ($40 million). The Secretary of HHS shall award
grants to Indian tribes for improving human services
infrastructure, including management information systems,
management information system-related training, equipping
offices, and renovating (but not constructing) buildings. The
Secretary is to give first priority to tribes that have applied
for approval to run tribal family assistance programs; second
priority to tribes that have an approved tribal family
assistance plan; and third priority for tribes with approved
foster care and adoption assistance programs (see Title IV).
Tribal development grants to provided technical
assistance in improving reservation economies ($35 million).
The Secretary of HHS, through the Commissioner of the
Administration for Native Americans, shall award grants to
nonprofit organizations, Indian tribes, and tribal
organizations to enable grantees to provide technical
assistance to tribes and tribal organizations in the following
areas: the development of uniform commercial codes; creation or
expansion of small business or microenterprise programs; the
development of tort liability codes; creation or expansion of
tribal marketing efforts; creation or expansion of for-profit
collaborative business networks; development of innovative uses
of telecommunications to help with distance learning or
telecommuting; and development of economic opportunities in
areas of high joblessness (with 30 percent of the grants
awarded in this area).
Technical assistance ($5 million). Of this amount,
at least $2.5 million is for peer-learning programs among
tribal administrators; and at least $1 million is for making
grants to Indian tribes for feasibility studies of their
capacity to operate tribal family assistance programs.
The Committee Bill also enhances the information reported
by HHS on Indians in the TANF annual report; increases
requirements for consultation and coordination among states and
tribes in developing TANF state plans; requires States to
describe how they will provide equitable access to members of
Indian tribes or tribal organizations not in a tribal TANF
program; and requires a Government Accountability Office (GAO)
report on the demographic, economic, and health characteristics
of Indians who reside in Indian Country, Alaska, or receive
assistance under a tribal TANF program (due January 1, 2007).
Other provisions that affect tribal TANF programs include:
making tribal organizations eligible for the Employment
Achievement Bonus (Section 105); giving tribes access to the
Contingency Fund (Section 106); modification to time limit
rules for persons living in Indian country or Alaskan Native
villages with high rates of joblessness (Section 110); setting
aside $2 million to study Indian welfare programs (Section
114); increasing the tribal set aside for mandatory child care
funds to a minimum of 2 percent of the appropriation (Section
116); and providing tribes the authority to receive Federal
foster care and adoption assistance funds (Section 403).
REASON FOR CHANGE
The 1996 welfare law permitted Indian tribes to operate
their own welfare programs for the first time. Since 1996, 47
tribal TANF plans, serving 232 tribes, have been approved by
HHS. These tribes and intertribal consortia have taken
advantage of the flexibility allowed under TANF to design
culturally appropriate programs to support low-income American
Indians. This important policy, allowing for tribal
administration of programs to tribal citizens, is consistent
with the value of tribal sovereignty. Although tribes have
shown enthusiasm for taking on TANF administration, there is
more work to be done. Less than \1/3\ of tribes are served by
tribal TANF programs, largely due to prohibitive start-up costs
and insufficient administrative support. Tribes that are
administering TANF have had to supplement the funding they
receive to implement TANF. Moreover, according to the Census
Bureau, 25.7 percent of American Indians live in poverty, more
than twice the national poverty rate. The average household
income for American Indians is only 72.9 percent of that of the
rest of Americans.
The Committee Bill contains critical provisions to support
tribes in setting up and improving tribal TANF programs while
exercising their sovereignty to adapt their programs to better
fit the needs of American Indians residing in tribal
communities. The Committee Bill includes provisions to support
economic development and job creation in Indian Country, better
facilitating opportunities for tribal citizens to move from
welfare (whether served by state or tribal programs) to work.
Provisions supporting tribal capacity building, technical
assistance, and infrastructure development for tribal human
service programs bring much-needed resources to tribes
operating their own welfare programs. Funding to expand job
training programs and lock in tribal child care funding at the
current rate is also included. Another provision allows tribes
with high joblessness rates the continued flexibility to
determine how best to approach work requirements and terms of
assistance. The addition of a GAO study to identify barriers
for urban Indians accessing benefits and the new requirements
for HHS to collect more comprehensive data on receipt of
benefits among American Indians will contribute to the data
needed to address poverty and work supports in Indian Country.
Section 114--Research, Evaluations, and National Studies
CURRENT LAW
The 1996 welfare law required the HHS Secretary to conduct
research on effects, costs, and benefits of state programs. It
provides that the Secretary might help states develop
innovative approaches to employing TANF recipients and
increasing the well-being of their children and directed the
Secretary to evaluate these innovative projects. It
appropriates $15 million yearly, half for TANF research and
novel approaches cited above and half for the federal share of
state-initiated TANF studies and the completion and evaluation
of pre-TANF waiver projects. (Section 413 of the Social
Security Act also requires the Secretary to rank annually the
states to which family assistance grants are paid, in the order
of their placing recipients into long-term private sector jobs,
reducing the overall welfare caseload, and, when a practicable
calculation method becomes available, diverting persons from
formally applying for TANF assistance.)
COMMITTEE BILL
The Committee Bill appropriates $100 million yearly for FYs
2005 through 2010, of which 80 percent must be spent-on
marriage promotion activities (described in the section
establishing marriage grants). It makes these funds available
to the HHS Secretary for the purpose of conducting and
supporting research and demonstration projects by public or
private entities, and providing technical assistance to states,
Indian tribal organization, and such other TANF grantees as the
Secretary may specify. It authorizes the Secretary to conduct
these studies and demonstrations directly or through grants,
contracts, or interagency agreements. In addition, for 5 years
(FYs 2006 through 2010) it extends the current law annual
appropriation of $15 million and it designates a 50-50
allocation.
The Committee Bill establishes a limited demonstration
program for up to 10 states to enhance or to provide for
improved program integration coordination and delivery of
public assistance. The only programs eligible for inclusion in
the demonstration are: TANF, the Social Services Block Grant,
and child care funded from mandatory child care funds. States
would need to include a plan for evaluation to demonstrate the
improved effectiveness of programs included. The Secretary
would need to approve the state's plan. The following are
provisions excluded from waiver authority: civil rights or
prohibition of discrimination; the purposes or goals of any
program; maintenance of effort requirements; health, safety or
licencing requirements; requirements relating to the use of
financial assistance for activities to improve the quality and
availability of child care; report and audit requirements of
the Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.); requirements of that Act that limit what
financial assistance shall be expended for; the State plan and
State applications requirements specified in section 658E of
that Act (42 US.C. 9858c); labor standards under the Fair Labor
Standards Act of 1938; or environmental protection. Additional
provisions include: in the case of child care assistance funded
under section 418 of the Social Security Act (42 US.C. 618),
with respect to the requirement under the first sentence of
subsection (b)(1) of that section that funds received by a
State under that section shall only be used to provide child
care assistance; with respect to any requirement that a State
pass through to a sub-State entity part of all of an amount
paid to the State; if the waiver would waive any funding
restriction or limitation provided in an appropriations Act, or
would have the effect of transferring appropriated funds from
one appropriations account to another; or, except as otherwise
provided by statute, if the waiver would waiver any funding
restriction applicable to a program authorized under an Act
which is not an appropriations Act (but not including program
requirements such as application procedures, performance
standards, reporting requirements, or eligibility standards),
or would have the effect of transferring funds from a program
for which there is direct spending (as defined in section 250
(c)(8) of the Balanced Budget and Emergency Deficit Control Act
of 1985) to another program. Additionally, The Director of the
Office of Management and Budget shall establish a procedure for
ensuring that not more than 10 states (including any portion of
a state) conduct a demonstration project.
The Committee Bill appropriates $10 million annually for
the development of comprehensive indicators of child well-
being. The indicators shall include measures related to
education; social and emotional development; health and safety;
and family well-being, such asfamily structure, income,
employment, child care arrangements, and family relationships. Among
the requirements for the indicators is that they be statistically
representative at the State level, consistent across states, and over-
sampled with respect to low-income children and families. The Secretary
is to consult with the Federal Interagency Forum on Child and Family
Statistics. It also requires the establishment of an advisory panel,
appointed by the Secretary of HHS; the chairman and ranking members of
the House Ways and Means and Senate Finance Committees; the Chairman of
the National Governors Association; the President of the National
Conference of State Legislatures; and the Director of the National
Academy of Science.
The Committee Bill authorizes $20 million for each of the
FY 2006-2010 for Domestic Violence Prevention Grants. The
Committee Bill provides that the Secretary of Health and Human
Services shall award grants to eligible entities to enable such
entities to carry out domestic violence prevention activities.
These activities include: developing and disseminating best
practices for addressing domestic and sexual violence;
implementing voluntary skills programs on domestic violence as
a barrier to economic security, including providing caseworker
training, technical assistance and voluntary services for
victims of domestic violence; providing broad-based income
support and supplementation strategies that provide increased
assistance to low-income working adults, such as housing,
transportation, and transitional benefits as a means to reduce
domestic violence, or, carrying out programs to enhance
relationship skills and financial management skills, teaching
individuals how to control aggressive behavior, and to
disseminating information on the causes of domestic violence
and child abuse.
The Committee Bill appropriates $2 million for FY2006 to
fund research on tribal welfare programs and efforts to reduce
poverty among Indians.
The Committee Bill requires the Secretary of HHS, in
consultation with the Attorney General, to submit a report to
Congress on the enforcement of affidavits of support and
sponsor deeming required by the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (P.L. 104-193). The
report is due March 31, 2006.
REASON FOR CHANGE
Healthy marriages are critically important to the well-
being of children, a point recognized in the purposes of the
original TANF law. The TANF program works with families to help
them overcome great difficulties and barriers, so they can
become stronger and self-sufficient. One important way we can
help many families is to help them build the skills and
knowledge that will enable them to form and sustain healthy
marriages.
However, there is much that we do not yet know about how
states and communities can effectively promote healthy
marriages. The Secretary's Fund for Research Demonstrations and
Technical Assistance serves several purposes. Just as current
welfare to work programs are built on the foundation of
considerable research and experience, the ability of states and
communities to provide effective assistance to families in the
future will depend on a strong base of research and examined
experience.
This section would fund research on the operation and
impact of various promising healthy marriage promotion services
and strategies. Funds would also be used to support
demonstration projects intended to examine how various
comprehensive community based strategies and programs can help
to promote the development and strength of healthy marriages.
Funds would be available for HHS to make technical
assistance available to program operators, in particular, by
helping states, tribes and local administrators learn from each
other.
Effective service delivery is often inhibited by poor
coordination and inefficiencies inherent to providing
complementary services through different programs. Through
these demonstrations, states could explore ways to build truly
seamless services and improve the quality of services for
families and enhance child well-being.
The domestic violence prevention grants can be used to
support activities to reduce incidence of domestic and sexual
violence and child abuse.
Section 115--Study by the Census Bureau
CURRENT LAW
Appropriates $10 million annually to expand the Survey of
Income and Program Participation (SIPP) so as to obtain data
with which to evaluate TANF's impact on a random national
sample of recipients and, as appropriate, other low-income
working families.
COMMITTEE BILL
The Committee Bill appropriates $10 million annually for
FYs 2006 through 2010 for the Census Bureau for a new
enhancement to the SIPP to allow for an assessment of the
outcomes of continued welfare reform on the economic and child
well-being of low income families with children.
REASON FOR CHANGE
Reauthorization of TANF provides an opportunity to
strengthen the SIPP and build upon the Census Bureau's federal-
state partnership, linking state cross-program administrative
data and survey data to meet the requirements in the enhanced
SIPP to understand how low-income families are faring under
TANF.
Section 116--Funding for Child Care
CURRENT LAW
Current law provides $2.7 billion per year for mandatory
child care funds. These mandatory funds are combined with
discretionary funds under an expanded Child Care and
Development Block Grant (CCDBG).
COMMITTEE BILL
The Committee Bill included additional child care funding
and three revenue provisions. According to the Congressional
Budget Office (``CBO''), the additional child care funding that
was added during the Committee's consideration of the bill
scores as an increase in outlays of approximately $4.516
billion over the period of 2005-2010 and $4.980 billion over
the period of 2005-2015 while the three revenue provisions
produce a net change in the baseline of $2.859 billion over the
period of 2005-2010 and $5.662 billion over the period of 2005-
2015. According to the Joint Committee on Taxation (``JCT''),
the three revenue provisions are estimated to increase budget
receipts by the following amounts over five and ten years: (1)
a modification to the required Social Security number for
purposes of the earned income credit ($0 over five and ten
years), (2) the uniform definition of a qualifying child ($576
million over five years and $1.253 billion over ten years), and
(3) the availability of the refundable child credit to
taxpayers excluding income under section 911 of the Internal
Revenue Code ($322 million over five years and $440 million
over ten years), for an estimated total increase in budget
receipts of $898 million over five years and $1.693 billion
over ten years. CBO recognizes the modification to the earned
income credit relating to Social Security Numbers provision
produces a net change in the baseline of $1.654 billion over
the period of 2005-2010 and $3.534 billion over the period of
2005-2015. Because this item is a technical correction of an
earlier legislative action, the budget effect of which has
already been taken into account in the legislative process, the
JCT does not score this change. Since this change is an
amendment to the Internal Revenue Code, the JCT position
controls for purposes of the Budget Act.
A. Clarification of Earned Income Credit Rule Regarding Taxpayer
Identification Numbers
(Sec. 116(d) of the bill and sec. 32 of the Code)
PRESENT LAW
The earned income credit is a refundable tax credit
available to certain lower-income individuals. Generally, the
amount of an individual's allowable earned income credit is
dependent on the individual's earned income, adjusted gross
income, and number of qualifying children. Individuals are
ineligible for the credit if they do not include on their tax
return their taxpayer identification numbers, along with that
of their spouse (if married) and of each qualifying child.
If an individual fails to provide the required taxpayer
identification number, then the earned income credit is denied.
Such omission is treated as a mathematical and clerical error
by the Internal Revenue Code, which allows the Internal Revenue
Service to use certain expedited assessment and collection
procedures.
The rule requiring the inclusion of valid taxpayer
identification numbers for purposes of the earned income credit
was intended to deny the credit with respect to individuals not
authorized to work in the United States. Enacted in the
Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 (the ``1996 Act''), the rule was intended to operate by
narrowly defining the term ``taxpayer identification number''
for purposes of the earned income credit to include only social
security numbers issued by the Social Security Administration
that permit their recipients to work in the United States
(``valid-for-work'' social security numbers). However, the
provision in the 1996 Act included an incorrect reference to
the Social Security Act with respect to taxpayer identification
numbers.\1\ As a result, present law permits certain taxpayers
to claim the earned income credit using taxpayer identification
numbers that are not valid-for-work social security numbers.
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\1\ Specifically, the 1996 Act permitted the Internal Revenue
Service for earned income credit purposes to accept all social security
numbers issued by the Social Security Administration except those
issued pursuant to clause II (or that portion of clause III that
relates to clause II) of section 205(c)(2)(B)(i) of the Social Security
Act, which relates to social security numbers issued to applicants for
or recipients of benefits from federally financed programs. However,
not every social security number issued under other provisions of the
Social Security Act constitutes a valid-for-work social security
number.
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REASON FOR CHANGE
The Committee seeks to correct the earned income credit
rules to properly reflect the intent of Congress to allow an
earned income credit only to individuals authorized to work in
the United States.
EXPLANATION OF PROVISION
The bill makes a technical correction to revise the cross-
reference to the Social Security Act in order to limit
qualifying taxpayer identification numbers to valid-for-work
social security numbers.
EFFECTIVE DATE
The provision is effective for taxable years beginning
after the date of enactment.
B. Deny the Refundable Child Credit When Section 911 Exclusion Is
Elected
(Sec. 116(e) of the bill and sec. 24 of the Internal Revenue Code)
PRESENT LAW
Child credit
In general
An individual may claim a $1,000 tax credit for each
qualifying child under the age of 17.\2\ In general, a child is
a qualifying child of a taxpayer for this purpose if the child:
(1) has the same principal place of abode as the taxpayer for
more than one half the taxable year; (2) has a specified
relationship to the taxpayer; and (3) has not provided over
one-half of his or her own support. A tie-breaking rule applies
if more than one taxpayer claims a child as a qualifying child.
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\2\ The credit reverts to $500 in taxable years beginning after
December 31, 2010, under the sunset provision of the Economic Growth
and Tax Relief Reconciliation Act.
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The child tax credit is phased-out for individuals with
income over certain thresholds. Specifically, the otherwise
allowable child tax credit is reduced by $50 for each $1,000
(or fraction thereof) of modified adjusted gross income over
$75,000 for single individuals or heads of households, $110,000
for married individuals filing joint returns, and $55,000 for
married individuals filing separate returns. For this purpose,
modified adjusted gross income is computed by increasing the
individual's adjusted gross income by the amount otherwise
excluded from gross income under Internal Revenue Code sections
911, 931, and 933 (relating to the exclusion of income of U.S.
citizens or residents living abroad; residents of certain U.S.
possessions; and residents of Puerto Rico; respectively). The
length of the phase-out range depends on the number of
qualifying children. For example, the phase-out range for a
single individual with one qualifying child is between $75,000
and $95,000 of modified adjusted gross income. The phase-out
range for a single individual with two qualifying children is
between $75,000 and $115,000.
The amount of the child tax credit and the phase-out ranges
are not adjusted annually for inflation.
Refundability
For 2005, the child credit is refundable to the extent of
15 percent of the taxpayer's earned income in excess of $11,000
(this amount is indexed for inflation). Families with three or
more children are allowed a refundable credit for the amount by
which the taxpayer's social security taxes exceed the
taxpayer's earned income credit, if that amount is greater than
the refundable credit based on the taxpayer's earned income in
excess of $11,000 (for 2005). The amount by which the
refundable portion of the child credit exceeds the taxpayer's
Federal income tax liability is payable to the taxpayer as a
direct transfer payment. The refundable portion of the child
credit does not constitute income and is not treated as
resources for purposesof determining eligibility or the amount
or nature of benefits or assistance under any Federal program or any
State or local program financed with Federal funds.
The definition of ``earned income'' for purposes of the
refundable child credit generally follows that for the earned
income credit, which includes (1) wages, salaries, tips and
other employee compensation to the extent includible in gross
income, plus (2) net earnings from self-employment. Earned
income must be taken into account in computing taxable income
in order to be considered earned income for calculating the
refundable child credit.
Earned income credit
In general
Low and moderate-income workers may be eligible for the
refundable earned income credit (``EIC''). Eligibility for the
EIC is based on earned income, adjusted gross income,
investment income, filing status, and immigration and work
status in the United States. The amount of the EIC is based on
the presence and number of qualifying children in the worker's
family, as well as on adjusted gross income and earned income.
The earned income credit generally equals a specified
percentage of earned income up to a maximum dollar amount.
Earned income that is not included in gross income is not
considered earned income for purposes of determining the earned
income credit. The maximum amount applies over a certain income
range and then diminishes to zero over a specified phaseout
range. For taxpayers with earned income (or adjusted gross
income (``AGI''), if greater) in excess of the beginning of the
phaseout range, the maximum EIC amount is reduced by the
phaseout rate multiplied by the amount of earned income (or
AGI, if greater) in excess of the beginning of the phaseout
range. For taxpayers with earned income (or AGI, if greater) in
excess of the end of the phaseout range, no credit is allowed.
The EIC is a refundable credit, meaning that if the amount
of the credit exceeds the taxpayer's Federal income tax
liability, the excess is payable to the taxpayer as a direct
transfer payment.
Interaction of EIC and section 911
An individual electing to exclude foreign earned income
under the provisions of section 911 of the Internal Revenue
Code is not eligible for the EIC.
Foreign earned income and housing cost exclusion (section 911)
U.S. citizens generally are subject to U.S. income tax on
all their income, whether derived in the United States or
elsewhere. U.S. citizens living abroad may be eligible to elect
to exclude from their income for U.S. tax purposes certain
foreign earned income and foreign housing costs, in which case
no residual U.S. tax is imposed to the extent of such
exclusion.
The maximum exclusion amount for foreign earned income is
$80,000 per taxable year for 2005-2007. For taxable years
beginning after 2007, the maximum foreign earned income
exclusion amount is indexed for inflation. The amount of the
employer-provided housing exclusion is equal to the excess of
the taxpayer's ``housing expenses'' over a base housing amount.
The term ``housing expenses'' means the reasonable expenses
paid or incurred during the taxable year with respect to the
taxpayer's housing in the foreign country. In the case of
housing costs that are not paid or reimbursed by the taxpayer's
employer, the amount that would be excludible is treated
instead as a deduction. The combined foreign earned income
exclusion and housing cost exclusion may not exceed the
taxpayer's total foreign earned income for the taxable year.
In order to qualify for the exclusions for foreign earned
income and housing costs, an individual must be either: (1) a
U.S. citizen who is a bona fide resident of a foreign country
for an uninterrupted period that includes an entire taxable
year, or (2) a U.S. citizen or resident present overseas for
330 days out of any 12-consecutive-month period. In addition,
the taxpayer must have his or her tax home in a foreign
country.
REASONS FOR CHANGE
The child credit is generally intended to be refundable
only to working families of sufficiently low economic income.
Under present law, however, because refundability is a function
of only that portion of earned income that is taken into
account in computing taxable income, taxpayers working abroad
and claiming an exclusion under section 911 are generally
potentially eligible for a refundable child credit only if
their income is sufficiently high. For example, a married
taxpayer with two qualifying children who works abroad and
earns $100,000, of which $80,000 is excluded under section 911,
would be eligible for a refundable child credit of $1,350. This
occurs because after the section 911 exclusion of $80,000, the
taxpayer's gross income is only $20,000, $9,000 of which
exceeds the refundable child credit earned income threshold of
$11,000 for 2005 (15 percent of $9,000 equals the $1,350
refundable credit). In contrast, a taxpayer with $20,000 less
income, or $80,000, all of which is excluded under section 911,
would not be eligible for any refundable child credit because
the taxpayer's gross income would be zero after the section 911
exclusion is taken into account. Thus, the first taxpayer with
more income could receive up to a $1,350 transfer payment from
the government whereas the second taxpayer could not receive
any transfer payment at all.
Under present law, the EIC is denied to taxpayers who claim
benefits under section 911 of the Internal Revenue Code. In
general, this rule ensures that the EIC is granted only to low
and moderate income taxpayers, the intended beneficiaries of
the EIC. For the same reason, refundability of the child
credit, which is intended to benefit lower-income taxpayers,
should not be available to taxpayers who claim benefits under
section 911. The committee observes that the Joint Committee on
Taxation staff has recommended that taxpayers be ineligible for
refundability of the child credit if they claim benefits under
section 911 of the Internal Revenue Code.\3\
---------------------------------------------------------------------------
\3\ See Joint Committee on Taxation, Options to Improve Tax
Compliance and Reform Tax Expenditures (JCS-02-05), January 27, 2005,
at 47.
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EXPLANATION OF PROVISION
The bill denies the refundable portion of the child credit
to anyone claiming benefits under section 911 of the Internal
Revenue Code.
EFFECTIVE DATE
The provision is effective with respect to taxable years
beginning after the date of enactment.
C. Clarify Eligibility of Siblings and Other Family Members for Child
Related Tax Benefits
(Sec. 116(f) of the bill and secs. 24 and 32 of the Code)
PRESENT LAW
Uniform definition of qualifying child
In general
The Working Families Tax Relief Act of 2004 generally
established a uniform definition of qualifying child for
purposes of the dependency exemption, the child credit, the
earned income credit, the dependent care credit, and head of
household filing status.
Under the uniform definition, in general, a child is a
qualifying child of a taxpayer if the child satisfies each of
three tests: (1) the child has the same principal place of
abode as the taxpayer for more than one half the taxable year;
(2) the child has a specified relationship to the taxpayer; and
(3) the child has not yet attained a specified age. A tie-
breaking rule applies if more than one taxpayer claims a child
as a qualifying child.
Tie-breaking rules
If a child would be a qualifying child with respect to more
than one individual (e.g., a child lives with his or her mother
and grandmother in the same residence) and more than one person
claims a benefit with respect to that child, then the following
``tie-breaking'' rules apply. First, if only one of the
individuals claiming the child as a qualifying child is the
child's parent, the child is deemed the qualifying child of the
parent. Second, if both parents claim the child and the parents
do not file a joint return, then the child is deemed a
qualifying child first with respect to the parent with whom the
child resides for the longest period of time, and second with
respect to the parent with the highest adjusted gross income.
Third, if the child's parents do not claim the child, then the
child is deemed a qualifying child with respect to the claimant
with the highest adjusted gross income.
Earned income credit
The earned income credit is a refundable tax credit
available to certain lower-income individuals. Generally, the
amount of an individual's allowable earned income credit is
dependent on the individual's earned income, adjusted gross
income, and the number of qualifying children.
An individual who is a qualifying child of another
individual is not eligible to claim the earned income credit.
Thus, in certain cases, a taxpayer caring for a sibling in a
home with no parents is ineligible to claim the earned income
credit based solely on the fact that the taxpayer is a
qualifying child of the sibling (assuming the taxpayer meets
the age, relationship and residency tests).
REASONS FOR CHANGE
Present law provides tax planning opportunities for certain
more affluent families with respect to the child-related tax
benefits while denying the earned income credit to certain
lower income siblings. The committee seeks to limit the tax
planning opportunities while restoring eligibility for the
earned income credit to certain lower-income siblings. The
committee also seeks to make certain technical corrections to
the uniform definition of qualifying child.
As an example of the present-law tax planning opportunities
the committee seeks to eliminate, where more than one taxpayer
within a family can claim a qualifying child for certain tax
benefits (e.g. in certain multi-generational families), the
members of the family may arrange to maximize their tax
benefits. Thus, if a grandparent, parent, and child share the
same household, under present law the grandparent and parent
can decide which of them should claim the qualifying child in
order to maximize tax benefits. If the parent earns $60,000 a
year and the grandparent $20,000, it may be more advantageous
for the grandparent to claim the qualifying child in order to
receive the earned income credit, for which the parent is
ineligible due to his level of earnings.
Similarly, it may be possible in certain circumstances, and
financially advantageous for a family as a whole, for parents
to forgo claiming a child as a qualifying child so that an
older child or other family member living at home may claim
such child as a qualifying child. This would be most
advantageous in circumstances in which the parents have income
above the phaseout limits for the child credit or where the
older sibling or other family member becomes eligible for the
earned income credit by claiming the child as a qualifying
child. The committee seeks to eliminate both of these planning
opportunities by narrowing the uniform definition of qualifying
child to limit the ability of a non-parent to claim an
individual as a qualifying child when the individual lives with
his or her parents for over half the year.
Regarding lower income siblings, present law limits the
availability of the earned income credit where two or more
siblings meet the uniform definition of qualifying child with
respect to each other. For example, assume that a 20-year-old
woman works 30 hours a week earning minimum wage while
attending school full time. Her parents are dead, and she lives
with her 15-year-old brother, for whom she acts as legal
guardian. Under these facts, while the woman's younger brother
is her qualifying child, she is also her younger brother's
qualifying child. Thus, under present law, the woman is not
eligible for the earned income credit. The committee seeks to
restore eligibility for the earned income credit under this and
similar circumstances.
EXPLANATION OF PROVISION
Uniform definition of qualifying child
Under the bill, if an individual satisfies the qualifying
child test with respect to one or more parents then generally
no other taxpayer may claim the child as a qualifying child. An
exception is provided if: (1) no eligible parent claims the
individual as a qualifying child; and (2) the taxpayer has a
higher adjusted gross income than any of the eligible parents.
The bill retains the following present-law tie-breaker
rules when a child is a qualifying child with respect to more
than one individual and more than one individual claims a
benefit with respect to that child:
First, if only one of the individuals claiming the child as
a qualifying child is the child's parent, the child is deemed
the qualifying child of the parent.
Second, if both parents claim the child and the parents do
not file a joint return, then the child is deemed a qualifying
child first with respect to the parent with whom the child
resides for the longest period of time, and second with respect
to the parent with the highest adjusted gross income.
Earned income credit
The bill expands eligibility for the earned income credit
by modifying the rule that prohibits anyone who is a qualifying
child of another individual from claiming the earned income
credit. The bill provides that, with respect to two or more
siblings \4\ who are qualifying children with respect to each
other, the sibling with the highest adjusted gross income may
claim the earned income credit if otherwise eligible.
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\4\ For these purposes, the term ``siblings'' includes brothers,
sisters, stepbrothers and stepsisters.
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Technical corrections to the uniform definition of qualifying child
The bill makes conforming amendments, consistent with those
enacted with respect to various other provisions, for purposes
of health savings accounts, the dependent care credit, and the
dependent care assistance programs. Under these conforming
amendments, an individual may qualify as a dependent for these
limited purposes without regard to whether the individual has
gross income that exceeds an otherwise applicable gross income
limitation or is married and files a joint return. In addition,
such an individual who is treated as a dependent under these
conforming amendments is not subject to the general rule that a
dependent of a taxpayer shall be treated as having no
dependents for the taxable year of such individual beginning in
such taxable year.
EFFECTIVE DATES
The provision generally is effective for taxable years
beginning after December 31, 2004. The technical corrections to
the uniform definition of qualifying child are effective as if
included in the provisions of the Working Families Tax Relief
Act of 2004 to which they relate.
REASON FOR CHANGE
The need for additional child care resources to assist
families.
Section 117--Definitions and General Provisions
CURRENT LAW
The law does not define the term ``assistance,'' but
regulations define it as cash, payments, vouchers, and other
forms of benefits designed to meet a family's ongoing basic
needs (food, clothing, shelter, utilities, household goods,
personal care items, and general incidental expenses) plus
supportive services such as transportation and child care
provided to families who are not employed. It does not include
nonrecurrent, short-term benefits that are not intended to meet
recurrent or ongoing needs and will not extend beyond four
months.
COMMITTEE BILL
The Committee Bill places in statute a modified version of
the current regulatory definition of assistance. The current
definition is modified to exclude child care and transportation
aid for families without a worker (making all child care and
transportation aid ``nonassistance'').
The Committee Bill also limits to recipients of TANF
assistance the application of requirements that the state
participate in the Income Eligibility and Verification system
(IEVS). That is, the state need not participate in IEVS for
families receiving only TANF-funded benefits and services.
REASON FOR CHANGE
The Committee Bill affirms the flexibility of states to
provide assistance and services to low-income families,
including temporarily unemployed families, and clarifies that
rules tied to state spending on ``assistance'' will not apply
to child care and other non-cash work support services provided
to the unemployed.
Section 118--Responsible Fatherhood Program
CURRENT LAW
No provision.
COMMITTEE BILL
The Responsible Fatherhood Program would be added to the
Social Security Act as a new Part C to Title IV. The Committee
Bill amends Title 1 of P.L. 104-193 which would make the
responsible fatherhood program subject to the charitable choice
provisions. The Committee Bill also includes a list of findings
with respect to the impact of fathers being absent from the
home and the purposes of a responsible fatherhood program.
The Committee Bill establishes four components for the
responsible fatherhood program. It (1) appropriates $20 million
for a grant program for up to 10 eligible states to conduct
demonstration programs; (2) appropriates $30 million for grants
for eligible entities to conduct demonstration programs; (3)
authorizes $5 million for a nationally recognized nonprofit
fatherhood promotion organization to develop and promote a
responsible fatherhood media campaign; (4) authorizes a $20
million block grant for states to conduct responsible
fatherhood media campaigns; and (5) authorizes $1 million for a
nationally recognized nonprofit research and education
fatherhood organization to establish a national resource center
for responsible fatherhood.
Grants to States To Conduct Demonstration Programs
The Committee Bill appropriates $20 million per year for
the HHS Secretary to award grants to up to 10 eligible states
to conduct demonstration programs that carry out the purposes
described below. An eligible state is a state that submits to
the Secretary an application for a grant, at such time, in such
manner, and containing the information required by the
Secretary. An eligible state must give the Secretary a state
plan that describes the types of programs or activities that
the state will fund under the grant, including a good faith
estimate of the number and characteristics of clients to be
served under the projects and how the state intends to achieve
at least two of the purposes described below. The state plan
also must include a description of how the state will
coordinate and cooperate with state and local entities
responsible for carrying out other programs that relate to the
purposes intended to be achieved under the demonstration
program, including as appropriate, entities responsible for
carrying out jobs programs and programs serving children and
families. In addition, the state plan must include an agreement
to maintain such records, submit such reports, and cooperate
with such reviews and audits as the Secretary finds necessary
to provide oversight of the demonstration program.
The Committee Bill requires the chief executive officer of
the state to certify to the HHS Secretary that the state will
use the demonstration funds to promote at least two of the
purposes described below; the state will return any unused
funds to the Secretary; and that the funds provided under the
grant will be used for programs and activities that target low-
income participants and that at least 50 percent of the
participants in each program or activity funded must be parents
of a child who is, or within the past 24 months has been, a
recipient of assistance or services under a state program
funded under Title IV-D or Title IV-A, foster care (Title IV-
E), Medicaid (Title XIX), or food stamps; or parents, including
an expectant parent or a married parent, whose income (after
adjustment for court-ordered child support paid or received)
does not exceed 150% of the poverty line. In addition, the
chief executive officer of the state must certify to the
Secretary that programs or activities funded under the
demonstration grant will be provided with information about the
prevention of domestic violence and that the state will consult
with representatives of state and local domestic violence
centers. The state must also certify that funds provided to the
state for demonstration grants must not be used to supplement
or supplant other federal, state, or local funds that are used
to support programs or activities that are related to the
purposes of the demonstration grants.
In determining which states to award responsible fatherhood
demonstration grants, the HHS Secretary must attempt to achieve
a balance among the eligible states with respect to the size,
urban or rural location, and use of differing or unique methods
of the entities that states intend to use to conduct the
programs and activities funded by the demonstration grants. The
Secretary must give priority to eligible states that have
demonstrated progress in achieving at least one of the stated
purposes through previous state initiatives or that have
demonstrated need with respect to reducing the incidence of
out-of-wedlock births or absent fathers in the state.
The Committee Bill stipulates the purposes of the
demonstration grants are to promote responsible fatherhood
through (1) marriage promotion (through counseling, mentoring,
disseminating information about the advantages of marriage and
two-parent involvement for children, enhancing relationship
skills, teaching how to control aggressive behavior,
disseminating information on the causes of domestic violence
and child abuse, marriage preparation programs, premarital
counseling, skills-based marriage education, financial planning
seminars, and divorce education and reduction programs,
including mediation and counseling); (2) parenting activities
(through counseling, mentoring, mediation, disseminating
information about good parenting practices, skills-based
parenting education, encouraging child support payments, and
other methods); and (3) fostering economic stability of fathers
(through work first services, job search, job training,
subsidized employment, education, including career-advancing
education, job retention, job enhancement, dissemination of
employment materials, coordination with existing employment
services such as welfare-to-work programs, referrals to local
employment training initiatives, and other methods).
The Committee Bill prohibits the use of responsible
fatherhood demonstration grants for court proceedings on
matters of child visitation or child custody, or legislative
advocacy.
The Committee Bill prohibits a state from being awarded a
grant unless the state consults with experts of domestic
violence or with relevant community domestic violence
coalitions in developing programs or activities funded by the
grant. The state also must describe in the grant application
how the proposed programs or activities will address, as
appropriate, issues of domestic violence and what the state
will do, to the extent relevant, to ensure that participation
in such programs or activities is voluntary and to inform
potential participants that their involvement is voluntary.
The Committee Bill requires that each eligible state that
receives a grant must return any unused portion of the grant
for a fiscal year back to the HHS Secretary not later than the
last day of the second succeeding fiscal year, together with
any earnings from interest on the unused portion. The Secretary
is required to establish an appropriate procedure for
redistributing to eligible states that have expended the entire
amount of their grant for a fiscal year any amount that is
returned to the Secretary by eligible states.
The Committee Bill appropriates $20 million for each of the
fiscal years 2006 through 2010 for responsible fatherhood
demonstration grants. The Committee Bill stipulates that
theamount of each responsible fatherhood demonstration grant awarded
must be an amount sufficient to implement the state plan submitted by
the state, subject to a minimum amount of $1 million per fiscal year in
the case of the 50 states and the District of Columbia, and $500,000 in
the case of Puerto Rico, the Virgin Islands, Guam, American Samoa, and
the Northern Mariana Islands.
Grants to Eligible Entities To Conduct Demonstration Programs
The Committee Bill appropriates $30 million per year for
FY2006 through FY2010 for the HHS Secretary to award grants to
eligible entities to conduct demonstration programs that carry
out the purposes described above. An eligible entity is a local
government, local public agency, community-based or nonprofit
organization, or private entity, including any charitable or
faith-based organization, an Indian tribe or a tribal
organization that submits to the Secretary an application for a
grant, at such time, in such manner, and containing the
information required by the Secretary. An eligible entity must
give the Secretary a description of the programs and activities
that the entity will fund under the grant, including a good
faith estimate of the number and characteristics of clients to
be served under the projects and how the entity intends to
achieve at least two of the purposes described above. The
project description also must include a description of how the
entity will coordinate and cooperate with state and local
entities responsible for carrying out other programs that
relate to the purposes intended to be achieved under the
demonstration program, including as appropriate, entities
responsible for carrying out jobs programs and programs serving
children and families. In addition, the project description
must include an agreement to maintain such records, submit such
reports, and cooperate with such reviews and audits as the
Secretary finds necessary to provide oversight of the
demonstration program.
The Committee Bill requires a certification that the entity
will use the demonstration funds to promote at least two of the
purposes described above; the entity will return any unused
funds to the Secretary; and that the funds provided under the
grant will be used for programs and activities that target low-
income participants and that at least 50 percent of the
participants in each program or activity funded must be parents
of a child who is, or within the past 24 months has been, a
recipient of assistance or services under a state program
funded under Title IV-D or Title IV-A, foster care (Title IV-
E), Medicaid (Title XIX), or food stamps; or parents, including
an expectant parent or a married parent, whose income (after
adjustment for court-ordered child support paid or received)
does not exceed 150 percent of the poverty line. In addition,
the Committee Bill requires a certification that the entity
will consult with representatives of state and local domestic
violence centers. The entity must also certify that funds
provided to the state for demonstration grants must not be used
to supplement or supplant other federal, state, or local funds
provided to the entity that are used to support programs or
activities that are related to the purposes of the
demonstration grants.
In determining which entities to which to award responsible
fatherhood demonstration grants, the HHS Secretary must attempt
to achieve a balance among the eligible entities with respect
to the size, urban or rural location, and use of differing or
unique methods of the entities.
The Committee Bill prohibits the use of responsible
fatherhood demonstration grants awarded to entities for court
proceedings on matters of child visitation or child custody, or
legislative advocacy.
The Committee Bill stipulates that the HHS Secretary may
not award a grant to an eligible entity unless the entity, as a
condition of receiving the grant, consults with experts in
domestic violence or with relevant community domestic violence
coalitions in developing the programs or activities funded by
the grant; and describes in the grant application how the
programs or activities will address issues of domestic violence
and what the entity will do to ensure that participation in the
programs or activities funded is voluntary and to inform
potential participants that their involvement is voluntary.
The Committee Bill requires that each eligible entity that
receives a grant must return any unused portion of the grant
for a fiscal year back to the HHS Secretary not later than the
last day of the second succeeding fiscal year, together with
any earnings from interest on the unused portion. The Secretary
is required to establish an appropriate procedure for
redistributing to eligible entities that have expended the
entire amount of their grant for a fiscal year any amount that
is returned to the Secretary by eligible entities.
The Committee Bill appropriates $30 million for each of the
fiscal years 2006 through 2010 for responsible fatherhood
demonstration grants to eligible entities.
National Clearinghouse for Responsible Fatherhood Programs
The Committee Bill authorizes an appropriation of $5
million for the HHS Secretary to contract with a nationally
recognized, nonprofit fatherhood promotion organization to (1)
develop, promote and distribute to interested states, local
governments, public agencies, and private entities a media
campaign that encourages appropriate involvement of both
parents in the life of their children (with an emphasis on
responsible fatherhood); and (2) develop a national
clearinghouse to assist states and communities in efforts to
promote and support marriage and responsible fatherhood by
collecting, evaluating, and making available (through the
Internet and by other means) to other states information on
state-sponsored media campaigns.
The Committee Bill requires the HHS Secretary to ensure
that the selected nationally recognized nonprofit fatherhood
promotion organization coordinate the media campaign and
national clearinghouse that are developed with grant funds with
national, state, or local domestic violence programs.
The nationally recognized nonprofit fatherhood promotion
organization must have at least four years of experience in
designing and disseminating a national public education
campaign, and in providing consultation and training to
community-based organizations interested in implementing
fatherhood programs.
The Committee Bill authorizes a $5 million appropriation
for each of the fiscal years 2006 through 2010 to establish a
national clearinghouse for responsible fatherhood programs.
Block Grants to States To Encourage Media Campaigns
The Committee Bill authorizes the HHS Secretary to provide
a $20 million block grant to states for media campaigns for
each of the fiscal years 2006 through 2010.
Not later than October 1 of each of the fiscal years for
which a state wants to receive an allotment of block grant
funds, the Committee Bill requires the chief executive officer
of the state to certify to the HHS Secretary that the state
will use grant funds to promote the formation and maintenance
of married two-parent families, strengthen fragile families,
and promote responsible fatherhood through media campaigns. The
executive officer also must certify that the state will return
any unused funds to the Secretary and comply with the
stipulated reporting requirements.
States have the option of establishing media campaigns via
radio or television, air-time challenge programs (under which
the state may purchase air time only if it obtains non-federal
contributions to purchase additional similar air time), or
through the distribution of printed or other advertisements. A
state may administer media campaigns directly or through
grants, contracts, or cooperative agreements with public
agencies, local governments, or private entities (including
charitable and faith-based organizations). In developing
broadcast and printed advertisements for media campaigns, the
state or other entity administering the campaign must consult
with representative of state and local domestic violence
centers. The Committee Bill defines broadcast advertisement,
child at risk, poverty line, printed or other advertisement,
state, and young child.
Each state's allotment is based on its proportion of poor
children in the nation, and its portion of children under age 5
in the nation. Each state and the District of Columbia would
receive no less than the minimum allotment of $200,000; Guam,
Puerto Rico, the Virgin Islands, American Samoa, and the
Northern Mariana Islands would receive no less than $100,000
per year for FY2004-2008.
The Committee Bill requires that each eligible entity that
receives a grant must return any unused portion of the grant
for a fiscal year back to the HHS Secretary not later than the
last day of the second succeeding fiscal year, together with
any earnings from interest on the unused portion. The Secretary
is required to establish an appropriate procedure for
redistributing to states that have expended the entire amount
of their grant for a fiscal year any amount that is returned to
the Secretary by states, or not allotted to states because the
state did not submit a certification by October 1 of a fiscal
year.
The Committee Bill requires each state that receives an
allotment to monitor and evaluate media campaigns conducted
using the allotted grant funds and to submit an annual report
to the Secretary at such time, in such manner, and containing
such information as the Secretary may require.
The Committee Bill authorizes the HHS Secretary to provide
a $20 million block grant to states for media campaigns for
each of the fiscal years 2006 through 2010. The Secretary must
conduct an evaluation of the impact of the media campaigns and
report to Congress the results of the evaluation no later than
December 31, 2008. The Committee Bill authorizes a $1 million
appropriation for FY2006 to conduct the evaluation (the
evaluation funding is to remain available until expended).
National Resource Center for Responsible Fatherhood
The Committee Bill authorizes an appropriation of $1
million for the HHS Secretary to contract with a nationally
recognized, nonprofit research and education fatherhood
organization to (1) provide technical assistance and training
to public and private agencies and grass roots organizations
that promote responsible fatherhood and healthy marriage; and
(2) develop a clearinghouse of resource materials to assist
community-based organizations in developing local responsible
fatherhood programs, with an emphasis on training and outcome
evaluation.
The nationally recognized nonprofit research and education
fatherhood organization must have at least 12 years of
experience in (1) developing and distributing research-based
curriculum that promotes responsible fatherhood and healthy
marriage with an emphasis on low-income and noncustodial
fathers; (2) providing consultation and training to community-
based organizations with a track record of working with social
service, government, and faith-based organizations; and (3)
providing direct training to fathers, father figures, and
mothers using research-based curriculum in a variety of
economic, cultural and family situations.
The Committee Bill authorizes the HHS Secretary to provide
$1 million for a national resource center for responsible
fatherhood for each of the fiscal years 2006 through 2010.
Nondiscrimination Clause
The Committee Bill requires that the responsible fatherhood
programs and activities be made available to all fathers and
expectant fathers, including married and unmarried fathers and
custodial and non-custodial fathers, with a special focus on
low-income fathers, on the same basis; and that mothers and
expectant mothers be able to participate in such programs and
activities on the same basis as the fathers.
REASON FOR CHANGE
Children do better academically, emotionally and socially
when raised by their married biological parents. This provision
in the bill provides states and faith based and community
organizations and local governments with resources to find
innovative ways to promote responsible fatherhood through
marriage promotion and divorce reduction, parenting skill
building, and where appropriate, expanded opportunities for
strengthening the employment opportunities of low-income
fathers. The provision is targeted on families, many of whom
are unmarried at the time of the birth of their child, who have
received TANF, Food Stamps or Medicaid Services or who have
incomes below 150 percent of poverty. The provision requires
all grantees to ensure that program participation is voluntary
and that domestic violence experts and coalitions are
consulted.
Section 119--Additional Grants
Social Services Capitalization Grants
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill authorizes $40 million for each of FYs
2006-2010 for grants to be made by the HHS Secretary to
entities for the purpose of capitalizing and developing the
role of sustainable social services that are critical to the
success of moving TANF recipients to work. Applicants would be
required to describe the capitalization strategy they intend to
follow to develop a program that generates its own source of
on-going revenue while assisting TANF recipients.
Administrative costs could not exceed 15 percent (except for
computerization and information technology needed for tracking
or monitoring required by TANF), but none of the other
statutory rules regarding use of TANF funds would apply. The
Committee Bill requires the Secretary to conduct an evaluation
of the programs developed by these grants.
REASON FOR CHANGE
The provision would support efforts to develop the role of
self-sustainable social services which are critical in the
success of moving welfare recipients into work.
Transportation Ownership Demonstration Grants
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill authorizes $25 million for each of FYs
2006-FY2010 for grants for low-income car ownership. The
purposes are to improve employment opportunities for low-income
families and provide incentives to states, Indian tribes,
localities and nonprofit groups to develop and administer
programs that promote car ownership by low-income families. No
more than 5 percent could be used for administrative costs of
the Secretary in carrying out this program.
REASON FOR CHANGE
State TANF agencies cite a lack of reliable transportation
as a major barrier to employment. This demonstration will
promote innovative approaches to solving this problem. Certain
State agencies and non-profit organizations have begun
experimenting with car donation programs, in which donated
vehicles are refurbished and ownership is transferred to
families on TANF demonstrating need. Outcome studies have shown
that beneficiaries reduce dependence on public cash-assistance
by as much as 70 percent. The demonstration provides funds to
encourage further study and dissemination of this promising
approach to moving families to independence.
Transitional Jobs/Business Links Grants
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill authorizes $200 million per year for
FY2006 through FY2010 for business links and transitional jobs
programs. Grants are to be jointly awarded by the Secretaries
of HHS and Labor to fund programs:
(1) to promote ``business linkages.'' These are
programs designed to improve the wages of eligible
individuals by improving jobs skills in partnership
with employers and providing supports and services at
or near the worksite. Eligible grantees are private
organizations, local workforce investment boards,
States, localities, Indian tribes, tribal organizations
and employers. Individuals eligible to be served by
these programs are TANF recipients, former recipients,
individuals with a disability, or noncustodial parents
having difficulty in paying child support obligations
who also have limited proficiency in the English
language or other barriers to employment.
(2) for ``transitional jobs.'' These programs combine
subsidized, time-limited, wage-paying supported work in
the public or nonprofit sectors with skill development
and activities to remove barriers to employment.
Eligible grantees are private organizations, local
workforce investment boards, States, localities, Indian
tribes, and tribal organizations. Individuals eligible
to be served by these programs are TANF recipients,
former recipients, individuals with a disability, or
noncustodial parents having difficulty in paying child
support obligations who also have limited proficiency
in the English language or other barriers to
employment.
The Committee Bill requires a minimum of 40 percent of
funds appropriated be used for businesses linkages and also a
minimum of 40 percent be used for transitional jobs. Benefits
and services provided under these programs are not considered
assistance. The Committee Bill also requires an assessment by
HHS and DoL of them, and sets aside $3 million per year for
that assessment. The Committee Bill provides an additional set-
aside of 1.5 percent for evaluation.
REASON FOR CHANGE
Transitional jobs programs have been done in some States
and have proven to be effective work-based programs where other
programs have failed. By combining wage-paying subsidized jobs
that combine real work, skill development and support services,
these programs provide participants with the opportunity for
skill development that has long-term impacts. Research shows
that completers of transitional jobs program have high success
rates in the labor market--an 81-94 percent employment rate for
program completers. Partnership programs funded during the
first round on welfare reform were successful in placing TANF
parents with major employers ranging from airlines to regional
and national retailers. This authorization is a targeted
authorization to provide incentive to place TANF parents in
jobs where they will stay off welfare rolls.
Nondisplacement of Regular Employees
CURRENT LAW
Under TANF law, a recipient may fill a vacant employment
position. However, no adult in a work activity that is funded
in whole or in part by Federal funds may be employed or
assigned when another person is on layoff from the same or any
substantially equivalent job, or if the employer has ended the
employment of any regular employee or otherwise caused an
involuntary reduction in its workforce in order to fill a
vacancy with a TANF recipient. These provisions do not preempt
any provision of State or local law that provides greater
protection against displacement. States are required to have a
grievance procedure to resolve complaints of displacement of
permanent employees.
COMMITTEE BILL
The Committee Bill replaces the current nondisplacement
provisions of TANF law. It provides that an adult recipient
cannot displace any employee or position (including partial
displacement), fill any unfilled vacancy, or perform work when
any individual is on layoff from the same job or substantially
equivalent job. TANF work activities cannot impair existing
contracts or services; be inconsistent with any law,
regulation, collective bargaining agreement; or infringe on the
recall rights or promotional opportunities of any worker. TANF
work activities must be in addition to any activity that would
otherwise be available and not supplant the hiring of a non-
TANF worker.
The Committee Bill also requires states to have a grievance
procedure for resolving complaints, including the opportunity
for a hearing, and sets time standards for the process. It
provides remedies for a violation of the non-displacement
provisions, including termination and suspension of payments,
prohibition on placement of the participant, reinstatement of
the employee, or other relief to make the aggrieved employee
whole. These provisions do not preempt or supercede any State
or local law that provides greater protection.
REASON FOR CHANGE
The Committee Bill improves protections against
displacement and strengthens the grievance procedure.
Teen Pregnancy Prevention Resource Center
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill appropriates $5 million for FY2006 (to
be available through FY2010) for the Secretary of HHS to award
a grant to a nationally recognized, nonpartisan, nonprofit
organization (that meets stipulated requirements) to establish
and operate a national teen pregnancy prevention resource
center. The purpose of the resource center is to improve the
well-being of children and families and encourage young people
to delay pregnancy until marriage. The resource center will
provide information and technical assistance to States, Indian
tribes, local communities, and other private or public
organizations seeking to reduce rates of teen pregnancy;
support parents in their role in preventing teen pregnancy; and
assist the entertainment media industry by encouraging them to
develop content and messages for teens and adults that can help
prevent teen pregnancy. The activities of the resource center
are: synthesizing and disseminating research and information
regarding effective and promising practices, and providing
information on how to design and implement effective strategies
to prevent teen pregnancy; providing information and reaching
out to diverse populations, with particular attention to
populations with the highest rates of teen pregnancy; helping
States, local communities, and other organizations increase
their knowledge of existing resources and build capacity to
advance teen pregnancy prevention efforts; raising awareness of
the importance of increasing the proportion of children born
to, and raised in, healthy, adult marriages; linking
organizations working to reduce teen pregnancy with experts and
peer groups, including the creation of technical assistance
networks; providing consultation and resources to teachers,
coaches, mentors and other adults on how to reduce teen
pregnancies through a broad array of strategies; assisting
organizations seeking to reduce teen pregnancies to communicate
effective messages with a variety of audiences; providing
resources for parents and other adults; and working with
individuals and organizations in the entertainment industry.
REASON FOR CHANGE
The Committee recognizes the significant declines in
reducing teen pregnancy over the past decade. However, teen
pregnancy remains a serious problem with one-third of girls in
the U.S. still getting pregnant at least once by age 20. Making
additional progress on this issue is closely linked to the
goals of welfare reform. Consequently, the Committee
appropriates funds for a national teen pregnancy prevention
resource center to provide technical assistance to state,
tribal, local, community and faith-based organizations seeking
to reduce rates of teen pregnancy, support parents by equipping
them with information and resources to promote and strengthen
communication with their children, and assist the entertainment
media industry to develop messages that can help prevent teen
pregnancy.
Section 120--Technical Corrections
COMMITTEE BILL
The Committee bill makes a number of corrections to
punctuation, grammar, and legal references in the law.
TITLE II--ABSTINENCE EDUCATION
Section 201--Extension of Abstinence Education Program
CURRENT LAW
The law appropriated $50 million annually for each of the
fiscal years 1998-2002 for matching grants to states to provide
abstinence education and, at state option, mentoring,
counseling, and adult supervision to promote abstinence from
sexual activity, with a focus on groups that are most likely to
bear children out-of-wedlock. Funding has been extended through
March 31, 2005 by continuing appropriations extension measures.
Funds must be requested by states when they apply for Maternal
and Child Health (MCH) block grant funds and must be used
exclusively for the teaching of abstinence. States must match
every $4 in federal funds with $3 in state funds.
COMMITTEE BILL
The Committee Bill extends the $50 million annually
appropriation for the abstinence education block grant program
for each of the fiscal years 2006-2010. The Committee Bill
continues funding for the program through September 30, 2005 in
the same manner authorized for fiscal year 2004. The Committee
Bill bases a state's funding allotment on the proportion of
low-income children in the state compared to the total number
of low-income children in the states that apply for abstinence
education block grants. Also (beginning with fiscal year 2006),
the Committee Bill permits the HHS Secretary to reallocate
abstinence education funds that he or she deems unnecessary to
carry out a state's program to other states that the Secretary
determines need additional funding to carry out their
abstinence education block grant programs.
REASON FOR CHANGE
The Committee Bill continues the program with no change,
but allows unrequested funds to be reallocated among the states
with abstinence education programs. This will allow states that
want to provide abstinence education with more access to
funding.
TITLE III--CHILD SUPPORT
Section 301--Distribution of Child Support Collect by State on Behalf
of Children Receiving Certain Welfare Benefits
Assignment of child support rights
CURRENT LAW
In order to receive benefits TANF recipients must assign
their child support rights to the state. The assignment covers
any unpaid child support that accrues while the family receives
TANF and any support that accrued before the family began
receiving TANF.
Any assignment of rights to unpaid child support that was
in effect on Sept. 30, 1997 must remain in effect. This means
that any child support collected as a result of the assignment
must go the state and the federal government.
COMMITTEE BILL
The Committee Bill stipulates that the assignment covers
only child support that accrues during the period that the
family receives TANF. (In other words, pre-assistance
arrearages would be eliminated). In addition, the Committee
Bill gives states the option to discontinue pre-assistance
assignments in effect on Sept. 30, 1997. If a state chooses to
discontinue the child support assignment, the state may
distribute collections from such assignment to the family.
States also would have the option to discontinue pre-assistance
arrearage assignments in effect before 2003. If a state chooses
to discontinue the child support assignment, the state may
distribute collections from such assignment to the family.
REASON FOR CHANGE
The Committee Bill would support family self-sufficiency by
allowing families to keep more of the child support collected
on their behalf. It would also prevent TANF families from
losing access to lump sum collections of past-due pre-
assistance support that may help them exit TANF.
Distribution of child support to TANF families
CURRENT LAW
While the family receives TANF benefits, the state is
permitted to retain any current child support payments and any
assigned arrearages it collects up to the cumulative amount of
TANF benefits which has been paid to the family. In other
words, the state can decide how much, if any, of the state
share (some, all, none) of the child support payment collected
on behalf of TANF families to send to the family. The state is
required to pay the federal government the federal share of the
child support collected.
Child support payments collected on behalf of TANF families
that are passed through to the family and disregarded by the
state count toward the TANF MOE (maintenance of effort)
expenditure requirement.
COMMITTEE BILL
For families that receive TANF benefits, the Committee Bill
requires the federal government to waive its share of child
support collections passed through to TANF families by the
state and disregarded by the state-up to an amount equal to
$400 per month in the case of a family with one child, and up
to $600 per month in the case of a family with two or more
children. Like current law, disregarded pass through amounts
count as TANF MOE expenditures.
The Committee Bill includes a provision that allows states
with section 1115 demonstration waivers (on or before October
1, 1997) related to the child support pass-through provisions
to continue to pass through payments to families in accordance
with the terms of the Waiver.
REASON FOR CHANGE
The Committee Bill promotes family self-sufficiency by
providing an incentive for states to allow families to keep
more of the child support collected on their behalf. No such
incentive currently exist. This option would also allow
noncustodial parents who pay child support to know that their
support payments are being received by their children.
Distribution of child support to former TANF families
CURRENT LAW
With respect to former TANF families: Current child support
payments must be paid to the family. Since October 1, 1997,
child support arrearages that accrue after the family leaves
TANF also are required to be paid to the family before any
monies may be retained by the state. Further since October 1,
2000, child support arrearages that accrued before the family
began receiving TANF also are required to be distributed to the
family first.
However, if child support arrearages are collected through
the federal income tax refund offset program, the family does
not have first claim on the arrearage payments. Such arrearage
payments are retained by the state and the federal government.
COMMITTEE BILL
As mentioned above, the Committee Bill eliminates the
assignment of pre-assistance arrearages. The Committee Bill
also eliminates the special treatment of child support
arrearages collected through the federal income tax refund
offset program. Such collections also would go to the family
first.
To the extent that the arrearage amount payable to a former
TANF family in any given month under the Committee Bill exceeds
the amount that would have been payable to the family under
current law, the state can elect to have the amount paid to the
family considered an expenditure for Maintenance-of-Effort
(MOE) purposes. In addition, the Committee Bill amends the
Child Support Enforcement State Plan to include an election by
the state to include whether it is using the new option to pass
through all arrearage payments to former TANF families without
paying the federal government its share of such collections or
whether it chooses to maintain the current law distribution
method. Further, the Committee Bill stipulates that no later
than 6 months after the date of enactment of this legislation,
the HHS Secretary, in consultation with the states, must
establish the procedures to be used to make estimates of excess
costs associated with new funding option.
REASON FOR CHANGE
The Committee Bill supports self-sufficiency by providing
former TANF families with more of the child support collected
on their behalf, regardless of how it is collected. It allows
states to use the federal tax refund offset remedy to get more
collections to families. Providing MOE for additional money to
families provides further incentive for states to exercise this
option and is consistent with MOE policy on the pass through of
child support collections to current TANF families.
Distribution of child support to families that never received
assistance
CURRENT LAW
The entire amount of the child support collection is
distributed to families that never received TANF assistance.
COMMITTEE BILL
Same as current law.
REASON FOR CHANGE
No change.
Distribution of child support to families under certain agreements
CURRENT LAW
In the case of a family receiving TANF assistance from an
Indian tribe or tribal organization, the child support
collection is to be distributed according to the cooperative
agreement specified in the Child Support Enforcement State
Plan.
COMMITTEE BILL
Same as current law.
REASON FOR CHANGE
No change.
Effective date
CURRENT LAW
Not applicable.
COMMITTEE BILL
The amendments made by this section of the bill would take
effect on October 1, 2009, and would apply to payments under
parts A and D of Title IV of the Social Security Act for
calendar quarters beginning on or after such date. States could
elect to have the amendments take effect earlier-at any date
that is 18 months after the date of enactment of the bill but
not later than September 30, 2009.
REASON FOR CHANGE
This effective date will allow states sufficient time to
implement required and optional changes in child support
distribution and assignment, while also allowing states to
choose to proceed more quickly.
Section 302--Mandatory Review and Adjustment of Child Support Orders
for Families Receiving TANF
CURRENT LAW
Federal law requires that the state have procedures under
which every 3 years the state review and adjust (if
appropriate) child support orders at the request of either
parent, and that in the case of TANF families, the state review
and update (if appropriate) child support orders at the request
of the state Child Support Enforcement (CSE) agency or of
either parent.
COMMITTEE BILL
The Committee Bill requires states to review and, if
appropriate, adjust child support orders in TANF cases every 3
years. The provision would take effect on October 1, 2007.
REASON FOR CHANGE
The mandatory review and, if necessary, modification of
child support orders will make award amounts more appropriate.
In some cases this will increase the amount of payment
required, which will in turn increase collections, and in other
cases it will reduce the amount of payment required, therefore
limiting the accumulation of uncollectible arrears.
Section 303--Report on Undistributed Child Support Payments
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill requires that within 6 months of
enactment, the HHS Secretary must submit to the House Ways and
Means Committee and the Senate Finance Committee a report on
the procedures states use to locate custodial parents for whom
child support has been collected but not yet distributed. The
report must include an estimate of the total amount of
undistributed child support and the average length of time it
takes undistributed child support to be distributed. To the
extent that the HHS Secretary deems appropriate, the report
would be required to include recommendations as to whether
additional procedures should be established at the state or
federal level to expedite the payment of undistributed child
support.
REASON FOR CHANGE
Undistributed collections are a significant new issue that
merits further analysis and may require further state or
federal action in order to ensure that families are receiving
the support paid on their behalf, as appropriate.
Section 304--Decrease in Amount of Child Support Arrearage Triggering
Passport Denial
CURRENT LAW
Federal law stipulates that the HHS Secretary is required
to submit to the Secretary of State the names of noncustodial
parents who have been certified by the state CSE agency as
owing more than $5,000 in past-due child support. The Secretary
of State has authority to deny, revoke, restrict, or limit
passports to noncustodial parents whose child support
arrearages exceed $5,000.
COMMITTEE BILL
The Committee Bill authorizes the denial, revocation, or
restriction of passports to noncustodial parents whose child
support arrearages exceed $2,500, rather than $5,000 as under
current law. The provision would take effect on October 1,
2006.
REASON FOR CHANGE
This provision will increase the success of the passport
denial program and provide more collections to families. Fewer
arrears will have to build up before this effective enforcement
tool can be utilized.
Section 305--Use of Tax Refund Intercept Program To Collect Past-Due
Child Support on Behalf of Children Who Are Not Minors
CURRENT LAW
Federal law prohibits the use of the federal income tax
offset program to recover past-due child support on behalf of
non-welfare cases in which the child is not a minor, unless the
child was determined disabled while he or she was a minor and
for whom the child support order is still in effect. (Since its
enactment in 1981 (P.L. 97-35), the federal income tax offset
program has been used to collect child support arrearages on
behalf of welfare families regardless of whether the children
were still minors-as long as the child support order was in
effect.)
COMMITTEE BILL
The Committee Bill permits the federal income tax refund
offset program to be used to collect arrearages on behalf of
non-welfare children who are no longer minors. The provision
would take effect on October 1, 2007.
REASON FOR CHANGE
This will increase support to families by removing a
barrier to collecting past due child support on behalf of
children who are no longer minors.
Section 306--Garnishment of Compensation Paid to Veterans for Service-
Connected Disabilities in order To Enforce Child Support Obligations
CURRENT LAW
The disability compensation benefits of veterans are
treated differently than most forms of government payment for
purposes of paying child support. Whereas most government
payments are subject to being automatically withheld to pay
child support, veterans disabilitycompensation is not subject
to intercept. The only exception occurs when veterans have elected to
forego some of their retirement pay in order to collect additional
disability payments. The advantage of veterans replacing retirement pay
with disability pay is that the disability pay is not subject to
taxation. With this exception, which occurs rarely, the only way to
obtain child support payments from veterans' disability compensation is
to request that the Secretary of the Veterans Administration intercept
the disability compensation and make the child support payments.
COMMITTEE BILL
The Committee Bill allows veterans' disability compensation
benefits to be intercepted (withheld) and paid on a routine
basis to the custodial parent. The Committee Bill prohibits the
garnishment of any veteran's disability compensation in order
to collect alimony, unless that disability compensation is
being paid because retirement benefits were waived. The
provision would take effect on October 1, 2007.
REASON FOR CHANGE
This proposal will provide more child support collections
to families of veterans and make the child support intercept of
veterans's disability payments more consistent with other forms
of government payment.
Section 307--Improving Federal Debt Collection Practices
CURRENT LAW
Federal law stipulates that any federal agency that is owed
a nontax debt (that is more than 180 days past-due) may notify
the Secretary of the Treasury to obtain an administrative
offset of the debt. Currently, states have the authority to
garnish Social Security benefits (except SSI) for child support
payments,--but they cannot use the federal administrative
offset process to do so. However, Social Security payments can
only be offset for federal debt recovery. (Federal law exempts
$9,000 annually ($750 per month) from the administrative
offset.
COMMITTEE BILL
The Committee Bill expands the federal administrative
offset program by allowing certain Social Security benefits to
be offset to collect past-due child support (on behalf of
families receiving CSE [Title IV-D of the Social Security Act]
services) in appropriate cases selected by the states.
Moreover, it specifically overrules section 207 of the Social
Security Act 52 which states that Social Security benefits are
not transferable by garnishment. The provision would take
effect on a date that is 18 months after the date of enactment.
REASON FOR CHANGE
The Committee Bill will increase child support collections
to the families of benefit recipients by allowing offset of
additional benefits, while maintaining an adequate benefit
level for the recipient.
Section 308--Maintenance of Technical Assistance Funding
CURRENT LAW
Federal law authorizes the HHS Secretary to use 1 percent
of the federal share of child support collected on behalf of
TANF families the preceding year to provide to the states--
information dissemination and technical assistance, training of
state and federal staff, staffing studies, and related
activities needed to improve CSE programs (including technical
assistance concerning state automated CSE systems), and
research demonstration and special projects of regional or
national significance relating to the operation of CSE
programs. Such funds are available until they are expended.
COMMITTEE BILL
The Committee Bill authorizes the HHS Secretary to use 1
percent of the federal share of child support collected on
behalf of TANF families the preceding year, or the amount
appropriated for FY2002, whichever is greater, to provide to
the states--information dissemination and technical assistance,
training of state and federal staff, staffing studies, and
related activities needed to improve CSE programs (including
technical assistance concerning state automated CSE systems),
and research demonstration and special projects of regional or
national significance relating to the operation of CSE
programs. Such funds are available until they are expended.
REASON FOR CHANGE
Since the child support assignment and distribution changes
in the Committee Bill will allow TANF and former TANF families
to keep more of the child support collected on their behalf,
TANF collections retained by the federal government will be
reduced. This provision freezes technical assistance funding at
least at FY2002 levels to ensure that sufficient funding is
available for important child support technical assistance
functions, even as the federal share of collections falls.
Section 309--Maintenance of Federal Parent Locator Service Funding
CURRENT LAW
Federal law authorizes the HHS Secretary to use 2 percent
of the federal share of child support collected on behalf of
TANF families the preceding year for operation of the Federal
Parent Locator Service to the extent that the costs of the
Federal Parent Locator Service are not recovered by user fees.
Federal law allows only such funds that were appropriated for
FY1997-FY2001 to remain available until expended.
COMMITTEE BILL
The Committee Bill authorizes the HHS Secretary to use 2
percent of the federal share of child support collected on
behalf of TANF families the preceding year, or the amount
appropriated for FY2002, whichever is greater, for operation of
the Federal Parent Locator Service to the extent that the costs
of the Federal Parent Locator Service are not recovered by user
fees. Allows amounts appropriated for the Federal Parent
Locator Service to remain available until they are expended.
REASON FOR CHANGE
Since the child support assignment and distribution changes
in the Committee Bill will allow TANF and former TANF families
to keep more of the child support collected on their behalf,
TANF collections retained by the federal government will be
reduced. This provision freezes Federal Parent Locator Service
funding at least at FY2002 levels to ensure that sufficient
funding is available for the operation of the Federal Parent
Locator Service, which is a key child support enforcement tool,
even as the federal share of collections falls.
Section 310--Identification and Seizure of Assets Held by Multi-State
Financial Institutions
CURRENT LAW
The 1996 welfare reform law required states to enter into
agreements with financial institutions conducting business
within their state for the purpose of conducting a quarterly
data match. The data match is intended to identify financial
accounts (in banks, credit unions, money-market mutual funds,
etc.) belonging to parents who are delinquent in the payment of
their child support obligation. When a match is identified,
state CSE agencies may issue liens or levies on the account(s)
of the delinquent parent to collect the past-due child support.
In some cases, state law prohibits the placement of liens or
levies on accounts outside of the state and some financial
institutions only accept liens and levies from the state where
the account is located. In 1998, Congress made it easier for
multi-state financial institutions to match records by
permitting the Federal Parent Locator Service (FPLS) to help
them coordinate their information.
COMMITTEE BILL
The Committee Bill authorizes the HHS Secretary, via the
Federal Parent Locator Service, to assist states to perform
data matches comparing information from states and
participating multi-state financial institutions with respect
to persons owing past-due child support. The Committee Bill
authorizes the Secretary via the Federal Parent Locator Service
to seize assets, held by such financial institutions, of
noncustodial parents who owe child support arrearage payments,
by issuing a notice of a lien or levy and requiring the
financial institution to freeze and seize assets in accounts in
multi-state financial institutions to satisfy child support
obligations. The Secretary would be required to transmit any
assets seized under the procedure to the state for accounting
and distribution. The Committee Bill stipulates that the
Secretary must inform affected account holders/asset holders of
their due process rights.
REASON FOR CHANGE
After HHS identifies assets held in multi-state financial
institutions by persons who owe past due support, many states
cannot take action to seize financial assets when they are
located in another state. Therefore, the Committee Bill
authorizes the Secretary to take administrative action on
behalf of a state to freeze and seize assets in accounts in
multi-state financial institutions, identified through the
multi-state financial institution data match. This will make
full use of this existing enforcement mechanism and increase
the collection of past-due child support.
Section 311--Information Comparisons With Insurance Data
CURRENT LAW
No provision.
COMMITTEE BILL
The Committee Bill authorizes the HHS Secretary, via the
Federal Parent Locator Service, to compare information of
noncustodial parents who owe past-due child support with
information maintained by insurers (or their agents) concerning
insurance claims, settlements, awards, and payments; and to
furnish any information resulting from a match to the
appropriate state CSE agency in order to secure settlements,
awards, etc. for payment of past-due child support.
REASON FOR CHANGE
States must have in effect laws requiring the use of
procedures authorizing intercepting or seizing periodic or
lump-sum payments from settlements to satisfy current support
obligations. Often states are unable to access the databases
that contain insurance and settlement information, especially
when the information is related to an interstate case or when
an insurance company is located in another state. In order to
assist states, the Committee Bill permits the Secretary to
administer an insurance claims matching program. Under the
proposal, the Federal Offset File (individuals who owe past-due
support) would be matched against insurance databases to
identify individuals who have pending insurance claims and
settlements. The Secretary would notify states if delinquent
obligors have pending insurance claims and settlements so that
states could take enforcement actions to freeze and seize these
payments. Participation by insurance companies would be
voluntary.
Section 312--Tribal Access to the Federal Parent Locator Service
CURRENT LAW
The Federal Parent Locator Service (FPLS) is a national
location system operated by the federal Office of Child Support
Enforcement to assist states in locating noncustodial parents,
putative fathers, and custodial parties for the establishment
of paternity and child support obligations, as well as the
enforcement and modification of orders for child support,
custody and visitation. It also identifies support orders or
support cases involving the same parties in different states.
The FPLS consists of the Federal Case Registry, Federal Offset
Program, Multi-state Financial Institution Data Match, National
Directory of New Hires, and the Passport Denial Program.
Additionally, the FPLS has access to external locate sources
such as the Internal Revenue Service (IRS), the Social Security
Administration (SSA), Veterans Affairs (VA), the Department of
Defense (DOD), and the Federal Bureau of Investigation (FBI).
The FPLS is only allowed to transmit information in its
databases to ``authorized persons,'' which include (1) child
support enforcement agencies (and their attorneys and agents);
(2) courts; (3) the resident parent, legal guardian, attorney,
or agent of a child owed child support; and (4) foster care and
adoption agencies.
COMMITTEE BILL
The Committee Bill includes Indian tribes and tribal
organizations that operate a child support enforcement program
as ``authorized persons.''
REASON FOR CHANGE
The Committee Bill will give tribal child support
enforcement programs access to the Federal Parent Locator
Service, to which state child support enforcement agencies
currently have access, so that they can use it to locate
noncustodial parents to establish paternity and collect child
support. This will increase child support collections to
families, especially tribal families.
Section 313--Reimbursement of Secretary's Costs of Information
Comparisons and Disclosure for Enforcement of Obligations on Higher
Education Act Loans and Grants
CURRENT LAW
Federal law (P.L. 106-113) authorized the Department of
Education to have access to the National Directory of New
Hires. The provisions were designed to improve the ability of
the Department of Education to collect on defaulted loans and
grant overpayments made to individuals under Title IV of the
Higher Education Act of 1965. The Federal Office of Child
Support Enforcement (OCSE) and the Department of Education
negotiated and implemented a Computer Matching Agreement in
December 2000. Under the agreement, the Secretary of Education
is required to reimburse the HHS Secretary for the additional
costs incurred by the HHS Secretary in furnishing requested
information.
COMMITTEE BILL
The Committee Bill amends the reimbursement of costs
provision by eliminating the word additional. Thus, the
Secretary of Education is to reimburse the HHS Secretary for
any costs incurred by the HHS Secretary in providing requested
new hires information.
REASON FOR CHANGE
The Committee Bill makes legislative language governing the
Department of Education's access to the National Directory of
New Hires consistent with general reimbursement language that
applies to other entities.
Section 314--Technical Amendment Relating to Cooperative Agreements
Between States and Indian Tribes
CURRENT LAW
Federal law requires that any state that has a child
welfare program and that has Indian country may enter into a
cooperative agreement with an Indian tribe or tribal
organization if the tribe demonstrates that it has an
established tribal court system with several specific
characteristics related to paternity establishment and the
establishment and enforcement of child support obligations. The
HHS Secretary may make direct payments to Indian tribes and
tribal organizations that have approved child support
enforcement plans.
COMMITTEE BILL
The Committee Bill deletes the reference to child welfare
programs.
REASON FOR CHANGE
This reference incorrectly refers to the child welfare
program rather than the child support enforcement program.
Section 315--Claims Upon Longshore and Harbor Workers' Compensation for
Child Support
CURRENT LAW
The Longshore and Harbor Worker's Compensation Act is the
federal worker's compensation law for maritime workers and
persons working in shipyards and on docks, ships, and offshore
drilling platforms. The Act exempts benefits paid by longshore
or harbor employers or their insurers from all claims of
creditors. Thus, Longshore and Harbor Worker's Compensation Act
benefits that are paid by longshore or harbor employers or
their insurers are not subject to attachment for payment of
child support obligations.
COMMITTEE BILL
The Committee Bill amends the Longshore and Harbor Workers'
Compensation Act to ensure that longshore or harbor workers
benefits that are provided by the federal government or by
private insurers are subject to garnishment for purposes of
paying child support obligations.
REASON FOR CHANGE
The Federal Longshore and Harbor Worker's Compensation Act
(LHWCA) benefits that are paid by a self-insured entity or
private insurer are not subject to attachment for payment of
child support obligations. The Committee Bill would allow
garnishment of all LHWCA benefits for purpose of child support
enforcement, thereby increasing child support collections.
Section 316--State Option To Use Statewide Automated Data Processing
and Information Retrieval System for Interstate Cases
CURRENT LAW
The 1996 welfare reform law mandated states to establish
procedures under which the state would use high-volume
automated administrative enforcement, to the same extent as
used for intrastate cases, in response to a request from
another state to enforce a child support order. This provision
was designed to enable child support agencies to quickly locate
and secure assets held by delinquent noncustodial parents in
another state without opening a full-blown interstate child
support enforcement case in the other state. The assisting
state must use automatic data processing to search various
state data bases including financial institutions, license
records, employment service data, and state new hire
registries, to determine whether information is available
regarding a parent who owes a child support obligation, the
assisting state is then required to seize any identified
assets. This provision does not allow states to open/establish
a child support interstate case.
COMMITTEE BILL
The Committee Bill allows an assisting state to establish a
child support interstate case based on another state's request
for assistance; and thereby an assisting state may use the CSE
statewide automated data processing and information retrieval
system for interstate cases.
REASON FOR CHANGE
The Committee Bill allows states that cannot now use their
automated systems to provide high-volume automated
administrative enforcement services in interstate cases to
choose to open a case in order to assist other states in
collecting child support. This will increase interstate child
support collections.
Section 317--State Law Requirement Concerning the Uniform Interstate
Family Support Act (UIFSA)
CURRENT LAW
The 1996 welfare reform law (P.L. 104-193) required that on
and after January 1, 1998, each state must have in effect the
Uniform Interstate Family Support Act (UIFSA), as approved by
the American Bar Association on February 9, 1993, and as in
effect on August 22, 1996, including any amendments officially
adopted as of such date by the National Conference of
Commissioners on Uniform State Laws.
Federal law requires states to treat past-due child support
obligations as final judgments that are entitled to full faith
and credit in every state. This means that a person who has a
child support order in one state does not have to obtain a
second order in another state to obtain child support due
should the noncustodial parent move from the issuing court's
jurisdiction. P.L. 103-383 restricts a state court's ability to
modify a child support order issued by another state unless the
child and the custodial parent have moved to the state where
the modification is sought or have agreed to the modification.
The 1996 welfare reform law (P.L. 104-193) clarified the
definition of a child's home state, makes several revisions to
ensure that the full faith and credit laws can be applied
consistently with UIFSA, and clarifies the rules regarding
which child support orders states must honor when there is more
than one order.
COMMITTEE BILL
The Committee Bill requires that each state's Uniform
Interstate Family Support Act (UIFSA) must include any
amendments officially adopted as of August 2001 by the National
Conference of Commissioners on Uniform State Laws.
In addition, the Committee Bill clarifies current law by
stipulating that a court of a state that has established a
child support order has continuing, exclusive jurisdiction to
modify its order if the order is the controlling order and the
state is the child's state or the residence of any individual
contestant; or if the state is not the residence of the child
or an individual contestant, the court has the contestant's
consent in a record or in open court that the court may
continue to exercise jurisdiction to modify its order. It also
modifies the current rules regarding the enforcement of
modified orders.
REASON FOR CHANGE
The Committee Bill updates an outdated reference to an
older version of UIFSA.
Section 318--Grants to States for Access and Visitation Programs
CURRENT LAW
The 1996 welfare reform law (P.L. 104-193) authorized
grants to states (via CSE funding) to establish and operate
access and visitation programs. The purpose of the grants is to
facilitate noncustodial parents' access to and visitation of
their children. An annual entitlement of $10 million from the
federal CSE budget account is available to states for these
grants. Eligible activities include but are not limited to
mediation, counseling, education, development of parenting
plans, visitation enforcement, and development of guidelines
for visitation and alternative custody arrangements. The
allotment formula is based on the ratio of the number of
children in the state living with only one biological parent in
relation to the total number of such children in all states.
The amount of the allotment available to a state will be this
same ratio to $10 million. The allotments are to be adjusted to
ensure that there is a minimum allotment amount of $50,000 per
state for FY1997 and FY1998, and a minimum of $100,000 for any
year after FY1998. States may use the grants to create their
own programs or to fund programs operated by courts, local
public agencies, or nonprofit organizations. The programs do
not need to be statewide. States must monitor, evaluate, and
report on their programs in accord with regulations issued by
the HHS Secretary.
COMMITTEE BILL
The Committee Bill increases funding for Access and
Visitation grants from $10 million annually to $12 million in
FY2006, $14 million in FY2007, $16 million in FY2008, and $20
million annually in FY2009 and each succeeding fiscal year. The
Committee Bill extends the Access and Visitation program to
Indian tribes and tribal organizations that have received
direct child support enforcement payments from the federal
government for at least one year. The Committee Bill includes a
specified amount to be set aside for Indian tribes and tribal
organizations: $250,000 for FY2006; $600,000 for FY2007;
$800,000 for FY2008; and $1.670 million for FY2009 or any
succeeding fiscal year.
The Committee Bill increases the minimum allotment to
states to $120,000 in FY2006, $140,000 in FY2007, $160,000 in
FY2008, and $180,000 in FY2009 or any succeeding fiscal year.
The minimum allotment for Indian tribes and tribal
organizations is $10,000 for a fiscal year. The tribal
allotment cannot exceed the minimum state allotment for any
given fiscal year.
The allotment formula for Indian tribes and tribal
organizations that operate child support enforcement programs
is based on the ratio of the number of children in the tribe or
tribal organization living with only one parent in relation to
the total number of children living with only one parent in all
Indian tribes or tribal organizations. The amount of the
allotment available to an Indian tribe or tribal organization
would be this same ratio to the maximum allotment for Indian
tribes and tribal organizations (i.e., $250,000 for FY2006;
$600,000 for FY2007; $800,000 for FY2008; and $1.670 million
for FY2009 or any succeeding fiscal year). (Pro rata reductions
are to be made if they are necessary.)
REASON FOR CHANGE
The Committee Bill provides additional funding for the
Access and Visitation Grant Program so that more families can
benefit from these services. Increasing a child's access to
both parents may improve child well-being and is associated
with increased compliance in the payment of child support.
Section 319--Timing of Corrective Action Year for State Noncompliance
With Child Support Enforcement Program Requirements
CURRENT LAW
Federal law requires that audits be conducted at least
every 3 years to determine whether the standards and
requirements prescribed by law and regulations have been met by
the child support program of every state. If a state fails the
audit, federal TANF funds must be reduced by an amount equal to
at least 1 but not more than 2 percent for the first failure to
comply, at least 2 but not more than 3 percent for the second
failure, and at least 3 but not more than 5 percent for the
third and subsequent failures.
The HHS Secretary also must review state reports on
compliance with federal requirements and provide states with
recommendations for corrective action. The purpose of the
audits is to assess the completeness, reliability, and security
of data reported for use in calculating the performance
indicators and to assess the adequacy of financial management
of the state program. Federal law calls for penalties to be
imposed against states that fail to comply with a corrective
action plan in the succeeding fiscal year.
COMMITTEE BILL
The Committee Bill changes the timing of the corrective
action year for states that are found to be in noncompliance of
child support enforcement program requirements. The Committee
Bill changes the corrective action year in which the sanction
is imposed to the fiscal year following the fiscal year in
which the Secretary makes a finding of noncompliance and
recommends a corrective action plan. The change is made
retroactively in order to allow the Secretary to treat all
findings of noncompliance consistently. The Committee Bill also
makes a special exception for noncompliances that occur in
fiscal year 2001. If the HHS Secretary finds that the state has
corrected such a noncompliance in fiscal year 2002 or fiscal
year 2003, then the penalty is forgiven and no sanction is
levied against the state for that noncompliance.
REASON FOR CHANGE
Current language does not recognize the time necessary to
conduct federal audits and that those audits now occur during
what is, under current law, a state's corrective action year.
This technical correction will give states a full year to
correct identified deficiencies.
Section 320--Requirement That State Child Support Enforcement Agencies
Seek Medical Support for Children From Either Parent
CURRENT LAW
Federal law requires that a state CSE agency issue a notice
to the employer of a noncustodial parent, who is subject to a
child support order issued by a court or administrative agency,
informing the employer of the parent's obligation to provide
health care coverage for the child(ren). The employer must then
determine whether family health care coverage is available for
which the dependent child(ren) may be eligible, and if so, the
employer must notify the plan administrator of each plan
covered by the National Medical Support Notice. If the
dependent child(ren) is eligible for coverage under a plan, the
plan administrator is required to enroll the dependent
child(ren) in an appropriate plan. The plan administrator also
must notify the noncustodial parent's employer of the premium
amount to be withheld from the employee's paycheck.
COMMITTEE BILL
The Committee Bill requires that medical support for a
child be provided by either or both parents and that it must be
enforced. The Committee Bill includes language that authorizes
the state CSE agency to enforce medical support against a
custodial parent whenever health care coverage is available to
the custodial parent at reasonable cost. It stipulates that
medical support may include health care coverage (including
payment of costs of premiums, co-payments, and deductibles) and
payment of medical expenses incurred on behalf of a child.
REASON FOR CHANGE
To improve enforcement of medical support.
Section 321--Notice to State Child Support Enforcement Agency From
Health Care Plan Administrator Under Certain Circumstance When a Child
Loses Health Care Coverage
CURRENT LAW
Federal law requires the health care plan administrator to
notify qualified beneficiaries of their beneficiary rights with
regard to health care coverage when or if one of the following
events occurs: (1) the noncustodial parent with the health care
coverage dies; (2) the noncustodial parent with the health care
coverage loses his or her job or starts working fewer hours;
(3) the noncustodial parent with the health care coverage
becomes eligible for Medicaid benefits; (4) the noncustodial
parent with the health care coverage becomes involved in a
bankruptcy proceeding pertaining to his or her former employer;
(5) the noncustodial parent with the health care coverage gets
divorced or obtains a legal separation; or (6) the child of the
noncustodial parent with the health care coverage ceases to be
a dependent child. (With respect to (5) and (6), the
noncustodial parent (i.e., the covered employee) is required to
notify the health care plan administrator of such an event.)
COMMITTEE BILL
The Committee Bill requires the health care plan
administrator to notify the state CSE agency if the
noncustodial parent with the health care coverage dies, loses
his or her job or is working fewer hours, becomes eligible for
Medicaid benefits, or is involved in a bankruptcy proceeding
pertaining to the noncustodial parent's former employer. In
addition, the Committee Bill requires the health care plan
administrator to notify the state CSE agency if the
noncustodial parent with the health care coverage gets divorced
or obtains a legal separation, or if the noncustodial parent's
child ceases to be a dependent child (in cases where the
noncustodial parent has notified the plan administrator of such
an occurrence).
REASON FOR CHANGE
To improve notification of a state CSE agency.
Section 322--Authority To Continue State Program for Monitoring and
Enforcement of Child Support Orders
CURRENT LAW
Federal law stipulates that the following families
automatically qualify for Child Support Enforcement (CSE)
services: families receiving Temporary Assistance to Needy
Families (TANF) benefits (Title IV-A), foster care payments
(Title IV-E), Medicaid coverage (Title XIX), or food stamps (if
cooperation is required by the state). Other families (i.e.,
nonwelfare families) must apply for CSE services. The state of
Texas currently has a waiver of the requirement for a written
application for CSE services for nonwelfare families (Section
1115 of the Social Security Act). In participating counties,
these nonwelfare families are automatically a part of the CSE
caseload. Texas' five-year waiver is scheduled to expire in
2006.
COMMITTEE BILL
The Committee Bill allows the state of Texas to continue to
operate its CSE program for monitoring and enforcement of court
orders on behalf of a nonwelfare families without applying for
a federal waiver. Currently the state of Texas does not require
these families to apply for CSE services.
REASON FOR CHANGE
To continue the improvements to CSE in the state of Texas.
Section 323--Technical Amendment Relating To Information Comparisons
and Disclosure To Assist in Federal Debt Collection
CURRENT LAW
P.L. 108-447, the Consolidated Appropriations Act of 2005,
added provisions related to the comparison of data from the
Secretary of the Treasury with data in the National Directory
of New Hires for the purpose of collecting nontax debt owed to
the federal government.
COMMITTEE BILL
The Committee Bill makes technical changes to the
Consolidated Appropriations Act of 2005 with respect to
references to Title IV-D provisions related to information
comparisons and other disclosures.
TITLE IV--CHILD WELFARE
Section 401--Extension of Authority To Approve Demonstration Projects
CURRENT LAW
Permits the HHS Secretary to approve waivers (state
demonstration projects) that are likely to promote the
objectives of the child welfare programs authorized under Title
IV-B and Title IV-E. This authority is granted through March,
31, 2005.
COMMITTEE BILL
Extends this authority through FY2010.
Section 402--Removal of Commonwealth of Puerto Rico IV-E Funds From
Limitation on Payments
CURRENT LAW
Provides that, with the exception of certain bonus, loan
and evaluation funding under Title IV-A, the total amount of
funds Puerto Rico may receive under Title IV-A (TANF), Title
IV-E (Foster Care, Adoption Assistance, Adoption Incentives,
and independent living programs), and several other Titles
(providing assistance to aged, disabled and blind) may not
exceed a certain sum specified in the law.
COMMITTEE BILL
The Committee Bill would exempt Title IV-E funding from
this cap but never more than $6,250,000 in a given fiscal year
and only if the amount of the Title IV-E funds claimed in the
given year exceed funding for the same purposes in a given
previous year. It also would provide the adoption incentive
bonuses would not count against a territories' overall cap.
REASON FOR CHANGE
To provide Puerto Rico flexibility in their Title IV-E
program.
Section 403--Authority of Indian Tribes To Receive Federal Funds for
Foster Care and Adoption Assistance
CURRENT LAW
Title IV-E foster care and adoption assistance programs may
be operated by ``states,'' which are defined as each of the 50
United States, the District of Columbia, Puerto Rico, the
Virgin Islands, Guam, and American Samoa. These plans must be
in effect in all political subdivisions of the state and
standards established for approving foster care homes must be
``reasonably'' in accord with recommended standards of national
organizations concerned with foster care placement. States are
reimbursed for foster care maintenance and adoption assistance
payments made on behalf of eligible children at the applicable
federal medical assistance percentage (ranging from 50 percent-
83 percent); this percentage is based on the state's per capita
income. Administrative expenditures related to serving children
eligible for federally reimbursed maintenance payments and
adoption assistance are generally at 50 percent, with 75
percent reimbursement for certain training costs.
States that operate a foster care program must make foster
care maintenance payments on behalf of eligible children
removed from their homes if the child's placement and care are
the responsibility of the state child welfare agency or the
responsibility of another public agency with whom the state
child welfare agency has a currently effective agreement.
COMMITTEE BILL
The bill allows, beginning in FY 2006, an Indian tribe or
intertribal consortium to operate Title IV-E foster care and
adoption assistance programs under the same provisions as those
applying to states (with certain specified exceptions). Tribal
plans will be allowed to define service areas where a plan is
in effect and to grant approval of foster homes based on tribal
standards that ensure the safety of, and accountability for,
children placed in foster care. To establish the applicable
federal reimbursement rate for eligible foster care maintenance
and adoption assistance payments made under a tribal plan, the
HHS Secretary is required to determine a tribe's federal
medical assistance percentage based on the per capita income of
the service population defined in the Title IV-E tribal plan.
The bill also permits an Indian tribe or intertribal
consortium and a state to enter into a cooperative agreement
for administering or paying funds under Title IV-E. Any
cooperative agreement in effect prior to the enactment of this
law remains in effect unless either party to the agreement
chooses to revoke or modify the agreement, according to the
terms of that agreement.
The bill requires a state to make foster care payments on
behalf of an eligible child whose placement and care is the
responsibility of an Indian tribe or intertribal consortium if
that tribe or consortium is not operating its own Title IV-E
foster care program and it has a cooperative agreement with the
state or it has submitted to the HHS Secretary a description of
the arrangements made between the tribe or consortium and state
for provision of child welfare services and protections
required under Title IV-E.
The HHS Secretary is required to issue regulations to carry
out provisions related to the tribal IV-E plan within 1 year
after enactment. Current TANF provisions concerning eligible
entities in Alaska are applied for this program.
REASON FOR CHANGE
Currently, tribes are able to operate child welfare
programs and remain ineligible for direct federal funding to do
so. The provisions in the Committee Bill provide tribes with
direct access to IV-E funding and opportunities to create
culturally relative foster care programs while respecting the
importance of sovereignty.
Section 404--Technical Corrections
CURRENT LAW
Provides that the HHS Secretary may not waive compliance
with certain provisions under Title IV-B and IV-E, including
those provisions under ``Section 422(b)(9)''.
COMMITTEE BILL
Changes this reference to Section 422(b)(10). This
technical correction is necessary because the cited language
was renumbered in 1997 (P.L. 105-33) without the necessary
conforming amendment to this section.
TITLE V--SUPPLEMENTAL SECURITY INCOME
Section 501--Review of State Agency Blindness and Disability
Determinations
CURRENT LAW
The law has no provision requiring review by the Social
Security Commissioner of state agency determinations of SSI
eligibility on grounds of blindness or disability. It does
require review of blindness or disability determinations for
Disability Insurance (DI).
COMMITTEE BILL
The Committee Bill requires the Social Security
Commissioner to review state agency blindness and disability
determinations for SSI. It calls for review of at least 25
percent of determinations made in FY2006 and 50 percent in
FY2007 or thereafter.
REASON FOR CHANGE
Supplemental Security Income (SSI) is designed to help
aged, blind and disabled. The Committee finds that it helps
people who have little or no income; and it provides cash to
meet basic needs for food, clothing and shelter. SSI should be
for those who qualify; not those who are ineligible.
Section 502--Temporary Expansion of Length of Time-Limited Eligibility
for Qualified Aliens for Supplemental Security Income Benefits
CURRENT LAW
Asylees and refugees (as well as Cuban/Haitian entrants,
certain aliens whose deportation/removal is being withheld for
humanitarian reasons, and Vietnam-born Amerasians fathered by
U.S. citizens) are eligible for SSI for 7 years after entry/
grant of such status. Under current law, such aliens are
ineligible after 7 years unless they become naturalized
citizens.
COMMITTEE BILL
The Committee Bill extends the period of SSI eligibility
for 7 to 9 years for the period beginning with the date of
enactment through September 30, 2008.
REASON FOR CHANGE
The Committee Bill recognizes that some elderly and
disabled refugees have been unable to obtain U.S. citizenship
within 7 years due to a combination of processing delay, and,
for asylees statutory caps on the number who can become
permanent residents each year.
TITLE VI--TRANSITIONAL MEDICAL ASSISTANCE
Section 601--Transitional Medical Assistance
CURRENT LAW
The law requires transitional medical assistance (TMA)--
from 6 to 12 months--for those whose lose Medicaid eligibility
because of increased income arising from work (higher wages or
more hours of work). Authorization for 6-12 months of TMA
expired on September 30, 2002, but was extended through March
31, 2005. (Permanent provisions of law require 4 months of
transitional medical benefits to families who lose Medicaid
eligibility because of income from child or spousal support or
from earnings.)
COMMITTEE BILL
The Committee Bill provides for the extension and
simplification of the Transitional Medical Assistance Program
(TMA). The Committee Bill provides for the option of continuous
eligibility for 12 months and the option of continuing coverage
for up to an additional year. The Committee Bill provides for a
state option to waive receipt of Medicaid for 3 of previous 6
months to qualify for TMA. The Committee Bill provides for
additional provisions dealing with the collection and reporting
of information, coordination and other improvements.
REASON FOR CHANGE
The Committee Bill recognizes that Medicaid is an important
part of the safety net for needy families, and that health care
is a critical support for low-income families as they
transition from welfare to work and self-sufficiency,
particularly for families with entry-level employment.
TITLE VII--EFFECTIVE DATE
CURRENT LAW
Funding for TANF, mandatory child care, and abstinence
education, along with the authority for Transitional Medicaid,
expire on March 31, 2005.
COMMITTEE BILL
Funding for TANF, mandatory child care, and abstinence
education, along with the authority for Transitional Medicaid,
is extended on current terms through September 30, 2005, except
where explicitly provided for by this act. FY2005 funding for
the High Performance Bonus is eliminated.
Unless otherwise specified, provisions take effect on
October 1, 2005. However, if the Secretary determines that
state legislation is required for a State TANF or Child Support
plan to conform with the Act, the effective date is delayed to
three months after the first day of the first calendar quarter
beginning after the close of the first regular session of the
legislature that begins after enactment of this Act. If the
state has a 2-year legislative session, each year is to be
considered a separate regular session.
III. VOTES OF THE COMMITTEE
In compliance with paragraph 7(b) of Rule XXVI of the
Standing Rules of the Senate, the following statements are made
concerning the rollcall votes of the Committee's consideration
of the bill.
Motion To Report the Bill
The bill was ordered favorably reported by voice vote on
March 9, 2005. A quorum was present. No amendments were voted
on.
IV. REGULATORY IMPACT STATEMENT AND RELATED MATTERS
A. Regulatory Impact
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
statement concerning the regulatory impact of the Personal
Responsibility and Individual Development for Everyone Act
(PRIDE).
IMPACT ON INDIVIDUALS AND BUSINESS
In general, the bill provides grants to States and certain
other entities to assist low-income families with children in
moving toward self-sufficiency. Regulations are needed to
implement these grants in specified areas but do not affect
individuals or businesses, unless they choose to apply for such
grants.
IMPACT ON PERSONAL PRIVACY AND PAPERWORK
The bill provides grants to States and certain other
entities to assist low-income families with children in moving
toward self-sufficiency. In the context of seeking assistance,
families may be asked about personal circumstances and to
provide applications, including paperwork associated with their
financial situation. The bill should not increase the amount of
personal information and paperwork required.
V. BUDGET EFFECTS
March 25, 2005.
Hon. Charles E. Grassley,
Chairman, Committee on Finance,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 667, the Personal
Responsibility and Individual Development for Everyone Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Sheila
Dacey (for federal costs), Leo Lex (for the state and local
impact) and Molly Dahl (for the private-sector impact).
Sincerely,
Douglas Holtz-Eakin.
Enclosure.
S. 667--Personal Responsibility and Individual Development for Everyone
Act
Summary: S. 667, the Personal Responsibility and Individual
Development for Everyone (PRIDE) Act would:
Reauthorize the Temporary Assistance for Needy
Families (TANF) program at current funding levels (it would
increase funding for some grants and establish several new
grants, but also would eliminate funding for other related
grants);
Increase funding for child care programs and the
Social Services Block Grant (SSBG), and continue funding
abstinence education programs at $50 million annually;
Make several changes to eligibility rules relating
to the earned income credit and various child-related tax
benefits.
Make several changes to the child support
enforcement program, including allowing the distribution to
families of more collections from child support payments;
Increase funding for the foster care program for
Puerto Rico and for Indian tribes;
Require the Social Security Administration (SSA)
to change its system of reviewing awards to certain disabled
adults in the Supplemental Security Income (SSI) program and
extend the eligibility of certain refugees for benefits in the
SSI program; and
Extend by five years the requirement that state
Medicaid programs provide transitional medical assistance (TMA)
to certain Medicaid beneficiaries and allow states to simplify
aspects of TMA administration.
S. 667 would extend the TANF and child care programs
through 2010. Those programs are scheduled to expire on June
30, 2005. Continuing the programs at their current funding
levels would provide $88 billion for TANF and $14 billion for
child care over the 2005-2010 period. However, CBO already
assumes that level of funding in its baseline for those
programs, as specified in section 257 of the Balanced Budget
and Emergency Deficit Control Act of 1985 (Deficit Control
Act). Therefore the bill's extension of those programs would
have no cost relative to CBO's baseline.
CBO estimates that other provisions of S. 667 would
increase direct spending by $45 million in 2005, by $10.8
billion over the 2005-2010 period, and by $11.5 billion over
the 2005-2015 period, relative to CBO's baseline projections.
It also would increase revenues by $606 million over the 2005-
2010 period and by $1.2 billion over the 2005-2015 period.
S. 667 also would authorize appropriations for new grant
programs and for the administration of new functions in the SSI
program. CBO estimates that appropriation of the authorized
levels would result in outlays of $41 million in 2006, $1.2
billion over the 2006-2010 period, and $1.7 billion over the
2006-2015 period.
S. 667 would impose intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) by preempting state
laws and by reducing the amount of child support collections
that states could retain. The preemptions would impose no
significant costs on state governments. The reduction in the
amount of child support collections that states retain would be
a mandate, and its cost would depend on the degree to which
states could alter responsibilities within their child support
enforcement programs to make up for that reduction. In total,
states would face costs ranging from $50 million to $60 million
per year from 2010 through 2015. The increased costs from all
mandates in the bill would be below the threshold established
in UMRA ($62 million in 2005, adjusted annually for inflation).
Other provisions of the bill would significantly affect the
way states administer their TANF and Medicaid programs, but
because of the flexibility in those programs, the new
requirements would not be intergovernmental mandates as defined
in UMRA. In general, state, local, and tribal governments would
benefit from the continuation of existing TANF grants, the
creation of new grant programs, and broader flexibility and
options in some areas.
The bill contains a private-sector mandate as defined in
UMRA. Section 321 would require the administrator of a group
health plan to notify a state child support enforcement agency
under certain circumstances when a child loses health care
coverage. The cost of this mandate would not exceed the
threshold established by UMRA ($123 million in 2005, adjusted
annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 667 is shown in Table 1. For this
estimate, CBO assumes that it will be enacted in fiscal year
2005. The costs of this legislation fall within budget
functions 500 (education, training, employment, and social
services), 550 (health), and 600 (income security).
Basis of estimate: Most of PRIDE's budgetary effects would
stem from new direct spending. A portion of the new spending
would be offset by savings, resulting in a net increase in
direct spending of about $11.5 billion over the 2005-2015
period. The bill also would reduce federal revenues by an
estimated $1.2 billion and increase discretionary spending by
$1.7 billion over that period, assuming appropriation of the
authorized amounts.
S. 667 would extend the authorization for several programs,
including the TANF and child care programs, through 2010. The
Deficit Control Act directs CBO, in constructing its baseline
projections, to assume that such programs continue beyond their
final year of authorization. In accordance, we assume that the
TANF and child care programs and several provisions of the TANF
program (such as healthy marriage grants, the contingency fund,
and various research grants) continue beyond 2010. The
legislation specifies that two provisions, supplemental grants
for TANF and child care, should not be assumed to continue in
the baseline after their final year of authorization,
overriding the Deficit Control Act.
DIRECT SPENDING AND REVENUES
Title I: TANF. S. 667 would reauthorize basic TANF grants
through 2010 at the current funding level of $16.6 billion. By
law, that amount is assumed to continue in CBO's current
baseline; thus, enacting S. 667 would not change basic TANF
grants relative to that baseline. The TANF program and related
grants were originally authorized through fiscal year 2002.
They have been extended several times in subsequent
legislation, most recently through June 30, 2005, by HR. 1160,
which cleared the Congress on March 15, 2005.
Title I would alter the funding of some grants related to
TANF and make several other changes to program rules and
reporting requirements. That title would also increase funding
for the child care and SSBG programs and would alter
eligibility rules relating to the earned income credit and
various child-related tax benefits. CBO estimates that enacting
title I would decrease direct spending by $5 million in 2005
and increase direct spending by $5.1 billion over the 2005-2015
period, relative to CBO's baseline projections. In addition,
title I would increase revenues by $1.2 billion over that
period (see Table 2).
TABLE 1.--ESTIMATED COSTS OF S. 667, THE PERSONAL RESPONSIBILITY AND INDIVIDUAL DEVELOPMENT FOR EVERYONE ACT
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005-2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Increase Funding for Child Care:
Budget Authority...................... 0 900 1,000 1,200 1,300 1,600 200 200 200 200 200 7,000
Estimated Outlays..................... 0 494 917 1,198 1,341 1,496 569 280 215 200 200 6,910
Modify Tax Credits:
Estimated Budget Authority............ -5 -97 -563 -541 -530 -517 -470 -415 -424 -432 -451 -4,445
Estimated Outlays..................... -5 -97 -563 -541 -530 -517 -470 -415 -424 -432 -451 -4,445
Extend and Simplify Transitional Medicaid:
Estimated Budget Authority............ 0 433 791 906 1,015 1,120 757 41 -2 -13 -2 5,046
Estimated Outlays..................... 0 422 774 898 1,012 1,116 756 42 3 13 3 5,039
Other Changes to Direct Spending:
Estimated Budget Authority............ -15 808 760 803 751 475 141 125 82 50 10 3,992
Estimated Outlays..................... 50 593 624 807 762 564 262 144 83 49 10 3,946
Total Direct Spending:
Estimated Budget Authority............ -20 2,044 1,988 2,368 2,536 2,678 628 -49 -144 -195 -243 11,593
Estimated Outlays..................... 45 1,412 1,752 2,362 2,585 2,659 1,117 51 -124 -170 -238 11,450
CHANGES IN REVENUES
Estimated Revenues........................ 1 32 146 144 142 141 162 107 111 111 120 1,217
NET CHANGES IN DIRECT SPENDING AND REVENUES (EFFECT ON DEFICITS)
Estimated Increase or Decrease (-) in 44 1,380 1,606 2,218 2,443 2,518 955 -57 -235 -281 -358 10,233
Deficit..................................
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Additional Spending Subject to
Appropriations:
Estimated Authorization Level......... 0 329 332 335 336 336 16 16 17 17 18 1,752
Estimated Outlays..................... 0 41 205 361 338 288 296 155 30 17 18 1,749
Memorandum: Changes in Direct Spending from Program Extensions in S. 667 That Are Already Assumed in CBO's Baseline
TANF:
Estimated Budget Authority Estimated 3,588 16,870 16,875 16,875 16,875 16,875 0 0 0 0 0 87,958
Outlays..............................
Estimated Outlays..................... 2,230 14,530 16,930 17,300 17,000 16,875 3,038 55 0 0 0 87,958
Child Care:
Estimated Budget Authority............ 398 2,717 2,717 2,717 2,717 2,717 0 0 0 0 0 13,983
Estimated Outlays..................... 287 2,044 2,574 2,694 2,717 2,717 761 163 26 0 0 13,983
--------------------------------------------------------------------------------------------------------------------------------------------------------
TANF = Temporary Assistance for Needy Families.
Notes.--Components may not sum to totals because of rounding.
State Family Assistance Grant. Section 102 would extend the
state family assistance grant program through 2010 at the
current funding level of $16.6 billion. The extension would
provide more than $80 billion in additional direct spending
over the 2006-2010 period. As noted above, CBO already assumes
funding at that level in its baseline in accordance with rules
for constructing baseline projections, as set forth in section
257 of the Deficit Control Act. Therefore, CBO estimates this
provision would have no effect on direct spending over the
2006-2015 period, relative to the baseline projections.
TABLE 2.--DIRECT SPENDING EFFECTS OF TITLE I: TANF
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005-2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
Eliminate Out-of-Wedlock Bonus:
TANF:
Estimated Budget Authority........ 0 -100 -100 -100 -100 -100 -100 -100 -100 -100 -100 -1,000
Estimated Outlays................. 0 0 -57 -119 -105 -100 -100 -100 -100 -100 -100 -881
Food Stamps:
Estimated Budget Authority........ 0 0 1 1 1 1 1 1 1 1 1 9
Estimated Outlays................. 0 0 1 1 1 1 1 1 1 1 1 9
Subtotal:
Estimated Budget Authority.... 0 -100 -99 -99 -99 -99 -99 -99 -99 -99 -99 -991
Estimated Outlays............. 0 0 -56 -118 -104 -99 -99 -99 -99 -99 -99 -872
Establish Healthy Marriage Promotion
Grant:
Budget Authority.................. 0 100 100 100 100 100 100 100 100 100 100 1,000
Estimated Outlays................. 0 1 28 74 124 122 111 100 100 100 100 860
Continue Supplemental Grant at $319
Million Through 2009:
TANF:
Budget Authority.................. 0 319 319 319 319 0 0 0 0 0 0 1,276
Estimated Outlays................. 0 262 311 326 319 57 1 0 0 0 0 1,276
Food Stamps:
Estimated Budget Authority........ 0 -3 -4 4 -4 -1 0 0 0 0 0 -16
Estimated Outlays................. 0 -3 -4 4 -4 -1 0 0 0 0 0 -16
Subtotal:
Estimated Budget Authority.... 0 316 315 315 315 -1 0 0 0 0 0 1,260
Estimated Outlays............. 0 259 307 322 315 56 1 0 0 0 0 1,260
Reduce High-Performance Bonus:
TANF:
Budget Authority.................. -200 -150 -150 -150 -100 -100 -100 -100 -100 -100 -100 -1,350
Estimated Outlays................. 0 -82 -168 -211 -161 -109 -100 -100 -100 -100 -100 -1,231
Food Stamps:
Estimated Budget Authority........ 0 1 2 3 2 1 1 1 1 1 1 14
Estimated Outlays................. 0 1 2 3 2 1 1 1 1 1 1 14
Subtotal:
Estimated Budget Authority.... -200 -149 -148 -147 -98 -99 -99 -99 -99 -99 -99 -1,336
Estimated Outlays............. 0 -81 -166 -208 -159 -108 -99 -99 -99 -99 -99 -1,217
Modify Contingency Fund:
Estimated Budget Authority............ 0 13 -11 -8 -2 -4 -7 -7 -9 -9 -10 -54
Estimated Outlays..................... 0 13 -11 -8 -2 -4 -7 -7 -9 -9 -10 -54
Reserve Contingency Funding for Tribes:
Budget Authority...................... 0 25 0 0 0 0 5 5 5 5 5 50
Estimated Outlays..................... 0 4 5 5 5 5 5 5 5 5 5 49
Increase Transfer Authority from TANF to
SSBG:
Budget Authority...................... 0 0 0 0 0 0 0 0 0 0 0 0
Estimated Outlays..................... 0 70 -2 -56 -12 0 0 0 0 0 0 0
Increase SSBG Funding:
Budget Authority...................... 0 200 200 200 200 200 0 0 0 0 0 1,000
Estimated Outlays..................... 0 164 196 200 200 200 36 4 0 0 0 1,000
Increase Tribal JOBS Funding:
Budget Authority...................... 0 5 5 5 5 5 5 5 5 5 5 50
Estimated Outlays..................... 0 1 4 5 5 5 5 5 5 5 5 45
Establish Tribal TANF Improvement Grants:
Budget Authority...................... 0 80 0 0 0 0 0 0 0 0 0 80
Estimated Outlays..................... 0 8 26 27 13 5 1 0 0 0 0 80
Establish Secretary's Fund for Research,
Demonstration, and National Studies:
Budget Authority...................... 100 100 100 100 100 100 100 100 100 100 100 1,100
Estimated Outlays..................... 0 20 105 148 120 109 101 100 100 100 100 1,003
Extend Funding of Studies and
Demonstrations:
Budget Authority...................... 0 15 15 15 15 15 15 15 15 15 15 150
Estimated Outlays..................... 0 1 10 15 15 15 15 15 15 15 15 131
Fund Indicators of Child Well-being:
Budget Authority...................... 0 10 10 10 10 10 10 10 10 10 10 100
Estimated Outlays..................... 0 1 6 11 12 11 10 10 10 10 10 91
Fund Research in Tribal Welfare Programs:
Budget Authority...................... 0 2 0 0 0 0 0 0 0 0 0 2
Estimated Outlays..................... 0 * 1 1 0 0 0 0 0 0 0 2
Increase Funding for Child Care:
Budget Authority...................... 0 200 200 200 200 200 200 200 200 200 200 2,000
Estimated Outlays..................... 0 144 188 198 200 200 200 200 200 200 200 1,930
Establish Supplemental Grant for Child
Care:
Budget Authority...................... 0 700 800 1,000 1,100 1,400 0 0 0 0 0 5,000
Estimated Outlays..................... 0 350 729 1,000 1,141 1,296 369 80 15 0 0 4,980
Change EIC Identification Requirements:
Estimated Budget Authority............ 0 0 -399 -377 -365 -352 -310 -295 -302 -312 -326 -3,038
Estimated Outlays..................... 0 0 -399 -377 -365 -352 -310 -295 -302 -312 -326 -3,038
Change Eligibility for the Child Tax
Credit:
Estimated Budget Authority............ 0 0 -65 -63 -62 -60 -60 -8 -9 -8 -11 -346
Estimated Outlays..................... 0 0 -65 -63 -62 -60 -60 -8 -9 -8 -11 -346
Clarify Eligibility for Child-Related Tax
Benefits:
Estimated Budget Authority............ -5 -97 -99 -101 -103 -105 -100 -112 -113 -112 -114 -1,061
Estimated Outlays..................... -5 -97 -99 -101 -103 -105 -100 -112 -113 -112 -114 -1,061
Establish Fatherhood Grants:
Budget Authority...................... 0 50 50 50 50 50 0 0 0 0 0 250
Estimated Outlays..................... 0 8 35 55 55 50 38 9 0 0 0 250
Create Resource Center for Teen Pregancy
Prevention:
Budget Authority...................... 0 5 0 0 0 0 0 0 0 0 0 5
Estimated Outlays..................... 0 1 1 1 1 1 0 0 0 0 0 5
Effects of Title I Interactions on TANF:
Budget Authority...................... 0 0 0 0 0 0 0 0 0 0 0 0
Estimated Outlays..................... 0 0 -91 71 20 0 0 0 0 0 0 0
Total Changes in Direct Spending: Title I:
Estimated Budget Authority............ -105 1,475 974 1,200 1,366 1,360 -240 -185 -196 -204 -224 5,221
Estimated Outlays..................... -5 867 752 1,202 1,419 1,347 217 -92 -181 -204 -224 5,098
CHANGES IN REVENUES
Change EIC Identification Requirements 0 4 40 40 38 39 66 64 67 66 72 496
Change Eligibility for the Child Tax 0 0 14 14 14 14 13 5 5 5 5 89
Credit
Clarity Eligibility for Child-Related Tax 1 28 92 90 90 88 83 38 39 40 43 632
Benefits
-------------------------------------------------------------------------------------------------------------
Total Changes to Estimated Revenues... 1 32 146 144 142 141 162 107 111 111 120 1,217
--------------------------------------------------------------------------------------------------------------------------------------------------------
TANF = Temporary Assistance for Needy Families. SSBG = Social Services Block Grant.
* = costs or savings of less than $500,000.
Notes.--Components may not sum to total because of rounding.
Healthy Marriage Promotion Grants. Section 103 would
eliminate an out-of-wedlock birth grant program, but would
create a new grant program to promote healthy marriages. CBO
projects $1 billion in funding for out-of-wedlock birth grants,
$100 million annually over the2006-2015 period, in accordance
with the Deficit Control Act. We estimate that eliminating this program
would reduce outlays by $881 million over the 2007-2015 period,
relative to CBO's baseline projections. The impact on outlays of the
reduction in funding is delayed (no effect in 2006) because the grants
are awarded in the last days of a fiscal year. CBO expects the reduced
funding would cause states to decrease benefits for families that also
receive food stamps. As a result, the Food Stamp payment to those
families would rise, and the cost of Food Stamp benefits would grow by
an estimated $9 million over the 2007-2015 period.
Section 103 would establish a new competitive grant to
states and Indian tribes for developing and implementing
programs to promote and support marriage. The bill would
appropriate $100 million annually for grants that could be used
for a variety of activities, including public advertising
campaigns, education and training programs on topics related to
marriage, marriage mentoring programs, and programs to reduce
disincentives to marriage in means-tested programs. The grants
could be used to cover up to 50 percent of the cost of the new
programs. CBO expects that the grants would be spent slowly in
the first few years because the Department of Health and Human
Services (HHS) would need to set up a system for awarding
grants, and states would need to set up programs to use the
funds. Estimated outlays would total $1 million in 2006 and
$860 million over the 2006-2015 period.
Supplemental Grants. Section 104 would provide $319 million
annually for the supplemental grants for population increases
over the 2006-2009 period. (These grants are awarded to states
that have lower-than-average TANF grants per poor person or
rapidly increasing populations.) Supplemental grants are
currently funded for the first three quarters of fiscal year
2005 at $255 million, consistent with an annual level of $319
million. (Section 702 of the bill would fund the grants for the
final quarter of 2005.) Current law specifies that supplemental
grants should not be assumed to continue in baseline
projections after June 30, 2005, overriding the continuation
rules specified in section 257 of the Deficit Control Act.
CBO estimates that states would spend $262 million in 2006
and $1.3 billion over the 2006-2011 period. We expect that some
of the additional funding would be used to increase benefits to
families that also receive food stamps. As a result, the Food
Stamp payment to those families would fall and the cost of Food
Stamp benefits would decline by an estimated $16 million over
the 2006-2010 period.
Bonuses for High-Performing States. Section 105 would
reduce funding for a bonus to high-performing states and
refocus the bonus toward rewarding performance in improving job
outcomes for TANF recipients. The bonus in current law rewards
states for moving TANF recipients into jobs, providing support
for low-income working families, and increasing the percentage
of children who reside in married-couple families.
The Secretary would develop criteria for the new bonus--the
Bonus to Reward Employment Achievement--in consultation with
the states. The criteria would measure workplace attachment and
advancement. The bill would make $450 million available for
bonuses averaging $50 million annually over the 2006-2008
period and $100 million annually over the 2009-2011 period.
Pursuant to the Deficit Control Act, CBO's baseline projections
include $200 million a year in funding for bonuses. Therefore,
the net effect of section 105 would be a reduction in budget
authority of $1.35 billion over the 2005-2015 period. Because
the bonuses are usually granted in the last days of a fiscal
year, TANF spending would fall by only $1.2 billion over the
10-year period.
CBO expects the reduced TANF funding would cause states to
decrease benefits to families that also receive food stamps. As
a result, the Food Stamp payment to those families would rise
and the cost of Food Stamp benefits would grow, by an estimated
$14 million over the 10-year period.
Contingency Fund. Section 106 would significantly alter the
Contingency Fund for State Welfare Programs. Under current law,
the contingency fund provides additional federal funds to
states with high and increasing unemployment rates or
significant growth in Food Stamp participation. To be eligible,
states are required to maintain their spending at 100 percent
of their 1994 levels and to match federal payments. CBO
estimates that states will draw federal funds totaling between
$30 million and $40 million annually under current law.
Section 106 would change the eligibility conditions, grant
determination, and state spending requirements for the
contingency fund. It would establish new thresholds of growth
in the unemployment rate and Food Stamp participation for
states to qualify for funds. The amount of funding a state
would receive would be derived by multiplying the state's
caseload increase over the level two years prior to its
qualification, its TANF benefit level for a family of three,
and its Medicaid matching rate. A state with high unspent TANF
balances from prior years would not be eligible for payments
from the contingency fund. In contrast to current law, a state
would not need to maintain a high level of historic spending or
put up any matching funds in order to receive a contingency
fund grant.
Based on CBO's projections of unemployment rates, Food
Stamp participation, TANF caseloads, and state TANF spending,
CBO estimates that states would qualify for $13 million more
from the contingency fund in 2006, but between $2 million and
$11 million per year less over the 2007-2015 period. The net
effect of the changes would be a reduction in outlays of $54
million over the 10-year period.Section 106 would also
appropriate $25 million over the 2006-2010 period for making payments
to Indian tribes that experience increased economic hardship. Those
payments would increase outlays by $5 million annually.
Social Services Block Grant. Section 107 would allow states
to continue to transfer up to 10 percent of TANF funds to SSBG.
The 1996 welfare law that established the TANF program set the
level of the transfer authority at 10 percent. Subsequent
legislation permanently lowered the authority to 4.25 percent.
However, the Congress has restored the authority to 10 percent
every year since, most recently through September 30, 2005. In
the absence of further legislation, the authority will fall to
4.25 percent after that date.
In recent years, states have transferred about $1 billion
annually. Maintaining the transfer authority at the higher
level would make it easier for states to spend their TANF
grants and would accelerate spending relative to current law.
Based on recent state transfers, CBO expects that states would
transfer an additional $340 million annually under this
provision, but because some of this money would have been spent
within the TANF program anyway, only $70 million of additional
spending would occur in 2006. Because states would have found
alternate ways to spend the funds in later years, the increase
in spending in 2006 would be offset by decreased spending in
subsequent years. Thus, this provision would have no net impact
on TANF spending over the 2006-2015 period as a whole.
Section 107 would also increase the amount of funding for
the social services block grant by $200 million annually over
the 2006-2010 period, adding $1.0 billion to outlays over the
2006-2012 period.
Work Participation Requirements. Section 109 would require
states to have an increasing percentage of TANF recipients
participate in work activities while receiving cash assistance.
It would generally maintain current penalties for the failure
to meet those requirements. Those penalties can total up to 5
percent of the TANF block grant amount for the first failure to
meet work requirements and increase with each subsequent
failure. CBO estimates that any penalties for failing to meet
the new requirements would total less than $500,000 annually.
Direct Funding and Administration by Indian Tribes. Section
113 would increase grants to tribes to operate employment
programs from the current $7.6 million level to $12.6 million
annually. The new funding would raise outlays by $45 million
over the 2006-2015 period.
Section 113 would also appropriate $80 million in 2006 for
tribal improvement grants. The Secretary of HHS would carry out
a program of technical assistance and competitive grants to
Indian tribes focused on improving tribes' capacity to deliver
human services and promote economic development. CBO estimates
implementing the program would cost $8 million in 2006 and $80
million over the 2006-2011 period.
Research, Demonstrations, and Technical Assistance. Section
114 would make funds available to the Secretary of Health and
Human Services to conduct and support research and
demonstration projects and provide technical assistance,
primarily on the promotion of marriage. The program would be
funded at $100 million annually. Because the 2005 grant would
not be available until late in the year, CBO expects an
insignificant amount would be spent in 2005. Implementing the
provision would boost spending by $20 million in 2006 and $1.0
billion over the 2006-2015 period.
Section 114 also would continue annual grants of $15
million for research. Specifically, it would fund research on
the effects, costs, and benefits of state TANF programs and
innovative approaches for reducing welfare dependency and
increasing the well-being of children. It also could fund
evaluations of TANF programs initiated by the states and
ongoing demonstration projects approved before 1996. Based on
recent spending patterns, CBO estimates that this provision
would increase outlays by $1 million in 2006 and by $131
million over the 2006-2015 period.
Section 114 also would provide $10 million annually to the
Secretary of HHS to develop comprehensive indicators to assess
the well-being of children in each state. CBO estimates that
this provision would increase outlays by $1 million in 2006 and
by $91 million over the 2006-2015 period. Finally, the bill
would provide $2 million in 2006 for research on tribal welfare
programs.
Child Care. The child care entitlement to states provides
funding to states for child care subsidies to low-income
families and for other activities. Section 116 would extend the
grant program through 2010, providing funding of $14 billion
over the 2006-2010 period. CBO already assumes funding of
$2.717 billion annually in its baseline in accordance with the
Deficit Control Act, so the extension would have no effect on
direct spending relative to the baseline projection. Section
116 would also raise annual funding by $200 million to $2.917
billion. CBO estimates that, as a result, outlays would
increase by $144 million in 2006 and by $1.9 billion over the
10-year period relative to its baseline projections.
Section 116 would also create a new supplemental grant for
child care, with funding of $700 million in 2006, rising to
$1.4 billion in 2010. States would be required to put up some
matching funds in 2009 and 2010. Based on current spending
patterns, CBO expects that some states would not put up the
full state match, so that a small amount would lapse. The bill
specifies that the supplemental grants should not be assumed to
continue in baseline projections after 2010, overriding the
continuation rules specified in section 257 of the Deficit
Control Act. Under that assumption, CBO estimates that outlays
would increase by $350 million in 2006 and by nearly $5.0
billion over the 10-year period.
Tax Credits. The bill would make several changes to
eligibility rules relating to the earned income tax credit and
various child-related tax benefits. In total, JCT and CBO
estimate those changes would increase revenues by $606 million
over the 2005-2010 period and by about $1.2 billion over the
2005-2015 period. Because some or all of each of those changes
applies to refundable tax credits, which are recorded in the
budget as outlays, CBO also estimate that enacting the bill
would reduce direct spending by about $4.4 billion over the
2005-2015 period.
Change Identification Requirements for the Earned Income
Tax Credit. The bill would change the type of identification
that taxpayers must possess in order to claim the earned income
tax credit. To receive the credit, taxpayers would be required
to possess a Social Security number that authorizes them to
work in the United States. CBO estimates that the change would
reduce outlays for the earned income tax credit by about $3.0
billion over the 2005-2015 period and increase revenues by
nearly $500 million over the same period.
This provision was enacted in the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996, but the
legislative language contained a drafting oversight that
negated its effect. For scorekeeping purposes, JCT concluded
that the provision should not be credited with reducing outlays
and increasing revenues because it is a technical correction
necessary to carry out the original intent of the enacted
provision and the original estimate reflected the intent of the
legislation. However, CBO's baseline budget projections reflect
current law as enacted and implemented, and the change made by
S. 667 would affect future outlays and receipts relative to
CBO's baseline projections. Therefore, CBO estimates a
budgetary effect from the provision in S. 667, using an
estimate of the resulting baseline change provided by JCT.
Change Eligibility for the Child Tax Credit. The bill would
prohibit certain taxpayers from claiming the child tax credit.
Currently, taxpayers living abroad may elect to exclude foreign
earned income and qualifying housing expenses from their gross
income and still receive the child credit. Under S. 667,
taxpayers who choose to exclude such income would no longer be
eligible to receive the credit. According to JCT, federal
revenues would increase by an estimated $89 million over the
2007-2015 period as a result. Outlays from the refundable
portion ofthe credit would decrease by an estimated $346
million over the same period.
Clarify Eligibility Rules for Child-Related Tax Benefits.
S. 667 would clarify the rules of eligibility of siblings and
other family members for child-related tax benefits. For
example, the bill would clarify that if a parent resides with a
child for more than half of the year, then generally only that
parent could claim the child for child-related tax benefits. If
no parent were able to claim the child for such purposes,
another taxpayer would be allowed to claim the child, provided
all other criteria are met. JCT estimates that making those
changes would increase federal revenues by $1 million in 2005
and by $632 million over the 2005-2015 period. JCT also
estimates that outlays for the refundable credits would
decrease by about $1.1 billion between 2005 and 2015.
Fatherhood Grants. Section 118 would establish two new
grant programs to promote responsible fatherhood and would
appropriate $50 million annually over the 2006-2010 period.
(Section 118 would also authorize appropriations of an
additional $26 million annually.) CBO estimates that
implementing the programs would increase direct spending by $8
million in 2006 and $250 million over the 2006-2015 period.
Teen Pregnancy Prevention Resource Center. Section 119
would appropriate $5 million for 2006 to establish a resource
center to provide information and technical assistance on
reducing teen pregnancy. CBO estimates implementing the program
would cost $1 million annually over the 2006-2010 period.
Interactions. CBO estimates that several provisions in
title I would accelerate the rate of spending of prior-year
balances in the TANF program. Provisions that would increase
the transfer authority to SSBG, eliminate the out-of-wedlock
grant, and reduce the high-performance bonus would each induce
states to spend uncommitted TANF funds from prior years sooner
than under current law. However, those combined effects would
exceed the amount of uncommitted TANF funds. Consequently, the
budgetary effect of all the provisions enacted together would
be smaller than the sum of the estimated effects for the
individual provisions. CBO estimates that those interactions
would lower projected TANF spending in 2007 by $91 million,
relative to the sum of the provisions estimated individually,
but raise it by the same amount over the 2008-2009 period.
Thus, there would be no net impact on TANF spending over the
10-year period as a whole.
Title II: Abstinence Education. S. 667 would extend the
authorization for abstinence education grants and provide $50
million annually over the 2006-2010 period. It would make a
slight change to the formula for determining state allotments.
Under the bill, funds would be divided only among those states
that applied for them. Current allotments are determined by
dividing available funds among all states and territories,
regardless of whether they submit an application. In addition,
any unspent funds allocated to individual states could be
periodically reallocated by the Secretary. Because projected
spending in 2010 does not exceed $50 million, CBO does not
assume that this program would be extended beyond its specific
authorization.
Title III: Child Support. S. 667 would change many aspects
of the operation and financing of the child support program. It
would allow (and in one case, require) states to share more
child support collections with current and former recipients of
TANF, thereby reducing the amount the federal and state
governments would recoup from previous TANF benefit payments.
(The federal government's share of child support collections is
55 percent, on average.) It would require states to
periodically update child support orders and expand the use of
certain enforcement tools. It would provide increases in
funding for HHS and for grants that facilitate noncustodial
parent access to their children. Finally, title III would
require states to change the way they seek health coverage for
children, forgive certain penalties on states, and allow Texas
to continue to operate under a waiver of program rules.
Overall, CBO estimates that enacting title III would increase
direct spending by $5 million in 2005 and $1.8 billion over the
2005-2015 period (see Table 3).
Distribute More Collections to Current TANF Recipients.
When a family applies for TANF, it assigns to the state any
rights the family has to child support collections. While the
family receives assistance, the state uses any collections it
receives to reimburse itself and the federal government for
TANF payments. Those reimbursements to the federal government
are recorded as offsetting receipts (a credit against direct
spending). States may choose to give some ofthe child support
collected to families, but states must finance those payments
out of their share of collections.
Section 301 would allow states to pay up to $400 each month
of child support to a family receiving assistance (up to $600
to a family with two or more children), without turning over to
the federal government its share of those payments, beginning
18 months after enactment of the bill. The state could not
count the child support as income in determining the families'
benefits under the TANF program.
In recent years, states with about two-thirds of child
support collections shared some of those collections with
families receiving TANF. CBO expects states would continue to
share at least that amount, and under S. 667 the federal
government would bear part of that cost. In addition, based on
information from state child-support officials and other policy
experts, CBO expects that states with about one-third of
collections would choose to institute a policy of sharing the
first $50 per month collected, or, if they already have such a
policy, to increase the amount of child support they share with
families on assistance. CBO anticipates that states would
institute those increases slowly and that the increases would
not be fully effective until 2010. Based on HHS data for child
support and information supplied by state officials, CBO
expects that states would raise payments to families in 2010
from the $104 million anticipated under current practices to
$161 million under S. 667. CBO estimates that federal
offsetting receipts (from reimbursements) would fall by $45
million in 2007, $88 million in 2010, and $753 million over the
2007-2015 period.
TABLE 3.--DIRECT SPENDING EFFECTS OF TITLE III: CHILD SUPPORT
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005-2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
Distribute More Collections to Current
TANF Families:
Child Support Collections:
Estimated Budget Authority........ 0 0 45 69 79 88 90 92 94 97 99 753
Estimated Outlays................. 0 0 45 69 79 88 90 92 94 97 99 753
Food Stamps:
Estimated Budget Authority........ 0 0 -2 -6 -10 -14 -14 -14 -15 -15 -15 -105
Estimated Outlays................. 0 0 -2 -6 -10 -14 -14 -14 -15 -15 -15 -105
Subtotal:
Estimated Budget Authority.... 0 0 43 63 69 74 76 78 79 82 84 648
Estimated Outlays............. 0 0 43 63 69 74 76 78 79 82 84 648
Distribute More Past-Due Support to
Current and Former TANF Families:
Child Support Collections:
Estimated Budget Authority........ 0 0 34 70 106 183 187 191 195 200 204 1,370
Estimated Outlays................. 0 0 34 70 106 183 187 191 195 200 204 1,370
Food Stamps:
Estimated Budget Authority........ 0 0 -I -3 -5 -6 -7 -7 -7 -7 -7 -50
Estimated Outlays................. 0 0 -I -3 -5 -6 -7 -7 -7 -7 -7 -50
Student Loans:
Estimated Budget Authority........ 5 * * * * * * * * * * 5
Estimated Outlays................. 5 * * * * * * * * * * 5
Subtotal:
Estimated Budget Authority.... 5 0 33 67 101 177 180 184 188 193 197 1,325
Estimated Outlays............. 5 0 33 67 101 177 180 184 188 193 197 1,325
Require Triennial Update of Child Support
Orders:
Administrative Costs:
Estimated Budget Authority........ 0 0 0 15 15 12 12 13 13 13 13 106
Estimated Outlays................. 0 0 0 15 15 12 12 13 13 13 13 106
Child Support Collections:
Estimated Budget Authority........ 0 0 0 -5 -14 -20 -20 -19 -19 -19 -20 -136
Estimated Outlays................. 0 0 0 -5 -14 -20 -20 -19 -19 -19 -20 -136
Food Stamps:
Estimated Budget Authority........ 0 0 0 -I -2 -2 -2 -2 -2 -3 -3 -17
Estimated Outlays................. 0 0 0 -I -2 -2 -2 -2 -2 -3 -3 -17
Medicaid:
Estimated Budget Authority........ 0 0 0 -2 -6 -10 -10 -8 -7 -7 -8 -58
Estimated Outlays................. 0 0 0 -2 -6 -10 -10 -8 -7 -7 -8 -58
Subtotal:
Estimated Budget Authority.... 0 0 0 7 -7 -20 -20 -16 -15 -16 -18 -105
Estimated Outlays............. 0 0 0 7 -7 -20 -20 -16 -15 -16 -18 -105
Reduce Threshold for Passport Denial to
$2,500:
Estimated Budget Authority............ 0 0 -I -I -I -I -I -I -I -I -I -9
Estimated Outlays..................... 0 0 -I -I -I -I -I -I -I -I -I -9
Withhold Child Support from Social
Security Disability Payments:
Estimated Budget Authority............ 0 0 -3 -4 -4 -4 -5 -5 -6 -6 -6 -43
Estimated Outlays..................... 0 0 -3 -4 -4 -4 -5 -5 -6 -6 -6 -43
Maintain Funding for Technical Assistance
and Federal Parent-Locator Service:
Estimated Budget Authority............ 0 2 2 I 0 0 0 0 0 0 0 5
Estimated Outlays..................... 0 2 2 I 0 0 0 0 0 0 0 5
Allow Federal Seizure of Accounts in Multi-
State Financial Institutions:
Administrative Costs:
Estimated Budget Authority........ 0 2 2 0 0 0 0 0 0 0 0 4
Estimated Outlays................. 0 2 2 0 0 0 0 0 0 0 0 4
Child Support Collections:
Estimated Budget Authority........ 0 0 -I -3 -5 -5 -5 -5 -5 -5 -5 -39
Estimated Outlays................. 0 0 -I -3 -5 -5 -5 -5 -5 -5 -5 -39
Subtotal:
Estimated Budget Authority.... 0 2 I -3 -5 -5 -5 -5 -5 -5 -5 -35
Estimated Outlays............. 0 2 I -3 -5 -5 -5 -5 -5 -5 -5 -35
Match Databases of Insurance Claims:
Administrative Costs:
Estimated Budget Authority........ 0 2 2 0 0 0 0 0 0 0 0 4
Estimated Outlays................. 0 2 2 0 0 0 0 0 0 0 0 4
Child Support Collections:
Estimated Budget Authority........ 0 0 0 -2 -4 -4 -4 -4 -4 -4 -4 -30
Estimated Outlays................. 0 0 0 -2 -4 -4 -4 -4 -4 -4 -4 -30
Subtotal:
Estimated Budget Authority.... 0 2 2 -2 -4 -4 -4 -4 -4 -4 -4 -26
Estimated Outlays............. 0 2 2 -2 -4 -4 -4 -4 -4 -4 -4 -26
Increase Grants to States for Access and
Visitation:
Budget Authority...................... 0 2 4 6 10 10 10 10 10 10 10 82
Estimated Outlays..................... 0 2 4 6 10 10 10 10 10 10 10 82
Forgive Penalties for Noncompliance in
2001:
Budget Authority...................... 0 4 0 0 0 0 0 0 0 0 0 4
Estimated Outlays..................... 0 4 0 0 0 0 0 0 0 0 0 4
Require Health Insurance from Either
Parent:
Estimated Budget Authority............ 0 * -I -I -I -3 -5 -7 -10 -13 -16 -57
Estimated Outlays..................... 0 * -I -I -I -3 -5 -7 -10 -13 -16 -57
Send Notices to Child Support Agency:
Estimated Budget Authority............ 0 I 1 I I 2 2 2 2 2 2 16
Estimated Outlays..................... 0 I I I I 2 2 2 2 2 2 16
Make Texas Waiver Permanent:
Estimated Budget Authority............ 0 I 3 3 4 5 6 7 8 9 11 57
Estimated Outlays..................... 0 I 3 3 4 5 6 7 8 9 11 57
Effect of Title III Provisions on
Technical Assistance Funding:
Estimated Budget Authority............ 0 0 0 0 0 -I -2 -3 -4 -5 -6 -21
Estimated Outlays..................... 0 0 0 0 0 -I -2 -3 -4 -5 -6 -21
Total Changes in Title III:
Estimated Budget Authority............ 5 14 84 137 163 230 232 240 242 246 248 1,841
Estimated Outlays..................... 5 14 84 137 163 230 232 240 242 246 248 1,841
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = costs or savings of less than $500,000.
NOTES.--Components may not sum to totals because of rounding. TANF = Temporary Assistance for Needy Families.
Because additional child support income in many cases would
reduce the Food Stamp benefits a family receives, CBO estimates
savings in the Food Stamp program totaling $2 million in 2007
and $105 million over the 2007-2015 period.
Distribute More Past-Due Support to Current and Former TANF
Recipients. Section 301 also would require states to share more
child support collections with families through a change in
assignment rules and would allow states to share more of such
collections with families who used to receive welfare benefits.
Under current law, families assign to the state the right
to any child support payments due before and during the period
the families receive assistance. The bill would eliminate the
requirement that families assign support due in the period
before the families receiveassistance. S. 667 would require
states to implement the new policy by September 30, 2009, but would
give them the option of implementing it as soon as 18 months after the
date of enactment.
When a family ceases to receive public assistance, states
continue to enforce the family's child support order. All
amounts of child support collected on time are sent directly to
the family. However, both the government and the family have a
claim on collections of past-due child support: the government
claims the support owed for the period when the family was on
assistance, up to the amount of the assistance paid, and the
family claims the remainder. A set of distribution rules
determines which claim is paid first when a collection is made.
That order matters because, in many cases, past-due child
support is never fully paid.
Section 301 would give states the option to change the
order of the distribution so that all collections would be paid
to families first before the government is reimbursed. In
addition, it would allow states to pay to families part of the
government's share of support payments.
CBO estimates that states with 40 percent of collections
would implement the optional policies by 2010. Based on
information from state child-support officials and policy
experts, and on HHS data, CBO estimates that families would
receive an additional $61 million in 2007, rising to $333
million by 2010, and $2.5 billion over the 2007-2015 period, as
a result of these changes. CBO estimates that those increased
distributions to families would reduce the federal share of
collections by $34 million in 2007, $183 million in 2010, and
$1.4 billion over the 2007-2015 period.
Section 301 would affect federal collections in the student
loan program. Under a program called the federal tax offset
refund program, tax refund payments are withheld from
individuals who owe over-due child support and certain federal
debts, mainly related to student loans, and used to pay the
debts. Beginning in 2010, S. 667 would give child support debt
priority over all other federal debts. In current law, child
support that is owed to the government is given such priority,
but child support owed to families is paid after all other
federal debts. In cases where an individual owes both child
support debt and other federal debt, the new priority order
would decrease payments to the federal government in the
student loan program.
Currently 0.5 percent of tax filers are subject to a tax
refund offset for child support owed to a family and 0.5
percent for student loan debt. Assuming people who owe student
loan debt are neither more nor less likely to owe child support
debt, 3,300 filers could be subject to an offset for both child
support and student loan debt. CBO estimates that the provision
would reduce recoveries in the student loan program by $4
million annually beginning in 2010. However, much of the
resulting losses in recoveries in the student loan program
would be subsequently recouped through various collecting
methods.
The provisions affecting the student loan programs are
assessed under the requirements of the Federal Credit Reform
Act. As such, the budget records all the costs and collections
associated with a new loan on a present-value basis in the year
the loan is obligated, and the costs of all changes (i.e.,
``modifications'') affecting outstanding loans are displayed in
the fiscal year the bill is enacted--assumed to be 2005 for
this estimate. This results in a federal cost of $5 million in
2005 and insignificant amounts each year from 2006 through
2015.
Finally, the new collections paid to former TANF recipients
would affect spending for the Food Stamp program. CBO expects
that one-third of the former TANF recipients with increased
child support income would participate in the Food Stamp
program, and that benefits would be reduced by 30 cents for
every extra dollar of income. Increased income from the tax
refund offset, which is paid as a lump sum, would not count as
income for determining Food Stamp benefits. For purposes of
calculating such benefits, incomes of former TANF recipients
would increase by $14 million in 2007 and $480 million over the
2007-2015 period. Food Stamp savings would be $1 million in
2007 and $50 million over the 2007-2015 period.
Mandatory Three-Year Update of Child Support Orders.
Section 302 would require states to adjust child support orders
offamilies on TANF every three years. States could use one of
three methods to adjust orders: full review and adjustment,
cost-of-living adjustment (COLA), or automated adjustment.
Under current law, nearly half of the states perform periodic
adjustments. Most perform a full review, and the remainder
apply a COLA. No state currently makes automated adjustments.
The provision would take effect on October 1, 2007, and CBO
estimates that it would result in direct spending savings of
$105 million over the 2008-2015 period.
CBO estimates that there are 700,000 TANF recipients with
child support orders in states that do not periodically adjust
orders and one-third ofthose orders would be adjusted each
year. We assume that half of the states not already adjusting
orders would choose to perform full reviews and half would
apply a COLA.
Full review and adjustment. When a state performs a full
review of a child support order, it obtains current financial
information from the custodial and noncustodial parents and
determines whether any adjustment in the amount of ordered
child support is indicated. The state also may revise an order
to require the noncustodial parent to provide health insurance.
Based on evaluations of review and modification programs,
CBO estimates the average cost of a review would be about $200,
with the federal government paying 66 percent of
suchadministrative costs. The average adjustment to a child support
order of a family on TANF would be $95 a month, and about 18 percent of
the orders reviewed would be adjusted.
In addition, CBO estimates that 40 percent of orders with a
monetary adjustment also would be adjusted to include a
requirement that the noncustodial parent provide health
insurance for his or her child and that insurance would be
provided in about half of those cases. After the first few
years, we assume newly provided medical insurance would decline
by half, because many families would have already had such
insurance recently added to their order. Children who receive
TANF are generally eligible for Medicaid, so the new coverage
would reduce spending for that program.
Cost-of-living adjustment. When a state makes a cost-of-
living adjustment it applies a percentage increase reflecting
the rise in the cost of living to every order, regardless of
how the financial circumstances of the individuals may have
changed. The process is considerably less cumbersome and
expensive than a full review but also results in smaller
adjustments on average. Based on recent research on COLA
programs, CBO estimates that the average cost would be $11 per
case modified, and the average adjustment to a support order
would be $5 per month. There would be no additional health
insurance coverage.
Summary. Under either method of adjustment, CBO expects any
increased collections for a family would continue for up to
three years. While a family remains on TANF, the state would
keep all the increased collections to reimburse itself and the
federal government for welfare payments. The states would pay
any increased collections stemming from reviews of child
support orders to families once they leave assistance. That
additional child support income for former recipients would
result in savings in the Food Stamp program.
Overall, CBO expects the federal share of administrative
costs for child support to rise by $15 million in 2008 and $106
million over the 2008-2015 period. Federal collections would
increase by $5 million in 2008 and $136 million over the 2008-
2015 period. Finally, Food Stamp and Medicaid savings would
total $17 million and $58 million respectively over the 2008-
2015 period.
Denial of Passports. Under current law, the State
Department denies a request for a passport for a noncustodial
parent if he or she owes more than $5,000 in past-due child
support. Beginning in fiscal year 2007, section 304 would lower
that threshold and deny a passport to a noncustodial parent
owing $2,500 or more. Generally, when a noncustodial parent
seeks to restore eligibility for a passport, he or she will
arrange to pay the past-due amount down to the threshold level.
The State Department currently denies about 15,000 passport
requests annually. Data from HHS show there are 3.2 million
noncustodial parents owing more than $5,000 in past-due child
support and an additional 760,000 owing between $2,500 and
$5,000. If noncustodial parents owing between $2,500 and $5,000
apply for passports at the same rate as those owing more than
$5,000, the proposal would generate an additional 3,600 denials
annually.
CBO estimates that 25 percent of noncustodial parents who
have a passport request denied would make a payment to get
their passport rather than just doing without one. If the
threshold is lowered, a noncustodial parent owing more than
$5,000 would have to pay an additional $2,500 to receive a
passport. On average, a noncustodial parent owing between
$2,500 and $5,000 would have to pay $1,250 to receive a
passport. As a result, CBO estimates the policy would result in
new payments of child support of about $11 million annually.
CBO assumes the same share of those payments would be on behalf
of current and former welfare families as in the overall
program--10 percent--and that amount would be retained by the
government as reimbursement for welfare benefits. The federal
share of such collections would be about $1 million a year and
$9 million over the 2007-2015 period.
Improved Debt Collection: SSA Benefit Match. Section 307
would allow states to collect past-due child support by
withholding Social Security, Black Lung, and Railroad
Retirement Board payments. Because parents affected by the
legislation are generally younger than 62, most of them are
likely to receive benefits under the Disability Insurance (DI)
program rather than the retirement or survivors programs. The
Debt Collection Improvement Act of 1996 limits the amount that
can be withheld annually from an individual's Social Security
check to the lesser of any amount over $9,000 or 15 percent of
benefits.
Based on an analysis done by the Treasury Department, CBO
estimates that 50,000 beneficiaries a month could be subject to
an offset. Based on states' current use of administrative
offsets for other federal programs, we estimate two out of
three of those beneficiaries could potentially have their
checks offset. On average, the offsets could amount to about
$2,000 by 2010 and could yield $65 million in collections for
child support from Social Security payments.
CBO estimates that the additional collections under section
308 would be only one-half of the potential $65 million because
of several factors. First, some of this money might be
collected anyway through other enforcement tools, such as
offsets currently applied to federal tax refunds. Second,
noncustodial parents are younger than average DI recipients,
and younger men receive lower DI benefits than older men.
Third, children of DI recipients are entitled to a benefit from
Social Security that averages more than $2,000 annually. Some
states consider these benefits in determining the amount of
child support owed by the noncustodial parent. Fourth, in some
cases the estimated offset would exceed the amount of arrears
owed. Finally, CBO expects a small percentage of all non-
custodial parents owing past-due support would slip through the
administrative process.
The provision would be effective 18 months after enactment,
so that full savings would not be realized until 2008. As DI
benefits rise over time, federal receipts under these
provisions would climb from $3 million in 2007 to $6 million in
2015, totaling $43 million over the 2007-2015 period.
Maintenance of Technical Assistance and Federal Parent
Locator Service Funding. Current law allows the Secretary to
use 3 percent of the federal share of child support collections
to fund technical assistance efforts and to operate the federal
parent-locator service. Sections 308 and 309 would set a
minimum funding level for those purposes equal to the 2002
level of $37 million. Because CBO projects that such payments
will fall below $37 million in 2005-2007 under the current
formula, this provision would increase payments by $5 million
over that period.
Seizure of Assets Held by Multistate Financial
Institutions. Undercurrent law, HHS matches lists of
noncustodial parents who owe child support arrears against data
from financial institutions to identify assets that might be
seized to pay overdue child support. HHS forwards any matches
to states so that states can pursue collection. On average,
states make a collection in 7 percent of cases with a match.
The reported performance of states varies widely, from 50
percent of cases to less than 1 percent. States' collection
rates are low on average for a variety of reasons. In some
cases, multistate financial institutions will not honor a
seizure by a state unless the institution has branch offices in
the state. Also, some states have policies of pursuing matches
only when a large financial asset is identified or only when
the arrearage is longstanding or no current payments are being
made.
Section 310 would give the federal government the authority
to act on behalf of states to seize financial assets for the
purpose of paying child support. The new authority would
resolve problems of jurisdiction in cases where a state is
pursuing an asset in a different state. Also, the federal
government plans to pursue collections in a higher percentage
of cases.
Currently, HHS compares a list of about 5 million cases
with arrears with data from financial institutions and
identifies potential financial assets in more than 1.7 million
cases. Some of those cases are later found to be false matches
or are uncollectible for other reasons. Based on information
from child-support administrators and policy experts, CBO
expects that, when this provision is fully implemented, the
federal government would seize assets 20 percent of the time a
potential asset is identified, up from 7 percent. Based on data
from HHS, CBO expects the average collection would be $500 per
seizure, down from $730 per seizure under current law. (The
average seizure would go down because the federal government
would be pursuing a broader set of cases, many of which would
have lower amounts of assets available.) CBO expects that the
policy would take some time to implement and would not be fully
effective until 2009. We estimate that the policy would result
in new collections of $26 million in 2007 and $742 million over
the 2007-2015 period. CBO assumes the same share of those
payments would be on behalf of current and former welfare
families as in the overall program--10 percent--and that amount
would be retained by the government as reimbursement for
welfare benefits. The federal share of such collections would
be $39 million over the 2006-2015 period. CBO estimates that
implementing the program would raise administrative costs by
about $3 million in each of years 2006 and 2007. The federal
share of those costs would total $4 million over the two years.
Comparison With Insurance Data. Section 311 would authorize
the Secretary to compare information on noncustodial parents
who owe past-due child support with information maintained by
insurers concerning insurance payments and to furnish any
information resulting from the match to state agencies to
pursue payments to pay overdue child support. States
representing about one-third of child support collections
currently participate in an existing system operated by the
Child Support Lien Network that performs a similar function.
CBO expects that eventually, even without federal intervention,
about half of the states would participate. Under the proposal,
CBO expects all states would participate by 2009. Based on data
for the existing program, CBO expects that collections would
increase by $15 million annually when fully phased in and that
half of those collections would be on behalf of current or
former TANF families. The federal share of collections would be
$30 million over the 2008-2015 period. CBO estimates that
implementing the program would raise administrative costs by
about $3 million in each of years 2006 and 2007. The federal
share of those costs would total $4 million over the two years.
Grants to States for Access and Visitation. The 1996
welfare law authorized grants to states of $10 million annually
to facilitate noncustodial parents' access to and visitation of
their children. Section 318 would increase funding to $12
million in 2006, $14 million in 2007, $16 million in 2008, and
$20 million in 2009 and in subsequent years. The new funding
would result in increased outlays of $82 million over the 2006-
2015 period.
Penalties for Noncompliance. Section 319 would change the
statutory requirements concerning when states pay penalties for
failure to meet performance standards in the child support
program. It also would forgive penalties for certain states
that failed to meet such standards in 2001, but did so in 2002
or 2003. CBO expects that the change in timing of penalties
would not affect the federal budget; the Secretary of HHS is
generally already operating on the revised schedule. CBO
estimates that half a dozen states would qualify for penalty
forgiveness totaling $4 million in 2006.
Requirement To Seek Medical Support From Either Parent.
Currently, about half the states explore both parents' ability
to provide health insurance when setting a child support order.
Section 320 would require all states to look to either parent
or both parents to provide health insurance for their child.
The policy would apply to child support orders that are issued
or amended after enactment, so it would take effect gradually.
Based on national survey data, CBO expects that the policy
would result in additional private health insurance coverage
for children and that without that coverage some of those
children would receive Medicaidbenefits. CBO estimates that
private health coverage would be provided to nearly 300 children who
would otherwise receive Medicaid benefits in 2006. That number would
grow to more than 9,000 by 2015. Based on spending per child in the
Medicaid program, CBO estimates that implementing this provision would
reduce costs in the Medicaid program by an insignificant amount in 2006
and by $57 million over the 2006-2015 period.
Notice of Loss of Health Coverage. Section 321 would
require administrators of health plans to notify the child
support agency when a noncustodial parent providing health
coverage for a child loses that coverage. CBO expects that the
child support agency would handle 30,000-50,000 such notices
each year and that in some cases the child support agency would
take action to secure new health coverage for the children. CBO
estimates that implementing the provision would raise
administrative costs in the child support program by $1 million
to $2 million annually.
Make Texas Waiver Permanent. Under current law, families
who receive government assistance may automatically receive
services from the child support agency, while other families
must apply for services. The state of Texas currently has a
waiver of the requirement for a written application for child
support services for families not receiving assistance. Texas'
waiver is scheduled to expire in mid-2006, but could be renewed
by the Secretary. Section 322 would extend the waiver
permanently.
Texas currently operates under the waiver in four counties
and plans to expand to additional counties. In general, new
cases are added as new orders are issued, so that the child
support caseload grows gradually in the participating counties.
CBO estimates that each new case would increase the federal
share of administrative costs by about $150 in 2010 and that
under this provision, services would be provided for 65,000
cases in that year. CBO estimates that extending the waiver
would result in a higher federal share of administrative costs
totaling $2 million in 2006 and $112 million over the 2006-2012
period.
For its baseline projections, CBO estimates that there is a
50 percent chance that the Secretary will allow the waiver to
continue, even without this legislation. So, relative to CBO's
baseline, the cost of implementing this provision is only half
of the total cost of extending the waiver. CBO estimates that
implementing this provision would increase outlays by $1
million in 2006 and by $57 million over the 2006-2015 period.
Effect of Title III Provisions on Technical Assistance
Funds. Several provisions of Title III would affect the amount
of child support collections the federal government retains.
Provisions allowing states to share more of those collections
with families lower the federal share of collections. New
enforcement mechanisms, such as seizing more financial assets
or insurance payments, would boost the federal share. The net
effect of all the provisions of title III would be to lower the
federal share of collections by an increasing amount each year.
Current law allows the Secretary to use 3 percent of the
federal share of child support collections for technical
assistance efforts and to operate the federal parent-locator
service. A lower federal share of collections would reduce
funding for those activities. Because a separate provision of
title III provides that such funding cannot fall below the 2002
level of $37 million, the lower collections would not affect
funding until 2010. CBO estimates that implementing title III
of the bill would lower funding for technical assistance by $1
million in 2010 and $21 million over the 2010-2015 period.
Title IV: Child Welfare. Provisions in Title IV would
increase spending for federally subsidized foster care by $448
million from 2007-2015, CBO estimates. (see Table 4).
TABLE 4.--DIRECT SPENDING EFFECTS OF TITLE IV: CHILD WELFARE
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005-2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
Disregard of Certain Payments to Puerto
Rico:
Estimated Budget Authority............ 0 0 6 6 6 6 0 0 0 0 0 25
Estimated Outlays..................... 0 0 6 6 6 6 0 0 0 0 0 25
Tribal Foster Care:
Estimated Budget Authority........... 0 0 16 26 37 49 56 59 61 64 66 434
Estimated Outlays..................... 0 0 13 25 35 47 55 58 61 63 66 423
Total, Title IV:
Estimated Budget Authority............ 0 0 22 32 43 55 56 59 61 64 66 459
Estimated Outlays..................... 0 0 19 31 41 53 55 58 61 63 66 448
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note.--Components may not sum to totals because of rounding.
This title would extend a program of demonstration projects
related to child welfare programs. As of May 2004, 12 states
had active demonstration projects testing the efficiency of
innovations in child welfare, such as subsidized guardianship.
The demonstration projects are required to be cost-neutral to
the federal government. However, it is possible that the
demonstrations would lead to increased costs to the federal
government because of measurement or methodological errors in
the cost-neutrality calculation. CBO cannot estimate the likely
amount of such costs, but based on experience with the
demonstrations, we expect the impact on the federal budget
would not be significant.
Beginning in fiscal year 2007, section 402 would allow
Puerto Rico to claim more federal matching funds for foster
care expenses by excluding certain amounts from the limitation
specified in section 1108 of the Social Security Act. The
Social Security Act limits totalfederal spending in Puerto Rico
on certain social service programs, including foster care, to $107
million in any year. The amount of spending above the limitation would
be capped at $6.25 million for fiscal years 2007 through 2010. CBO
estimates this provision would increase outlays by $25 million between
fiscal years 2007 and 2010.
Section 403 of the bill would permit tribal entities to
participate in foster care and adoption assistance programs
authorized under title IV-E of the Social Security Act,
effective as of October 1, 2006. Based on information from the
Indian Child Welfare Association, CBO estimates that this
provision could allow coverage of between 2,000 and 3,000
children per year. CBO estimates that this section would
increase costs to the IV-E programs by $423 million over fiscal
years 2007 through 2015.
Title V: Supplemental Security Income. Title V would make
several changes to the Supplemental Security Income (SSI)
program. It would require that a portion of adult disability
determinations receive an additional level of review before
benefits are awarded. In addition, it would extend the period
of time that refugees and asylees are eligible to collect
benefits. Together, these proposals would increase direct
spending by $72 million in 2006 and decrease direct spending by
$1.3 billion over the 2006-2015 period, CBO estimates (see
Table 5).
Section 501 would require the Social Security
Administration to conduct reviews of initial decisions to award
SSI benefits to certain disabled adults. The legislation would
direct the agency to review at least 25 percent of all
favorable adult-disability determinations made by state-level
Disability Determination Service (DDS) offices in 2006. Under
the legislation, the agency would have to review at least 50
percent of the adult-disability awards made by DDS offices from
2007 through 2015.
CBO anticipates state DDS offices will approve between
350,000 and 400,000 adult disability applications for SSI
benefits annually between 2006 and 2015. Based on recent data
for comparable reviews in the Social Security Disability
Insurance program, CBO projects that by 2015, more than 20,000
DDS awards would be overturned as a result of this provision,
resulting in lower outlays for SSI and Medicaid (in most states
SSI eligibility automatically confers entitlement to Medicaid
benefits). CBO estimates that section 501 would reduce SSI
benefits by $3 million and Medicaid outlays by $5 million in
2006. Over the 2006-2015 period, CBO estimates this provision
would lower SSI outlays by $461 million and Medicaid spending
by $1.1 billion. (The administrative costs for these changes
are discussed later in the section on spending subject to
appropriation.)
TABLE 5.--DIRECT SPENDING EFFECTS OF TITLE V: SUPPLEMENTAL SECURITY INCOME
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005-2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
Pre-effectuation Reviews:
SSI:
Estimated Budget Authority........ 0 -3 -11 -22 -33 -43 -57 -56 -70 -79 -87 -461
Estimated Outlays................. 0 -3 -11 -22 -33 -43 -57 -56 -70 -79 -87 -461
Medicaid:
Estimated Budget Authority........ 0 -5 -22 -44 -68 -94 -120 -148 -179 -209 -244 -1,133
Estimated Outlays................. 0 -5 -22 -44 -68 -94 -120 -148 -179 -209 -244 -1,133
Extended Time Limits for SSI Refugees:
SSI:
Estimated Budget Authority........ 0 41 49 55 0 0 0 0 0 0 0 145
Estimated Outlays................. 0 41 49 55 0 0 0 0 0 0 0 145
Medicaid:
Estimated Budget Authority........ 0 39 51 54 0 0 0 0 0 0 0 144
Estimated Outlays................. 0 39 51 54 0 0 0 0 0 0 0 144
Total Changes in Title V:
Estimated Budget Authority............ 0 72 67 43 -101 -137 -177 -204 -249 -288 -331 -1,305
Estimated Outlays..................... 0 72 67 43 -101 -137 -177 -204 -249 -288 -331 -1,305
--------------------------------------------------------------------------------------------------------------------------------------------------------
Section 502 would allow refugees and asylees who are
receiving SSI benefits and lawfully entered the country after
August 22, 1996, to continue receiving benefits for an
additional two years. Under current law, refugees and asylees
who entered the country after that date are eligible to receive
SSI benefits for a period of up to seven years from the date
they entered the United States. The additional period of
benefits would begin immediately after the bill is enacted and
would last through September 30, 2008, at which point the
seven-year time limit would again apply to all recipients.
Based on information from SSA, CBO estimates that about
4,600 refugees and asylees lose SSI eligibility each year
because they exceed the seven-year time limit. Extending the
time limit would provide up to nine years of eligibility for
these beneficiaries through the end of 2008. Taking into
account the rates at which people become naturalized citizens
(and are no longer subject to the time limit) or exit the
program for other reasons, CBO estimates section 502 would
increase outlays for SSI benefits by $41 million and Medicaid
outlays by $39 million in 2006. Over the 2006-2008 period,
spending on SSI would increase by $145 million and Medicaid
spending would increase by $144.
Title VI: Transitional Medical Assistance. Title VI would
make several changes to Medicaid and the State Children's
Health Insurance Program (SCHIP). Effective October 1, 2005,
the bill would extend through 2010 the requirement that state
Medicaid programs provide transitional medical assistance (TMA)
to certain Medicaid beneficiaries (usually former welfare
recipients) who otherwise would be ineligible because they have
returned to work and have increased earnings. Title VI also
would allow states to simplify aspects of TMA administration.
Overall, CBO estimates that enacting title VI would increase
direct spending by $278 million in 2006 and by $4.9 billion
over the 2006-2015 period (see Table 6).
Extension of Transitional Medical Assistance. State
Medicaid programs are required to provide temporary Medicaid
coverage, known as transitional medical assistance, for certain
individuals (usually former TANF recipients) and their
dependents who otherwise would lose coverage because of
increased earnings. States currently are required to provide
TMA to welfare-related beneficiaries who lose their eligibility
prior to June 30, 2005. Section 601 of the bill would extend
the requirement from September 30, 2005, through September 30,
2010. (Section 702 of the bill would extend the requirement
through September 30, 2005.)
CBO estimates that this provision would increase federal
Medicaid outlays by $267 million in 2006 and by $4.1 billion
over the 2006-2015 period. The budgetary effects of the
extension would continue beyond 2010 because families who
qualify for TMA would be entitled to up to 12 months of
additional eligibility, even if that eligibility runs beyond
September 30, 2010. Moreover, some states provide more than 12
months of TMA through Medicaid waivers; families living in
those states could remain eligible through 2012.
Without S. 667, CBO anticipates that some of the families
leaving welfare between 2006 and 2010 would have incomes high
enough to make their children ineligible for Medicaid, and that
some of the children in those families would enroll in SCHIP
instead. By extending TMA, the bill would make those children
eligible for Medicaid. Because children who are eligible for
Medicaid cannot receive SCHIP benefits, the bill would lead to
savings in the SCHIP program.
CBO estimates that the bill would reduce federal SCHIP
outlays by a total of $36 million over the 2006-2010 period.
Because states generally have three years to spend their SCHIP
allotments, those savings would free up funds that could be
spent on benefits in later years. CBO estimates that such
spending would amount to $31 million over the 2011-2015 period.
Optional TMA Simplifications. Section 601 also would allow
states to waive or relax various requirements that currently
apply to TMA. In particular, the bill would allow states to
expand TMA eligibility to individuals who have not been
eligible for Medicaid for at least three of the previous six
months (a requirement under current law), provide up to 12
additional months of TMA eligibility, and eliminate some or all
of the requirements for TMA recipients to report their incomes
periodically.
TABLE 6.--DIRECT SPENDING EFFECTS OF TITLE VI: TRANSITIONAL MEDICAL ASSISTANCE
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
----------------------------------------------------------------------------------------------------
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006-2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Extension of TMA through 2010:
Medicaid:
Estimated Budget Authority................. 267 696 776 833 892 576 36 -2 -11 -2 4,061
Estimated Outlays.......................... 267 696 776 833 892 576 36 -2 -11 -2 4,061
SCHIP:
Budget Authority........................... 0 0 0 0 0 0 0 0 0 0 0
Estimated Outlays.......................... -7 -15 -8 -3 -3 1 * 5 21 4 -5
Optional TMA Simplifications:
Medicaid:
Estimated Budget Authority................. 19 82 130 182 228 181 6 * -2 * 826
Estimated Outlays.......................... 19 82 130 182 228 181 6 * -2 * 826
SCHIP:
Budget Authority........................... 0 0 0 0 0 0 0 0 0 0 0
Estimated Outlays.......................... 0 -2 -2 -1 -1 -1 1 * 4 1 -1
Total Changes in Title VI:
Estimated Budget Authority..................... 285 778 906 1,015 1,120 757 41 -2 -13 -2 4,885
Estimated Outlays.............................. 278 761 897 1,011 1,116 756 42 3 12 3 4,879
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = costs or savings of less than $500,000.
Notes.--TMA = transitional medical assistance, SCHIP = State Children's Health Insurance Program
CBO anticipates that those provisions would boost federal
Medicaid spending by $19 million in 2006 and by $826 million
over the 2006-2015 period. Most of those costs would stem from
the elimination of the income-reporting requirements. States
already have the flexibility under current law to effectively
waive the three-out-of-six months requirement or to provide
more than 12 months of TMA by disregarding some or all of an
individual's income when determining eligibility.
CBO also estimates that the effect of those provisions
would have a slight impact on SCHIP, decreasing outlays by $1
million over the 2006-2015 period. By relaxing TMA rules, the
bill would make some children newly eligible for Medicaid and
therefore ineligible for SCHIP.
Title VII: Effective Date. Title VII would extend several
provisions of law through September 30, 2005, including
authorizations of the Temporary Assistance for Needy Families
(TANF), child care entitlement, and abstinence education
programs, and eligibility for transitional medical assistance
(TMA) under Medicaid. CBO estimates that Title VII would
increase direct spending, relative to the baseline, by $45
million in 2005, by $238 million over the 2005-2010 and by $239
million over the 2005-2015 periods (see Table 7).
TABLE 7.--DIRECT SPENDING EFFECTS OF TITLE VII: EFFECTIVE DATE
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005-2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
TANF Supplemental Grants:
Budget Authority...................... 64 0 0 0 0 0 0 0 0 0 0 64
Estimated Outlays..................... 41 15 8 0 0 0 0 0 0 0 0 64
Abstinence Education Grants:
Budget Authority...................... 13 0 0 0 0 0 0 0 0 0 0 13
Estimated Outlays..................... 4 5 2 1 1 0 0 0 0 0 0 11
TANF Research Funding:
Budget Authority...................... 3 0 0 0 0 0 0 0 0 0 0 3
Estimated Outlays..................... * 1 2 0 0 0 0 0 0 0 0 3
Child Welfare Research Funding:
Budget Authority...................... 1 0 0 0 0 0 0 0 0 0 0 1
Estimated Outlays..................... * * 1 0 0 0 0 0 0 0 0 1
TMA:
Medicaid:
Estimated Budget Authority........ 0 148 13 * * * * * * * * 161
Estimated Outlays................. 0 148 13 * * * * * * * * 161
SCHIP:
Estimated Budget Authority........ 0 0 0 0 0 0 0 0 0 0 0 0
Estimated Outlays................. 0 -4 * 1 1 * * * * 1 * -1
Total Changes in Title VII:
Estimated Budget Authority............ 81 148 13 * * * * * * * * 242
Estimated Outlays..................... 45 165 28 2 2 * * * * * * 239
--------------------------------------------------------------------------------------------------------------------------------------------------------
* = costs or savings of less than $500,000.
Notes.--Components may not sum to total because of rounding
TANF, Child Care, and Abstinence Education. The bill would
extend the TANF and child care entitlement programs through
September 30, 2005. Those programs are scheduled to expire on
June 30, 2005. The extension would provide funding at the 2004
level--totaling about $3.3 billion for TANF and $400 million
for child care under the procedures the Office of Management
and Budget uses for allocating funds for those programs. The
extension would have no cost relative to CBO's baseline because
it already assumes annual funding for those programs at the
2004 level in accordance with the rules set forth in the
Deficit Control Act.
The bill would also fund TANF supplemental grants at their
2004 level of $64 million and would extend funding for two
research grants totaling $4 million through September 30, 2005.
It would appropriate $12.5 million for the abstinence education
program.
Transitional Medical Assistance. Title VII also would
extend through September 30, 2005, the requirement that state
Medicaid programs provide transitional medical assistance to
certain beneficiaries--usually former TANF recipients--who
would otherwise lose eligibility because of increased earnings.
This requirement is set to expire on June 30, 2005.
CBO estimates that the extension of TMA would have no
budgetary impact in 2005, but would increase federal Medicaid
spending by $148 million in 2006 and $161 million over the
2006-2015 period. The extension would not affect spending in
2005 because families who qualify for TMA are already eligible
for four months of additional eligibility under a separate
provision of Medicaid law. The extension also would decrease
spending in the State Children's Health Insurance Program by $1
million over the 2005-2015 period.
SPENDING SUBJECT TO APPROPRIATION
S. 667 would establish several new grant programs that
would be funded through annual appropriations. Further, it
would increase the cost of administering the SSI program by
requiring the Social Security Administration to conduct
additional reviews of SSI applications. Assuming appropriation
of the authorized amounts, CBO estimates that implementing the
legislation would cost $41 million in 2006 and $1.7 billion
over the 2006-2015 period (see Table 8). Estimated outlays are
based on historical spending patterns for social service grant
programs, unless otherwise noted.
Domestic Violence Prevention Grants. Section 103 would
authorize appropriations of $10 million annually through 2010
for the Secretary of HHS to develop and implement a program to
address domestic violence as a barrier to healthy
relationships, marriage, and economic security. CBO estimates
implementing the program would cost $1 million in 2006 and $50
million over the 2006-2012 period. Section 114 would authorize
an additional $20 million annually through 2010 for the
Secretary to award matching grants to states, tribes, and
nonprofit organizations to operate programs to reduce domestic
violence. CBO estimates implementing the program would cost $2
million in 2006 and $100 million over the 10-year period.
Fatherhood Grants. Section 118 would establish new grant
programs to promote responsible fatherhood and would authorize
appropriations of $26 million annually over the 2006-2010
period. (Section 118 appropriates an additional $50 million
annually in direct spending.) CBO estimates implementing the
programs would cost $4 million in 2006 and $130 million over
the 2006-2012 period.
Grants To Capitalize and Develop Sustainable Social
Services. Section 119 would authorize appropriations of $40
million each year over the 2006-2010 period to make grants for
the purpose of capitalizing and developing sustainable social
services. Grantees would develop programs that would generate
their own sources of revenue while assisting TANF recipients.
CBO estimates that implementing this provision would increase
outlays by $4 million in 2006 and by $200 million over the
2006-2013 period.
TABLE 8.--ESTIMATED COSTS FOR NEW DISCRETIONARY SPENDING
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------------------------
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005-2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Title I: TANF:
Best Practices for Addressing Domestic
Violence Grants:
Authorization Level............... 0 10 10 10 10 10 0 0 0 0 0 50
Estimated Outlays................. 0 1 6 11 10 8 9 5 0 0 0 50
Domestic Violence Prevention Grants:
Authorization Level............... 0 20 20 20 20 20 0 0 0 0 0 100
Estimated Outlays................. 0 2 12 22 20 16 18 10 0 0 0 100
Fatherhood Grants:
Authorization Level............... 0 26 26 26 26 26 0 0 0 0 0 130
Estimated Outlays................. 0 4 18 29 28 26 20 5 0 0 0 130
Social Services Capitalization Grants:
Authorization Level............... 0 40 40 40 40 40 0 0 0 0 0 200
Estimated Outlays................. 0 4 24 43 40 34 35 18 2 0 0 200
Car Ownership Grants:
Authorization Level............... 0 25 25 25 25 25 0 0 0 0 0 125
Estimated Outlays................. 0 3 15 27 25 21 22 11 1 0 0 125
Transitional Jobs Grants:
Authorization Level............... 0 200 200 200 200 200 0 0 0 0 0 1,000
Estimated Outlays................. 0 20 120 216 200 168 176 90 10 0 0 1,000
Subtotal Title I:
Authorization Level........... 0 321 321 321 321 321 0 0 0 0 0 1,605
Estimated Outlays............. 0 34 195 348 323 273 280 139 13 0 0 1,605
Title V: Supplemental Security Income:
Administrative Costs of SSI Pre-
effectuation Revenues:
Estimated Authorization Level..... 0 8 II 14 15 15 16 16 17 17 18 147
Estimated Outlays................. 0 7 10 13 15 15 16 16 17 17 18 144
Total Changes:
Estimated Authorization Level. 0 329 332 335 336 336 16 16 17 17 18 1,752
Estimated Outlays............. 0 41 205 361 338 288 296 155 30 17 18 1,749
--------------------------------------------------------------------------------------------------------------------------------------------------------
Grants for Car Ownership. Section 119 would authorize the
appropriation of $25 million each year through 2010 for a
program of grants to states, Indian tribes, localities, and
nonprofit organizations to assist low-income families with
children in buying automobiles.
The program is designed to facilitate employment
opportunities and access to training by providing low-income
families with more reliable transportation. CBO estimates that
the program would cost $3 million in 2006 and $125 million over
the 2006-2013 period.
Transitional Jobs Grants. Section 119 would authorize the
appropriation of $200 million each year through 2010 for a
program of grants to states, Indian tribes, localities, private
organizations, and employers to promote job advancement and
wage growth for low-wage workers. The program would primarily
serve current and former recipients of TANF benefits,
individuals at risk of needing TANF benefits, individuals with
disabilities and noncustodial parents who have difficulty in
paying child support. CBO estimates that implementing this
program would cost $20 million in 2006 and $1 billion over the
2006-2013 period.
SSI Pre-effectuation Reviews. Section 501 would require the
Social Security Administration to conduct reviews on initial
decisions to award SSI benefits to certain disabled adults. CBO
estimates the provision would increase the number of non-
concurrent SSI determinations reviewed each year by SSA by
about 135,000. Based on SSA's costs forconducting similar
reviews in the Disability Insurance program, we estimate this would
cause SSA's administrative costs, which are subject to appropriation,
to increase by $8 million in 2006 and $147 million over the next 10
years.
Estimated impact on state, local, and tribal governments:
The bill would extend funding for a number of state programs,
most notably TANF, and establish new grants that target a
variety of worker and family programs. The bill also would
place new requirements and limitations on state programs as
conditions for receiving federal assistance. Preemptions and
some other requirements in the bill would be intergovernmental
mandates as defined in UMRA. The limit on amounts that states
could retain for state child support enforcement programs also
could be an intergovernmental mandate because of the narrow
focus of and limited flexibility in that program.
MANDATES
Generally, conditions of federal assistance are not
considered intergovernmental mandates as defined in UMRA.
However, UMRA makes special provisions for identifying
intergovernmental mandates in provisions affecting large
entitlement grant programs (those that provide more than $500
million annually to state, local, or tribal governments),
including TANF, Medicaid, and child support enforcement.
Specifically, if a legislative proposal would increase the
stringency of conditions of assistance, or cap or decrease the
amount of federal funding for the program, such a change would
be considered an intergovernmental mandate if the state, local,
or tribal government lacks authority to amend its financial or
programmatic responsibilities to continue providing required
services. The TANF and Medicaid programs allow states
significant flexibility to alter their programs and accommodate
new requirements. However, the child support enforcement
program is narrower in scope; its primary goal is to collect
and redistribute child support payments. This narrower focus
does not afford states as much flexibility as other large
entitlement programs, so reducing the amounts that states may
retain from child support collections would be an
intergovernmental mandate, as defined in UMRA, for some states.
CBO estimates, however, that the cost of the intergovernmental
mandates would not exceed the threshold established in UMRA
($62 million in 2005, adjusted annually for inflation).
Child Support Enforcement. S. 667 would reduce the amounts
that states may retain from child support collections in order
to reimburse themselves for public assistance spending, in
particular for TANF. As a result, states would lose a total of
about $50 million in 2010 and about $325 million over the 2010-
2015 period, CBO estimates. Retained child support collections
are intended to reimburse states for their portion of spending
for public assistance programs. If states are able to carry out
their responsibilities more efficiently or pare back their
child support activities while maintaining a basic level of
compliance, the aggregate costs of the mandate could be
reduced.
States also would be required to conduct mandatory reviews
of child support cases every three years, but this requirement
is expected to result in net savings to states of about $56
million in the child support program and $44 million in
Medicaid over the 2006-2015 period.
Preemptions. The bill contains two preemptions of state law
that are intergovernmental mandates as defined in UMRA. The
bill would preempt state laws that could prevent an individual
from contesting liens or levies on property seized in an effort
to collect past-due child support. The bill also would protect
insurers from state liability laws in cases where they have
shared information with the Secretary of HHS for the purpose of
identifying individuals that owe past-due child support.
Neither of these preemptions would result in significant costs
to state, local, or tribal governments.
TANF and Medicaid. The TANF program affords states broad
flexibility to determine eligibility for benefits and to
structure the programs offered as part of the state's family
assistance program. Changes to the program embodied in S. 667
could alter the way in which states administer the program and
provide benefits and could increase costs to states. However,
states could make other changes of their own, adjusting
eligibility criteria or the structure of programs to avoid or
offset such costs. Because the TANF program affords states such
broad flexibility, new requirements generally are not
considered intergovernmental mandates as defined by UMRA.
Similarly, a large component of the Medicaid program includes
optional services that states may alter to accommodate new
requirements and to offset additional costs in that program.
OTHER IMPACTS
Benefits. Many provisions of the bill would benefit state
assistance programs by increasing funding, broadening
flexibility, or providing new grants.
TANF. S. 667 would reauthorize family assistance grants
through 2010 and continue supplemental grants for states that
historically have had rising populations or that provided
relatively low levels of benefits. The bill would provide more
than $80 billion over the 2006-2010 period for family
assistance. In addition, CBO estimates that state and tribal
governments would receive a total of $1.3 billion for
supplemental grants over the 2006-2011 period.
Increased Flexibility. The bill would allow states to use
unspent funds from prior years to pay for services in addition
to benefits, and it would increase the portion of TANF funds
that may be specifically used for SSBG purposes from 4.25
percent to 10 percent. States also could use a portion of TANF
funds for projects that foster access to jobs or reverse
commuting.
Child Care. S. 667 would provide nearly $14 billion over
the 2005-2010 period by extending the current child care grant
program, and would increase funding for child care grants by an
additional $1 billion over that period. It also would
appropriate $5 billion in supplemental child care grants over
the 2006-2010 period.
Social Services Block Grant. S. 667 would increase funding
for Social Services Block Grants by $1 billion over the 2006-
2010 period.
Healthy Marriage Promotion. S. 667 would repeal bonus
grants for the reduction of illegitimacy, which were available
to up to five states through 2003, and replace them with grants
of $100 million annually over the 2006-2010 period for
developing and implementing innovative programs to promote and
support healthy, two-parent married families. The new grants
would be available to states, Indian tribes, and tribal
organizations. Grants could be used for a variety of education
and media activities associated with the core goals, but they
also would have to address domestic violence and ensure that
participation in any related programs is voluntary. State
spending on related programs for otherwise non-eligible
families could be counted toward a state's maintenance-of-
effort requirements in TANF.
Domestic Violence Prevention and Child Well-Being Grants.
The bill would authorize appropriations totaling $30 million a
year over the 2006-2010 period for two new grant programs aimed
at developing strategies and best practices and providing
training related to the prevention of domestic violence. The
bill would appropriate $10 million annually over the same
period for contracts, interagency agreements or grants for the
development of comprehensive indicators of the well-being of
children.
Fatherhood Grants. S. 667 would authorize appropriations of
$76 million annually over the 2006-2010 period (of which $50
million would also be appropriated) for a variety of grant
programs to promote fatherhood, responsible parenting, and
marriage, either directly or through educational and media
campaigns.
Abstinence Education. The bill would provide $50 million
annually for abstinence education grants over the 2006-2010
period. Any unspent funds allocated to individual states would
be periodically reallocated by the Secretary.
Tribal Assistance. S. 667 would reauthorize a program that
currently provides $7.6 million annually for grants to Indian
tribes and tribal organizations for increasing work
opportunities. It also would increase appropriations for those
grants to $12.6 million annually over the 2006-2010 period.
Finally, the bill would appropriate $80 million over the 2006-
2010 period for grants that could be used for improving the
infrastructure of human services facilities, developing
economic programs, and acquiring technical assistance.
Access and Visitation. Current law provides $10 million
annually for access and visitation program grants. S. 667 would
increase grants to states and Indian tribes for such programs
by $32 million over the 2006-2010 period. The bill also would
increase the minimum state allotment, increasing it from
$120,000 in 2006 (up from $100,000 in current law) to $180,000
in 2009 and thereafter.
Grants To Support Work Activities. The bill would authorize
appropriations of $40 million annually over the 2006-2010
period for grants to capitalize and develop sustainable social
services that help move recipients of assistance into work
activities. The bill also would authorize appropriations of $25
million annually over the same period for grants to state,
local, tribal, and non-profit entities for programs that help
low-income families with children acquire and maintain
dependable cars and insurance. Finally, the bill would
authorize appropriations of $200 million annually over the
2006-2010 period for grants to public and private entities that
promote links among businesses to provide training, create
transitional work opportunities, and increase the wages of
individuals who have limited English proficiency or other
barriers to employment.
Extension of Texas Waiver. The bill would extend a waiver
that allows Texas to automatically enroll people with child
support orders in the child support enforcement program. CBO
estimates that the state would receive about $16 million over
the 2006-2010 period for administrative expenses.
Foster Care Funds for Puerto Rico. S. 667 also would allow
Puerto Rico to claim more federal matching funds for foster
care expenses. As a result, CBO estimates that Puerto Rico
would receive an additional $25 million over the 2007-2010
period.
Other Costs and Additional Requirements. Some provisions of
the bill, while not intergovernmental mandates as defined in
UMRA, would place additional conditions on state, local, and
tribal governments or would result in additional spending in
order to meet federal matching requirements.
Medicaid. The bill would require states to continue
providing transitional medical assistance through fiscal year
2010. TMA provides benefits to certain individuals and their
dependents who otherwise would lose coverage because of
increased earnings. The bill also would allow states to
implement simplifications of the TMA system, enabling them to
provide TMA foran additional year in some cases and easing the
qualification requirements. CBO estimates that the total net effect of
these provisions would be additional state spending of $3.8 billion for
Medicaid and savings of about $5 million for SCHIP over the 2006-2010
period.
Bonus Grants Change to Employment Basis. Under current law,
states are eligible to receive bonus grants totaling up to 5
percent of their family assistance grant if they are identified
by the Secretary as a high-performing state in terms of meeting
the goals of the TANF program. The bill would reduce those
grants from an average of $200 million annually to $50 million
annually in each of the years 2006-2008 and to $100 million in
each of the years 2009-2011. The bill also would change the
basis of the grant from general performance to a focus on
workplace attachment and advancement. Of the total amount
appropriated, 2 percent would be reserved for Indian tribes.
Work Participation Requirements. The bill would increase
work participation requirements in the TANF program by
requiring states to have an increasing percentage of TANF
recipients participating in work activities while receiving
cash assistance. It would maintain current penalties for the
failure to meet those requirements. Those penalties can total
up to 5 percent of the TANF block grant amount for the first
failure to meet work requirements and increase with each
subsequent failure. CBO expects no state would be subject to
significant financial penalty for failing to meet the new
requirements.
The bill would increase the minimum work participation rate
from 50 percent to 70 percent over a five-year period. To meet
those requirements, 70 percent of families would have to be
engaged in work activities by 2010. The bill would eliminate a
separate requirement in current law that sets even higher
participation rates for two-parent families. In addition to
overall participation rates, the bill would increase the
minimum number of hours a family would need to participate to
fully count toward the standard from 30 to 34 hours a week.
However, it would allow partial credit for recipients who
participate for between 20 and 33 hours. Two-parent families
would be required to work more hours, but parents with children
under the age of six would only have to work 24 hours in order
to meet the requirements. The increase in the number of hours
of work per week could result in a modest spending increase by
states and Indian tribes for administration, worker support
activities, and child care. As the overall participation rates
increase, states and Indian tribes would have to direct more
resources toward programs, such as administrative support,
child care, and worker supervision to comply with the 70
percent requirement.
The bill would expand the types of activities that would
count toward meeting the work participation requirements and
the allowed exclusions from the calculation of the work
participation rate.
To the extent that states find the new work requirements
difficult to meet, CBO expects they would employ strategies
such as moving non-working families into separate state
programs to effectively reduce the new requirements. For
example, under current law, some states that fail to meet work
requirements, particularly the higher requirements applying to
two-parent families, set up separate state programs to serve
those families. States can count funds they spend in separate
state programs toward their maintenance-of-effort requirement
in TANF, but families served under those programs do not count
in the work participation rate.
Replacement of Caseload Reduction Credit. Under current
law, a state's minimum worker participation rate may be reduced
by the amount that the average number of families receiving
assistance declines, assuming the reduction is not the result
of changes in eligibility requirements. The bill would replace
the caseload reduction credit with an employment credit that
would be based on the percentage of individuals who no longer
receive assistance and who are actively working. Former
recipients who are earning comparably higher salaries would be
weighted more heavily in calculating the state's employment
credit. In total, however, the size of any credit would be
limited to 40 percentage points in 2006, decreasing to 20
percentage points by 2010. States could opt to have the shift
in the basis for the credit delayed until October 1, 2008.
Contingency Fund. S. 667 would alter the formula for
contingency funds available to states. CBO estimates that those
changes would result in a loss of funds to states of $12
million over the 2006-2010 period. The bill also would reserve
a portion of contingency funds for tribal governments. CBO
estimates that they would receive an additional $24 million
over the same period.
Family Self Sufficiency Plans. The bill would change the
requirement that states develop individual responsibility plans
for beneficiaries to a requirement for family self-sufficiency
plans. States that fail to implement family self-sufficiency
plans would be subject to the same penalties that currently
apply to work participation requirements.
New Requirements. States would have to implement new
performance targets and comply with a standardized format for
submitting amendments to state plans and any subsequent state
plan submissions for TANF programs. Prior to submitting such
plans or amendments, a state would have to make the proposals
publicly available and gather public comments. S. 667 also
would require states to collect and report additional data on
families enrolled in TANF programs and on those who leave the
rolls because of ineligibility. The bill would require monthly
reports on caseload levels and child care, and it would require
an annual report on how states are achieving their performance
goals.
Child Welfare and Foster Care. The bill would allow Indian
tribes and tribal organizations to operate their own foster
care programs, with direct reimbursement from the federal
government. As a result, CBO estimates that more children would
be covered by foster care and that on a net basis, states and
Indian tribes would spend about $60 million over the 2006-2010
period as a result of this option.
Supplemental Security Income. The bill would extend from
seven years to nine years the amount of time that an asylee and
refugee could remain eligible for SSI benefits. Most states
provide optional supplemental benefits to SSI recipients.
Assuming they make no changes to their benefit packages, costs
would increase. CBO has not estimated these additional costs,
but they would be incurred at the option of the state and would
only result from benefits provided to an estimated 4,600 people
over a two-year period. CBO also estimates that Medicaid
spending would increase; the state portion of those additional
costs would total about $110 million over the 2006-2010 period.
States that provide supplemental benefits to SSI recipients
would realize net savings as a result of additional eligibility
reviews required by the bill. States would also save about $175
million over the 2006-2010 period as a result of lower Medicaid
spending.
Estimated impact on the private sector: The bill contains a
private-sector mandate as defined in the Unfunded Mandates
Reform Act. Section 321 would require the administrator of a
group health plan to notify a State child support enforcement
agency under certain circumstances when a child loses health
care coverage. The cost of this mandate would not exceed the
threshold established by UMRA ($123 million in 2005, adjusted
annually for inflation).
Estimate prepared by: Federal costs: Sheila Dacey--TANF,
Child Support, and Child Care; Christina Hawley Sadoti--Child
Welfare; Geoffrey Gerhardt--Supplemental Security Income;
Jeanne De Sa and Eric Rollins--Medicaid and SCHIP; Kathleen
FitzGerald--Abstinence Education. Impact on State, Local, and
Tribal Governments: Leo Lex. Impact on the Private Sector:
Molly Dahl.
Estimate approved by: Robert A. Sunshine, Assistant
Director for Budget Analysis.
VI. CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, 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] healthy 2-parent married families, and
encourage responsible fatherhood.
(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.
SEC. 402. ELIGIBLE STATES; STATE PLAN.
(a) In General.--As used in this part, the term ``eligible
State'' means, with respect to a fiscal year, a State that,
during the 27-month period ending with the close of the 1st
quarter of the fiscal year, has submitted to the Secretary a
plan that the Secretary has found includes the following:
(1) Outline of family assistance program.--
(A) General provisions.--A written document
that outlines how the State intends to do the
following:
(i) Conduct a program, designed to
serve all political subdivisions in the
State (not necessarily in a uniform
manner), that provides assistance to
needy families with (or expecting)
children and provides parents with job
preparation, work, and support services
to enable them to leave the program and
become self-sufficient.
[(ii) Require a parent or caretaker
receiving assistance under the program
to engage in work (as defined by the
State) once the State determines the
parent or caretaker is ready to engage
in work, or once the parent or
caretaker has received assistance under
the program for 24 months (whether or
not consecutive), whichever is earlier,
consistent with section 407(e)(2).]
[(iii) Ensure that parents and
caretakers receiving assistance under
the program engage in work activities
in accordance with section 407.]
(ii) Require an adult or minor child
head of household receiving assistance
under the program to engage in work or
alternative self-sufficiency activities
(as defined by the State), consistent
with section 407(e)(2).
(iii)(I) Require families receiving
assistance under the program that--
(I) include an adult or minor
child head of household to
engage in activities in
accordance with family self-
sufficiency plans developed
pursuant to section 408(b); and
(II) at State option, only
consist of a child or children,
to engage in activities in
accordance with such plans that
specify the supportive services
the State intends to provide
for such families and provide
for regular interaction with
the families but do not require
participation in a work
activity described in section
407(d) (other than paragraph
(11) of such section).
(iv) Take such reasonable steps as
the State deems necessary to restrict
the use and disclosure of information
about individuals and families
receiving assistance under the program
attributable to funds provided by the
Federal Government.
[(v) Establish goals and take action
to prevent and reduce the incidence of
out-of-wedlock pregnancies, with
special emphasis on teenage
pregnancies, and establish numerical
goals for reducing the illegitimacy
ratio of the State (as defined in
section 403(a)(2)(C)(iii)) for calendar
years 1996 through 2005.]
(v) Establish specific measurable
performance objectives for pursuing the
purposes of the program funded under
this part or with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)) as described in
section 401(a), including by--
(I) establishing objectives
(as determined by the State)
after giving consideration to
the criteria used by the
Secretary in establishing
performance targets under
section 403(a)(4)(C) (with
respect to workplace attachment
and advancement), and such
additional criteria related to
other purposes of the program
under this part as described in
section 401(a) as the
Secretary, in consultation with
the National Governors'
Association, the National
Conference of State
Legislatures, and the American
Public Human Services
Association, shall establish;
and
(II) describing the
methodology that the State will
use to measure State
performance in relation to each
such objective.
(vi) Describe any strategies and
programs the State is using or plans to
use to address--
(I) employment retention and
advancement for recipients of
assistance under the program,
including placement into high-
demand jobs, and whether the
jobs are identified using labor
market information;
(II) efforts to reduce teen
pregnancy;
(III) services for struggling
and noncompliant families, and
for clients with special
problems; and
(IV) program integration,
including the extent to which
employment and training
services under the program are
provided through the One-Stop
delivery system created under
the Workforce Investment Act of
1998, and the extent to which
former recipients of such
assistance have access to
additional core, intensive, or
training services funded
through such Act.
[(vi)] (vii) Conduct a program,
designed to reach State and local law
enforcement officials, the education
system, and relevant counseling
services, that provides education and
training on the problem of statutory
rape so that teenage pregnancy
prevention programs may be expanded in
scope to include men.
``(viii) Encourage equitable
treatment of healthy 2-parent married
families under the program referred to
in clause (i).
(B) Special provisions.--
[(i) The document shall indicate
whether the State intends to treat
families moving into the State from
another State differently than other
families under the program, and if so,
how the State intends to treat such
families under the program.]
[(ii)] (i) The document shall
indicate whether the State intends to
provide assistance under the program to
individuals who are not citizens of the
United States, and if so, shall include
an overview of such assistance.
[(iii)] (ii) The document shall set
forth objective criteria for the
delivery of benefits and the
determination of eligibility and for
fair and equitable treatment, including
an explanation of how the State will
provide opportunities for recipients
who have been adversely affected to be
heard in a State administrative or
appeal process.
(iii) If the State is undertaking any
strategies or programs to engage faith-
based organizations in the delivery of
services funded under this part, or
that otherwise relate to section 104 of
the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996,
the document shall describe such
strategies and programs.
(iv) The document shall describe
strategies to improve program
management and performance.
(v) The document shall include, to
the extent applicable with respect to
each program that provides assistance
that will be funded under this part or
with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)), a
description of--
(I) the applicable financial
and nonfinancial eligibility
rules for assistance provided
under the program, including
income eligibility thresholds,
the treatment of earnings,
asset eligibility rules, and
excluded forms of income;
(II) the amount of assistance
provided to needy families, and
the methodology for determining
assistance amounts; and
(III) the applicable time
limit policies, including the
length of the time limit,
exemption and extension
policies, and procedures for
providing services to families
reaching the time limit and who
have lost assistance due to
time limits.
(vi) The document shall set forth the
criteria for applying section
407(c)(6)(E) to an adult recipient or
minor child head of household who is
the parent or caretaker relative for a
child or adult dependent for care.
(vii) The document shall describe how
the State informs families receiving
assistance under the State program
funded under this part that do not
include an adult or minor child head of
household of the information required
to be provided to other families under
section 408(b)(2)(G) (relating to work
support and other assistance for which
the family may be eligible).
(viii) The document shall describe
how the State will ensure equitable
access to benefits and services
provided under the program for each
member of an Indian tribe or tribal
organization, who is domiciled in the
State and is not eligible for
assistance under a tribal family
assistance plan approved under section
412.
[(iv) Not later than 1 year after the
date of enactment of this section,
unless the chief executive officer of
the State opts out of this provision by
notifying the Secretary, a State shall,
consistent with the exception provided
in section 407(e)(2), require a parent
or caretaker receiving assistance under
the program who, after receiving such
assistance for 2 months is not exempt
from work requirements and is not
engaged in work, as determined under
section 407(c), to participate in
community service employment, with
minimum hours per week and tasks to be
determined by the State.]
(2) Certification that the state will operate a child
support enforcement program.--A certification by the
chief executive officer of the State that, during the
fiscal year, the State will operate a child support
enforcement program under the State plan approved under
part D.
(3) Certification that the state will operate a
foster care and adoption assistance program.--A
certification by the chief executive officer of the
State that, during the fiscal year, the State will
operate a foster care and adoption assistance program
under the State plan approved under part E, and that
the State will take such actions as are necessary to
ensure that children receiving assistance under such
part are eligible for medical assistance under the
State plan under title XIX.
(4) Certification of the administration of the
program.--A certification by the chief executive
officer of the State specifying which State agency or
agencies will administer and supervise the program
referred to in paragraph (1) for the fiscal year, which
shall include assurances that local and tribal
governments and private sector organizations--
(A) have been consulted regarding the plan
and design of welfare services in the State so
that services are provided in a manner
appropriate to local and tribal populations;
and
(B) have had at least 45 days to submit
comments on the plan and the design of such
services.
(5) Certification that the state will provide indians
with equitable access to assistance.--A certification
by the chief executive officer of the State that,
during the fiscal year, the State [will provide each
member of an Indian tribe, who is domiciled in the
State and is not eligible for assistance under a tribal
family assistance plan approved under section 412, with
equitable access to assistance under the State program
funded under this part attributable to funds provided
by the Federal Government.]
(A) consult with each Indian tribe and tribal
organization located within the State regarding
the State plan in order to ensure equitable
access to benefits and services provided under
the plan for any member of such a tribe or
organization who is not eligible for assistance
under a tribal family assistance plan approved
under section 412; and
(B) provide each member of an Indian tribe or
tribal organization, who is domiciled in the
State and is not eligible for assistance under
a tribal family assistance plan approved under
section 412, with equitable access to
assistance under the State program funded under
this part attributable to funds provided by the
Federal Government.
* * * * * * *
[(b) Plan Amendments.--Within 30 days after a State amends a
plan submitted pursuant to subsection (a), the State shall
notify the Secretary of the amendment.]
(b) Procedures for Submitting and Amending State Plans.--
(1) Standard state plan format.--The Secretary shall,
after notice and public comment, develop a proposed
Standard State Plan Form to be used by States under
subsection (a) and for purposes of filing an amendment
to the State plan in accordance with paragraph (5).
Such form shall be finalized by the Secretary for use
by States not later than 9 months after the date of
enactment of the Personal Responsibility and Individual
Development for Everyone Act.
(2) Requirement for completed plan using standard
state plan format by fiscal year 2007.--Notwithstanding
any other provision of law, each State shall submit a
complete State plan, using the Standard State Plan Form
developed under paragraph (1), not later than October
1, 2006, and all subsequent State plan submissions,
including any State plan amendments, shall be made
using such form.
(3) Public notice and comment.--Prior to submitting a
State plan to the Secretary under this section, the
State shall--
(A) make the proposed State plan available to
the public through an appropriate State
maintained Internet website and through other
means as the State determines appropriate;
(B) allow for a reasonable public comment
period of not less than 45 days; and
(C) make comments received concerning such
plan or, at the discretion of the State, a
summary of the comments received available to
the public through such website and through
other means as the State determines
appropriate.
(4) Public availability of state plan.--A State shall
ensure that the State plan that is in effect for any
fiscal year is available to the public through an
appropriate State maintained Internet website and
through other means as the State determines
appropriate.
(5) Amending the state plan.--A State shall file an
amendment to the State plan with the Secretary if the
State determines that there has been a material change
in any information required to be included in the State
plan or any other information that the State has
included in the plan, including substantial changes in
the use of funding. Prior to submitting an amendment to
the State plan to the Secretary, the State shall--
(A) make the proposed amendment available to
the public as provided for in paragraph (3)(A);
(B) allow for a reasonable public comment
period of not less than 45 days; and
(C) make the comments available as provided
for in paragraph (3)(C).
(6) State option to delay submission of plan.--A
State required to submit a State plan under this part
during the period that begins on the date of enactment
of the Personal Responsibility and Individual
Development for Everyone Act and ends on September 30,
2006, may wait until October 1, 2006, to submit such
plan using the Standard State Plan Form developed under
paragraph (1).
[(c) Public Availability of State Plan Summary.--The State
shall make available to the public a summary of any plan or
plan amendment submitted by the State under this section.]
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
each of fiscal years [1996, 1997, 1998, 1999,
2000, 2001, 2002, and 2003] 2006 through 2010,
a grant in an amount equal to the State family
assistance grant payable to the State for the
fiscal year.
(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 the
amount required to be paid to the State under
this paragraph 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 2003 $16,566,542,000 for grants
under this paragraph] for each of fiscal years
2006 through 2010, $16,566,542,000 for grants
under this paragraph.
[(2) Bonus to reward decrease in illegitimacy
ratio.--
[(A) In general.--Each eligible State shall
be entitled to receive from the Secretary a
grant for each bonus year.
[(B) Amount of grant.--
[(i) In general.--If, for a bonus
year, none of the eligible States is
Guam, the Virgin Islands, or American
Samoa, then the amount of the grant
shall be--
[(I) $20,000,000 if there are
5 eligible States; or
[(II) $25,000,000 if there
are fewer than 5 eligible
States.
[(ii) Amount if certain territories
are eligible.--If, for a bonus year,
Guam, the Virgin Islands, or American
Samoa is an eligible State, then the
amount of the grant shall be--
[(I) in the case of such a
territory, 25 percent of the
mandatory ceiling amount (as
defined in section 1108(c)(4))
with respect to the territory;
and
[(II) in the case of a State
that is not such a territory--
[(aa) if there are 5
eligible States other
than such territories,
$20,000,000, minus \1/
5\ of the total amount
of the grants payable
under this paragraph to
such territories for
the bonus year; or
[(bb) if there are
fewer than 5 such
eligible States,
$25,000,000, or such
lesser amount as may be
necessary to ensure
that the total amount
of grants payable under
this paragraph for the
bonus year does not
exceed $100,000,000.
[(C) Definitions.--As used in this paragraph:
[(i) Eligible state.--
[(I) In general.--The term
``eligible State'' means a
State that the Secretary
determines meets the following
requirements:
[(aa) The State
demonstrates that the
illegitimacy ratio of
the State for the most
recent 2-year period
for which such
information is
available decreased as
compared to the
illegitimacy ratio of
the State for the
previous 2-year period,
and the magnitude of
the decrease for the
State for the period is
not exceeded by the
magnitude of the
corresponding decrease
for 5 or more other
States for the period.
In the case of a State
that is not a territory
specified in
subparagraph (B), the
comparative magnitude
of the decrease for the
State shall be
determined without
regard to the magnitude
of the corresponding
decrease for any such
territory.
[(bb) The rate of
induced pregnancy
terminations in the
State for the calendar
year for which the most
recent data are
available is less than
the rate of induced
pregnancy terminations
in the State for
calendar year 1995.
[(II) Disregard of changes in
data due to changed reporting
methods.--In making the
determination required by
subclause (I), the Secretary
shall disregard--
[(aa) any difference
between the
illegitimacy ratio of a
State for a fiscal year
and the illegitimacy
ratio of a State for
fiscal year 1995 which
is attributable to a
change in State methods
of reporting data used
to calculate the
illegitimacy ratio; and
[(bb) any difference
between the rate of
induced pregnancy
terminations in a State
for a calendar year and
such rate for calendar
year 1995 which is
attributable to a
change in State methods
of reporting data used
to calculate such rate.
[(ii) Bonus year.--The term ``bonus
year'' means calendar years 1999, 2000,
2001, 2002, and 2003.
[(iii) Illegitimacy ratio.--The term
``illegitimacy ratio'' means, with
respect to a State and a period--
[(I) the number of out-of-
wedlock births to mothers
residing in the State that
occurred during the period;
divided by
[(II) the number of births to
mothers residing in the State
that occurred during the
period.
[(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1999 through 2003, such sums as are
necessary for grants under this paragraph.]
(2) Healthy marriage promotion grants.--
(A) Authority.--
(i) In general.--The Secretary shall
award competitive grants to States and
Indian tribes and tribal organizations
for not more than 50 percent of the
cost of developing and implementing
innovative programs to promote and
support healthy 2-parent married
families.
(ii) Use of other tanf funds.--A
State or Indian tribe or tribal
organization with an approved tribal
family assistance plan may use funds
provided under other grants made under
this part for all or part of the
expenditures incurred for the remainder
of the costs described in clause (i).
In the case of a State, any such funds
expended shall not be considered
qualified State expenditures for
purposes of section 409(a)(7).
(B) Healthy marriage promotion activities.--
Funds provided under subparagraph (A) and
corresponding State matching funds shall be
used to support any of the following programs
or activities:
(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
importance of healthy marriages and the
characteristics of other healthy
relationships experienced throughout
life, including education on the
importance of grounding all
relationships in mutual respect and how
earlier healthy relationships are the
building blocks for later healthy
marital relationships.
(iii) Marriage education, marriage
skills, and relationship skills
programs, that may include parenting
skills, financial management, conflict
resolution, and job and career
advancement, for non-married pregnant
women, non-married expectant fathers,
and non-married recent parents.
(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.
(viii) Programs to reduce the
disincentives to marriage in means-
tested aid programs, if offered in
conjunction with any activity described
in this subparagraph.
(C) Voluntary participation.--
(i) In general.--Participation in
programs or activities described in any
of clauses (iii) through (vii) of
subparagraph (B) shall be voluntary.
(ii) Assurance of informed consent
and option to disenroll.--Each State or
Indian tribe or tribal organization
that carries out programs or activities
described in any of clauses (iii)
through (vii) of subparagraph (B) shall
provide the Secretary with an assurance
that each recipient of assistance under
the State program funded under this
part who elects to participate in such
programs or activities shall be
informed, prior to making such
election--
(I) that such participation
is voluntary;
(II) that the recipient may
elect at any time to disenroll
from such programs or
activities by notifying the
State or Indian tribe or tribal
organization that the recipient
no longer wants to participate
in such programs or activities;
(III) of the process, if any,
by which a recipient who
chooses to withdraw from, or
fails to participate in, such
programs or activities may be
required to follow to become
engaged in other programs or
activities that are not
programs or activities
described in clauses (iii)
through (vii) of subparagraph
(B); and
(IV) that the State may
reassign a recipient at any
time, in accordance with the
requirements of section 408(b),
to other activities that are
not programs or activities
described in clauses (iii)
through (vii) of subparagraph
(B).
(iii) No sanction for refusal or
failure to participate.--
(I) In general.--No State or
Indian tribe or tribal
organization shall deny or
reduce assistance to a
recipient of assistance under
the State program funded under
this part solely on the basis
of the recipient's withdrawal
from, or failure to,
participate in programs or
activities described in clauses
(iii) through (vii) of
subparagraph (B).
(II) Rule of construction.--
Nothing in this subparagraph
shall be construed as
precluding a State or Indian
tribe or tribal organization
from requiring a recipient of
assistance under the State
program funded under this part
to engage in programs or
activities that are not
programs or activities
described in clauses (iii)
through (vii) of subparagraph
(B) or to sanction a recipient
for failure to engage in such
programs or activities or to
follow any such procedures the
State may establish to enroll a
recipient in such other
programs or activities.
(D) General rules governing use of funds.--
The rules of section 404, other than subsection
(b) of that section, shall not apply to a grant
made under this paragraph.
(E) Requirements for receipt of funds.--A
State or Indian tribe or tribal organization
may not be awarded a grant under this paragraph
unless the State or Indian tribe or tribal
organization, as a condition of receiving funds
under such a grant--
(i) consults with domestic violence
organizations that have demonstrated
expertise working with survivors of
domestic violence in developing
policies, procedures, programs and
training necessary to appropriately
address domestic violence in families
served by programs and activities
funded under such grant;
(ii) describes in the application for
a grant under this paragraph--
(I) how the programs or
activities proposed to be
conducted will appropriately
address issues of domestic
violence; and
(II) what the State or Indian
tribe or tribal organization,
will do, to the extent
relevant, to ensure that
participation in such programs
or activities is voluntary, and
to inform potential
participants that their
involvement is voluntary;
(iii) establishes a written protocol
for providers and administrators of
programs and activities relevant to the
grant that--
(I) provides for helping
identify instances or risks of
domestic violence; and
(II) specifies the procedures
for making service referrals
and providing protections and
appropriate assistance for
identified individuals and
families;
(iv) establishes performance goals
for funded programs and activities that
clarify the primary objective of such
funded programs and activities is to
increase the incidence and quality of
healthy marriages and not solely to
expand the number or percentage of
married couples; and
(v) submits the annual reports
required under subparagraph (F).
(F) Annual reports to the secretary.--Each
State and Indian tribe or tribal organization
awarded a grant under this paragraph shall
submit to the Secretary an annual report on the
programs and activities funded under the grant
that includes the following:
(i) A description of the written
protocols developed in accordance with
the requirements of subparagraph
(E)(iii) for each program or activity
funded under the grant and how such
protocols are used, including specific
policies and procedures for addressing
domestic violence issues within each
program or activity funded under the
grant and how confidentiality issues
are addressed.
(ii) The name of each individual,
organization, or entity that was
consulted in the development of such
protocols.
(iii) A description of each
individual, organization, or entity (if
any) that provided training on domestic
violence for the State, Indian tribe or
tribal organization, or for any
subgrantees.
(iv) A description of any
implementation issues identified with
respect to domestic violence and how
such issues were addressed.
(G) Biannual reports to congress.--Not later
than 24 months after the date of enactment of
the Personal Responsibility and Individual
Development for Everyone Act, and every 6
months thereafter, the Secretary shall submit
to Congress a report regarding the programs and
activities funded with grants awarded under
this paragraph. Each report submitted in
accordance with this subparagraph shall include
the following:
(i) The name of each program or
activity funded with such grants and
the name of each grantee and
subgrantee.
(ii) The total number of individuals
served under programs or activities
funded under the grant.
(iii) The total number of individuals
who--
(I) completed a program or
activity funded under the
grant, including the number of
such individuals who received
assistance under the State
program funded under this part
or with qualified State
expenditures (as defined in
section 409(a)(7)(B)(i)) while
participating in such program
or activity; and
(II) did not complete such a
program or activity, including
due to ceasing to receive
assistance under the State
program funded under this part
or with qualified State
expenditures (as defined in
section 409(a)(7)(B)(i)) or for
other reasons.
(iv) A description of the types of
services offered under such programs or
activities.
(v) The criteria for selection of
programs or activities to be funded
under such grant with respect to the
award of grants by the Secretary and
the awarding of funds to subgrantees.
(vi) A description of the activities
carried out by the Secretary to support
grantees and subgrantees in responding
to domestic violence issues.
(v) A summary of the written domestic
violence protocols used by grantees and
subgrantees.
(vii) A summary of who the grantees
and subgrantees consulted with in
developing such protocols.
(viii) A summary of the training
provided to grantees and subgrantees on
domestic violence.
(ix) A list of the organizations,
entities, and activities funded under
sections 103(c) and 114(e) of the
Personal Responsibility and Individual
Development for Everyone Act.
(H) Domestic violence defined.--In this
paragraph, the term `domestic violence' has the
meaning given that term in section
402(a)(7)(B).
(I) Appropriation.--
(i) In general.--Out of any money in
the Treasury of the United States not
otherwise appropriated, there are
appropriated for each of fiscal years
2005 through 2010, $100,000,000 for
grants under this paragraph.
(ii) Extended availability of
funds.--
(I) In general.--Funds
appropriated under clause (i)
for each of fiscal years 2006
through 2010 shall remain
available to the Secretary
until expended.
(II) Authority for grant
recipients.--A State or Indian
tribe or tribal organization
may use funds made available
under a grant awarded under
this paragraph without fiscal
year limitation pursuant to the
terms of the grant.
(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--
* * * * * * *
(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] 2006 through 2009 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 [``March 31, 2005'']
fiscal year 2009 were substituted for
``fiscal year 2001''; and
(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] 2006 through 2009 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.]
(4) Bonus to reward employment achievement.--
(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 an
employment achievement State.
(B) Amount of grant.--
(i) In general.--Subject to clause
(ii), the Secretary shall determine the
amount of the grant payable under this
paragraph to an employment achievement
State for a bonus year, which shall be
based on the performance of the State
as determined 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.--
(i) In general.--Subject to clause
(ii), not later than October 1, 2006,
the Secretary, in consultation with the
States, shall develop a formula for
measuring State performance in
operating the State program funded
under this part so as to achieve the
goal of workplace attachment and
advancement for families receiving
assistance under the program (and for
families diverted from receiving such
assistance if, and only to the extent
that, the Secretary determines that it
is possible to measure State
performance with respect to such
families), as measured on an absolute
basis and on the basis of improvement
in State performance.
(ii) Special rule for bonus years
2006 and 2007.--For the purposes of
awarding a bonus under this paragraph
for bonus year 2006 or 2007, the
Secretary may measure the performance
of a State in fiscal year 2005 or 2006
(as the case may be) using the job
entry rate, job retention rate, and
earnings gain rate components of the
formula developed under section
403(a)(4)(C) as in effect immediately
before the effective date of this
paragraph.
(D) Determination of state performance.--For
each bonus year, the Secretary shall--
(i) use the formula developed under
subparagraph (C) to determine the
performance of each eligible State for
the fiscal year that precedes the bonus
year; and
(ii) prescribe performance standards
in such a manner so as to ensure that--
(I) the average annual total
amount of grants to be made
under this paragraph for--
(aa) each of bonus
years 2006 through 2008
equals $50,000,000; and
(bb) each of bonus
years 2009 through 2011
equals $100,000,000;
and
(II) the total amount of
grants to be made under this
paragraph for all bonus years
equals $450,000,000.
(E) Definitions.--In this paragraph:
(i) Bonus year.--The term ``bonus
year'' means each of fiscal years 2006
through 2011.
(ii) Employment achievement state.--
The term ``employment achievement
State'' means, with respect to a bonus
year, an eligible State whose
performance determined pursuant to
subparagraph (D)(i) for the fiscal year
preceding the bonus year equals or
exceeds the performance standards
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 the
period of fiscal years 2006 through 2011,
$450,000,000 for grants under this paragraph.
(G) Grants for indian tribes.--
(i) Reservation of funds.--Of the
amount appropriated under subparagraph
(F), the Secretary shall reserve an
amount equal to 2 percent of such
amount for making grants to Indian
tribes.
(ii) Application.--This paragraph
shall apply with respect to Indian
tribes in the same manner in which this
paragraph applies with respect to
States.
(iii) Consultation.--The Secretary
shall consult with Indian tribes in
determining the criteria under which to
make grants to Indian tribes and tribal
organizations under this paragraph.
(5) Welfare-to-work grants.--
(A) Formula grants.--
* * * * * * *
(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)] 413(i), and to
cooperate with the conduct of
any such evaluation.
* * * * * * *
(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)]
413(i).
(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)] 413(i).
* * * * * * *
(6) Grants to capitalize and develop sustainable
social services.--
(A) Authority to award grants.--The Secretary
may award grants to entities for the purpose of
capitalizing and developing the role of
sustainable social services that are critical
to the success of moving recipients of
assistance under a State program funded under
this part to work.
(B) Application.--
(i) In general.--An entity desiring a
grant under this paragraph shall submit
an application to the Secretary, at
such time, in such manner, and, subject
to clause (ii), containing such
information as the Secretary may
require.
(ii) Strategy for generation of
revenue.--An application for a grant
under this paragraph shall include a
description of the capitalization
strategy that the entity intends to
follow to develop a program that
generates its own source of ongoing
revenue while assisting recipients of
assistance under a State program funded
under this part.
(C) Use of funds.--
(i) In general.--Funds made available
under a grant made under this paragraph
may be used for the acquisition,
construction, or renovation of
facilities or buildings.
(ii) General rules governing use of
funds.--The rules of section 404, other
than subsection (b) of that section,
shall not apply to a grant made under
this paragraph.
(D) Evaluation and report.--The Secretary
shall, by grant, contract, or interagency
agreement, conduct an evaluation of the
programs developed with grants awarded under
this paragraph and shall submit a report to
Congress on the results of such evaluation.
(E) Authorization of appropriations.--There
is authorized to be appropriated to the
Secretary for the purpose of carrying out this
paragraph, $40,000,000 for each of fiscal years
2006 through 2010.
(7) Grants for low-income car ownership programs.--
(A) Purposes.--The purposes of this paragraph
are to--
(i) assist low-income families with
children obtain dependable, affordable
automobiles to improve their employment
opportunities and access to training;
and
(ii) provide incentives to States,
Indian tribes or tribal organizations,
localities, and nonprofit entities to
develop and administer programs that
provide assistance with automobile
ownership for low-income families.
(B) Definitions.--In this paragraph:
(i) Locality.--The term ``locality''
means a municipality that does not
administer a State program funded under
this part.
(ii) Low-income family with
children.--The term ``low-income family
with children'' means a household that
is eligible for benefits or services
funded under the State program funded
under this part or under a program
funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)).
(iii) Nonprofit entity.--The term
``nonprofit entity'' means a school,
local agency, organization, or
institution owned and operated by 1 or
more nonprofit corporations or
associations, no part of the net
earnings of which inures, or may
lawfully inure, to the benefit of any
private shareholder or individual.
(C) Authority to award grants.--The Secretary
may award grants to States, counties,
localities, Indian tribes or tribal
organizations, and nonprofit entities to
promote improving access to dependable,
affordable automobiles by low-income families
with children.
(D) Grant approval criteria.--The Secretary
shall establish criteria for approval of an
application for a grant under this paragraph
that include consideration of--
(i) the extent to which the proposal,
if funded, is likely to improve access
to training and employment
opportunities and child care services
by low-income families with children by
means of car ownership;
(ii) the level of innovation in the
applicant's grant proposal; and
(iii) any partnerships between the
public and private sector in the
applicant's grant proposal.
(E) Use of funds.--
(i) In general.--A grant awarded
under this paragraph shall be used to
administer programs that assist low-
income families with children with
dependable automobile ownership, and
maintenance of, or insurance for, the
purchased automobile.
(ii) Supplement not supplant.--Funds
provided to a State, Indian tribe or
tribal organization, county, or
locality under a grant awarded under
this paragraph shall be used to
supplement and not supplant other
State, county, or local public funds
expended for car ownership programs.
(iii) General rules governing use of
funds.--The rules of section 404, other
than subsection (b) of that section,
shall not apply to a grant made under
this paragraph.
(F) Application.--Each applicant desiring a
grant under this paragraph shall submit an
application to the Secretary at such time, in
such manner, and accompanied by such
information as the Secretary may reasonably
require.
(G) Reversion of funds.--Any funds not
expended by a grantee within 3 years after the
date the grant is awarded under this paragraph
shall be available for redistribution among
other grantees in such manner and amount as the
Secretary may determine, unless the Secretary
extends by regulation the time period to expend
such funds.
(H) Limitation on administrative costs of the
secretary.--Not more than an amount equal to 5
percent of the funds appropriated to make
grants under this paragraph for a fiscal year
shall be expended for administrative costs of
the Secretary in carrying out this paragraph.
(I) Evaluation.--The Secretary shall, by
grant, contract, or interagency agreement,
conduct an evaluation of the programs
administered with grants awarded under this
paragraph.
(J) Authorization of appropriations.--There
is authorized to be appropriated to the
Secretary to make grants under this paragraph,
$25,000,000 for each of fiscal years 2006
through 2010.
(8) Innovative business link partnership grants.--
(A) In general.--The Secretary and the
Secretary of Labor (in this paragraph referred
to as the ``Secretaries'') jointly shall award
grants in accordance with this paragraph for
projects proposed by eligible applicants based
on the following:
(i) The potential effectiveness of
the proposed project in carrying out
the activities described in
subparagraph (E).
(ii) Evidence of the ability of the
eligible applicant to leverage private,
State, or local resources.
(iii) Evidence of the ability of the
eligible applicant to coordinate with
other organizations at the State or
local level.
(B) Definition of eligible applicant.--
(i) In general.--In this paragraph,
the term ``eligible applicant'' means a
private organization, a local workforce
investment board established under
section 117 of the Workforce Investment
Act of 1998 (29 U.S.C. 2832), a State,
a political subdivision of a State, or
an Indian tribe or tribal organization.
(ii) Grants to promote business
linkages.--
(I) Additional eligible
applicant.--Only for purposes
of grants to carry out the
activities described in
subparagraph (E)(i), the term
``eligible applicant'' includes
an employer.
(II) Additional
requirement.--In order to
qualify as an eligible
applicant for purposes of
subparagraph (E)(i), the
applicant must demonstrate that
the application has been
developed by and will be
implemented by a local or
regional consortium that
includes, at minimum, employers
or employer associations, and
education and training
providers, in consultation with
local labor organizations and
social service providers that
work with low-income families
or individuals with
disabilities.
(C) Requirements.--
(i) In general.--In awarding grants
under this paragraph, the Secretaries
shall--
(I) consider the needs of
rural areas and cities with
large concentrations of
residents with an income that
is less than 150 percent of the
poverty line; and
(II) ensure that--
(aa) all of the funds
made available under
this paragraph (other
than funds reserved for
use by the Secretaries
under subparagraph (J))
shall be used for
activities described in
subparagraph (E);
(bb) not less than 40
percent of the funds
made available under
this paragraph (other
than funds so reserved)
shall be used for
activities described in
subparagraph (E)(i);
and
(cc) not less than 40
percent of the funds
made available under
this paragraph (other
than funds so reserved)
shall be used for the
activities described in
subparagraph (E)(ii).
(ii) Continuation of availability.--
If any portion of the funds required to
be used for activities referred to in
item (bb) or (cc) of clause (i)(II) are
not awarded in a fiscal year, such
portion shall continue to be available
in the subsequent fiscal year for the
same activity, in addition to other
amounts that may be available for such
activities for that subsequent fiscal
year.
(D) Determination of grant amount.--
(i) In general.--Subject to clause
(ii), in determining the amount of a
grant to be awarded under this
paragraph for a project proposed by an
eligible applicant, the Secretaries
shall take into account--
(I) the number and
characteristics of the
individuals to be served by the
project;
(II) the level of
unemployment in the area to be
served by the project;
(III) the job opportunities
and job growth in such area;
(IV) the poverty rate for
such area; and
(V) such other factors as the
Secretary deems appropriate in
such area.
(ii) Maximum award for grants to
promote business linkages or provide
transitional jobs programs.--
(I) In general.--In the case
of a grant to carry out
activities described in clause
(i) or (ii) of subparagraph
(E), an eligible applicant
awarded a grant under this
paragraph may not receive more
than $10,000,000 per fiscal
year under the grant.
(II) Rule of construction.--
Nothing in subclause (I) shall
be construed as precluding an
otherwise eligible applicant
from receiving separate grants
to carry out activities
described in clause (i) or (ii)
of subparagraph (E).
(iii) Grant period.--The period in
which a grant awarded under this
paragraph may be used shall be
specified for a period of not less than
36 months and not more than 60 months.
(E) Allowable activities.--An eligible
applicant awarded a grant under this paragraph
shall use funds provided under the grant to do
the following:
(i) Promote business linkages.--
(I) In general.--To promote
business linkages in which
funds shall be used to fund new
or expanded programs that are
designed to--
(aa) substantially
increase the wages of
eligible individuals
(as defined in
subparagraph (F)),
whether employed or
unemployed, who have
limited English
proficiency or other
barriers to employment
by creating or
upgrading job and
related skills in
partnership with
employers, especially
by providing supports
and services at or near
worksites; and
(bb) identify and
strengthen career
pathways by expanding
and linking work and
training opportunities
for such individuals in
collaboration with
employers.
(II) Consideration of in-
kind, in-cash resources.--In
determining which programs to
fund under this clause, an
eligible applicant awarded a
grant under this paragraph
shall consider the ability of a
consortium to provide funds in-
kind or in-cash (including
employer-provided, paid release
time) to help support the
programs for which funding is
sought.
(III) Priority.--In
determining which programs to
fund under this clause, an
eligible applicant awarded a
grant under this paragraph
shall give priority to programs
that include education or
training for which participants
receive credit toward a
recognized credential, such as
an occupational certificate or
license.
(IV) Use of funds.--
(aa) In general.--
Funds provided to a
program under this
clause may be used for
a comprehensive set of
employment and training
benefits and services,
including job
development, job
placement, workplace
supports and
accommodations,
curricula development,
wage subsidies,
retention services, and
such other benefits or
services as the program
deems necessary to
achieve the overall
objectives of this
clause.
(bb) Provision of
services.--So long as a
program is principally
designed to assist
eligible individuals
(as defined in
subparagraph (F)),
funds may be provided
to a program under this
clause that also serves
low-earning employees
of 1 or more employers
even if such
individuals are not
within the definition
of eligible individual
(as so defined).
(ii) Provide for transitional jobs
programs.--
(I) In general.--To provide
for wage-paying transitional
jobs programs which combine
time-limited employment in the
public or nonprofit private
sector that is subsidized with
public funds with skill
development and activities to
remove barriers to employment,
pursuant to an individualized
plan (or, in the case of an
eligible individual described
in subparagraph (F)(i), an
individual responsibility plan
developed for an individual
under section 408(b)). Such
programs also shall provide job
development and placement
assistance to individual
participants to help them move
from subsidized employment in
transitional jobs into
unsubsidized employment, as
well as retention services
after the transition to
unsubsidized employment.
(II) Eligible participants.--
The Secretary shall ensure that
individuals who participate in
transitional jobs programs
funded under a grant made under
this paragraph shall be
individuals who have been
unemployed because of limited
skills, experience, or other
barriers to employment, and who
are eligible individuals (as
defined in subparagraph (F)),
provided that so long as a
program is designed to, and
principally serves, eligible
individuals (as so defined), a
limited number of individuals
who are unemployed because of
limited skills, experience, or
other barriers to employment,
and who have an income below
100 percent of the Federal
poverty line but who do not
satisfy the definition of
eligible individual (as so
defined) maybe served in the
program to the extent the Secretaries determine that the inclusion of
such individuals in the program is appropriate.
(III) Use of funds.--Funds
provided to a program under
this clause may only be used in
accordance with the following:
(aa) To create
subsidized transitional
jobs in which work
shall be performed
directly for the
program operator or at
other public and
nonprofit organizations
(in this subclause
referred to as
``worksite employers'')
in the community, and
in which 100 percent of
the wages shall be
subsidized, except as
described in item (ff)
regarding placements in
the private, for-profit
sector.
(bb) Participants
shall be paid at the
rate paid to
unsubsidized employees
of the worksite
employer who perform
comparable work at the
worksite where the
individual is placed.
If no other employees
perform the same or
comparable work then
wages shall be set, at
a minimum, at 50
percent of the Lower
Living Standard Income
Level (commonly
referred to as the
``LLSIL''), as
determined under
section 101(24) of the
Workforce Investment
Act of 1998 (29 U.S.C.
2801(24)), for a family
of 3 based on 35 hours
per week.
(cc) Transitional
jobs shall be limited
to not less than 6
months and not more
than 24 months,
however, nothing shall
preclude a participant
from moving into
unsubsidized employment
at a point prior to the
maximum duration of the
transitional job
placement. Participants
shall be paid wages
based on a workweek of
not less than 30 hours
per week or more than
40 hours per week,
except that a parent of
a child under the age
of 6, a child who is
disabled, or a child
with other special
needs, or an individual
who for other reasons
cannot successfully
participate for 30 to
40 hours per week, may
be allowed to
participate for more
limited hours, but not
less than 20 hours per
week. In any work week,
50 percent to 80
percent of hours shall
be spent in the
transitional job and 20
percent to 50 percent
of hours shall be spent
in education or
training, or other
services designed to
reduce or eliminate any
barriers.
(dd) Program
operators shall provide
case management
services and ensure
access to appropriate
education, training,
and other services,
including job
accommodation, work
supports, and supported
employment, as
appropriate and
consistent with an
individual employment
plan (unless the
individual already has
an employment plan
developed by the
appropriate State
agency with
responsibility for the
administration of the
State program funded
under this part or the
State workforce
investment board
established under
section 111 of the
Workforce Investment
Act of 1998 (29 U.S.C.
2821)) that is based on
the individual's
strengths, resources,
priorities, concerns,
abilities,
capabilities, career
interests, and informed
choice and that is
developed with each
participant. The goal
of each participant's
plan shall focus on
preparation for
unsubsidized jobs in
demand in the local
economy which offer the
potential for
advancement and growth.
Services shall also
include job placement
assistance and
retention services for
12 months after entry
into unsubsidized
placement. Participants
shall also receive
support services such
as subsidized child
care and
transportation, on the
same basis as those
services are made
available to recipients
of assistance under the
State program funded
under this part who are
engaged in work-related
activities.
(ee) Providers shall
work with individual
recipients to determine
eligibility for other
employment-related
supports which may
include (but are not
limited to) supported
employment, other
vocational
rehabilitation
services, and programs
or services available
under the Workforce
Investment Act of 1998
(29 U.S.C. 2801 et
seq.), or the ticket to
work and self-
sufficiency program
established under
section 1148, and, to
the extent possible,
shall provide
transitional employment
in collaboration with
entities providing, or
arranging for the
provision of, such
other supports.
(ff) Not more than
\1/3\ of the placements
for a grantee shall be
with a private for-
profit company, except
that such \1/3\ limit
may be waived by the
Secretary for programs
in rural areas when the
grantee can demonstrate
insufficient public and
non-profit worksites.
When a placement is
made at a private for-
profit company, the
company shall pay 50
percent of program
costs (including wages)
for each participant,
and the company shall
agree, in writing, to
hire each participant
into an unsubsidized
position at the
completion of the
agreed upon subsidized
placement, or sooner,
provided that the
participant's job
performance has been
satisfactory.
(gg) Subject to item
(hh), not more than 15
percent of the
workforce of a private
for-profit company may
be composed of
transitional jobs
participants.
(hh) Notwithstanding
item (gg), no employer
shall be precluded from
employing up to 2
transitional jobs
participants.
(IV) Definition of
transitional jobs program.--In
this clause, the term
``transitional jobs program''
means a program that is
intended to serve current and
former recipients of assistance
under a State or tribal program
funded under this part and
other low-income individuals
who have been unable to secure
employment through job search
or other employment-related
services because of limited
skills, experience, or other
barriers to employment.
(iii) Limitation on administrative
expenditures.--Not more than 5 percent
of the funds awarded to an eligible
applicant under clause (i) or (ii) may
be used for administrative expenditures
incurred in carrying out the activities
described in clause (i) or (ii) or for
expenditures related to carrying out
the assessments and reports required
under subparagraph (H).
(F) Definition of eligible individual.--In
this paragraph, the term ``eligible
individual'' means--
(i) an individual who is a parent who
is a recipient of assistance under a
State or tribal program funded under
this part;
(ii) an individual who is a parent
who has ceased to receive assistance
under such a State or tribal program;
(iii) an individual who is at risk of
receiving assistance under a State or
tribal program funded under this part;
(iv) an individual with a disability;
or
(v) a noncustodial parent who is
unemployed, or is having difficulty in
paying child support obligations,
including such a parent who is a former
criminal offender.
(G) Application.--Each eligible applicant
desiring a grant under this paragraph shall
submit an application to the Secretaries at
such time, in such manner, and accompanied by
such information as the Secretaries may
require.
(H) Assessments and reports by grantees.--
(i) In general.--An eligible
applicant that receives a grant under
this paragraph shall assess and report
on the outcomes of programs funded
under the grant, including the identity
of each program operator, demographic
information about each participant,
including education level, literacy
level, prior work experience and
identified barriers to employment, the
nature of education, training, or other
services received by the participant,
the reason for the participant's
leaving the program, and outcomes
related to the placement of the
participant in an unsubsidized job,
including 1-year employment retention,
wage at placement, benefits, and
earnings progression, as specified by
the Secretaries.
(ii) Assistance.--The Secretaries
shall--
(I) assist grantees in
conducting the assessment
required under clause (i) by
making available where
practicable low-cost means of
tracking the labor market
outcomes of participants; and
(II) encourage States to
provide such assistance.
(I) Application to requirements of the state
program.--
(i) Participation not considered
assistance.--A benefit or service
provided with funds made available
under a grant made under this paragraph
shall not be considered assistance for
any purpose under a State or tribal
program funded under this part.
(ii) General rules governing use of
funds.--The rules of section 404, other
than subsection (b) of that section,
shall not apply to a grant made under
this paragraph.
(J) Assessments by the secretaries.--
(i) Reservation of funds.--Of the
amount appropriated to carry out this
paragraph for each of fiscal years 2006
and 2007, $3,000,000 of such amount for
each such fiscal year is reserved for
use by the Secretaries to prepare an
interim and final report summarizing
and synthesizing outcomes and lessons
learned from the programs funded
through grants awarded under this
paragraph.
(ii) Interim and final assessments.--
With respect to the reports prepared
under clause (i), the Secretaries shall
submit--
(I) the interim report not
later than 4 years after the
date of enactment of the
Personal Responsibility and
Individual Development for
Everyone Act; and
(II) the final report not
later than 6 years after such
date of enactment.
(K) Evaluations.--
(i) Reservation of funds.--Of the
amount appropriated to carry out this
paragraph for a fiscal year, an amount
equal to 1.5 percent of such amount for
each such fiscal year shall be reserved
for use by the Secretaries to conduct
evaluations in accordance with the
requirements of clause (ii).
(ii) Requirements.--The Secretaries--
(I) shall develop a plan to
evaluate the extent to which
programs funded under grants
made under this paragraph have
been effective in promoting
sustained, unsubsidized
employment for each group of
eligible participants, and in
improving the skills and wages
of participants in comparison
to the participants' skills and
wages prior to participation in
the programs;
(II) may evaluate the use of
such a grant by a grantee, as
the Secretaries deem
appropriate, in accordance with
an agreement entered into with
the grantee after good-faith
negotiations; and
(III) shall include, as
appropriate, the following
outcome measures in the
evaluation plan developed under
subclause (I):
(aa) Placements in
unsubsidized
employment.
(bb) Retention in
unsubsidized employment
6 months and 12 months
after initial
placement.
(cc) Earnings of
individuals at the time
of placement in
unsubsidized
employment.
(dd) Earnings of
individuals 12 months
after placement in
unsubsidized
employment.
(ee) The extent to
which unsubsidized job
placements include
access to affordable
employer-sponsored
health insurance and
paid leave benefits.
(ff) Comparison of
pre- and post-program
wage rates of
participants.
(gg) Comparison of
pre- and post-program
skill levels of
participants.
(hh) Wage growth and
employment retention in
relation to occupations
and industries at
initial placement in
unsubsidized employment
and over the first 12
months after initial
placement.
(ii) Recipient of
cash assistance under
the State program
funded under this part.
(jj) Average
expenditures per
participant.
(iii) Reports to congress.--The
Secretaries shall submit to Congress
the following reports on the
evaluations of programs funded under
grants made under this paragraph:
(I) Interim report.--An
interim report not later than 4
years after the date of
enactment of the Personal
Responsibility and Individual
Development for Everyone Act.
(II) Final report.--A final
report not later than 6 years
after such date of enactment.
(L) Authorization of appropriations.--
(i) In general.--There is authorized
to be appropriated for the purpose of
carrying out this paragraph,
$200,000,000 for each of fiscal years
2006 through 2010.
(ii) Availability.--Amounts
appropriated in accordance with clause
(i) for a fiscal year shall remain
available for obligation for 5 fiscal
years after the fiscal year in which
the amount is appropriated.
* * * * * * *
(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
1997, 1998, 1999, 2000, 2001, 2002, and 2003 such sums
as are necessary for payment to the Fund in a total
amount not to exceed $2,000,000,000, reduced by the sum
of the dollar amounts specified in paragraph
(6)(C)(ii).
[(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 years
1997 through 2005 shall not exceed the
total amount appropriated pursuant to
paragraph (2).]
(1) Contingency fund grants.--
(A) Payments.--Subject to subparagraphs (C)
and (D), and out of funds appropriated under
subparagraph (F), each State shall receive a
contingency fund grant for each eligible month
in which the State is a needy State under
paragraph (3).
(B) Monthly contingency fund grant amount.--
For each eligible month in which a State is a
needy State, the State shall receive a
contingency fund grant equal to the product
of--
(i) the applicable percentage (as
defined under subparagraph (E)(i)) of
the applicable benefit level (as
defined in subparagraph (E)(ii)); and
(ii) the amount by which the total
number of families that received
assistance under the State program
funded under this part in the most
recently concluded 3-month period for
which data are available from the State
exceeds a 5-percent increase in the
number of such families in the
corresponding 3-month period in either
of the 2 most recent preceding fiscal
years and that was due, in large
measure, to economic conditions rather
than State policy changes.
(C) Limitation.--The total amount paid to a
single State under subparagraph (A) during a
fiscal year shall not exceed the amount equal
to 10 percent of the State family assistance
grant (as defined under subparagraph (B) of
subsection (a)(1)).
(D) Payments to indian tribes.--
(i) In general.--Of the total amount
appropriated pursuant to subparagraph
(F), $25,000,000 of such amount shall
be reserved for making payments to
Indian tribes with approved tribal
family assistance plans that are
operating in situations of increased
economic hardship.
(ii) Determination of criteria for
tribal access.--
(I) In general.--Subject to
subclause (II), the Secretary,
in consultation with Indian
tribes with approved tribal
family assistance plans, shall
determine the criteria for
access by such tribes to the
amount reserved under clause
(i).
(II) Inclusion of certain
factors.--Such criteria shall
include factors related to
increases in unemployment and
loss of employers.
(iii) Application of requirements for
payments to states.--The Secretary, in
consultation with Indian tribes with
approved tribal family assistance plans
located throughout the United States,
shall determine the extent to which
requirements of States for payments
from the contingency fund established
under this subsection shall apply to
Indian tribes receiving payments under
this subparagraph.
(E) Definitions.--In this paragraph:
(i) Applicable percentage.--The term
``applicable percentage'' means the
Federal medical assistance percentage
for the State (as defined in section
1905(b)).
(ii) Applicable benefit level.--
(I) In general.--Subject to
subclause (II), the term
``applicable benefit level''
means the amount equal to the
maximum cash assistance grant
for a family consisting of 3
individuals under the State
program funded under this part.
(II) Rule for states with
more than 1 maximum level.--In
the case of a State that has
more than 1 maximum cash
assistance grant level for
families consisting of 3
individuals, the basic
assistance cost shall be the
amount equal to the maximum
cash assistance grant level
applicable to the largest
number of families consisting
of 3 individuals receiving
assistance under the State
program funded under this part.
(F) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there is appropriated for the
period of fiscal years 2006 through 2010, such
sums as are necessary for making contingency
fund grants under this subsection in a total
amount not to exceed $2,000,000,000.
(3) Initial determination of whether a state
qualifies as a needy state.--
(A) In general.--For purposes of paragraph
(1), subject to paragraph (4), a State will be
initially determined to be a needy State for a
month if, as determined by the Secretary--
(i) the monthly average of the
unduplicated number of families that
received assistance under the State
program funded under this part in the
most recently concluded 3-month period
for which data are available from the
State increased by at least 5 percent
over the number of such families that
received such benefits in the
corresponding 3-month period in either
of the 2 most recent preceding fiscal
years;
(ii) the increase in the number of
such families for the State was due, in
large measure, to economic conditions
rather than State policy changes; and
(iii) the State satisfies any of the
following criteria:
(I) The average rate of total
unemployment in the State
(seasonally adjusted) for the
period consisting of the most
recent 3 months for which data
are available has increased by
the lesser of 1.5 percentage
points or by 50 percent over
the corresponding 3-month
period in either of the 2 most
recent preceding fiscal years.
(II) The average insured
unemployment rate for the most
recent 13 weeks for which data
are available has increased by
1 percentage point over the
corresponding 13-week period in
either of the 2 most recent
preceding fiscal years.
(III) As determined by the
Secretary of Agriculture, the
monthly average number of
households (as of the last day
of each month) that
participated in the food stamp
program in the State in the
then most recently concluded 3-
month period for which data are
available exceeds by at least
15 percent the monthly average
number of households (as of the
last day of each month) in the
State that participated in the
food stamp program in the
corresponding 3-month period in
either of the 2 most recent
preceding fiscal years, but
only if the Secretary and the
Secretary of Agriculture concur
in the determination that the
State's increased caseload was
due, in large measure, to
economic conditions rather than
changes in Federal or State
policies related to the food
stamp program.
(B) Duration.--A State that qualifies as a
needy State--
(i) under subclause (I) or (II) of
subparagraph (A)(iii), shall be
considered a needy State until the
State's average rate of total
unemployment or the State's insured
unemployment rate, respectively, falls
below the level attained in the
applicable period that was first used
to determine that the State qualified
as a needy State under that
subparagraph (and in the case of the
insured unemployment rate, without
regard to any declines in the rate that
are the result of seasonal variation);
and
(ii) under subclause (III) of
subparagraph (A)(iii), shall be
considered a needy State so long as the
State meets the criteria for being
considered a needy State under that
subparagraph.
(4) Exceptions.--
(A) Unexpended balances.--
(i) In general.--Notwithstanding
paragraph (3), a State that has
unexpended TANF balances in an amount
that exceeds 30 percent of the total
amount of grants received by the State
under subsection (a) for the most
recently completed fiscal year (other
than welfare-to-work grants made under
paragraph (5) of that subsection prior
to fiscal year 2000), shall not be a
needy State under this subsection.
(ii) Definition of unexpended tanf
balances.--In clause (i), the term
``unexpended TANF balances'' means the
lesser of--
(I) the total amount of
grants made to the State
(regardless of the fiscal year
in which such funds were
awarded) under subsection (a)
(other than welfare-to-work
grants made under paragraph (5)
of that subsection prior to
fiscal year 2000) but not yet
expended as of the end of the
fiscal year preceding the
fiscal year for which the State
would, in the absence of this
subparagraph, be considered a
needy State under this
subsection; and
(II) the total amount of
grants made to the State under
subsection (a) (other than
welfare-to-work grants made
under paragraph (5) of that
subsection prior to fiscal year
2000) but not yet expended as
of the end of such preceding
fiscal year, plus the
difference between--
(aa) the pro rata
share of the current
fiscal year grant to be
made under subsection
(a) to the State; and
(bb) current year
expenditures of the
total amount of grants
made to the State under
subsection (a)
(regardless of the
fiscal year in which
such funds were
awarded) (other than
such welfare-to-work
grants) through the end
of the most recent
calendar quarter.
(B) Failure to satisfy maintenance of effort
requirement.--Notwithstanding paragraph (3), a
State that fails to satisfy the requirement of
section 409(a)(7) with respect to a fiscal year
shall not be a needy State under this
subsection for that fiscal year.
[(4)] (2) Eligible month.--As used in paragraph
[(3)(A)] (1), the term ``eligible month'' means, with
respect to a State, a month in the [2-month period that
begins with any] fiscal year quarter that includes a
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 food stamp 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 food stamp 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 food stamp 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)] (5) State defined.--As used in this subsection,
the term ``State'' means each of the 50 States and the
District of Columbia.
[(8)] (6) Annual reports.--The Secretary shall
annually report to the Congress [on the status of the
Fund] on the States that qualified for contingency
funds and the amount of funding awarded under this
subsection.
SEC. 404. [42 U.S.C. 604] USE OF GRANTS.
(a) General Rules.--Subject to this part, a State to which a
grant is made under section 403 may use the grant--
(1) in any manner that is reasonably calculated to
accomplish the purpose of this part, including to
provide low income households with [assistance] aid in
meeting home heating and cooling costs; or
(2) in any manner that the State was authorized to
use amounts received under part A or F, as such parts
were in effect on September 30, 1995, or (at the option
of the State) August 21, 1996.
(b) Limitation on Use of Grant for Administrative Purposes.--
(1) Limitation.--A State to which a grant is made
under section 403 shall not expend more than 15 percent
of the grant for administrative purposes.
(2) Exception.--Paragraph (1) shall not apply to the
use of a grant for information technology and
computerization needed for tracking or monitoring
required by or under this part.
[(c) Authority To Treat Interstate Immigrants Under Rules of
Former State.--A State operating a program funded under this
part may apply to a family the rules (including benefit
amounts) of the program funded under this part of another State
if the family has moved to the State from the other State and
has resided in the State for less than 12 months.]
(c) [Reserved].
(d) Authority To Use Portion of Grant for Other Purposes.--
(1) In general.--Subject to paragraph (2), a State
may use not more than 30 percent of the amount of any
grant made to the State under section 403(a) for a
fiscal year to carry out a State program pursuant to
any or all of the following provisions of law:
(A) Title XX of this Act.
(B) The Child Care and Development Block
Grant Act of 1990.
[(2) Limitation on amount transferable to title xx
programs.--
[(A) In general.--A State may use not more
than the applicable percent of the amount of
any grant made to the State under section
403(a) for a fiscal year to carry out State
programs pursuant to title XX.
[(B) Applicable percent.--For purposes of
subparagraph (A), the applicable percent is
4.25 percent in the case of fiscal year 2001
and each succeeding fiscal year.
(3) Applicable rules.--
[(A) In general.--Except as provided in
subparagraph (B) of this paragraph, any amount
paid to a State under this part that is used to
carry out a State program pursuant to a
provision of law specified in paragraph (1)
shall not be subject to the requirements of
this part, but shall be subject to the
requirements that apply to Federal funds
provided directly under the provision of law to
carry out the program, and the expenditure of
any amount so used shall not be considered to
be an expenditure under this part.
[(B) Exception relating to title xx
programs.--All amounts paid to a State under
this part that are used to carry out State
programs pursuant to title XX shall be used
only for programs and services to children or
their families whose income is less than 200
percent of the income official 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) applicable to a family of the size
involved.]
(2) Limitation on amount transferable to title xx
programs.--A State may use not more than 10 percent of
the amount of any grant made to the State under section
403(a) for a fiscal year to carry out State programs
pursuant to title XX.
[(e) Authority To Reserve Certain Amounts for Assistance.--A
State or tribe may reserve amounts paid to the State or tribe
under this part for any fiscal year for the purpose of
providing, without fiscal year limitation, assistance under the
State or tribal program funded under this part.]
(e) Authority To Carryover or Reserve Certain Amounts for
Benefits or Services or for Future Contingencies.--
(1) Carryover.--A State or Indian tribe may use a
grant made to the State or Indian tribe under this part
for any fiscal year to provide, without fiscal year
limitation, any benefit or service that may be provided
under the State or tribal program funded under this
part.
(2) Contingency reserve.--A State or Indian tribe may
designate any portion of a grant made to the State or
Indian tribe under this part as a contingency reserve
for future needs, and may use any amount so designated
to provide, without fiscal year limitation, any benefit
or service that may be provided under the State or
tribal program funded under this part. If a State or
Indian tribe so designates a portion of such a grant,
the State or Indian tribe shall include in its report
under section 411(a) the amount so designated.
(f) Authority To Operate Employment Placement Program.--A
State to which a grant is made under section 403 may use the
grant to make payments (or provide job placement vouchers) to
State-approved public and private job placement agencies that
provide employment placement services to individuals who
receive [assistance] benefits or services under the State
program funded under this part.
* * * * * * *
(l) Authority To Establish Undergraduate Postsecondary or
Vocational Educational Program.--
(1) In general.--Subject to the succeeding paragraphs
of this subsection, a State to which a grant is made
under section 403 may use the grant or State funds that
are qualified State expenditures (as defined in section
409(a)(7)(B)(i)) to establish a program under which an
eligible participant (as defined in paragraph (3)) may
be provided support services described in paragraph (5)
and, subject to paragraph (6), may have hours of
participation in such program counted as being engaged
in work for purposes of determining monthly
participation rates under section 407(b)(1)(B)(i).
(2) State plan requirement.--In order to establish a
program under this subsection, a State shall describe
(in an addendum to the State plan submitted under
section 402) the applicable eligibility criteria that
is designed to limit participation in the program to
only those individuals--
(A) whose past earnings indicate that the
individuals cannot qualify for employment that
pays enough to allow them to obtain self-
sufficiency (as determined by the State); and
(B) for whom enrollment in the program will
prepare the individuals for higher-paying
occupations that are in demand in the State.
(3) Definition of eligible participant.--In this
subsection, the term `eligible participant' means an
individual--
(A) who--
(i) receives assistance under the
State program funded under this part;
(ii) is a former recipient of
assistance under the State program
funded under this part; or
(iii) is a needy parent in a family
with children eligible for benefits or
services funded under a grant made
under section 403 or with State funds
that are qualified State expenditures
(as defined in section
409(a)(7)(B)(i)); and
(B) who--
(i) is enrolled in a postsecondary 2-
or 4-year degree program or a
vocational educational training
program; and
(ii) during the period the individual
participates in the program established
under this subsection, maintains
satisfactory academic progress, as
defined by the institution operating
the postsecondary 2- or 4-year degree
program or vocational educational
training program in which the
individual is enrolled.
(4) Required time periods for completion of degree or
vocational educational training program.--
(A) In general.--Subject to subparagraph (B),
an eligible participant participating in a
program established under this subsection shall
be required to complete the requirements of a
postsecondary 2- or 4-year degree program or a
vocational educational training program within
the normal timeframe (as determined by the
institution operating the 2- or 4-year degree
program or a vocational educational training
program) for full-time students seeking the
particular degree or completing the vocational
educational training program.
(B) Exception.--
(i) In general.--For good cause, the
State may allow an eligible participant
to complete their degree requirements
or vocational educational training
program within a period not to exceed
1\1/2\ times the normal timeframe
established under subparagraph (A)
(unless further modification is
required by the Americans with
Disabilities Act of 1990 (42 U.S.C.
12101 et seq.), or section 504 of the
Rehabilitation Act of 1973 (29 U.S.C.
794)) and may modify the requirements
applicable to an individual
participating in the program. For
purposes of the preceding sentence,
good cause includes, with respect to an
eligible participant, the presence of 1
or more significant barriers, as
determined by the State, to normal
participation by the participant, such
as the need to care for a family member
with special needs.
(ii) Inclusion of barriers in state
plan addendum.--A State shall identify
and define in the addendum to the State
plan under paragraph (2) the barriers
that make an eligible participant
eligible for the good cause exception
permitted under clause (i).
(5) Support services described.--For purposes of
paragraph (1), the support services described in this
paragraph include any or all of the following during
the period the eligible participant is participating in
the program established under this subsection:
(A) Child care.
(B) Transportation services.
(C) Payment for books and supplies.
(D) Other services provided under policies
determined by the State to ensure coordination
and lack of duplication with other programs
available to provide support services.
(6) Rules for inclusion in monthly work participation
rates.--
(A) Families counted as participating if they
meet the requirements of subparagraph (b) or
(c).--Subject to subparagraph (D), for each
eligible participant who receives assistance
under the State program funded under this part,
a State may elect, for purposes of determining
monthly participation rates under section
407(b)(1)(B)(i), to include such participant in
the determination of such rates in accordance
with subparagraph (B) or (C).
(B) Full or partial credit for hours of
participation in educational or related
activities.--
(i) In general.--Subject to clause
(iv), an eligible participant who
participates in educational or related
activities (as determined by the State
in accordance with clause (ii)) under a
program established under this
subsection shall be given credit for
the number of hours of such
participation to the extent that an
adult recipient or minor child head of
household would be given credit under
section 407(c) for being engaged in the
same number of hours of work activities
described in paragraph (1), (2), (3),
(4), (5), (6), (7), (8), or (12) of
section 407(d).
(ii) Related activities.--For
purposes of clause (i), related
activities shall include--
(I) work activities described
in paragraph (1), (2), (3),
(4), (5), (6), (7), (8), or
(12) of section 407(d);
(II) work study, practicums,
internships, clinical
placements, laboratory or field
work, or such other activities
that will enhance the eligible
participant's employability in
the participant's field of
study, as determined by the
State; or
(III) subject to clause
(iii), study time.
(iii) Limitation on inclusion of
study time.--For purposes of
determining hours per week of
participation by an eligible
participant under a program established
under this subsection, a State may not
count study time of less than 1 hour
for every hour of class time or more
than 2 hours for every hour of class
time.
(iv) Total number of hours limited to
being counted as 1 family.--In no event
may hours per week of participation by
an eligible participant under a program
established under this subsection
result in the participant's family
being counted as more than 1 family for
purposes of determining monthly
participation rates under section
407(b)(1)(B)(i).
(C) Full credit for being engaged in direct
work activities for certain hours per week.--
(i) In general.--A family that
includes an eligible participant who,
in addition to complying with the full-
time educational participation
requirements of the postsecondary 2- or
4-year degree program or vocational
educational training program that the
participant is enrolled in,
participates in an activity described
in subclause (I) or (II) of
subparagraph (B)(ii) for not less than
the number of hours required per week
under clause (ii) shall be counted as 1
family.
(ii) Required hours per week.--For
purposes of clause (i), subject to
clause (iii), the number of hours per
week are--
(I) 6 hours per week during
the first 12-month period that
an eligible participant
participates in a program
established under this
subsection;
(II) 8 hours per week during
the second 12-month period of
such participation;
(III) 10 hours per week
during the third 12-month
period of such participation;
and
(IV) 12 hours per week during
the fourth or any other
succeeding 12-month period of
such participation.
(iii) Modification of requirements
for good cause.--A State may modify the
number of hours per week required under
clause (ii) for good cause. For
purposes of the preceding sentence,
good cause includes, with respect to an
eligible participant, the presence of 1
or more significant barriers, as
determined by the State, to normal
participation by the participant, such
as the need to care for a family member
with special needs.
(D) Cap on number of participants that may be
included in monthly work participation rates.--
The monthly number of families that include an
eligible participant and that are treated as
being engaged in work may not exceed an amount
equal to 10 percent of the families to which
assistance is provided under the State program
funded under this part for such month.
(7) Applicability.--Nothing in this subsection shall
be construed as restricting the authority or discretion
of a State in the use of grants provided under section
403 or the expenditure of qualified State expenditures
(as defined in section 409(a)(7)(B)(i)) for programs or
activities other than the program established under
this subsection.
[SEC. 406. FEDERAL LOANS FOR STATE WELFARE PROGRAMS.
[(a) Loan Authority.--
[(1) In general.--The Secretary shall make loans to
any loan-eligible State, for a period to maturity of
not more than 3 years.
[(2) Loan-eligible state.--As used in paragraph (1),
the term ``loan-eligible State'' means a State against
which a penalty has not been imposed under section
409(a)(1).
[(b) Rate of Interest.--The Secretary shall charge and
collect interest on any loan made under this section at a rate
equal to the current average market yield on outstanding
marketable obligations of the United States with remaining
periods to maturity comparable to the period to maturity of the
loan.
[(c) Use of Loan.--A State shall use a loan made to the State
under this section only for any purpose for which grant amounts
received by the State under section 403(a) may be used,
including--
[(1) welfare anti-fraud activities; and
[(2) the provision of assistance under the State
program to Indian families that have moved from the
service area of an Indian tribe with a tribal family
assistance plan approved under section 412.
[(d) Limitation on Total Amount of Loans to a State.--The
cumulative dollar amount of all loans made to a State under
this section during fiscal years 1997 through 2003 shall not
exceed 10 percent of the State family assistance grant.
[(e) Limitation on Total Amount of Outstanding Loans.--The
total dollar amount of loans outstanding under this section may
not exceed $1,700,000,000.
[(f) Appropriation.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated such sums as may be necessary for the cost of
loans under this section.]
SEC. 407. MANDATORY WORK REQUIREMENTS.
[(a) Participation Rate Requirements.--
[(1) All families.--A State to which a grant is made
under section 403 for a fiscal year shall achieve the
minimum participation rate specified in the following
table for the fiscal year with respect to all families
receiving assistance under the State program funded
under this part:
[The minimum
participation
[If the fiscal year is: rate is:
[1997....................................... 25
[1998....................................... 30
[1999....................................... 35
[2000....................................... 40
[2001....................................... 45
[2002 or thereafter......................... 50.
[(2) 2-parent families.--A State to which a grant is
made under section 403 for a fiscal year shall achieve
the minimum participation rate specified in the
following table for the fiscal year with respect to 2-
parent families receiving assistance under the State
program funded under this part:
[The minimum
participation
[If the fiscal year is: rate is:
[1997....................................... 75
[1998....................................... 75
[1999 or thereafter......................... 90. ]
(a) Participation Rate Requirements.--
(1) In general.--A State to which a grant is made
under section 403 for a fiscal year shall achieve a
minimum participation rate with respect to all families
receiving assistance under the State program funded
under this part that is equal to not less than--
(A) 50 percent for fiscal year 2006;
(B) 55 percent for fiscal year 2007;
(C) 60 percent for fiscal year 2008;
(D) 65 percent for fiscal year 2009; and
(E) 70 percent for fiscal year 2010 and each
succeeding fiscal year.
(2) Limitation on reduction of participation rate
through application of credits.--Notwithstanding any
other provision of this part, the net effect of any
percentage reduction in the minimum participation rate
otherwise required under this section with respect to
families receiving assistance under the State program
funded under this part as a result of the application
of any employment credit, caseload reduction credit, or
other credit against such rate for a fiscal year, shall
not exceed--
(A) 40 percentage points, in the case of
fiscal year 2006;
(B) 35 percentage points, in the case of
fiscal year 2007;
(C) 30 percentage points, in the case of
fiscal year 2008;
(D) 25 percentage points, in the case of
fiscal year 2009; or
(E) 20 percentage points, in the case of
fiscal year 2010 or any fiscal year thereafter.
(b) Calculation of Participation Rates.--
(1) All families.--
(A) Average monthly rate.--For purposes of
subsection (a)(1), the participation rate for
all families of a State for a fiscal year is
the average of the participation rates for all
families of the State for each month in the
fiscal year.
(B) Monthly participation rates.--The
participation rate of a State for all families
of the State for a month, expressed as a
percentage, is--
(i) the number of families receiving
assistance under the State program
funded under this part that include an
adult or a minor child head of
household who is engaged in work for
the month; divided by
(ii) the amount by which--
(I) the number of families
receiving such assistance
during the month that include
an adult or a minor child head
of household receiving such
assistance; exceeds
(II) the number of families
receiving such assistance that
are subject in such month to a
penalty described in subsection
(e)(1) but have not been
subject to such penalty for
more than 3 months within the
preceding 12-month period
(whether or not consecutive).
[(2) 2-parent families.--
[(A) Average monthly rate.--For purposes of
subsection (a)(2), the participation rate for
2-parent families of a State for a fiscal year
is the average of the participation rates for
2-parent families of the State for each month
in the fiscal year.
[(B) Monthly participation rates.--The
participation rate of a State for 2-parent
families of the State for a month shall be
calculated by use of the formula set forth in
paragraph (1)(B), except that in the formula
the term ``number of 2-parent families'' shall
be substituted for the term ``number of
families'' each place such latter term appears.
[(C) Family with a disabled parent not
treated as a 2-parent family.--A family that
includes a disabled parent shall not be
considered a 2-parent family for purposes of
subsections (a) and (b) of this section.]
(2) Employment credit.--
(A) In general.--Subject to subsection
(a)(2), beginning with fiscal year 2008, the
Secretary shall, by regulation, reduce the
minimum participation rate otherwise applicable
to a State under this subsection for a fiscal
year by the number of percentage points in the
employment credit for the State for the fiscal
year, as determined by the Secretary--
(i) using information in the National
Directory of New Hires;
(ii) with respect to a recipient of
assistance or former recipient of
assistance under the State program
funded under this part who is placed
with an employer whose hiring
information is not reported to the
National Directory of New Hires, using
quarterly wage information submitted by
the State to the Secretary not later
than such date as the Secretary shall
prescribe in regulations; or
(iii) with respect to families
described in subclause (II) or (III) of
subparagraph (B)(ii), using such other
data (including data relating to
qualified State expenditures (as
defined in section 409(a)(7)(B)(i)) or
any other State programs that are used
to provide nonrecurring short-term
benefits or substantial child care or
transportation assistance to such
families) as the Secretary may require
in order to determine the employment
credit for a State under this
paragraph.
(B) Calculation of credit.--
(i) In general.--The employment
credit for a State for a fiscal year is
an amount equal to the sum of the
amounts determined under clause (ii),
divided by the amount determined under
clause (iii).
(ii) Numerator.--For purposes of
clause (i), the amounts determined
under this clause are the following:
(I) Twice the quarterly
average unduplicated number of
families that include an adult
or minor child head of
household recipient of
assistance under the State
program funded under this part,
that ceased to receive such
assistance for at least 2
consecutive months following
case closure for the family
during the applicable period
(as defined in clause (v)),
that did not receive assistance
under a separate State-funded
program during such 2-month
period, and that were employed
during the calendar quarter
immediately succeeding the
quarter in which the assistance
under the State program funded
under this part ceased.
(II) At the option of the
State, twice the quarterly
average number of families that
received a nonrecurring short-
term benefit under the State
program funded under this part
during the applicable period
(as defined in clause (v)),
that were employed during the
calendar quarter immediately
succeeding the quarter in which
the nonrecurring short-term
benefit was so received, and
that earned at least $1,000
during such succeeding calendar
quarter.
(III) At the option of the
State, twice the quarterly
average number of families that
include an adult who is
receiving substantial child
care (including child care
funded by transfers under
section 404(d) to the Child
Care and Development Block
Grant Act of 1990) or
transportation assistance (as
defined by the Secretary, in
consultation with directors of
State programs funded under
this part, which definition
shall specify for each type of
assistance a threshold which is
a dollar value or a length of
time over which the assistance
is received and which takes
into account large one-time
transition payments) during the
applicable period (as defined
in clause (v)) and that were
employed during the calendar
quarter in which the
substantial child care or
transportation assistance was
so received and earned at least
$1,000 during such calendar
quarter.
(iii) Denominator.--For purposes of
clause (i), the amount determined under
this clause is the amount equal to the
sum of the following:
(I) The average monthly
number of families that include
an adult or minor child head of
household who received
assistance under the State
program funded under this part
during the applicable period
(as defined in clause (v)).
(II) If the State elected the
option under clause (ii)(II),
twice the quarterly average
number of families that
received a nonrecurring short-
term benefit under the State
program funded under this part
during the applicable period
(as defined in clause (v)).
(III) If the State elected
the option under clause
(ii)(III), twice the quarterly
average number of families that
includes an adult who is
receiving substantial child
care (including child care
funded by transfers under
section 404(d) to the Child
Care and Development Block
Grant Act of 1990) or
transportation assistance
during the applicable period
(as defined in clause (v)).
(iv) Special rule for former
recipients with higher earnings.--In
calculating the employment credit for a
State for a fiscal year, in the case of
a family that includes an adult or a
minor child head of household that is
to be included in the amount determined
under clause (ii)(I) and that, with
respect to the quarter in which the
family's earnings was examined during
the applicable period, earned at least
33 percent of the average quarterly
earnings in the State (determined on
the basis of State unemployment data),
the family shall be considered to be
1.5 families.
(v) Definition of applicable
period.--For purposes of this
paragraph, the term `applicable period'
means, with respect to a fiscal year,
the most recent 4 quarters for which
data are available to the Secretary
providing information on the work
status of--
(I) individuals in the
quarter after the individuals
ceased receiving assistance
under the State program funded
under this part;
(II) at State option,
individuals in the quarter
after the individuals received
a short-term, nonrecurring
benefit; and
(III) at State option,
individuals in the quarter in
which the individuals received
substantial child care or
transportation assistance.
(C) Notification to state.--Not later than
August 31 of each fiscal year, the Secretary
shall--
(i) determine, on the basis of the
applicable period, the amount of the
employment credit that will be used in
determining the minimum participation
rate for a State under subsection (a)
for the immediately succeeding fiscal
year; and
(ii) notify each State conducting a
State program funded under this part of
the amount of the employment credit for
such program for the succeeding fiscal
year.
(3) Pro rata reduction of participation rate due to
caseload reductions not required by federal law and not
resulting from changes in state eligibility criteria.--
(A) In general.--The Secretary shall
prescribe regulations for reducing the minimum
participation rate otherwise required by this
section for a fiscal year by the number of
percentage points equal to the number of
percentage points (if any) by which--
(i) the average monthly number of
families receiving assistance during
the immediately preceding fiscal year
under the State program funded under
this part is less than
(ii) the average monthly number of
families that received aid under the
State plan approved under part A (as in
effect on September 30, 1995) during
fiscal year 1995.
The minimum participation rate shall not be
reduced to the extent that the Secretary
determines that the reduction in the number of
families receiving such assistance is required
by Federal law.
(B) Eligibility changes not counted.--The
regulations required by subparagraph (A) shall
not take into account families that are
diverted from a State program funded under this
part as a result of differences in eligibility
criteria under a State program funded under
this part and eligibility criteria under the
State program operated under the State plan
approved under part A (as such plan and such
part were in effect on September 30, 1995).
Such regulations shall place the burden on the
Secretary to prove that such families were
diverted as a direct result of differences in
such eligibility criteria.
(4) State option to include individuals receiving
assistance under a tribal family assistance plan or
tribal work program.--For purposes of [paragraphs
(1)(B) and (2)(B)] determining monthly participation
rates under paragraph (1)(B), a State may, at its
option, include families in the State that are
receiving assistance under a tribal family assistance
plan approved under section 412 or under a tribal work
program to which funds are provided under this part.
[(5) State option for participation requirement
exemptions.--For any fiscal year, a State may, at its
option, not require an individual who is a single
custodial parent caring for a child who has not
attained 12 months of age to engage in work, and may
disregard such an individual in determining the
participation rates under subsection (a) for not more
than 12 months.]
(5) State options for participation requirement
exemptions.--At the option of a State, a State may, on
a case-by-case basis--
(A) not include a family in the determination
of the monthly participation rate for the State
in the first month for which the family
receives assistance from the State program
funded under this part on the basis of the most
recent application for such assistance; or
(B) not require a family in which the
youngest child has not attained 12 months of
age to engage in work, and may disregard that
family in determining the minimum participation
rate under subsection (a) for the State for not
more than 12 months.
[(c) Engaged in Work.--
[(1) General rules.--
[(A) All families.--For purposes of
subsection (b)(1)(B)(i), a recipient is engaged
in work for a month in a fiscal year if the
recipient is participating in work activities
for at least the minimum average number of
hours per week specified in the following table
during the month, not fewer than 20 hours per
week of which are attributable to an activity
described in paragraph (1), (2), (3), (4), (5),
(6), (7), (8), or (12) of subsection (d),
subject to this subsection:
[The minimum
[If the month is average number of
in fiscal year: hours per week is:
[1997..................................... 20
[1998..................................... 20
[1999..................................... 25
[2000 or thereafter....................... 30.
[(B) 2-parent families.--For purposes of
subsection (b)(2)(B), an individual is engaged
in work for a month in a fiscal year if--
[(i) the individual and the other
parent in the family are participating
in work activities for a total of at
least 35 hours per week during the
month, not fewer than 30 hours per week
of which are attributable to an
activity described in paragraph (1),
(2), (3), (4), (5), (6), (7), (8), or
(12) of subsection (d), subject to this
subsection; and
[(ii) if the family of the individual
receives federally-funded child care
assistance and an adult in the family
is not disabled or caring for a
severely disabled child, the individual
and the other parent in the family are
participating in work activities for a
total of at least 55 hours per week
during the month, not fewer than 50
hours per week of which are
attributable to an activity described
in paragraph (1), (2), (3), (4), (5),
(6), (7), (8), or (12) of subsection
(d).
[(2) Limitations and special rules.--
[(A) Number of weeks for which job search
counts as work.--
[(i) Limitation.--Notwithstanding
paragraph (1) of this subsection, an
individual shall not be considered to
be engaged in work by virtue of
participation in an activity described
in subsection (d)(6) of a State program
funded under this part, after the
individual has participated in such an
activity for 6 weeks (or, if the
unemployment rate of the State is at
least 50 percent greater than the
unemployment rate of the United States
or the State is a needy State (within
the meaning of section 403(b)(6)), 12
weeks), or if the participation is for
a week that immediately follows 4
consecutive weeks of such
participation.
[(ii) Limited authority to count less
than full week of participation.--For
purposes of clause (i) of this
subparagraph, on not more than 1
occasion per individual, the State
shall consider participation of the
individual in an activity described in
subsection (d)(6) for 3 or 4 days
during a week as a week of
participation in the activity by the
individual.
[(B) Single parent or relative with child
under age 6 deemed to be meeting work
participation requirements if parent or
relative is engaged in work for 20 hours per
week.--For purposes of determining monthly
participation rates under subsection
(b)(1)(B)(i), a recipient who is the only
parent or caretaker relative in the family of a
child who has not attained 6 years of age is
deemed to be engaged in work for a month if the
recipient is engaged in work for an average of
at least 20 hours per week during the month.
[(C) Single teen head of household or married
teen who maintains satisfactory school
attendance deemed to be meeting work
participation requirements.--For purposes of
determining monthly participation rates under
sub-section (b)(1)(B)(i), a recipient who is
married or a head of household and has not
attained 20 years of age is deemed to be
engaged in work for a month in a fiscal year if
the recipient--
[(i) maintains satisfactory
attendance at secondary school or the
equivalent during the month; or
[(ii) participates in education
directly related to employment for an
average of at least 20 hours per week
during the month.
[(D) Limitation on number of persons who may
be treated as engaged in work by reason of
participation in educational activities.--For
purposes of determining monthly participation
rates under paragraphs (1)(B)(i) and (2)(B) of
subsection (b), not more than 30 percent of the
number of individuals in all families and in 2-
parent families, respectively, in a State who
are treated as engaged in work for a month may
consist of individuals who are determined to be
engaged in work for the month by reason of
participation in vocational educational
training, or (if the month is in fiscal year
2000 or thereafter) deemed to be engaged in
work for the month by reason of subparagraph
(C) of this paragraph.]
(c) Determination of Countable Hours Engaged in Work.--
(1) Single parent or relative whose youngest child
has attained age 6.--
(A) Minimum average number of hours per
week.--Subject to the succeeding paragraphs of
this subsection, a family in which an adult
recipient or minor child head of household in
the family is participating in work activities
described in subsection (d) shall be treated as
engaged in work for purposes of determining
monthly participation rates under subsection
(b)(1)(B)(i) as follows:
(i) In the case of a family in which
the total number of hours in which any
adult recipient or minor child head of
household in the family is
participating in such work activities
for an average of at least 20, but less
than 24, hours per week in a month, as
0.675 of a family.
(ii) In the case of a family in which
the total number of hours in which any
adult recipient or minor child head of
household in the family is
participating in such work activities
for an average of at least 24, but less
than 30, hours per week in a month, as
0.75 of a family.
(iii) In the case of a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
30, but less than 34, hours per week in
a month, as 0.875 of a family.
(iv) In the case of a family in which
the total number of hours in which any
adult recipient or minor child head of
household in the family is
participating in such work activities
for an average of at least 34, but less
than 35, hours per week in a month, as
1 family.
(v) In the case of a family in which
the total number of hours in which any
adult recipient or minor child head of
household in the family is
participating in such work activities
for an average of at least 35, but less
than 38, hours per week in a month, as
1.05 families.
(vi) In the case of a family in which
the total number of hours in which any
adult recipient or minor child head of
household in the family is
participating in such work activities
for an average of at least 38 hours per
week in a month, as 1.08 families.
(B) Direct work activities required for an
average of 24 hours per week.--Except as
provided in subparagraph (C)(i), a State may
not count any hours of participation in work
activities specified in paragraph (9), (10), or
(11) of subsection (d) of any adult recipient
or minor child head of household in a family
before the total number of hours of
participation by any adult recipient or minor
child head of household in the family in work
activities described in paragraph (1), (2),
(3), (4), (5), (6), (7), (8), or (12) of
subsection (d) for the family for the month
averages at least 24 hours per week.
(C) State flexibility to count participation
in certain activities.--
(i) Qualified activities for 3-months
in any 24-month period.--
(I) 24-hours per week
required.--Subject to
subclauses (III) and (IV), for
purposes of determining hours
under subparagraph (A), a State
may count the total number of
hours any adult recipient or
minor child head of household
in a family engages in
qualified activities described
in subclause (II) as a work
activity described in
subsection (d), without regard
to whether the recipient has
satisfied the requirement of
subparagraph (B), but only if--
(aa) the total number
of hours of
participation in such
qualified activities
and in any work
activities described in
paragraph (1), (2),
(3), (4), (5), (6),
(7), (8), or (12) of
subsection (d) for the
family for the month
average at least 24
hours per week (except
that if such hours
average at least 20,
but less than 24, hours
per week, the State may
count that family in
accordance with
subparagraph (A)(i));
and
(bb) engaging in such
qualified activities is
a requirement of the
family self-sufficiency
plan.
(II) Qualified activities
described.--For purposes of
subclause (I), qualified
activities described in this
subclause are any of the
following:
(aa) Postsecondary
education.
(bb) Adult literacy
programs or activities,
including participation
in a program designed
to increase proficiency
in the English
language.
(cc) Substance abuse
counseling or treatment
(including drug or
alcohol abuse
counseling or
treatment).
(dd) Programs or
activities designed to
remove barriers to
work, as defined by the
State.
(ee) Work activities
authorized under any
waiver for any State
that was continued
under section 415
before the date of
enactment of the
Personal Responsibility
and Individual
Development for
Everyone Act (without
regard to whether the
waiver expired prior to
such date of
enactment).
(ff) Financial
literacy training that
is not otherwise
countable under items
(aa) through (ee),
except that the State
may not count more than
an average of 5 hours
per week of such
training.
(gg) Programs or
activities design to
develop parenting
skills.
(III) Limitation.--Except as
provided in clause (ii), in any
period of 24 consecutive
months, subclause (I) shall not
apply to a family for more than
3 months (no more than 1 month
of which may be attributable to
activities described in
subclause (II)(ff)).
(IV) Certain activities.--The
Secretary may allow a State to
count the total hours of
participation in qualified
activities described in
subclause (II) for an adult
recipient or minor child head
of household without regard to
the minimum 24 hour average per
week of participation
requirement under subclause (I)
if the State has demonstrated
conclusively that such
activities are part of a
substantial and supervised
program whose effectiveness in
moving families to self-
sufficiency is superior to any
alternative activities and the
effectiveness of the program in
moving families to self-
sufficiency would be
substantially impaired if
participating individuals
participated in additional,
concurrent qualified activities
that enabled the individuals to
achieve an average of at least
24 hours per week of
participation.
(ii) Additional 3-month period
permitted for certain activities.--
(I) Self-sufficiency plan
requirement combined with
minimum number of hours.--A
State may extend the 3-month
period under clause (i) for an
additional 3 months in the same
period of 24 consecutive months
in the case of an adult
recipient or minor child head
of household who is receiving
qualified rehabilitative
services described in subclause
(II) if--
(aa) the total number
of hours that the adult
recipient or minor
child head of household
engages in such
qualified
rehabilitative services
and, subject to
subclause (III), a work
activity described in
paragraph (1), (2),
(3), (4), (5), (6),
(7), (8), or (12) of
subsection (d) for the
month average at least
24 hours per week; and
(bb) engaging in such
qualified
rehabilitative services
is a requirement of the
family self-sufficiency
plan.
(II) Qualified rehabilitative
services described.--For
purposes of subclause (I),
qualified rehabilitative
services described in this
subclause are any of the
following:
(aa) Adult literacy
programs or activities,
including participation
in a program designed
to increase proficiency
in the English
language.
(bb) In the case of
an adult recipient or
minor child head of
household who has been
certified by a
qualified medical,
mental health, or
social services
professional (as
defined by the State)
as having a physical or
mental disability,
substance abuse problem
(including a drug or
alcohol abuse problem),
or other problem that
requires a
rehabilitative service,
substance abuse
treatment (including
drug or alcohol abuse
treatment), or mental
health treatment, the
service or treatment
determined necessary by
a professional.
(iii) Nonapplication of limitations
on job search and vocational
educational training.--An adult
recipient or minor child head of
household who is participating in
qualified activities described in
subclause (II) of clause (i) during a
3-month period under that clause, or
receiving qualified rehabilitative
services described in subclause (II) of
clause (ii) during an additional period
under that clause, may engage in a work
activity described in paragraph (6) or
(8) of subsection (d) for purposes of
satisfying the minimum 24 hour average
per week of participation requirement
under clause (i)(I)(aa) or clause
(ii)(I)(aa), respectively, without
regard to any limit that otherwise
applies to the activity (including the
30 percent limitation on participation
in vocational educational training
under paragraph (6)(C)).
(iv) Hours in excess of an average of
24 work activity hours per week.--If
the total number of hours that any
adult recipient or minor child head of
household in a family has participated
in a work activity described in
paragraph (1), (2), (3), (4), (5), (6),
(7), (8), or (12) of subsection (d)
averages at least 24 hours per week in
a month, a State, for purposes of
determining hours under subparagraph
(A), may count any additional hours an
adult recipient or minor child head of
household in the family engages in--
(I) any work activity
described in subsection (d),
without regard to any limit
that otherwise applies to the
activity (including the 6-week
limitation on job search and
job readiness assistance under
paragraph (6)(B) and the 30
percent limitation on
participation in vocational
educational training under
paragraph (6)(C)); and
(II) any qualified activity
described in clause (i)(II), as
a work activity described in
subsection (d).
(2) Single parent or relative with a child under age
6.--
(A) In general.--A family in which an adult
recipient or minor child head of household in
the family is the only parent or caretaker
relative in the family of a child who has not
attained 6 years of age and who is
participating in work activities described in
subsection (d) shall be treated as engaged in
work for purposes of determining monthly
participation rates under subsection
(b)(1)(B)(i) as follows:
(i) In the case of such a family in
which the total number of hours in
which the adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
20, but less than 24, hours per week in
a month, as 0.675 of a family.
(ii) In the case of such a family in
which the total number of hours in
which the adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
24, but less than 35, hours per week in
a month, as 1 family.
(iii) In the case of such a family in
which the total number of hours in
which the adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
35, but less than 38, hours per week in
a month, as 1.05 families.
(iv) In the case of such a family in
which the total number of hours in
which the adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
38 hours per week in a month, as 1.08
families.
(B) Application of rules regarding direct
work activities and state flexibility to count
participation in certain activities.--
Subparagraphs (B) and (C) of paragraph (1)
apply to a family described in subparagraph (A)
in the same manner as such subparagraphs apply
to a family described in paragraph (1)(A).
(3) 2-parent families.--
(A) In general.--Subject to paragraph (6)(A),
a 2-parent family in which an adult recipient
or minor child head of household in the family
is participating in work activities described
in subsection (d) shall be treated as engaged
in work for purposes of determining monthly
participation rates under subsection
(b)(1)(B)(i) as follows:
(i) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
26, but less than 30, hours per week in
a month, as 0.675 of a family.
(ii) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
30, but less than 35, hours per week in
a month, as 0.75 of a family.
(iii) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
35, but less than 39, hours per week in
a month, as 0.875 of a family.
(iv) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
39, but less than 40, hours per week in
a month, as 1 family.
(v) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
40, but less than 43, hours per week in
a month, as 1.05 families.
(vi) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
43 hours per week in a month, as 1.08
families.
(B) Application of rules regarding direct
work activities and state flexibility to count
participation in certain activities.--
Subparagraphs (B) and (C) of paragraph (1)
apply to a 2-parent family described in
subparagraph (A) in the same manner as such
subparagraphs apply to a family described in
paragraph (1)(A), except that subparagraph (B)
of paragraph (1) shall be applied to such a 2-
parent family by substituting ``34'' for ``24''
each place it appears.
(4) 2-parent families that receive federally funded
child care.--
(A) In general.--Subject to paragraph (6)(A),
if a 2-parent family receives federally funded
child care assistance, an adult recipient or
minor child head of household in the family
participating in work activities described in
subsection (d) shall be treated as engaged in
work for purposes of determining monthly
participation rates under subsection
(b)(1)(B)(i) as follows:
(i) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
40, but less than 45, hours per week in
a month, as 0.675 of a family.
(ii) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
45, but less than 51, hours per week in
a month, as 0.75 of a family.
(iii) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
51, but less than 55, hours per week in
a month, as 0.875 of a family.
(iv) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
55, but less than 56, hours per week in
a month, as 1 family.
(v) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
56, but less than 59, hours per week in
a month, as 1.05 families.
(vi) In the case of such a family in
which the total number of hours in
which any adult recipient or minor
child head of household in the family
is participating in such work
activities for an average of at least
59 hours per week in a month, as 1.08
families.
(B) Application of rules regarding direct
work activities and state flexibility to count
participation in certain activities.--
Subparagraphs (B) and (C) of paragraph (1)
apply to a 2-parent family described in
subparagraph (A) in the same manner as such
subparagraphs apply to a family described in
paragraph (1)(A), except that subparagraph (B)
of paragraph (1) shall be applied to such a 2-
parent family by substituting ``50'' for ``24''
each place it appears.
(5) Calculation of hours per week.--
(A) In general.--The number of hours per week
that a family is engaged in work is the
quotient of--
(i) the total number of hours per
month that the family is engaged in
work; divided by
(ii) 4.
(B) Determination of total number of hours
per month.--The total number of hours per month
in which a family is engaged in work is equal
to the sum of the number of hours of
participation in work activities described in
subsection (d) for all adults and minor child
head of households in the family for the month.
(6) Special rules.--
(A) Family with a disabled parent not treated
as a 2-parent family.--A family that includes a
disabled parent shall not be considered a 2-
parent family for purposes of paragraph (3) or
(4).
(B) Number of weeks for which job search and
job readiness assistance counts as work.--An
individual shall not be considered to be
engaged in work for a month by virtue of
participation in an activity described in
subsection (d)(6) of a State program funded
under this part, after the individual has
participated in such an activity for 6 weeks
per fiscal year (or, if the unemployment rate
of the State is at least 50 percent greater
than the unemployment rate of the United
States, or the State meets the criteria of
subclause (I), (II), or (III) of section
403(b)(3)(A)(iii) or satisfies the applicable
duration requirement of section 403(b)(3)(B),
12 weeks per fiscal year).
(C) Single teen head of household or married
teen who maintains satisfactory school
attendance deemed to count as 1 family.--For
purposes of determining hours under the
preceding paragraphs of this subsection, with
respect to a month, a State shall count a
recipient who is married or a head of household
and who has not attained 20 years of age as 1
family if the recipient--
(i) maintains satisfactory attendance
at a secondary school or the equivalent
during the month; or
(ii) participates in education
directly related to employment for an
average of at least 20 hours per week
during the month.
(D) Limitation on number of persons who may
be treated as engaged in work by reason of
participation in educational activities.--
Except as provided in paragraph (1)(C)(ii)(I),
for purposes of subsection (b)(1)(B)(i), not
more than 30 percent of the number of
individuals in all families in a State who are
treated as engaged in work for a month may
consist of individuals who are--
(i) determined (without regard to
individuals participating in a program
established under section 404(l)) to be
engaged in work for the month by reason
of participation in vocational
educational training (but only with
respect to such training that is used
to meet the requirements of paragraph
(1)(B)); or
(ii) deemed to be engaged in work for
the month by reason of subparagraph (C)
of this paragraph.
(E) State option to deem parent caring for a
child or adult dependent for care with a
physical or mental impairment to be meeting all
or part of a family's work participation
requirements for a month.--
(i) In general.--A State may count
the number of hours per week that an
adult recipient or minor child head of
household who is the parent or
caretaker relative for a child or adult
dependent for care with a physical or
mental impairment engages in providing
substantial ongoing care for such child
or adult dependent for care if the
State determines that--
(I) the child or adult
dependent for care has been
verified through a medically
acceptable clinical or
diagnostic technique as having
a significant physical or
mental impairment or
combination of impairments that
require substantial ongoing
care;
(II) the adult recipient or
minor child head of household
providing such care is the most
appropriate means, as
determined by the State, by
which such care can be provided
to the child or adult dependent
for care;
(III) for each month in which
this subparagraph applies to
the adult recipient or minor
child head of household, the
adult recipient or minor child
head of household is in
compliance with the
requirements of the family's
self-sufficiency plan; and
(IV) the recipient is unable
to participate fully in work
activities, after consideration
of whether there are supports
accessible and available to the
family for the care of the
child or adult dependent for
care.
(ii) Total number of hours limited to
being counted as 1 family.--In no event
may a family that includes a recipient
to which clause (i) applies be counted
as more than 1 family for purposes of
determining monthly participation rates
under subsection (b)(1)(B)(i).
(iii) State requirements.--In the
case of a recipient to which clause (i)
applies, the State shall--
(I) conduct regular, periodic
evaluations of the family of
the adult recipient or minor
child head of household; and
(II) include as part of the
family's self-sufficiency plan,
regular updates on what special
needs of the child or the adult
dependent for care, including
substantial ongoing care, could
be accommodated either by
individuals other than the
adult recipient or minor child
head of household outside of
the home.
(iv) Rule of construction.--Nothing
in this subparagraph shall be construed
as prohibiting a State from including
in a recipient's self-sufficiency plan
a requirement to engage in work
activities described in subsection (d).
(F) Optional modification of work
requirements for recipients residing in areas
of indian country or an alaskan native village
with high joblessness.--If a State has included
in the State plan a description of the State's
policies in areas of Indian country or an
Alaskan Native village described in section
408(a)(7)(D), the State may define the
activities that the State will treat as being
work activities described in subsection (d)
that a recipient who resides in such an area
and who is participating in such activities in
accordance with a self-sufficiency plan under
section 408(b) may engage in for purposes of
satisfying work requirements under the State
program and for purposes of determining monthly
participation rates under subsection
(b)(1)(B)(i).
(d) Work Activities Defined.--As used in this section, the
term ``work activities'' means--
(1) unsubsidized employment;
* * * * * * *
(8) vocational educational training (not to exceed 12
months with respect to any individual other than an
individual participating in a program established under
section 404(l));
(9) job skills training directly related to
employment;
(10) education directly related to employment, in the
case of a recipient who has not received a high school
diploma or a certificate of high school equivalency;
(11) satisfactory attendance at secondary school or
in a course of study leading to a certificate of
general equivalence, in the case of a recipient who has
not completed secondary school or received such a
certificate; [and]
(12) the provision of child care services to an
individual who is participating in a community service
program[.]; and
(13) marriage education, marriage skills training,
conflict resolution counseling in the context of
marriage, and participation in programs that promote
marriage.
* * * * * * *
[(f) Nondisplacement in Work Activities.--
[(1) In general.--Subject to paragraph (2), an adult
in a family receiving assistance under a State program
funded under this part attributable to funds provided
by the Federal Government may fill a vacant employment
position in order to engage in a work activity
described in subsection (d).
[(2) No filling of certain vacancies.--No adult in a
work activity described in subsection (d) which is
funded, in whole or in part, by funds provided by the
Federal Government shall be employed or assigned--
[(A) when any other individual is on layoff
from the same or any substantially equivalent
job; or
[(B) 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).
[(3) Grievance procedure.--A State with a program
funded under this part shall establish and maintain a
grievance procedure for resolving complaints of alleged
violations of paragraph (2).
[(4) No preemption.--Nothing in this subsection shall
preempt or supersede any provision of State or local
law that provides greater protection for employees from
displacement.]
(f) Nondisplacement.--
(1) In general.--An adult in a family receiving
assistance under a State program funded under this
part, in order to engage in a work activity, shall not
displace any employee or position (including partial
displacement, such as a reduction in the hours of
nonovertime work, wages, or employment benefits), fill
any unfilled vacancy, or perform work when any
individual is on layoff from the same or substantially
equivalent job.
(2) Prohibitions.--A work activity engaged in under a
program operated with funds provided under this part
shall not impair any existing contract for services, be
inconsistent with any existing law, regulation, or
collective bargaining agreement, or infringe upon the
recall rights or promotional opportunities of any
worker.
(3) No supplanting of other hires.--A work activity
engaged in under a program operated with funds provided
under this part shall be in addition to any activity
that otherwise would be available and shall not
supplant the hiring of an employed worker not funded
under such program.
(4) Enforcing antidisplacement protections.--
(A) In general.--The State shall establish
and maintain an impartial grievance procedure,
which shall include the opportunity for a
hearing, to resolve any complaints alleging
violations of the requirements of paragraph
(1), (2), or (3) within 60 days of receipt of
the complaint and, if a decision is adverse to
the party who filed such grievance or no
decision has been reached, provide for the
completion of an arbitration procedure within
75 days of receipt of the complaint or the
adverse decision or conclusion of the 60-day
period, whichever is earlier.
(B) Appeals.--Appeals may be made to the
Secretary who shall make a decision within 75
days of receipt of an appeal.
(C) Remedies.--Remedies for a violation of
the requirements of paragraph (1), (2), or (3)
shall include--
(i) suspension or termination of
payments from funds provided under this
part;
(ii) prohibition of placement of a
participant with an employer that has
violated paragraph (1), (2), or (3);
(iii) where applicable, reinstatement
of an employee, payment of lost wages
and benefits, and reestablishment of
other relevant terms, conditions and
privileges of employment; and
(iv) where appropriate, other
equitable relief.
(D) Limitation on placement.--If a grievance
is filed regarding a proposed placement of a
participant, such placement shall not be made
unless such placement is consistent with the
resolution of the grievance pursuant to this
paragraph.
(E) Non-exclusive procedures.--The grievance
procedures specified in this paragraph are not
exclusive, and an aggrieved employee or
participant in a program funded under a grant
made under this part may pursue other remedies
or procedures available under applicable
contracts, collective bargaining agreements, or
Federal, State, or local laws.
(E) No preemption.--The provisions of this
subsection shall not be construed to preempt
any provision of State or local 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 the provisions of this subsection.
* * * * * * *
SEC. 408. PROHIBITIONS; REQUIREMENTS.
(a) In General.--
* * * * * * *
[(3) No assistance for families not assigning certain
support rights to the state.--
[(A) In general.--A State to which a grant is
made under section 403 shall require, as a
condition of providing assistance to a family
under the State program funded under this part,
that a member of the family assign to the State
any rights the family member may have (on
behalf of the family member or of any other
person for whom the family member has applied
for or is receiving such assistance) to support
from any other person, not exceeding the total
amount of assistance so provided to the family,
which accrue (or have accrued) before the date
the family ceases to receive assistance under
the program, which assignment, on and after
such date, shall not apply with respect to any
support (other than support collected pursuant
to section 464) which accrued before the family
received such assistance and which the State
has not collected by--
[(i)(I) September 30, 2000, if the
assignment is executed on or after
October 1, 1997, and before October 1,
2000; or
[(II) the date the family ceases to
receive assistance under the program,
if the assignment is executed on or
after October 1, 2000; or
[(ii) if the State elects to
distribute collections under section
457(a)(6), the date the family ceases
to receive assistance under the
program, if the assignment is executed
on or after October 1, 1998.
[(B) Limitation.--A State to which a grant is
made under section 403 shall not require, as a
condition of providing assistance to any family
under the State program funded under this part,
that a member of the family assign to the State
any rights to support described in subparagraph
(A) which accrue after the date the family
ceases to receive assistance under the
program.]
(3) No assistance for families not assigning certain
support rights to the state.--A State to which a grant
is made under section 403 shall require, as a condition
of paying assistance to a family under the State
program funded under this part, that a member of the
family assign to the State any right the family member
may have (on behalf of the family member or of any
other person for whom the family member has applied for
or is receiving such assistance) to support from any
other person, not exceeding the total amount of
assistance so paid to the family, which accrues during
the period that the family receives assistance under
the program.
(4) No assistance for teenage parents who do not
attend high school or other equivalent training
program.--A State to which a grant is made under
section 403 shall not use any part of the grant to
provide assistance to an individual who has not
attained 18 years of age, is not married, has a minor
child at least 12 weeks of age in his or her care, and
has not successfully completed a high-school education
(or its equivalent), if the individual does not
participate in--
(A) educational activities directed toward
the attainment of a high school diploma or its
equivalent; or
(B) an alternative educational or training
program that has been approved by the State.
(5) No assistance for teenage parents not living in
adult-supervised settings.--
(A) In general.--
(i) Requirement.--Except as provided
in [subparagraph (B)] subparagraphs (B)
and (C), a State to which a grant is
made under section 403 shall not use
any part of the grant to provide
assistance to an individual described
in clause (ii) of this subparagraph if
the individual and the minor child
referred to in clause (ii)(II) [do not
reside in a] do not reside in a--
(I) place of residence
maintained by a parent, legal
guardian, or other adult
relative of the individual as
such parent's, guardian's, or
adult relative's own home[.];
and
(II) transitional living
youth project funded under a
grant made under section 321 of
the Runaway and Homeless Youth
Act (42 U.S.C. 5714-1).
(ii) Individual described.--For
purposes of clause (i), an individual
described in this clause is an
individual who--
* * * * * * *
(C) Authority to provide temporary
assistance.--A State may use any part of a
grant made under section 403 to provide
assistance to an individual described in clause
(ii) of subparagraph (A) who would otherwise be
prohibited from receiving such assistance under
clause (i) of that subparagraph, subparagraph
(B), or section 408(a)(4) for not more than a
single 60-day period in order to assist the
individual in meeting the requirement of clause
(i) of subparagraph (A), subparagraph (B), or
section 408(a)(4) for receipt of such
assistance.
* * * * * * *
(6) No medical services.--
(A) In general.--A State to which a grant is
made under section 403 shall not use any part
of the grant to provide medical services.
* * * * * * *
(D) Disregard of months of assistance
received by adult while living in indian
[country or an alaskan native village with 50
percent unemployment] country with high
joblessness or in an alaskan native village
with 50 percent unemployment.
(i) [In general.--In determining the
number of months for which an adult has
received assistance under a State or
tribal program funded under this part,
the State or tribe shall disregard any
month during which the adult lived in
Indian country or an Alaskan Native
village if the most reliable data
available with respect to the month (or
a period including the month) indicate
that at least 50 percent of the adults
living in Indian country or in the
village were not employed.]
(i) In general.--Subject to clauses
(ii), (iii), and (iv), in determining
the number of months for which an adult
has received assistance under a State
or tribal program funded under this
part, the State or Indian tribe shall
disregard any month during which the
adult lived in Indian country if the
most reliable data available (or such
other data submitted by a State or
tribal program as the Secretary may
approve) with respect to the month (or
a period including the month) indicate
that at least 40 percent of the adult
recipients, who were living in Indian
country were jobless.
(ii) Economic downturn.--If--
(I) in the case of a State
program funded under this
part--
(aa) the unemployment
rate of the State is at
least 50 percent
greater than the
unemployment rate of
the United States; and
(bb) the State meets
the criteria of
subclause (I), (II), or
(III) of section
403(b)(3)(A)(iii) and
satisfies the
applicable duration
requirement of section
403(b)(3)(B): or
(II) in the case of a tribal
program funded under this part,
the Indian tribe satisfies the
criteria specified under
section 403(b)(1)(D)(ii),
clause (i) shall be applied by
substituting ``35 percent'' for ``40
percent''.
(iii) Requirement.--A month may only
be disregarded under clause (i) with
respect to an adult recipient described
in that clause if the adult is in
compliance with program requirements.
(iv) Continuation of 50 percent
unemployment requirement for an alaskan
native village.--In the case of an
Alaskan Native village, this
subparagraph shall be applied without
regard to the amendments made by the
Personal Responsibility and Individual
Development for Everyone Act.
[(ii)] (v) Indian country defined.--
As used in clause (i), the term
``Indian country'' has the meaning
given such term in section 1151 of
title 18, United States Code.
* * * * * * *
[(b) Individual Responsibility Plans.--
[(1) Assessment.--The State agency responsible for
administering the State program funded under this part
shall make an initial assessment of the skills, prior
work experience, and employability of each recipient of
assistance under the program who--
[(A) has attained 18 years of age; or
[(B) has not completed high school or
obtained a certificate of high school
equivalency, and is not attending secondary
school.
[(2) Contents of plans.--
[(A) In general.--On the basis of the
assessment made under subsection (a) with
respect to an individual, the State agency, in
consultation with the individual, may develop
an individual responsibility plan for the
individual, which--
[(i) sets forth an employment goal
for the individual and a plan for
moving the individual immediately into
private sector employment;
[(ii) sets forth the obligations of
the individual, which may include a
requirement that the individual attend
school, maintain certain grades and
attendance, keep school age children of
the individual in school, immunize
children, attend parenting and money
management classes, or do other things
that will help the individual become
and remain employed in the private
sector;
[(iii) to the greatest extent
possible is designed to move the
individual into whatever private sector
employment the individual is capable of
handling as quickly as possible, and to
increase the responsibility and amount
of work the individual is to handle
over time;
[(iv) describes the services the
State will provide the individual so
that the individual will be able to
obtain and keep employment in the
private sector, and describe the job
counseling and other services that will
be provided by the State; and
[(v) may require the individual to
undergo appropriate substance abuse
treatment.
[(B) Timing.--The State agency may comply
with paragraph (1) with respect to an
individual--
[(i) within 90 days (or, at the
option of the State, 180 days) after
the effective date of this part, in the
case of an individual who, as of such
effective date, is a recipient of aid
under the State plan approved under
part A (as in effect immediately before
such effective date); or
[(ii) within 30 days (or, at the
option of the State, 90 days) after the
individual is determined to be eligible
for such assistance, in the case of any
other individual.
[(3) Penalty for noncompliance by individual.--In
addition to any other penalties required under the
State program funded under this part, the State may
reduce, by such amount as the State considers
appropriate, the amount of assistance otherwise payable
under the State program to a family that includes an
individual who fails without good cause to comply with
an individual responsibility plan signed by the
individual.
[(4) State discretion.--The exercise of the authority
of this subsection shall be within the sole discretion
of the State.]
(b) Family Self-Sufficiency Plans.--
(1) In general.--A State to which a grant is made
under section 403 shall--
(A) make an initial screening and assessment,
in the manner deemed appropriate by the State,
of the skills, prior work experience, education
obtained, work readiness, barriers to work, and
employability of each adult or minor child head
of household recipient of assistance in the
family who--
(i) has attained age 18; or
(ii) has not completed high school or
obtained a certificate of high school
equivalency and is not attending
secondary school;
(B) assess, in the manner deemed appropriate
by the State, the work support and other
assistance and family support services for
which each family receiving assistance is
eligible; and
(C) assess, in the manner deemed appropriate
by the State, the well-being of the children in
the family, and, where appropriate, activities
or resources to improve the well-being of the
children.
(2) Contents of plans.--The State shall, in the
manner deemed appropriate by the State establish for
each family that includes an individual described in
paragraph (1)(A) (and, if the State elects, each family
that only consists of a child or children), in
consultation as the State deems appropriate with the
individual, a self-sufficiency plan that--
(A) specifies activities described in the
State plan submitted pursuant to section 402,
including work activities described in
paragraph (1), (2), (3), (4), (5), (6), (7),
(8), or (12) of section 407(d), as appropriate;
(B) is designed to assist the family in
achieving their maximum degree of self-
sufficiency;
(C) provides for the ongoing participation of
the individual in the activities specified in
the plan;
(D) requires, at a minimum, each such
individual to participate in activities in
accordance with the self-sufficiency plan;
(E) sets forth the appropriate supportive
services the State intends to provide for the
family;
(F) establishes for the family a plan that
addresses the issue of child well-being and,
when appropriate, adolescent well-being, and
that may include services such as domestic
violence counseling, mental health referrals,
and parenting courses; and
(G) includes a section designed to assist the
family by informing the family, in such manner
as deemed appropriate by the State, of the work
support and other assistance for which the
family may be eligible including (but not
limited to)--
(i) the food stamp program
established under the Food Stamp Act of
1977 (7 U.S.C. 2011 et seq.);
(ii) the medicaid program funded
under title XIX;
``(iii) the State children's health
insurance program funded under title
XXI;
(iv) Federal or State funded child
care, including child care funded under
the Child Care Development Block Grant
Act of 1990 (42 U.S.C. 9858 et seq.)
and funds made available under this
title or title XX;
(v) the earned income tax credit
under section 32 of the Internal
Revenue Code of 1986;
(vi) the low-income home energy
assistance program established under
the Low-Income Home Energy Assistance
Act of 1981 (42 U.S.C. 8621 et seq.);
(vii) the special supplemental
nutrition program for women, infants,
and children established under section
17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786);
(viii) programs conducted under the
Workforce Investment Act of 1998 (29
U.S.C. 2801 et seq.); and
(ix) low-income housing assistance
programs.
(3) State option to receive work participation rate
credit for an individual whose plan specifies that they
have a continuing need for rehabilitative services in
order to engage in direct work activities.--
(A) In general.--A State may elect, on a
case-by-case basis, to include direct work
activities by an individual described in
subparagraph (B) that are combined with
rehabilitative services in the determination of
monthly participation rates under section
407(b)(1)(B)(i).
(B) Individual described.--For purposes of
this paragraph, an individual described in this
subparagraph is an individual who--
``(i) is an adult or minor child head
of household recipient of assistance;
(ii) was treated as being engaged in
work during each of the 3-month periods
applicable under clauses (i) and (ii)
of section 407(c)(1)(C); and
(iii) the State determines--
(I) has been verified through
a medically acceptable clinical
or diagnostic technique as
having a disability that
impedes the individual's
ability to function in a work
setting; and
(II) continues to need
rehabilitative services in
order to engage in direct work
activities.
(C) Requirements.--A State shall not include
activities of an individual described in
subparagraph (B) in the determination of
monthly participation rates under section
407(b)(1)(B)(i) unless the following
requirements are met:
(i) Development and maintenance of
collaborative relationships.--
(I) In general.--The State
agency responsible for
administering the State program
funded under this part has or
is developing collaborative and
referral relationships with
other governmental and private
agencies with expertise in
disability determinations, or
the development of appropriate
services plans for individuals
with disabilities, to address
the needs of adult or minor
child head of household
recipients of assistance who
have a disability and require
such services plans in order to
engage in direct work
activities.
(II) Inclusion of
relationships with agencies
funded under this part.--The
governmental and private
agencies referred to in
subclause (I) include agencies
that may be receiving funds
under this part, such as State
and local mental health
agencies, substance abuse
treatment providers (including
drug or alcohol abuse treatment
providers), disability service
agencies, and providers of
vocational rehabilitation
services.
(ii) Self-sufficiency plan specifies
the individual's continuing need for
services and coordination process with
providers.--The plan established under
paragraph (2) for an individual
described in subparagraph (B)--
(I) specifies the
individual's continuing need
for rehabilitative services in
order to engage in direct work
activities; and
(II) describes how the State
will coordinate with each
provider of such services.
(iii) State plan description and
assurances.--The State includes in an
addendum to the State plan submitted
under section 402 the following:
(I) Description of process
for developing and maintaining
collaborative relationships.--A
description of the process the
State shall use to develop and
maintain the collaborative and
referral relationships with
other governmental and private
agencies required under clause
(i).
(II) Assurance of regular
contact with service providers,
reevaluation, and modification
of plan.--An assurance that the
State shall--
(aa) ensure that each
provider of
rehabilitative services
for an individual
described in
subparagraph (B) is in
regular contact with
the individual and that
the provider will
inform the State if the
individual is no longer
participating in the
rehabilitation
services;
(bb) reevaluate the
individual's continuing
need for such services
not less than once each
fiscal year quarter;
and
(cc) make appropriate
modifications to the
individual's self-
sufficiency plan on the
basis of such
information and
reevaluations.
(iv) No determination that the state
has failed to comply with the
requirement to develop and maintain
collaborative relationships.--The
Secretary has not made a determination
that the State has failed to comply
with the requirement to develop and
maintain the collaborative and referral
relationships with other governmental
and private agencies required under
clause (i).
(D) Credit for hours of participation in
direct work activities and rehabilitation
services.--
(i) In general.--A State may include
in the determination of monthly
participation rates under section
407(b)(1)(B)(i) the sum of the total
number of hours that an individual
described in subparagraph (B)
participates for a month in--
(I) direct work activities;
and
(II) rehabilitative services
(but only up to the number of
hours of such services that do
not exceed the total number of
hours that the individual
participated in direct work
activities for that month).
(ii) Application of rules for
determination of countable hours of
work.--The sum of hours of
participation by such an individual
shall be treated under section 407(c)
in the same manner as a family
participating in work activities
described in section 407(d) is treated
as engaged in work under section
407(c).
(E) Definitions.--In this paragraph:
(i) Disability.--The term
`disability' means a physical or mental
impairment, including substance abuse
and drug or alcohol abuse, that--
(I) constitutes or results in
a substantial impediment to
employment; or
(II) substantially limits 1
or more major life activities.
(ii) Direct work activity.--The term
`direct work activity' means an
activity described in paragraph (1),
(2), (3), (4), (5), (6), (7), (8), or
(12) of section 407(d).
(4) Review.--
(A) Regular review.--A State to which a grant
is made under section 403 shall--
(i) monitor the participation of each
adult recipient or minor child head of
household in the activities specified
in the self-sufficiency plan, and
regularly review the progress of the
family toward self-sufficiency; and
(ii) upon such a review, revise the
plan and activities required under the
plan as the State deems appropriate in
consultation with the family.
(B) Prior to the imposition of a sanction.--
Prior to imposing a sanction against an adult
recipient, minor child head of household, or a
family for failure to comply with a requirement
of the self-sufficiency plan or the State
program funded under this part, the State
shall, in the manner determined appropriate by
the State--
(i) review the self-sufficiency plan;
and
(ii) make a good faith effort (as
defined by the State) to consult with
the family.
(5) State discretion.--Subject to paragraph (3), a
State shall have sole discretion, consistent with
section 407, to define and design activities for
families for purposes of this subsection, to develop
methods for monitoring and reviewing progress pursuant
to this subsection, and to make modifications to the
plan as the State deems appropriate to assist the
individual in increasing their degree of self-
sufficiency.
(6) Application to partially sanctioned families.--The
requirements of this subsection shall apply in the case
of a family that includes an adult or minor child head
of household recipient of assistance who is subject to
a partial sanction.
(7) Timing.--The State shall initiate screening and
assessment and the establishment of a family self-
sufficiency plan in accordance with the requirements of
this subsection--
(A) in the case of a family that, as of the
date of enactment of the Personal
Responsibility and Individual Development for
Everyone Act, is not receiving assistance from
the State program funded under this part, not
later than the later of--
(i) 1 year after such date of
enactment; or
(ii) 60 days after the family first
receives assistance on the basis of the
most recent application for assistance;
and
(B) in the case of a family that, as of such
date, is receiving assistance under the State
program funded under this part, not later than
1 year after such date of enactment.
(8) Rule of interpretation.--Nothing in this subsection
shall preclude a State from--
(A) requiring participation in work and any
other activities the State deems appropriate
for helping families achieve self-sufficiency
and improving child well-being; or
(B) using job search or other appropriate job
readiness or work activities to assess the
employability of individuals and to determine
appropriate future engagement activities.
* * * * * * *
SEC. 409. PENALTIES.
(a) In General.--Subject to this section:
(1) Use of grant in violation of this part.--
* * * * * * *
(2) Failure to submit required report.--
* * * * * * *
(3) Failure to satisfy minimum participation rates or
comply with family self-sufficiency plan
requirements.--
(A) In general.--If the secretary determines
that a State to which a grant is made under
section 403 for a fiscal year has failed to
comply with section 407(a) or 408(b) for the
fiscal year, the Secretary shall reduce the
grant payable to the State under section
403(a)(1) for the immediately succeeding fiscal
year by an amount equal to the applicable
percentage of the State family assistance
grant.
* * * * * * *
[(C) Penalty based on severity of failure.--The
Secretary shall impose reductions under
subparagraph (A) with respect to a fiscal year
based on the degree of noncompliance, and may
reduce the penalty if the noncompliance is due
to circumstances that caused the State to
become a needy State (as defined in section
403(b)(6)) during the fiscal year or if the
noncompliance is due to extraordinary
circumstances such as a natural disaster or
regional recession. The Secretary shall provide
a written report to Congress to justify any
waiver or penalty reduction due to such
extraordinary circumstances.]
(C) Penalty based on severity of failure.--
(i) Failure to satisfy minimum
participation rate.--If, with respect
to fiscal year 2007 or any fiscal year
thereafter, the Secretary finds that a
State has failed or is failing to
substantially comply with the
requirements of section 407(a) for that
fiscal year, the Secretary shall impose
reductions under subparagraph (A) with
respect to the immediately succeeding
fiscal year based on the degree of
substantial noncompliance. In assessing
the degree of substantial noncompliance
under section 407(a) for a fiscal year,
the Secretary shall take into account
factors such as--
(I) the degree to which the
State missed the minimum
participation rate for that
fiscal year;
(II) the change in the number
of individuals who are engaged
in work in the State since the
prior fiscal year; and
(III) the number of
consecutive fiscal years in
which the State failed to reach
the minimum participation rate.
(ii) Failure to comply with self-
sufficiency plan requirements.--If,
with respect to fiscal year 2007 or any
fiscal year thereafter, the Secretary
finds that a State has failed or is
failing to substantially comply with
the requirements of section 408(b) for
that fiscal year, the Secretary shall
impose reductions under subparagraph
(A) with respect to the immediately
succeeding fiscal year based on the
degree of substantial noncompliance. In
assessing the degree of substantial
noncompliance under section 408(b), the
Secretary shall take into account
factors such as--
(I) the number or percentage
of families for which a self-
sufficiency plan is not
established in a timely fashion
for that fiscal year;
(II) the duration of the
delays in establishing a self-
sufficiency plan during that
fiscal year;
(III) whether the failures
are isolated and nonrecurring;
and
(IV) the existence of systems
designed to ensure that self-
sufficiency plans are
established for all families in
a timely fashion and that
families' progress under such
plans is monitored.
(iii) Authority to reduce the
penalty.--The Secretary may reduce the
penalty that would otherwise apply
under this paragraph if the substantial
noncompliance is due to circumstances
that caused the State to meet the
criteria of subclause (I), (II), or
(III) of section 403(b)(3)(A)(iii) or
to satisfy the applicable duration
requirement of section 403(b)(3)(B)
during the fiscal year, or if the
noncompliance is due to extraordinary
circumstances such as a natural
disaster or regional recession. The
Secretary shall provide a written
report to Congress to justify any
waiver or penalty reduction due to such
extraordinary circumstances.
* * * * * * *
(7) Failure of any state to maintain certain level of
historic effort.--
(A) In general.--The Secretary shall reduce
the grant payable to the State under section
403(a)(1) for fiscal year 1998, 1999, 2000,
2001, 2002, 2003, 2004, 2005, [or 2006] 2006,
2007, 2008, 2009, 2010, or 2011 by the amount
(if any) by which qualified State expenditures
for the then immediately preceding fiscal year
are less than the applicable percentage of
historic State expenditures with respect to
such preceding fiscal year.
(B) Definitions.--As used in this paragraph:
(i) Qualified state expenditures.--
(I) In general.--The term
``qualified State
expenditures'' means, with
respect to a State and a fiscal
year, the total expenditures by
the State during the fiscal
year, under all State programs,
for any of the following with
respect to eligible families:
(aa) Cash assistance,
including any amount
collected by the State
as support pursuant to
a plan approved under
part D, on behalf of a
family receiving
assistance under the
State program funded
under this part, that
is distributed to the
family under section
[457(a)(1)(B)]
457(a)(1) and
disregarded in
determining the
eligibility of the
family for, and the
amount of, such
assistance.
(bb) Child care
assistance.
* * * * * * *
(III) Exclusion of amounts
expended to replace penalty
grant reductions.--Such term
does not include any amount
expended in order to comply
with paragraph [(12)] (11).
* * * * * * *
(V) Counting of spending on
non-eligible families to
prevent and reduce incidence of
out-of-wedlock births,
encourage formation and
maintenance of healthy 2-parent
married families, or encourage
responsible fatherhood.--
Subject to subclauses (II) and
(III), the term ``qualified
State expenditures'' includes
the total expenditures by the
State during the fiscal year
under all State programs for a
purpose described in paragraph
(3) or (4) of section 401(a).
(VI) Portions of certain
child support payments
collected on behalf of and
distributed to families no
longer receiving assistance.--
Any amount paid by a State
pursuant to clause (i) or (ii)
of section 457(a)(2)(B), but
only to the extent that the
State properly elects under
section 457(a)(6) to have the
payment considered a qualified
State expenditure.
(ii) Applicable percentage.--The term
``applicable percentage'' means [for
fiscal years 1997 through 2005,] 80
percent (or, if the State meets the
requirements of section 407(a) for the
preceding fiscal year, 75 percent).
* * * * * * *
(III) any State funds which
are used to match Federal funds
provided under section
403(a)(5); or
(IV) any State funds which
are expended as a condition of
receiving Federal funds other
than under this part.
Notwithstanding subclause (IV) of the
preceding sentence, such term includes
expenditures by a State for child care
in a fiscal year to the extent that the
total amount of the expenditures does
not exceed the amount of State
expenditures in fiscal year 1994 or
1995 (whichever is the greater) that
equal the non-Federal share for the
programs described in section
418(a)(1)(A).
(v) Source of data.--In determining
expenditures by a State for fiscal
years 1994 and 1995, the Secretary
shall use information which was
reported by the State on ACF Form 231
or (in the case of expenditures under
part F) ACF Form 331, available as of
the dates specified in clauses (ii) and
(iii) of section 403(a)(1)(D).
(8) Noncompliance of state child support enforcement
program with requirements of part d.--
(A) In general.--If the Secretary finds, with
respect to a State's program under part D, [in
a fiscal year] for a fiscal year beginning on
or after October 1, 1997--
(i)(I) on the basis of data submitted
by a State pursuant to section
454(15)(B), or on the basis of the
results of a review conducted under
section 452(a)(4), that the State
program failed to achieve the paternity
establishment percentages (as defined
in section 452(g)(2)), or to meet other
performance measures that may be
established by the Secretary;
(II) on the basis of the results of
an audit or audits conducted under
section 452(a)(4)(C)(i) that the State
data submitted pursuant to section
454(15)(B) is incomplete or unreliable;
or
(III) on the basis of the results of
an audit or audits conducted under
section 452(a)(4)(C) that a State
failed to substantially comply with 1
or more of the requirements of part D
(other than paragraph (24), or
subparagraph (A) or (B)(i) of paragraph
(27), of section 454); and
(ii) [that, with respect to the
succeeding fiscal year--] that, with
respect to the period described in
subparagraph (D)--
(I) the State failed to take
sufficient corrective action to
achieve the appropriate
performance levels or
compliance as described in
subparagraph (A)(i); or
(II) the data submitted by
the State pursuant to section
454(15)(B) is incomplete or
unreliable; the amounts
otherwise payable to the State
under this part for quarters
following [the end of such
succeeding fiscal year] the end
of the period in subparagraph
(D), prior to quarters
following the end of the first
quarter throughout which the
State program has achieved the
paternity establishment
percentages or other
performance measures as
described in subparagraph
(A)(i)(I), or is in substantial
compliance with 1 or more of
the requirements of part D as
described in subparagraph
(A)(i)(III), as appropriate,
shall be reduced by the
percentage specified in
subparagraph (B).
(B) Amount of reductions.--The reductions
required under subparagraph (A) shall be--
(i) not less than 1 nor more than 2
percent;
(ii) not less than 2 nor more than 3
percent, if the finding is the 2nd
consecutive finding made pursuant to
subparagraph (A); or
(iii) not less than 3 nor more than 5
percent, if the finding is the 3rd or a
subsequent consecutive such finding.
(C) Disregard of noncompliance which is of a
technical nature.--For purposes of this section
and section 452(a)(4), a State determined as a
result of an audit--
(i) to have failed to have
substantially complied with 1 or more
of the requirements of part D shall be
determined to have achieved substantial
compliance only if the Secretary
determines that the extent of the
noncompliance is of a technical nature
which does not adversely affect the
performance of the State's program
under part D; or
(ii) to have submitted incomplete or
unreliable data pursuant to section
454(15)(B) shall be determined to have
submitted adequate data only if the
Secretary determines that the extent of
the incompleteness or unreliability of
the data is of a technical nature which
does not adversely affect the
determination of the level of the
State's paternity establishment
percentages (as defined under section
452(g)(2)) or other performance
measures that may be established by the
Secretary.
(D) Period described.--Subject to
subparagraph (E), for purposes of this
paragraph, the period described in this
subparagraph is the period that begins with the
date on which the Secretary makes a finding
described in subparagraph (A)(i) with respect
to State performance in a fiscal year and ends
on September 30 of the fiscal year following
the fiscal year in which the Secretary makes
such a finding.
(E) No penalty if state corrects
noncompliance in finding year.--The Secretary
shall not take a reduction described in
subparagraph (A) with respect to a
noncompliance described in clause (i) of that
subparagraph if the Secretary determines that
the State has corrected the noncompliance in
the fiscal year in which the Secretary makes
the finding of the noncompliance.
(9) Failure to comply with 5-year limit on
assistance.--If the Secretary determines that a State
has not complied with section 408(a)(7) during a fiscal
year, the Secretary shall reduce the grant payable to
the State under section 403(a)(1) for the immediately
succeeding fiscal year by an amount equal to 5 percent
of the State family assistance grant.
[(10) Failure of state receiving amounts from
contingency fund to maintain 100 percent of historic
effort.--If, at the end of any fiscal year during which
amounts from the Contingency Fund for State Welfare
Programs have been paid to a State, the Secretary finds
that the qualified State expenditures (as defined in
paragraph (7)(B)(i) (other than the expenditures
described in subclause (I)(bb) of that paragraph))
under the State program funded under this part for the
fiscal year are less than 100 percent of historic State
expenditures (as defined in paragraph (7)(B)(iii) of
this subsection), 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, the Secretary shall reduce the grant
payable to the State under section 403(a)(1) for the
immediately succeeding fiscal year by the total of the
amounts so paid to the State that the State has not
remitted under section 403(b)(6).]
[(11)] (10) Failure to maintain assistance to adult
single custodial parent who cannot obtain child care
for child under age 6.--
(A) In general.--If the Secretary determines
that a State to which a grant is made under
section 403 for a fiscal year has violated
section 407(e)(2) during the fiscal year, the
Secretary shall reduce the grant payable to the
State under section 403(a)(1) for the
immediately succeeding fiscal year by an amount
equal to not more than 5 percent of the State
family assistance grant.
(B) Penalty based on severity of failure.--
The Secretary shall impose reductions under
subparagraph (A) with respect to a fiscal year
based on the degree of noncompliance.
[(12)] (11) Requirement to expend additional state
funds to replace grant reductions; penalty for failure
to do so.--If the grant payable to a State under
section 403(a)(1) for a fiscal year is reduced by
reason of this subsection, the State shall, during the
immediately succeeding fiscal year, expend under the
State program funded under this part an amount equal to
the total amount of such reductions. If the State fails
during such succeeding fiscal year to make the
expenditure required by the preceding sentence from its
own funds, the Secretary may reduce the grant payable
to the State under section 403(a)(1) for the fiscal
year that follows such succeeding fiscal year by an
amount equal to the sum of--
(A) not more than 2 percent of the State
family assistance grant; and
(B) the amount of the expenditure required by
the preceding sentence.
[(13)] (12) Penalty for failure of state to maintain
historic effort during year in which welfare-to-work
grant is received.--If a grant is made to a State under
section 403(a)(5)(A) for a fiscal year and paragraph
(7) of this subsection requires the grant payable to
the State under section 403(a)(1) to be reduced for the
immediately succeeding fiscal year, then the Secretary
shall reduce the grant payable to the State under
section 403(a)(1) for such succeeding fiscal year by
the amount of the grant made to the State under section
403(a)(5)(A) for the fiscal year.
[(14)] (13) Penalty for failure to reduce assistance
for recipients refusing without good cause to work.--
* * * * * * *
(b) Reasonable Cause Exception.--
(1) In general.--The Secretary may not impose a
penalty on a State under subsection (a) with respect to
a requirement if the Secretary determines that the
State has reasonable cause for failing to comply with
the requirement.
(2) Exception.--Paragraph (1) of this subsection
shall not apply to any penalty under paragraph [(6),]
(7), (8), [(10), (12), or (13)] (11), or (12) of
subsection (a).
(c) Corrective Compliance Plan.--
(1) In general.--
* * * * * * *
(2) Effect of correcting or discontinuing
violation.--[The Secretary]
(A) In General.--The Secretary may not impose
any penalty under subsection (a) with respect
to any violation covered by a State corrective
compliance plan accepted by the Secretary if
the State corrects or discontinues, as
appropriate, the violation pursuant to the
plan.
(B) No penalty if work program improvement.--
The Secretary shall not impose any penalty
under subsection (a)(3) for a State's failure
to comply with section 407(a) for a fiscal year
if the Secretary determines that the
participation rate determined for the State
under section 407(b)(1) for that fiscal year
increased by at least 5 percentage points above
the participation rate for the State for the
preceding fiscal year and a State corrective
compliance plan accepted by the Secretary
specifies how the State will correct the
violation.
* * * * * * *
(3) Effect of failing to correct or discontinue
violation.--The Secretary shall assess some or all of a
penalty imposed on a State under subsection (a) with
respect to a violation if the State does not, in a
timely manner, correct or discontinue, as appropriate,
the violation pursuant to a State corrective compliance
plan accepted by the Secretary.
(4) Inapplicability to certain penalties.--This
subsection shall not apply to the imposition of a
penalty against a State under paragraph [(6),] (7),
(8), (10), (12), or (13) of subsection (a).
* * * * * * *
SEC. 411. DATA COLLECTION AND REPORTING.
(a) Quarterly Reports by States.--
(1) General reporting requirement.--
(A) Contents of report.--Each eligible State
shall collect on a monthly basis, and report to
the Secretary on a quarterly basis, the
following disaggregated case record information
on the families receiving assistance under the
State program funded under this part (except
for information relating to activities carried
out under section 403(a)(5)[)]: and on families
receiving assistance under State programs
funded with other qualified State expenditures
(as defined in section 409(a)(7)(B)(i));
* * * * * * *
(vii) The race and educational level
of each adult and minor parent in the
family.
(viii) The race [and educational
level] of each child in the family.
(ix) Whether the family received
subsidized housing, medical assistance
under the State plan approved under
title XIX, food stamps, or subsidized
child care[, and if the latter 2, the
amount received].
(x) The number of months that the
family has received [each type of]
assistance under the program and, if
applicable, the reason for receipt of
the assistance for a total of more than
60 months.
[(xi) If the adults participated in,
and the number of hours per week of
participation in, the following
activities:
[(I) Education.
[(II) Subsidized private
sector employment.
[(III) Unsubsidized
employment.
[(IV) Public sector
employment, work experience, or
community service.
[(V) Job search.
[(VI) Job skills training or
on-the-job training.
[(VII) Vocational education.]
(xi) If the adult or minor child head
of household participated in, and the
average number of hours per week of
participation in, each activity listed
in subsections (c)(1)(i)(II) (including
average hours per week in each
different type of rehabilitative
activity as prescribed by the
Secretary) and (d) of section 407 and
other work or self-sufficiency
activities.
(xii) Information necessary to
calculate participation rates and
progress toward universal engagement
under section 407.
(xiii) The [type and] amount of
assistance received under the program,
including the amount of and reason for
any reduction of assistance (including
sanctions).
(xiv) Any amount of unearned income
received by any member of the family.
(xv) The citizenship of the members
of the family.
(xvi) From a sample of closed cases,
whether the family left the program,
and if so, whether the family left due
to--
[(I) employment;
[(II) marriage;]
[(III)] (II) the prohibition
set forth in section 408(a)(7);
[(IV)] (III) sanction; or
[(V)] (IV) State policy.
(xvii) With respect to each
individual in the family who has not
attained 20 years of age, whether the
individual is a parent of a child in
the family.
(xviii) The date the family first
received assistance from the State
program on the basis of the most recent
application for such assistance.
(xix) Whether a self-sufficiency plan
is established for the family in
accordance with section 408(b).
(xx) With respect to any child in the
family, the marital status of the
parents at the birth of the child, and
if the parents were not then married,
whether the paternity of the child has
been established.
(B) Use of samples.--
(i) Authority.--A State may comply
with subparagraph (A) by submitting
disaggregated case record information
on [a sample] samples of families
selected through the use of
scientifically acceptable sampling
methods approved by the Secretary,
except that the Secretary may designate
core data elements that must be
reported on all families.
(ii) Sampling and other methods.--The
Secretary shall provide the States with
such case sampling plans and data
collection procedures as the Secretary
deems necessary to produce
statistically valid estimates of the
performance of State programs [funded
under this part] described in
subparagraph (A). The Secretary may
develop and implement procedures for
verifying the quality of data submitted
by the States.
* * * * * * *
[(5) Report on transitional services.--The report
required by paragraph (1) for a fiscal quarter shall
include the total amount expended by the State during
the quarter to provide transitional services to a
family that has ceased to receive assistance under this
part because of employment, along with a description of
such services.]
[(6)] (5) Report on families receiving assistance.--
The report required by paragraph (1) for a fiscal
quarter shall include for each month in the quarter--
* * * * * * *
(6) Report on families that become ineligible to
receive assistance.--
(A) In general.--The report required by
paragraph (1) for a fiscal quarter shall
include for each month in the quarter the
number of families and total number of
individuals that, during the month, became
ineligible to receive assistance under the
State program funded under this part (broken
down by the number of families that become so
ineligible due to earnings, changes in family
composition that result in increased earnings,
sanctions, time limits, or other specified
reasons).
(B) Information regarding families in
separate state programs.--The report required
by paragraph (1) for a fiscal quarter shall
include for each month in the quarter the
number of families and total number of
individuals that, during the month, received
assistance under State programs funded with
qualified State expenditures (as defined in
section 409(a)(7)(B)(i)).
(7) Report on tanf-funded child care.--
(A) In general.--Subject to subparagraphs
(B), (C), and (D), the report required by
paragraph (1) for a fiscal quarter shall
include for each month in the quarter the
information described in section 658K(a) of the
Child Care and Development Block Grant Act of
1990 with respect to each family that received
child care that was funded in whole or in part
with funds provided under section 403 (other
than funds transferred under section 404(d)) or
with qualified State expenditures (as defined
in section 409(a)(7)(B)(i)), without regard to
whether the family is a recipient or former
recipient of assistance under the State program
funded under this part. A State may comply with
the requirement of this subparagraph through
the use of scientifically acceptable sampling
methods approved by the Secretary.
(B) Coordination with other reporting
requirements.--
(i) In general.--The Secretary shall
coordinate the reporting required under
subparagraph (A) with the reporting
required under the Child Care and
Development Block Grant Act of 1990 to
ensure that States are not required to
report duplicate information on the
same families in order to satisfy both
requirements.
(ii) Consolidated reporting.--
Notwithstanding section 658K(a) of the
Child Care and Development Block Grant
Act of 1990, the Secretary may permit a
State to submit a consolidated report
to satisfy the reporting required under
subparagraph (A) and the reporting
required under section 658K(a) of the
Child Care and Development Block Grant
Act of 1990, so long as the State
identifies in the consolidated report
the funding source for the child care
provided to each family.
(C) Waiver of reporting requirement.--The
Secretary may grant a State a waiver from the
requirement to comply with subparagraph (A)
if--
(i) the Secretary determines that the
State has demonstrated that it would be
administratively or financially
burdensome for the State to comply with
such subparagraph; and
(ii) in the case of a State, the
State agrees to post on a quarterly
basis on the website of the State such
information as the State may have
regarding the characteristics of the
families that received child care that
was funded in whole or in part with
funds provided under this part.
(D) Applicability.--Subparagraph (A) shall
apply to a State on and after the first fiscal
quarter that begins on or after 2 years after
the date of enactment of the Personal
Responsibility and Individual Development for
Everyone Act.
(8) Report on indians served by the state program.--
The report required by paragraph (1) for a fiscal
quarter shall include information on the demographics
and caseload characteristics of Indians served by each
State program funded under this part or with qualified
State expenditures (as defined in section
409(a)(7)(B)(i)) during the quarter.
[(7)] (9) Regulations.--The Secretary shall prescribe
such regulations as may be necessary to define the data
elements and to collect the necessary data with respect
to which reports are required by this [subsection]
section, and shall consult with the Secretary of Labor
[in defining the data elements with respect to programs
operated with funds provided under section 403(a)(5).]
* * * * * * *
(3) the National Governors' Association, the American
Public Human Services Association, the National
Conference of State Legislatures, and others in
defining the data elements.
(b) Annual Reports on Program Characteristics.--Not later
than 90 days after the end of fiscal year 2006 and each
succeeding fiscal year, each eligible State shall submit to the
Secretary a report on the characteristics of State programs
funded under this part and other State programs funded with
qualified State expenditures (as defined in section
409(a)(7)(B)(i)). The report shall include, with respect to
each such program, the program name, a description of program
activities, the program purpose, the program eligibility
criteria, the sources of program funding, the number of program
beneficiaries, sanction policies, and any program work
requirements.
(c) Monthly Reports on Caseload.--Not later than 3 months
after the end of each calendar month that begins 1 year or more
after the date of enactment of this subsection, each eligible
State shall submit to the Secretary a report on the number of
families and total number of individuals receiving assistance
in the calendar month under the State program funded under this
part and under other State programs funded with qualified State
expenditures (as defined in section 409(a)(7)(B)(i)).
(d) Annual Report on Performance Improvement and Progress
Toward Universal Engagement.--Beginning with fiscal year 2007,
not later than January 1 of each fiscal year, each eligible
State shall submit to the Secretary a report--
(1) on achievement and improvement during the
preceding fiscal year under the performance goals and
measures under the State program funded under this part
or with qualified State expenditures (as defined in
section 409(a)(7)(B)(i)) with respect to each of the
matters described in section 402(a)(1)(A)(v); and
(2) that details State progress toward full
engagement for all adult or minor child head of
household recipients of assistance.
(a) Funding for Tribal TANF Programs.--
[(b)] (e) Annual Reports to the Congress by the Secretary.--
Not later than 6 months after the end of fiscal year 1997, [and
each fiscal year thereafter] and not later than July 1 of each
fiscal year thereafter, the Secretary shall transmit to the
Congress a report describing--
* * * * * * *
(2) the demographic and financial characteristics of
[families applying for assistance,] families receiving
assistance[,] and families that become ineligible to
receive assistance;
(3) the characteristics of each State program funded
under this part and other programs funded with
qualified State expenditures (as defined in section
409(a)(7)(B)(i)); [and]
(4) the trends in employment and earnings of needy
families with minor children living at home[.]; and
(5) State specific information on the demographics
and caseload characteristics of Indians served by each
State program funded under this part or with qualified
State expenditures (as defined in section
409(a)(7)(B)(i)).
SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.
(a) Grants for Indian Tribes.--
(1) Tribal family assistance grant.--
(A) In general.--For each of fiscal years
[1997, 1998, 1999, 2000, 2001, 2002, and 2003]
2006 through 2010, the Secretary shall pay to
each Indian tribe that has an approved tribal
family assistance plan a tribal family
assistance grant for the fiscal year in an
amount equal to the amount determined under
subparagraph (B), which shall be reduced for a
fiscal year, on a pro rata basis for each
quarter, in the case of a tribal family
assistance plan approved during a fiscal year
for which the plan is to be in effect, and
shall reduce the grant payable under section
403(a)(1) to any State in which lies the
service area or areas of the Indian tribe by
that portion of the amount so determined that
is attributable to expenditures by the State.
* * * * * * *
(2) Grants for indian tribes that received jobs
funds.--
[(A) In general.--For each of fiscal years
1997, 1998, 1999, 2000, 2001, 2002, and 2003,
the Secretary shall pay to each eligible Indian
tribe that proposes to operate a program
described in subparagraph (C) a grant in an
amount equal to the amount received by the
Indian tribe in fiscal year 1994 under section
482(i) (as in effect during fiscal year 1994).]
(A) Grant authority.--For each of fiscal
years 2006 through 2010, the Secretary shall
pay to each eligible Indian tribe that proposes
to operate a program described in subparagraph
(C), a grant in an amount that bears the same
ratio to the amount specified in subparagraph
(D) of this paragraph as the amount required to
be paid to the tribe under this paragraph for
fiscal year 2004 bears to the total amount
required to be paid under this paragraph for
such fiscal year.
* * * * * * *
(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated
[$7,633,287] $12,633,287 for each fiscal year
specified in subparagraph (A) for grants under
subparagraph (A).
(3) Welfare-to-work grants.--
(A) In general.--The Secretary of Labor shall
award a grant in accordance with this paragraph
to an Indian tribe for each fiscal year
specified in section 403(a)(5)(H) for which the
Indian tribe is a welfare-to-work tribe, in
such amount as the Secretary of Labor deems
appropriate, subject to subparagraph (B) of
this paragraph.
(B) Welfare-to-work tribe.--An Indian tribe
shall be considered a welfare-to-work tribe for
a fiscal year for purposes of this paragraph if
the Indian tribe meets the following
requirements:
* * * * * * *
(iv) The Indian tribe 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)] 413(i), and to cooperate with
the conduct of any such evaluation.
(C) Limitations on use of funds.--
* * * * * * *
(4) Tribal improvement grants.--
(A) Tribal capacity grants.--
(i) In general.--Of the amount
appropriated under subparagraph (D) for
the period of fiscal years 2006 through
2010, $40,000,000 shall be used by the
Secretary to award grants for tribal
human services program infrastructure
improvement (as defined in clause (v))
to--
(I) Indian tribes that have
applied for approval of a
tribal family assistance plan
and that meet the requirements
of clause (ii)(I);
(II) Indian tribes with an
approved tribal family
assistance plan and that meet
the requirements of clause
(ii)(II); and
(III) Indian tribes that have
applied for approval of a
foster care and adoption
assistance program under
section 479B or that plan to
enter into, or have in place, a
tribal-State cooperative
agreement under section 479B(c)
and that meet the requirements
of clause (ii)(III).
(ii) Priorities for awarding of
grants.--The Secretary shall give
priority in awarding grants under this
subparagraph as follows:
(I) First, for grants to
Indian tribes that have applied
for approval of a tribal family
assistance plan, that have not
operated such a plan as of the
date of enactment of the
Personal Responsibility and
Individual Development for
Everyone Act that will have
such plan approved, and that
include in the plan submission
provisions for tribal human
services program infrastructure
improvement (as so defined) and
related management information
systems training.
(II) Second, for Indian
tribes with an approved tribal
family assistance plan that are
not described in subclause (I)
and that submit an addendum to
such plan that includes
provisions for tribal human
services program infrastructure
improvement that includes
implementing or improving
management information systems
of the tribe (including
management information systems
training), as such systems
relate to the operation of the
tribal family assistance plan.
(III) Third, for Indian
tribes that have applied for
approval of a foster care and
adoption assistance program
under section 479B or that plan
to enter into, or have in
place, a tribal-State
cooperative agreement under
section 479B(c) and that
include in the plan submission
under section 471 (or in an
addendum to such plan)
provisions for tribal human
services program infrastructure
improvement (as so defined) and
related management information
systems training.
(iii) Other requirements for awarding
grants.--In awarding grants under this
subparagraph, the Secretary--
(I) may not award an Indian
tribe more than 1 grant under
this subparagraph per fiscal
year;
(II) shall award grants in
such a manner as to maximize
the number of Indian tribes
that receive grants under this
subparagraph; and
(III) shall consult with
Indian tribes located
throughout the United States.
(iv) Application.--An Indian tribe
desiring a grant under this
subparagraph shall submit an
application to the Secretary, at such
time, in such manner, and containing
such information as the Secretary may
require.
(v) Definition of human services
program infrastructure improvement.--In
this subparagraph, the term ``human
services program infrastructure
improvement'' includes (but is not
limited to) improvement of management
information systems, management
information systems-related training,
equipping offices, and renovating, but
not constructing, buildings, as
described in an application for a grant
under this subparagraph, and subject to
approval by the Secretary.
(B) Tribal development grants.--
(i) In general.--Of the amount
appropriated under subparagraph (D) for
the period of fiscal years 2006 through
2010, $35,000,000 shall be used by the
Secretary to award, through the
Commissioner of the Administration for
Native Americans, grants to nonprofit
organizations, Indian tribes, and
tribal organizations to enable such
organizations and tribes to provide
technical assistance to Indian tribes
and tribal organizations in any or all
of the following areas:
(I) The development and
improvement of uniform
commercial codes.
(II) The creation or
expansion of small business or
microenterprise programs.
(III) The development and
improvement of tort liability
codes.
(IV) The creation or
expansion of tribal marketing
efforts.
(V) The creation or expansion
of for-profit collaborative
business networks.
(VI) The development of
innovative uses of
telecommunications to assist
with distance learning or
telecommuting.
(VII) The development of
economic opportunities and job
creation in areas of high
joblessness (as defined in
section 408(a)(7)(D)).
(ii) Requirements.--
(I) In general.--At least an
amount equal to 30 percent of
the total amount of grants
awarded under this subparagraph
shall be awarded to carry out
clause (i)(VII).
(II) Consultation.--In
awarding grants under this
subparagraph the Secretary
shall consult with other
Federal agencies with expertise
in the areas described in
clause (i).
(iii) Application.--A nonprofit
organization, Indian tribe, or tribal
organization desiring a grant under
this subparagraph shall submit an
application to the Secretary at such
time, in such manner, and containing
such information as the Secretary may
require.
(C) Technical assistance.--
(i) In general.--Of the amount
appropriated under subparagraph (D) for
the period of fiscal years 2006 through
2010, $5,000,000 shall be used by the
Secretary for making grants, or
entering into contracts, to provide
technical assistance to Indian tribes--
(I) in applying for or
carrying out a grant made under
this paragraph;
(II) in applying for or
carrying out a tribal family
assistance plan under this
section; or
(III) related to best
practices and approaches for
State and tribal coordination
on the transfer of the
administration of social
services programs to Indian
tribes.
(ii) Reservation of funds.--Not less
than--
(I) $2,500,000 of the amount
described in clause (i) shall
be used by the Secretary to
support, through grants or
contracts, peer-learning
programs among tribal
administrators; and
(II) $1,000,000 of such
amount shall be used by the
Secretary for making grants to
Indian tribes to conduct
feasibility studies of the
capacity of Indian tribes to
operate tribal family
assistance plans under this
part or foster care and
adoption assistance programs
under section 479B.
(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there is appropriated $80,000,000
for the period of fiscal years 2006 through
2010 to carry out this paragraph. Amounts
appropriated under this subparagraph shall
remain available until expended.
(b) 3-Year Tribal Family Assistance Plan.--
(1) In general.--Any Indian tribe that desires to
receive a tribal family assistance grant shall submit
to the Secretary a 3-year tribal family assistance plan
that--
(A) outlines the Indian tribe's approach to
providing welfare-related services for the 3-
year period, consistent with this section;
* * * * * * *
(E) identifies the employment opportunities
in or near the service area or areas of the
Indian tribe and the manner in which the Indian
tribe will cooperate and participate in
enhancing such opportunities for recipients of
assistance under the plan consistent with any
applicable State standards; [and]
(F) applies the fiscal accountability
provisions of section 5(f)(1) of the Indian
Self-Determination and Education Assistance Act
(25 U.S.C. 450c(f)(1)), relating to the
submission of a single-agency audit report
required by chapter 75 of title 31, United
States Code[.]; and
(G) describes how the Indian tribe will
ensure equitable access to benefits and
services provided under the plan for each
member of the population to be served by the
plan.
(2) Approval.--The Secretary shall approve each
tribal family assistance plan submitted in accordance
with paragraph (1).
(3) Consortium of tribes.--Nothing in this section
shall preclude the development and submission of a
single tribal family assistance plan by the
participating Indian tribes of an intertribal
consortium.
* * * * * * *
[(f) Eligibility for Federal Loans.--Section 406 shall apply
to an Indian tribe with an approved tribal assistance plan in
the same manner as such section applies to a State, except that
section 406(c) shall be applied by substituting ``section
412(a)'' for ``section 403(a)''.]
[(g)] (f) Penalties.--
(1) Subsections (a)(1), (a)(6), (b), and (c) of
section 409, shall apply to an Indian tribe with an
approved tribal assistance plan in the same manner as
such subsections apply to a State.
(2) Section 409(a)(3) shall apply to an Indian tribe
with an approved tribal assistance plan by substituting
``meet minimum work participation requirements
established under section 412(c)'' for ``comply with
section 407(a)''.
[(h)] (g) Data Collection and Reporting.--Section 411 shall
apply to an Indian tribe with an approved tribal family
assistance plan.
[(i)] (h) Special Rule for Indian Tribes in Alaska.--
(1) In general.--Notwithstanding any other provision
of this section, and except as provided in paragraph
(2), an Indian tribe in the State of Alaska that
receives a tribal family assistance grant under this
section shall use the grant to operate a program in
accordance with requirements comparable to the
requirements applicable to the program of the State of
Alaska funded under this part. Comparability of
programs shall be established on the basis of program
criteria developed by the Secretary in consultation
with the State of Alaska and such Indian tribes.
(2) Waiver.--An Indian tribe described in paragraph
(1) may apply to the appropriate State authority to
receive a waiver of the requirement of paragraph (1).
(j) Application of Indian employment, Training and Related
Services Demonstration Act of 1992.--Notwithstanding any other
provision of law, if an Indian tribe elects to incorporate the
services it provides using funds made available under this part
into a plan under section 6 of the Indian Employment, Training
and Related Services Demonstration Act of 1992 (25 U.S.C.
3405), the programs authorized to be conducted with such funds
shall be--
(1) considered to be programs subject to section 5 of
the Indian Employment, Training and Related Services
Demonstration Act of 1992 (25 U.S.C. 3404); and
(2) subject to the single plan and single budget
requirements of section 6 of that Act (25 U.S.C. 3505)
and the single report format required under section 11
of that Act (25 U.S.C. 3410).
SEC. 413. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.
* * * * * * *
(d) Annual Ranking of States and Review of Most and Least
Successful Work Programs.--
[(1) Annual ranking of states.--The Secretary shall
rank annually the States to which grants are paid under
section 403 in the order of their success in placing
recipients of assistance under the State program funded
under this part into long-term private sector jobs,
reducing the overall welfare caseload, and, when a
practicable method for calculating this information
becomes available, diverting individuals from formally
applying to the State program and receiving assistance.
In ranking States under this subsection, the Secretary
shall take into account the average number of minor
children living at home in families in the State that
have incomes below the poverty line and the amount of
funding provided each State for such families.]
(1) Annual ranking of states.--
(A) In general.--The Secretary shall rank
annually the States to which grants are paid
under section 403 in the order of their success
in--
(i) placing recipients of assistance
under the State program funded under
this part into unsubsidized jobs;
(ii) the success of the recipients in
retaining employment;
(iii) the ability of the recipients
to increase their wages;
(iv) the degree to which recipients
have workplace attachment and
advancement;
(v) reducing the overall welfare
caseload; and
(vi) when a practicable method for
calculating this information becomes
available, diverting individuals from
formally applying to the State program
and receiving assistance.
(B) Consideration of other factors.--In
ranking States under this paragraph, the
Secretary shall take into account the average
number, and the average proportion, of minor
children living at home in families in the
State that have incomes below the poverty line
and the amount of funding provided each State
under this part for such families.
(2) Annual review of most and least successful work
programs.--The Secretary shall review the programs of
the 3 States most recently ranked highest under
paragraph (1) and the 3 States most recently ranked
lowest under paragraph (1) that provide parents with
work experience, [assistance] aid in finding
employment, and other work preparation activities and
support services to enable the families of such parents
to leave the program and become self-sufficient.
* * * * * * *
[(g) Report on Circumstances of Certain Children and
Families.--
[(1) In general.--Beginning 3 years after the date of
the enactment of this section, the Secretary of Health
and Human Services shall prepare and submit to the
Committees on Ways and Means and on Education and the
Workforce of the House of Representatives and to the
Committees on Finance and on Labor and Resources of the
Senate annual reports that examine in detail the
matters described in paragraph (2) with respect to each
of the following groups for the period after such
enactment:
[(A) Individuals who were children in
families that have become ineligible for
assistance under a State program funded under
this part by reason of having reached a time
limit on the provision of such assistance.
[(B) Children born after such date of
enactment to parents who, at the time of such
birth, had not attained 20 years of age.
[(C) Individuals who, after such date of
enactment, became parents before attaining 20
years of age.
[(2) Matters described.--The matters described in
this paragraph are the following:
[(A) The percentage of each group that has
dropped out of secondary school (or the
equivalent), and the percentage of each group
at each level of educational attainment.
[(B) The percentage of each group that is
employed.
[(C) The percentage of each group that has
been convicted of a crime or has been
adjudicated as a delinquent.
[(D) The rate at which the members of each
group are born, or have children, out-of-
wedlock, and the percentage of each group that
is married.
[(E) The percentage of each group that
continues to participate in State programs
funded under this part.
[(F) The percentage of each group that has
health insurance provided by a private entity
(broken down by whether the insurance is
provided through an employer or otherwise), the
percentage that has health insurance provided
by an agency of government, and the percentage
that does not have health insurance.
[(G) The average income of the families of
the members of each group.
[(H) Such other matters as the Secretary
deems appropriate.]
[(h)] (g) Funding of Studies and Demonstrations.--
(1) In general.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated $15,000,000 for each of fiscal years 1997
through 2002 for the purpose of paying--
* * * * * * *
[(i)] (h) Child Poverty Rates.--
(1) In general.--Not later than May 31, 1998, and
annually thereafter, the chief executive officer of
each State shall submit to the Secretary a statement of
the child poverty rate in the State as of such date of
enactment or the date of the most recent prior
statement under this paragraph.
* * * * * * *
[(j)] (i) Evaluation of Welfare-To-Work Programs.--
(1) Evaluation.--The Secretary, in consultation with
the Secretary of Labor and the Secretary of Housing and
Urban Development--
(2) Reports to the congress.--
(A) In general.--Subject to subparagraphs (B)
and (C), the Secretary, in consultation with
the Secretary of Labor and the Secretary of
Housing and Urban Development, shall submit to
the Congress reports on the projects funded
under [section] sections 403(a)(5) and
412(a)(3) and on the evaluations of the
projects.
* * * * * * *
(j) Performance Improvement.--The Secretary, in consultation
with the States, shall develop uniform performance measures
designed to assess the degree of effectiveness, and the degree
of improvement, of State programs funded under this part in
accomplishing the purposes of this part.
(k) Best Practices for Addressing Domestic Violence.--
(1) In general.--The Secretary shall, by grant,
contract, or interagency agreement, develop and
implement programs that are designed to address
domestic violence as a barrier to healthy
relationships, marriage, and economic security.
Programs developed and implemented under this
subsection shall include--
(A) training for caseworkers administering
the State program funded under this part;
(B) technical assistance;
(C) the provision of voluntary services for
victims of such violence; and
(D) activities related to the prevention of
domestic violence.
(2) Domestic violence defined.--In this subsection,
the term ``domestic violence'' has the meaning given
that term in section 402(a)(7)(B).
(3) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection, $10,000,000 for each of fiscal years 2006
through 2010. Amounts appropriated to carry out this
subsection shall be in addition to and not in lieu of
amounts otherwise appropriated to carry out programs to
address domestic violence.
(l) Funding for Research, Demonstrations, and Technical
Assistance.--
(1) Appropriation.--
(A) In general.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated
$100,000,000 for each of fiscal years 2005
through 2010, which shall remain available to
the Secretary until expended.
(B) Use of funds.--
(i) In general.--Funds appropriated
under subparagraph (A) shall be used
for the purpose of--
(I) conducting or supporting
research and demonstration
projects by public or private
entities; or
(II) providing technical
assistance in connection with a
purpose of the program funded
under this part, as described
in section 401(a), to States,
Indian tribal organizations,
sub-State entities, and such
other entities as the Secretary
may specify.
(ii) Requirement.--Not less than 80
percent of the funds appropriated under
subparagraph (A) for a fiscal year
shall be expended for the purpose of
conducting or supporting research and
demonstration projects, or for
providing technical assistance, in
connection with activities described in
section 403(a)(2)(B). Funds
appropriated under subparagraph (A) and
expended in accordance with this clause
shall be in addition to any other funds
made available under this part for
activities described in section
403(a)(2)(B).
(2) Secretary's authority.--The Secretary may conduct
activities authorized by this subsection directly or
through grants, contracts, or interagency agreements
with public or private entities.
(3) Requirement for use of funds.--The Secretary
shall not pay any funds appropriated under paragraph
(1)(A) to an entity for the purpose of conducting or
supporting research and demonstration projects
involving activities described in section 403(a)(2)(B)
unless the entity complies with the requirements of
section 403(a)(2)(E).
(m) Indicators of Child Well-Being.--
(1) In general.--The Secretary, through grants,
contracts, or interagency agreements shall develop
comprehensive indicators to assess child well-being in
each State.
(2) Requirements.--
(A) In general.--The indicators developed
under paragraph (1) shall include measures
related to the following:
(i) Education.
(ii) Social and emotional
development.
(iii) Health and safety.
(iv) Family well-being, such as
family structure, income, employment,
child care arrangements, and family
relationships.
(B) Other requirements.--The data collected
with respect to the indicators developed under
paragraph (1) shall be--
(i) statistically representative at
the State level;
(ii) consistent across States;
(iii) collected on an annual basis
for at least the 5 years following the
first year of collection;
(iv) expressed in terms of rates or
percentages;
(v) statistically representative at
the national level;
(vi) measured with reliability;
(vii) current;
(viii) over-sampled, with respect to
low-income children and families; and
(ix) made publicly available.
(C) Consultation.--In developing the
indicators required under paragraph (1) and the
means to collect the data required with respect
to the indicators, the Secretary shall consult
and collaborate with the Federal Interagency
Forum on Child and Family Statistics.
(3) Advisory panel.--
(A) Establishment.--The Secretary shall
establish an advisory panel to make
recommendations regarding the appropriate
measures and statistical tools necessary for
making the assessment required under paragraph
(1) based on the indicators developed under
that paragraph and the data collected with
respect to the indicators.
(B) Membership.--
(i) In general.--The advisory panel
established under subparagraph (A)
shall consist of the following:
(I) One member appointed by
the Secretary of Health and
Human Services.
(II) One member appointed by
the Chairman of the Committee
on Ways and Means of the House
of Representatives.
(III) One member appointed by
the Ranking Member of the
Committee on Ways and Means of
the House of Representatives.
(IV) One member appointed by
the Chairman of the Committee
on Finance of the Senate.
(V) One member appointed by
the Ranking Member of the
Committee on Finance of the
Senate.
(VI) One member appointed by
the Chairman of the National
Governors Association, or the
Chairman's designee.
(VII) One member appointed by
the President of the National
Conference of State
Legislatures or the President's
designee.
(VIII) One member appointed
by the Director of the National
Academy of Sciences, or the
Director's designee.
(ii) Deadline.--The members of the
advisory panel shall be appointed not
later than 2 months after the date of
enactment of the Personal
Responsibility and Individual
Development for Everyone Act.
(C) Meetings.--The advisory panel established
under subparagraph (A) shall meet--
(i) at least 3 times during the first
year after the date of enactment of the
Personal Responsibility and Individual
Development for Everyone Act; and
(ii) annually thereafter for the 3
succeeding years.
(4) Appropriation.--Out of any money in the Treasury
of the United States not otherwise appropriated, there
are appropriated for each of fiscal years 2006 through
2010, $10,000,000 for the purpose of carrying out this
subsection.
(n) Domestic Violence Prevention Grants.--
(1) In general.--The Secretary shall award grants to
eligible entities to enable such entities to carry out
domestic violence prevention activities. In carrying
out this subsection, the Secretary shall make public
the criteria to be used by the Secretary for awarding
such grants.
(2) Eligibility.--To be eligible to receive a grant
under this subsection, an entity shall--
(A) be a State, Indian tribe or tribal
organization, or nonprofit domestic violence
prevention organization; and
(B) submit to the Secretary an application at
such time, in such manner, and containing such
information as the Secretary may require.
(3) Activities.--An entity shall use amounts received
under a grant awarded under this subsection to--
(A) develop and disseminate best practices
for addressing domestic violence (as defined in
section 402(a)(7)(B));
(B) implement voluntary skills programs on
domestic violence as a barrier to economic
security, including providing caseworker
training, technical assistance, and voluntary
services for victims of domestic violence;
(C) provide broad-based income support and
supplementation strategies that provide
increased assistance to low-income working
adults, such as housing, transportation, and
transitional benefits as a means to reduce
domestic violence; or
(D) carry out programs to enhance
relationship skills and financial management
skills, to teach individuals how to control
aggressive behavior, and to disseminate
information on the causes of domestic violence
and child abuse.
(4) Matching requirement.--The Secretary may not
award a grant to an entity under this subsection unless
the entity agrees that, with respect to the costs to be
incurred by the entity in carrying out the program for
which the grant was awarded, the entity will make
available (directly or through donations from public or
private entities) non-Federal contributions toward such
costs in an amount equal to not less than 25 percent of
such costs ($1 for each $3 of Federal funds provided
under the grant).
(5) Required consultation.--The Secretary may not
award a grant to a State or an Indian tribe or tribal
organization under this subsection unless such State,
tribe, or tribal organization agrees, in carrying out
activities under the grant, to consult with National,
State, local, or tribal organizations with demonstrated
expertise in providing aid to victims of domestic
violence.
(6) Evaluation and report.--The Secretary shall, by
grant, contract, or interagency agreement, conduct an
evaluation of the activities carried out with grants
awarded under this subsection and shall submit a report
to Congress on the results of such evaluation.
(7) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection, $20,000,000 for each of fiscal years 2006
through 2010.
(o) Tribal Welfare Programs and Efforts To Reduce Poverty
Among Indians.--
(1) In general.--The Secretary, directly or through
grants, contracts, or interagency agreements, shall
conduct research on tribal family assistance programs
conducted under section 412 and other tribal welfare
programs and on efforts to reduce poverty among
Indians.
(2) Priority for certain applications.--With respect
to applications for grants under paragraph (1), the
Secretary shall give priority to applications to
conduct research in cooperation with tribal governments
or tribally controlled colleges or universities.
(3) Technical assistance.--The Secretary may use
funds appropriated under paragraph (4) to provide
technical assistance concerning data reporting and
collection with respect to research conducted under
this subsection.
(4) Appropriation.--Out of any money in the Treasury
of the United States not otherwise appropriated, there
are appropriated $2,000,000 for fiscal year 2006 for
the purpose of carrying out this subsection. Funds
appropriated under this paragraph shall remain
available to the Secretary until expended.
(p) Teen Pregnancy Prevention Resource Center.--
(1) Authority.--
(A) In general.--The Secretary shall make a
grant to 1 nationally recognized, nonpartisan,
nonprofit organization that meets the
requirements described in subparagraph (B) to
establish and operate a national teen pregnancy
prevention resource center (in this subsection
referred to as the ``Resource Center'') to
carry out the purposes and activities described
in paragraph (2).
(B) Requirements.--The requirements described
in this subparagraph are the following:
(i) The organization focuses
exclusively on preventing teen
pregnancy and has at least 9 years of
experience in working with diverse
sectors of society to reduce teen
pregnancy.
(ii) The organization has a
demonstrated ability to work with, and
provide assistance to, a broad range of
individuals and entities with a variety
of perspectives, including teens and
youth leaders, parents, the
entertainment and news media, State,
tribal, and local organizations,
networks of teen pregnancy prevention
practitioners, businesses, faith and
community leaders, and researchers.
(iii) The organization is research-
based and has capabilities in
scientific analysis and evaluation.
(iv) The organization has
comprehensive knowledge and data about
teen pregnancy prevention strategies.
(v) The organization has experience
carrying out activities similar to the
activities described in paragraph
(2)(B).
(2) Purposes and activities.--
(A) Purposes.--The purposes of the Resource
Center are to improve the well-being of
children and families and encourage young
people to delay pregnancy until marriage.
Specifically, the Resource Center shall--
(i) provide information and technical
assistance to States, Indian tribes,
local communities, and other public or
private organizations seeking to reduce
rates of teen pregnancy;
(ii) support parents in their
essential role in preventing teen
pregnancy by equipping them with
information and resources to promote
and strengthen communication with their
children about sex, values, and
positive relationships, including
healthy marriage; and
(iii) assist the entertainment media
industry by providing information and
encouraging the industry to develop
content and messages for teens and
adults that can help prevent teen
pregnancy.
(B) Activities.--The Resource Center shall
carry out the purposes described in
subparagraph (A) through the following
activities:
(i) Synthesizing and disseminating
research and information regarding
effective and promising practices, and
providing information on how to design
and implement effective strategies to
prevent teen pregnancy.
(ii) Providing information and
reaching out to diverse populations,
with particular attention to areas and
populations with the highest rates of
teen pregnancy.
(iii) Helping States, local
communities, and other organizations
increase their knowledge of existing
resources that can be used to advance
teen pregnancy prevention efforts, and
build their capacity to access such
resources and develop partnerships with
other programs and funding streams.
(iv) Raising awareness of the
importance of increasing the proportion
of children born to, and raised in,
healthy, adult marriages.
(v) Linking organizations working to
reduce teen pregnancy with experts and
peers, including the creation of
technical assistance networks that use
cost-effective and efficient
communication tools (such as the
Internet).
(vi) Providing consultation and
resources about how to reduce teen
pregnancy to various sectors of society
including parents, other adults (such
as teachers, coaches, and mentors),
community and faith-based groups, the
entertainment and news media,
businesses, and teens themselves,
through a broad array of strategies and
messages, including a focus on
abstinence, responsible behavior,
family communication, relationships,
and values.
(vii) Assisting organizations seeking
to reduce teen pregnancy in their
efforts to communicate effective
messages about preventing teen
pregnancy with a variety of audiences
(including teens, parents, and
ethnically diverse groups).
(viii) Providing resources for
parents and other adults that help to
foster strong relationships with
children, a strategy that research has
shown is effective in reducing sexual
activity and teen pregnancy, including
online access to research, parent
guides, tips, advice from experts, and
information about the media environment
of teens.
(ix) Working directly with
individuals and organizations in the
entertainment industry to provide
consultation and serve as a source of
factual information on issues related
to teen pregnancy prevention.
(3) Collaboration with other organizations.--The
organization operating the Resource Center shall
collaborate with other organizations that have
expertise and interest in teen pregnancy prevention,
and that can help reach out to diverse audiences.
(4) Appropriation.--Out of any money in the Treasury
of the United States not otherwise appropriated, there
is appropriated to carry out this subsection,
$5,000,000 for fiscal year 2006. Funds appropriated
under this subparagraph shall remain available for
expenditure through fiscal year 2010.
* * * * * * *
SEC. 414. STUDY BY THE CENSUS BUREAU.
[(a) In General.--The Bureau of the Census shall continue to
collect data on the 1992 and 1993 panels of the Survey of
Income and Program Participation as necessary to obtain such
information as will enable interested persons to evaluate the
impact of the amendments made by title I of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
on a random national sample of recipients of assistance under
State programs funded under this part and (as appropriate)
other low-income families, and in doing so, shall pay
particular attention to the issues of out-of-wedlock birth,
welfare dependency, the beginning and end of welfare spells,
and the causes of repeat welfare spells, and shall obtain
information about the status of children participating in such
panels.]
(a) In General.--The Bureau of the Census shall implement or
enhance a longitudinal survey of program participation,
developed in consultation with the Secretary and made available
to interested parties, to allow for the assessment of the
outcomes of continued welfare reform on the economic and child
well-being of low-income families with children, including
those who received assistance or services from a State program
funded under this part, and, to the extent possible, shall
provide State representative samples. The content of the survey
should include such information as may be necessary to examine
the issues of out-of-wedlock childbearing, marriage, welfare
dependency and compliance with work requirements, the beginning
and ending of spells of assistance, work, earnings and
employment stability, and the well-being of children.
(b) Reports on the Well-Being of Children and Families.--
(1) In general.--Not later than 24 months after the
date of enactment of the Personal Responsibility and
Individual Development for Everyone Act, the Secretary
of Commerce shall prepare and submit to the Committee
on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives a report on the
well-being of children and families using data
collected under subsection (a).
(2) Second report.--Not later than 60 months after
such date of enactment, the Secretary of Commerce shall
submit a second report to the Committee on Finance of
the Senate and the Committee on Ways and Means of the
House of Representatives on the well-being of children
and families using data collected under subsection (a).
(3) Inclusion of comparable measures.--Where
comparable measures for data collected under subsection
(a) exist in surveys previously administered by the
Bureau of the Census, appropriate comparisons shall be
made and included in each report required under this
subsection on the well-being of children and families
to assess changes in such measures.
[(b)] (c) Appropriation.--Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated $10,000,000 for each of fiscal years [1996, 1997,
1998, 1999, 2000, 2001, 2002, and 2003 for payment to the
Bureau of the Census to carry out subsection (a).] 2006 through
2010 for payment to the Bureau of the Census to carry out this
section. Funds appropriated under this subsection for a fiscal
year shall remain available through fiscal year 2010 to carry
out this section.
* * * * * * *
SEC. 418. FUNDING FOR CHILD CARE.
(a) General Child Care Entitlement.--
(1) General entitlement.--Subject to the amount
appropriated under paragraph (3), each State shall, for
the purpose of providing child care assistance, be
entitled to payments under a grant under this
subsection for a fiscal year in an amount equal to the
greater of--
* * * * * * *
(3) Appropriation.--For grants under this section,
there are appropriated--
(A) $1,967,000,000 for fiscal year 1997;
(B) $2,067,000,000 for fiscal year 1998;
(C) $2,167,000,000 for fiscal year 1999;
(D) $2,367,000,000 for fiscal year 2000;
(E) $2,567,000,000 for fiscal year 2001;
[and]
(F) $2,717,000,000 for each of fiscal years
2002 and 2003[.] and
(G) $2,917,000,000 for each of fiscal years
2006 through 2010.
[(4) Indian tribes.--The Secretary shall reserve not
less than 1 percent, and not more than 2 percent, of
the aggregate amount appropriated to carry out this
section in each fiscal year for payments to Indian
tribes and tribal organizations.]
(4) Amounts reserved.--
(A) Indian tribes and tribal organizations.--
(i) In general.--The Secretary shall
reserve 2 percent of the aggregate
amount appropriated to carry out this
section for a fiscal year for payments
to Indian tribes and tribal
organizations for such fiscal year for
the purpose of providing child care
assistance.
(ii) Application of ccdbg
requirements.--Payments made under this
subparagraph shall be subject to the
requirements that apply to payments
made to Indian tribes and tribal
organizations under the Child Care and
Development Block Grant Act of 1990.
(B) Territories.--
(i) Puerto rico.--The Secretary shall
reserve 1.5 percent of the amount
appropriated under paragraph (5)(A)(i)
for a fiscal year for payments to the
Commonwealth of Puerto Rico for such
fiscal year for the purpose of
providing child care assistance.
(ii) Other territories.--The
Secretary shall reserve 0.5 percent of
the amount appropriated under paragraph
(5)(A)(i) for a fiscal year for
payments to Guam, American Samoa, the
Virgin Islands of the United States,
and the Commonwealth of the Northern
Mariana Islands in amounts which bear
the same ratio to such amount as the
amounts allotted to such territories
under section 658O of the Child Care
and Development Block Grant Act of 1990
for the fiscal year bear to the total
amount reserved under such section for
that fiscal year.
(iii) Application of ccdbg
requirements.--Payments made under this
subparagraph shall be subject to the
requirements that apply to payments
made to territories under the Child
Care and Development Block Grant Act of
1990.
(5) Supplemental grants.--
(A) Appropriation.--
(i) In general.--For supplemental
grants under this section, there are
appropriated--
(I) $700,000,000 for fiscal
year 2006;
(II) $800,000,000 for fiscal
year 2007;
(III) $1,000,000,000 for
fiscal year 2008;
(IV) $1,100,000,000 for
fiscal year 2009; and
(V) $1,400,000,000 for fiscal
year 2010.
(ii) Availability.--Amounts
appropriated under clause (i) for a
fiscal year shall be in addition to
amounts appropriated under paragraph
(3) for such fiscal year and shall
remain available for expenditure
through fiscal year 2010.
(B) Supplemental grant.--In addition to the
grants paid to a State under paragraphs (1) and
(2) for each of fiscal years 2006 through 2010,
the Secretary, after reserving the amounts
described in subparagraphs (A) and (B) of
paragraph (4) and subject to the requirements
described in paragraph (6), shall pay each
State an amount which bears the same ratio to
the amount specified in subparagraph (A)(i) for
the fiscal year (after such reservations), as
the amount allotted to the State under
paragraph (2)(B) for fiscal year 2003 bears to
the amount allotted to all States under that
paragraph for such fiscal year.
(C) 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 2010.
(6) Requirements.--
(A) Maintenance of effort.--A State may not
be paid a supplemental grant under paragraph
(5) for a fiscal year unless the State ensures
that the level of State expenditures for child
care for such fiscal year is not less than the
sum of--
(i) the level of State expenditures
for child care that were matched under
a grant made to the State under
paragraph (2) for fiscal year 2003; and
(ii) the level of State expenditures
for child care that the State reported
as maintenance of effort expenditures
for purposes of paragraph (2) for
fiscal year 2003.
(B) Matching requirement for fiscal years
2009 and 2010.--With respect to the amount of
the supplemental grant made to a State under
paragraph (5) for each of fiscal years 2009 and
2010 that is in excess of the amount of the
grant made to the State under paragraph (5) for
fiscal year 2008, subparagraph (C) of paragraph
(2) shall apply to such excess amount in the
same manner as such subparagraph applies to
grants made under subparagraph (A) of paragraph
(2) for each of fiscal years 2009 and 2010,
respectively.
(C) Redistribution.--In the case of a State
that fails to satisfy the requirement of
subparagraph (A) for a fiscal year, the
supplemental grant determined under paragraph
(5) for the State for that fiscal year shall be
redistributed in accordance with paragraph
(2)(D).
[(5)] (7) Data used to determine state and federal
shares of expenditures.--In making the determinations
concerning expenditures required under paragraphs (1)
and (2)(C), the Secretary shall use information that
was reported by the State on ACF Form 231 and available
as of the applicable dates specified in clauses (i)(I),
(ii), and (iii)(III) of section 403(a)(1)(D).
* * * * * * *
SEC. 419. DEFINITIONS.
As used in this part:
(1) Adult.--The term ``adult'' means an individual
who is not a minor child.
* * * * * * *
(6) Assistance.--
(A) In general.--The term ``assistance''
means cash, payments, vouchers, and other forms
of benefits designed to meet a family's ongoing
basic needs (including for food, clothing,
shelter, utilities, household goods, personal
care items and general incidental expenses).
(B) Inclusion of certain benefits.--Such term
includes benefits even when they are--
(i) provided in the form of payments
by a State agency responsible for
administering the State program funded
under this part, or other agency on its
behalf, to individual recipients; and
(ii) conditioned on participation in
work experience or community service
(or any other work activity under the
State program funded under this part or
with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)).
(C) Exclusion of certain benefits.--Such term
does not include--
(i) nonrecurrent, short-term benefits
that--
(I) are designed to deal with
a specific crisis situation or
episode of need;
(II) are not intended to meet
recurrent or ongoing needs; and
(III) will not extend beyond
4 months;
(ii) work subsidies (such as payments
to employers or third parties to help
cover the costs of employee wages,
benefits, supervision, and training);
(iii) supportive services such as
child care and transportation;
(iv) refundable earned income tax
credits;
(v) contributions to, and
distributions from, Individual
Development Accounts;
(vi) services such as counseling,
case management, peer support, child
care information and referral,
transitional services, job retention,
job advancement, and other employment-
related services that do not provide
basic income support; and
(v) transportation benefits provided
under a Job Access or Reverse Commute
project, pursuant to section 404(k), to
an individual who is not otherwise
receiving assistance.
(D) Applicability.--Unless otherwise
provided, the definition of ``assistance''
under this paragraph--
(i) only applies for purposes of the
State program funded under this part or
a program funded with qualified State
expenditures (as defined in section
409(a)(7)(B)(i)); and
(ii) does not preclude a State from
providing other types of benefits and
services in support of the purposes of
the State program funded under this
part or a program funded with qualified
State expenditures (as so defined).
Part D--Child Support and Establishment of Paternity
* * * * * * *
DUTIES OF THE SECRETARY
Sec. 452. (a) The Secretary shall establish, within the
Department of Health and Human Services a separate
organizational unit, under the direction of a designee of the
Secretary, who shall report directly to the Secretary and who
shall--
* * * * * * *
(II) whether collections and
disbursements of support payments are
carried out correctly and are fully
accounted for; and
(iii) for such other purposes as the
Secretary may find necessary;
(5) assist States in establishing adequate reporting
procedures and maintain records of the operations of
programs established pursuant to this part in each
State, and establish procedures to be followed by
States for collecting and reporting information
required to be provided under this part, and establish
uniform definitions (including those necessary to
enable the measurement of State compliance with the
requirements of this part relating to expedited
processes) to be applied in following such procedures;
(6) maintain records of all amounts collected and
disbursed under programs established pursuant to the
provisions of this part and of the costs incurred in
collecting such amounts;
(7) provide technical assistance to the States to
help them establish effective systems for collecting
child and spousal support and establishing paternity,
and specify the minimum requirements of an affidavit to
be used for the voluntary acknowledgment of paternity
which shall include the social security number of each
parent and, after consultation with the States, other
common elements as determined by such designee;
(8) receive applications from States for permission
to utilize the courts of the United States to enforce
court orders for support against noncustodial parents
and, upon a finding that (A) another State has not
undertaken to enforce the court order of the
originating State against the noncustodial parent
within a reasonable time, and (B) that utilization of
the Federal courts is the only reasonable method of
enforcing such order, approve such applications;
(9) operate the Federal Parent Locator Service
established by section 453;
(10) not later than three months after the end of
each fiscal year, beginning with the year 1977, submit
to the Congress a full and complete report on all
activities undertaken pursuant to the provisions of
this part, which report shall include, but not be
limited to, the following:
(A) total program costs and collections set
forth in sufficient detail to show the cost to
the States and the Federal Government, the
distribution of collections to families, State
and local governmental units, and the Federal
Government; and an identification of the
financial impact of the provisions of this
part, including--
(i) the total amount of child support
payments collected as a result of
services furnished during the fiscal
year to individuals receiving services
under this part;
(ii) the cost to the States and to
the Federal Government of so furnishing
the services; and
(iii) the number of cases involving
families--
(I) who became ineligible for
assistance under State programs
funded under part A during a
month in the fiscal year; and
(II) with respect to whom a
child support payment was
received in the month;
(B) costs and staff associated with the
Office of Child Support Enforcement;
(C) the following data, separately stated for
cases where the child is receiving assistance
under a State program funded under part A (or
foster care maintenance payments under part E),
or formerly received such assistance or
payments and the State is continuing to collect
support assigned to it pursuant to section
408(a)(3) or under section 471(a)(17) or 1912,
and for all other cases under this part:
(i) the total number of cases in
which a support obligation has been
established in the fiscal year for
which the report is submitted;
(ii) the total number of cases in
which a support obligation has been
established;
(iii) the number of cases in which
support was collected during the fiscal
year;
(iv) the total amount of support
collected during such fiscal year and
distributed as current support;
(v) the total amount of support
collected during such fiscal year and
distributed as arrearages;
(vi) the total amount of support due
and unpaid for all fiscal years; and
(vii) the number of child support
cases filed in each State in such
fiscal year, and the amount of the
collections made in each State in such
fiscal year, on behalf of children
residing in another State or against
parents residing in another State;
(D) the status of all State plans under this
part as of the end of the fiscal year last
ending before the report is submitted, together
with an explanation of any problems which are
delaying or preventing approval of State plans
under this part;
(E) data, by State, on the use of the Federal
Parent Locator Service, and the number of
locate requests submitted without the
noncustodial parent's social security account
number;
(F) the number of cases, by State, in which
an applicant for or recipient of assistance
under a State program funded under part A has
refused to cooperate in identifying and
locating the noncustodial parent and the number
of cases in which refusal so to cooperate is
based on good cause (as determined by the
State);
(G) data, by State, on use of the Internal
Revenue Service for collections, the number of
court orders on which collections were made,
the number of paternity determinations made and
the number of parents located, in sufficient
detail to show the cost and benefits to the
States and to the Federal Government;
(H) the major problems encountered which have
delayed or prevented implementation of the
provisions of this part during the fiscal year
last ending prior to the submission of such
report; and
(I) compliance, by State, with the standards
established pursuant to subsections (h) and
(i); and
(11) not later than October 1, 1996, after consulting
with the State directors of programs under this part,
promulgate forms to be used by States in interstate
cases for--
(A) collection of child support through
income withholding;
(B) imposition of liens; and
(C) administrative subpoenas.
(b) The Secretary shall, upon the request of any State having
in effect a State plan approved under this part, certify to the
Secretary of the Treasury for collection pursuant to the
provisions of section 6305 of the Internal Revenue Code of 1954
the amount of any child support obligation (including any
support obligation with respect to the parent who is living
with the child and receiving assistance under the State program
funded under part A) which is assigned to such State or is
undertaken to be collected by such State pursuant to section
454(4). No amount may be certified for collection under this
subsection except the amount of the delinquency under a court
or administrative order for support and upon a showing by the
State that such State has made diligent and reasonable efforts
to collect such amounts utilizing its own collection
mechanisms, and upon an agreement that the State will reimburse
the Secretary of the Treasury for any costs involved in making
the collection. All reimbursements shall be credited to the
appropriation accounts which bore all or part of the costs
involved in making the collections. The Secretary after
consultation with the Secretary of the Treasury may, by
regulation, establish criteria for accepting amounts for
collection and for making certification under this subsection
including imposing such limitations on the frequency of making
such certifications under this subsection.
(c) The Secretary of the Treasury shall from time to time pay
to each State for distribution in accordance with the
provisions of section 457 the amount of each collection made on
behalf of such State pursuant to subsection (b).
(d)(1) Except as provided in paragraph (3), the Secretary
shall not approve the initial and annually updated advance
automated data processing planning document, referred to in
section 454(16), unless he finds that such document, when
implemented, will generally carry out the objectives of the
management system referred to in such subsection, and such
document--
(A) provides for the conduct of, and reflects the
results of, requirements analysis studies, which
include consideration of the program mission,
functions, organization, services, constraints, and
current support, of, in, or relating to, such system,
(B) contains a description of the proposed management
system referred to in section 454(16), including a
description of information flows, input data, and
output reports and uses,
(C) sets forth the security and interface
requirements to be employed in such management system,
(D) describes the projected resource requirements for
staff and other needs, and the resources available or
expected to be available to meet such requirements,
(E) contains an implementation plan and backup
procedures to handle possible failures,
(F) contains a summary of proposed improvement of
such management system in terms of qualitative and
quantitative benefits, and
(G) provides such other information as the Secretary
determines under regulation is necessary.
(2)(A) The Secretary shall through the separate
organizational unit established pursuant to subsection (a), on
a continuing basis, review, assess, and inspect the planning,
design, and operation of, management information systems
referred to in section 454(16), with a view to determining
whether, and to what extent, such systems meet and continue to
meet requirements imposed under paragraph (1) and the
conditions specified under section 454(16).
(B) If the Secretary finds with respect to any statewide
management information system referred to in section 454(16)
that there is a failure substantially to comply with criteria,
requirements, and other undertakings, prescribed by the advance
automated data processing planning document theretofore
approved by the Secretary with respect to such system, then the
Secretary shall suspend his approval of such document until
there is no longer any such failure of such system to comply
with such criteria, requirements, and other undertakings so
prescribed.
(3) The Secretary may waive any requirement of paragraph (1)
or any condition specified under section 454(16), and shall
waive the single statewide system requirement under sections
454(16) and 454A, with respect to a State if--
(A) the State demonstrates to the satisfaction of the
Secretary that the State has or can develop an
alternative system or systems that enable the State--
(i) for purposes of section 409(a)(8), to
achieve the paternity establishment percentages
(as defined in section 452(g)(2)) and other
performance measures that may be established by
the Secretary;
(ii) to submit data under section 454(15)(B)
that is complete and reliable;
(iii) to substantially comply with the
requirements of this part; and
(iv) in the case of a request to waive the
single statewide system requirement, to--
(I) meet all functional requirements
of sections 454(16) and 454A;
(II) ensure that calculation of
distributions meets the requirements of
section 457 and accounts for
distributions to children in different
families or in
different States or sub-State
jurisdictions, and for distributions to
other States;
(III) ensure that there is only one
point of contact in the State which
provides seamless case processing for
all interstate case processing and
coordinated, automated intrastate case
management;
(IV) ensure that standardized data
elements, forms, and definitions are
used throughout the State;
(V) complete the alternative system
in no more time than it would take to
complete a single statewide system that
meets such requirement; and
(VI) process child support cases as
quickly,
efficiently, and effectively as such
cases would be processed through a
single statewide system that meets such
requirement;
(B)(i) the waiver meets the criteria of paragraphs
(1), (2), and (3) of section 1115(c); or
(ii) the State provides assurances to the Secretary
that steps will be taken to otherwise improve the
State's child support enforcement program; and
(C) in the case of a request to waive the single
statewide system requirement, the State has submitted
to the Secretary separate estimates of the total cost
of a single statewide system that meets such
requirement, and of any such alternative system or
systems, which shall include estimates of the cost of
developing and completing the system and of operating
and maintaining the system for 5 years, and the
Secretary has agreed with the estimates.
(e) The Secretary shall provide such technical assistance to
States as he determines necessary to assist States to plan,
design, develop, or install and provide for the security of,
the management information systems referred to in section
454(16).
(f) The Secretary shall issue regulations to require that
State agencies administering the child support enforcement
program under this part [include medical support as part of any
child support order whenever and enforce medical support]
enforce medical support included as part of a child support
order health care coverage is available to the noncustodial
parent at a reasonable cost.
A State agency administering the program under this part is
authorized to enforce medical support against a custodial
parent whenever health care coverage is available to the
custodial parent at a reasonable cost, notwithstanding any
provision of this part (other than this sentence) that might be
construed to limit or bar such enforcement actions.
Such regulation shall also provide for improved information
exchange between such State agencies and the State agencies
administering the State medicaid programs under title XIX with
respect to the availability of health insurance coverage.
For purposes of this part, the term ``medical support'' may
include health care coverage, such as coverage under a health
insurance plan (including payment of costs of premiums, co-
payments, and deductibles) and payment for medical expenses
incurred on behalf of a child.
(g)(1) A State's program under this part shall be found, for
purposes of section 409(a)(8), not to have complied
substantially with the requirements of this part unless, for
any fiscal year beginning on or after October 1, 1994, its
paternity establishment percentage for such fiscal year is
based on reliable data and (rounded to the nearest whole
percentage point) equals or exceeds--
(A) 90 percent;
(B) for a State with a paternity establishment
percentage of not less than 75 percent but less than 90
percent for such fiscal year, the paternity
establishment percentage of the State for the
immediately preceding fiscal year plus 2 percentage
points;
(C) for a State with a paternity establishment
percentage of not less than 50 percent but less than 75
percent for such fiscal year, the paternity
establishment percentage of the State for the
immediately preceding fiscal year plus 3 percentage
points;
(D) for a State with a paternity establishment
percentage of not less than 45 percent but less than 50
percent for such fiscal year, the paternity
establishment percentage of the State for the
immediately preceding fiscal year plus 4 percentage
points;
(E) for a State with a paternity establishment
percentage of not less than 40 percent but less than 45
percent for such fiscal year, the paternity
establishment percentage of the State for the
immediately preceding fiscal year plus 5 percentage
points; or
(F) for a State with a paternity establishment
percentage of less than 40 percent for such fiscal
year, the paternity establishment percentage of the
State for the immediately preceding fiscal year plus 6
percentage points.
In determining compliance under this section, a State may use
as its paternity establishment percentage either the State's
IV-D paternity establishment percentage (as defined in
paragraph (2)(A)) or the State's statewide paternity
establishment percentage (as defined in paragraph (2)(B)).
(2) For purposes of this section--
(A) the term ``IV-D paternity establishment
percentage'' means, with respect to a State for a
fiscal year, the ratio (expressed as a percentage) that
the total number of children--
(i) who have been born out of wedlock,
(ii)(I) except as provided in the last
sentence of this paragraph, with respect to
whom assistance is being provided under the
State program funded under part A in the fiscal
year or, at the option of the State, as of the
end of such year, or (II) with respect to whom
services are being provided under the State's
plan approved under this part in the fiscal
year or, at the option of the State, as of the
end of such year pursuant to an application
submitted under section 454(4)(A)(ii), and
(iii) the paternity of whom has been
established or acknowledged,
bears to the total number of children born out of
wedlock and (except as provided in such last sentence)
with respect to whom assistance was being provided
under the State program funded under part A as of the
end of the preceding fiscal year or with respect to
whom services were being provided under the State's
plan approved under this part as of the end of the
preceding fiscal year pursuant to an application
submitted under section 454(4)(A)(ii);
(B) the term ``statewide paternity establishment
percentage'' means, with respect to a State for a
fiscal year, the ratio (expressed as a percentage) that
the total number of minor children--
(i) who have been born out of wedlock, and
(ii) the paternity of whom has been
established or acknowledged during the fiscal
year,
bears to the total number of children born out of
wedlock during the preceding fiscal year; and
(C) the term ``reliable data'' means the most recent
data available which are found by the Secretary to be
reliable for purposes of this section.
For purposes of subparagraphs (A) and (B), the total number of
children shall not include any child with respect to whom
assistance is being provided under the State program funded
under part A by reason of the death of a parent unless
paternity is established for such child or any child with
respect to whom an applicant or recipient is found by the State
to qualify for a good cause or other exception to cooperation
pursuant to section 454(29).
(3)(A) The Secretary may modify the requirements of this
subsection to take into account such additional variables as
the Secretary identifies (including the percentage of children
in a State who are born out of wedlock or for whom support has
not been established) that affect the ability of a State to
meet the requirements of this subsection.
(B) The Secretary shall submit an annual report to the
Congress that sets forth the data upon which the paternity
establishment percentages for States for a fiscal year are
based, lists any additional variables the Secretary has
identified under subparagraph (A), and describes State
performance in establishing paternity.
(h) The standards required by subsection (a)(1) shall include
standards establishing time limits governing the period or
periods within which a State must accept and respond to
requests (from States, jurisdictions thereof, or individuals
who apply for services furnished by the State agency under this
part or with respect to whom an assignment pursuant to section
408(a)(3) is in effect) for assistance in establishing and
enforcing support orders, including requests to locate
noncustodial parents, establish paternity, and initiate
proceedings to establish and collect child support awards.
(i) The standards required by subsection (a)(1) shall include
standards establishing time limits governing the period or
periods within which a State must distribute, in accordance
with section 457, amounts collected as child support pursuant
to the State's plan approved under this part.
(j) Out of any money in the Treasury of the United States not
otherwise appropriated, there is hereby appropriated to the
Secretary for each fiscal year an amount equal to 1 percent of
the total amount paid to the Federal Government pursuant to a
plan approved under this part during the immediately preceding
fiscal year (as determined on the basis of the most recent
reliable data available to the Secretary as of the end of the
third calendar quarter following the end of such preceding
fiscal year) or the amount appropriated under this paragraph
for fiscal year 2002, whichever is greater, which shall be
available for use by the Secretary, either directly or through
grants, contracts, or interagency agreements, for--
(1) information dissemination and technical
assistance to States, training of State and Federal
staff, staffing studies, and related activities needed
to improve programs under this part (including
technical assistance concerning State automated systems
required by this part); and
(2) research, demonstration, and special projects of
regional or national significance relating to the
operation of State programs under this part.
The amount appropriated under this subsection shall remain
available until expended.
(k)(1) If the Secretary receives a certification by a State
agency in accordance with the requirements of section 454(31)
that an individual owes arrearages of child support in an
amount exceeding [$5,000,] $2,500 the Secretary shall transmit
such certification to the Secretary of State for action (with
respect to denial, revocation, or limitation of passports)
pursuant to paragraph (2).
(2) The Secretary of State shall, upon certification by the
Secretary transmitted under paragraph (1), refuse to issue a
passport to such individual, and may revoke, restrict, or limit
a passport issued previously to such individual.
(3) The Secretary and the Secretary of State shall not be
liable to an individual for any action with respect to a
certification by a State agency under this section.
[(l) The Secretary, through the Federal Parent Locator
Service, may aid State agencies providing services under State
programs operated pursuant to this part and financial
institutions doing business in two or more States in reaching
agreements regarding the receipt from such institutions, and
the transfer to the State agencies, of information that may be
provided pursuant to section 466(a)(17)(A)(i), except that any
State that, as of the date of the enactment of this subsection,
is conducting data matches pursuant to section 466(a)(17)(A)(i)
shall have until January 1, 2000, to allow the Secretary to
obtain such information from such institutions that are
operating in the State. For purposes of section 1113(d) of the
Right to Financial Privacy Act of 1978, a disclosure pursuant
to this subsection shall be considered a disclosure pursuant to
a Federal statute.]
(l) Identification and Seizure of Assets Held by Multistate
Financial Institutions.--
(1) In general.--The Secretary, through the Federal
Parent Locator Service, is authorized--
(A) to assist State agencies operating
programs under this part and financial
institutions doing business in 2 or more States
in reaching agreements regarding the receipt
from such institutions, and the transfer to the
State agencies, of information that may be
provided pursuant to section 466(a)(17)(A)(i)
or 469A(a);
(B) to perform data matches comparing
information from such State agencies and
financial institutions entering into such
agreements with respect to individuals owing
past-due support; and
(C) to seize assets, held by such financial
institutions, of individuals identified through
such data matches who owe past-due support,
by--
(i) issuing a notice of lien or levy
to such financial institutions
requiring them to encumber such assets
for 30 calendar days and to
subsequently transfer such assets to
the Secretary (except that the
Secretary shall promptly release such
lien or levy within such 30-day period
upon request of the State agencies
responsible for collecting past-due
support from such individuals); and
(ii) providing notice to such
individuals of the lien or levy upon
their assets and informing them--
(I) of their procedural due
process rights, including the
opportunity to contest such
lien or levy to the appropriate
State agency; and
(II) in the case of jointly
owned assets, of the process by
which other owners may secure
their respective share of such
assets, according to such
policies and procedures as the
Secretary may specify with
respect to seizure of such
assets.
(2) Transfer of funds to states.--Assets seized from
individuals under paragraph (1)(C) shall be promptly
transferred by the Secretary to the State agencies
responsible for collecting past-due support from such
individuals for distribution pursuant to section 457.
(3) Relationship to state laws.--Notwithstanding any
provision of State law, an individual receiving a
notice under paragraph (1)(C) shall have 21 calendar
days from the date of such notice to contest the lien
or levy imposed under such paragraph by requesting an
administrative review by the State agency responsible
for collecting past-due support from such individual.
(4) Treatment of disclosures.--For purposes of
section 1113(d) of the Right to Financial Privacy Act
of 1978, a disclosure pursuant to this subsection shall
be considered a disclosure pursuant to a Federal
statute.
(m) Comparisons With Insurance Information.--
(1) In general.--The Secretary, through the Federal
Parent Locator Service, is authorized--
(A) to compare information concerning
individuals owing past-due support with
information maintained by insurers (or their
agents) concerning insurance claims,
settlements, awards, and payments; and
(B) to furnish information resulting from
such data matches to the State agencies
responsible for collecting child support from
such individuals.
(2) Liability.--No insurer (including any agent of an
insurer) shall be liable under any Federal or State law
to any person for any disclosure provided for under
this subsection, or for any other action taken in good
faith in accordance with the provisions of this
subsection.
FEDERAL PARENT LOCATOR SERVICE
Sec. 453. (a)(1) The Secretary shall establish and conduct a
Federal Parent Locator Service, under the direction of the
designee of the Secretary referred to in section 452(a), which
shall be used for the purposes specified in paragraphs (2) and
(3).
(2) For the purpose of establishing parentage or
establishing, setting the amount of, modifying, or enforcing
child support obligations, the Federal Parent Locator Service
shall obtain and transmit to any authorized person specified in
subsection (c)--
(A) information on, or facilitating the discovery of,
the location of any individual--
(i) who is under an obligation to pay child
support;
(ii) against whom such an obligation is
sought;
(iii) to whom such an obligation is owed; or
(iv) who has or may have parental rights with
respect to a child,
including the individual's social security number (or
numbers), most recent address, and the name, address,
and employer identification number of the individual's
employer;
(B) information on the individual's wages (or other
income) from, and benefits of, employment (including
rights to or enrollment in group health care coverage);
and
(C) information on the type, status, location, and
amount of any assets of, or debts owed by or to, any
such individual.
(3) For the purpose of enforcing any Federal or State law
with respect to the unlawful taking or restraint of a child, or
making or enforcing a child custody or visitation
determination, as defined in section 463(d)(1), the Federal
Parent Locator Service shall be used to obtain and transmit the
information specified in section 463(c) to the authorized
persons specified in section 463(d)(2).
(b)(1) Upon request, filed in accordance with subsection (d),
of any authorized person, as defined in subsection (c) for the
information described in subsection (a)(2), or of any
authorized person, as defined in section 463(d)(2) for the
information described in section 463(c), the Secretary shall,
notwithstanding any other provision of law, provide through the
Federal Parent Locator Service such information to such person,
if such information--
(A) is contained in any files or records maintained
by the Secretary or by the Department of Health and
Human Services; or
(B) is not contained in such files or records, but
can be obtained by the Secretary, under the authority
conferred by subsection (e), from any other department,
agency, or instrumentality of the United States or of
any State,
and is not prohibited from disclosure under paragraph (2).
(2) No information shall be disclosed to any person if the
disclosure of such information would contravene the national
policy or security interests of the United States or the
confidentiality of census data. The Secretary shall give
priority to requests made by any authorized person described in
subsection (c)(1). No information shall be disclosed to any
person if the State has notified the Secretary that the State
has reasonable evidence of domestic violence or child abuse and
the disclosure of such information could be harmful to the
custodial parent or the child of such parent, provided that--
(A) in response to a request from an authorized
person (as defined in subsection (c) of this section
and section 463(d)(2)), the Secretary shall advise the
authorized person that the Secretary has been notified
that there is reasonable evidence of domestic violence
or child abuse and that information can only be
disclosed to a court or an agent of a court pursuant to
subparagraph (B); and
(B) information may be disclosed to a court or an
agent of a court described in subsection (c)(2) of this
section or section 463(d)(2)(B), if--
(i) upon receipt of information from the
Secretary, the court determines whether
disclosure to any other person of that
information could be harmful to the parent or
the child; and
(ii) if the court determines that disclosure
of such information to any other person could
be harmful, the court and its agents shall not
make any such disclosure.
(3) Information received or transmitted pursuant to this
section shall be subject to the safeguard provisions contained
in section 454(26).
(c) As used in subsection (a), the term ``authorized person''
means--
(1) any agent or attorney of any State or Indian
tribe or tribal organization having in effect a plan
approved under this part, who has the duty or authority
under such plans to seek to recover any amounts owed as
child and spousal support (including, when authorized
under the State plan, any official of a political
subdivision);
(2) the court which has authority to issue an order
or to serve as the initiating court in an action to
seek an order against a noncustodial parent for the
support and maintenance of a child, or any agent of
such court;
(3) the resident parent, legal guardian, attorney, or
agent of a child (other than a child receiving
assistance under a State program funded under part A
(as determined by regulations prescribed by the
Secretary) without regard to the existence of a court
order against a noncustodial parent who has a duty to
support and maintain any such child; and
(4) a State agency that is administering a program
operated under a State plan under subpart 1 of part B,
or a State plan approved under subpart 2 of part B or
under part E.
(d) A request for information under this section shall be
filed in such manner and form as the Secretary shall by
regulation prescribe and shall be accompanied or supported by
such documents as the Secretary may determine to be necessary.
(e)(1) Whenever the Secretary receives a request submitted
under subsection (b) which he is reasonably satisfied meets the
criteria established by subsections (a), (b), and (c), he shall
promptly undertake to provide the information requested from
the files and records maintained by any of the departments,
agencies, or instrumentalities of the United States or of any
State.
(2) Notwithstanding any other provision of law, whenever the
individual who is the head of any department, agency, or
instrumentality of the United States receives a request from
the Secretary for information authorized to be provided by the
Secretary under this section, such individual shall promptly
cause a search to be made of the files and records maintained
by such department, agency, or instrumentality with a view to
determining whether the information requested is contained in
any such files or records. If such search discloses the
information requested, such individual shall immediately
transmit such information to the Secretary, except that if any
information is obtained the disclosure of which would
contravene national policy or security interests of the United
States or the confidentiality of census data, such information
shall not be transmitted and such individual shall immediately
notify the Secretary. If such search fails to disclose the
information requested, such individual shall immediately so
notify the Secretary. The costs incurred by any such
department, agency, or instrumentality of the United States or
of any State in providing such information to the Secretary
shall be reimbursed by him in an amount which the Secretary
determines to be reasonable payment for the information
exchange (which amount shall not include payment for the costs
of obtaining, compiling, or maintaining the information).
Whenever such services are furnished to an individual specified
in subsection (c)(3), a fee shall be charged such individual.
The fee so charged shall be used to reimburse the Secretary or
his delegate for the expense of providing such services.
(3) The Secretary of Labor shall enter into an agreement with
the Secretary to provide prompt access for the Secretary (in
accordance with this subsection) to the wage and unemployment
compensation claims information and data maintained by or for
the Department of Labor or State employment security agencies.
(f) The Secretary, in carrying out his duties and functions
under this section, shall enter into arrangements with State
agencies administering State plans approved under this part for
such State agencies to accept from resident parents, legal
guardians, or agents of a child described in subsection (c)(3)
and to transmit to the Secretary requests for information with
regard to the whereabouts of noncustodial parents and otherwise
to cooperate with the Secretary in carrying out the purposes of
this section.
(g) Reimbursement for Reports by State Agencies.--The
Secretary may reimburse Federal and State agencies for the
costs incurred by such entities in furnishing information
requested by the Secretary under this section in an amount
which the Secretary determines to be reasonable payment for the
information exchange (which amount shall not include payment
for the costs of obtaining, compiling, or maintaining the
information).
(h) Federal Case Registry of Child Support Orders.--
(1) In general.--Not later than October 1, 1998, in
order to assist States in administering programs under
State plans approved under this part and programs
funded under part A, and for the other purposes
specified in this section, the Secretary shall
establish and maintain in the Federal Parent Locator
Service an automated registry (which shall be known as
the ``Federal Case Registry of Child Support Orders''),
which shall contain abstracts of support orders and
other information described in paragraph (2) with
respect to each case and order in each State case
registry maintained pursuant to section 454A(e), as
furnished (and regularly updated), pursuant to section
454A(f), by State agencies administering programs under
this part.
(2) Case and order information.--The information
referred to in paragraph (1) with respect to a case or
an order shall be such information as the Secretary may
specify in regulations (including the names, social
security numbers or other uniform identification
numbers, and State case identification numbers) to
identify the individuals who owe or are owed support
(or with respect to or on behalf of whom support
obligations are sought to be established), and the
State or States which have the case or order. Beginning
not later than October 1, 1999, the information
referred to in paragraph (1) shall include the names
and social security numbers of the children of such
individuals.
(3) Administration of federal tax laws.--The
Secretary of the Treasury shall have access to the
information described in paragraph (2) for the purpose
of administering those sections of the Internal Revenue
Code of 1986 which grant tax benefits based on support
or residence of children.
(i) National Directory of New Hires.--
(1) In general.--In order to assist States in
administering programs under State plans approved under
this part and programs funded under part A, and for the
other purposes specified in this section, the Secretary
shall, not later than October 1, 1997, establish and
maintain in the Federal Parent Locator Service an
automated directory to be known as the National
Directory of New Hires, which shall contain the
information supplied pursuant to section 453A(g)(2).
(2) Data entry and deletion requirements.--
(A) In general.--Information provided
pursuant to section 453A(g)(2) shall be entered
into the data base maintained by the National
Directory of New Hires within two business days
after receipt, and shall be deleted from the
data base 24 months after the date of entry.
(B) 12-month limit on access to wage and
unemployment compensation information.--The
Secretary shall not have access for child
support enforcement purposes to information in
the National Directory of New Hires that is
provided pursuant to section 453A(g)(2)(B), if
12 months has elapsed since the date the
information is so provided and there has not
been a match resulting from the use of such
information in any information comparison under
this subsection.
(C) Retention of data for research
purposes.--Notwithstanding subparagraphs (A)
and (B), the Secretary may retain such samples
of data entered in the National Directory of
New Hires as the Secretary may find necessary
to assist in carrying out subsection ( j)(5).
(3) Administration of federal tax laws.--The
Secretary of the Treasury shall have access to the
information in the National Directory of New Hires for
purposes of administering section 32 of the Internal
Revenue Code of 1986, or the advance payment of the
earned income tax credit under section 3507 of such
Code, and verifying a claim with respect to employment
in a tax return.
(4) List of multistate employers.--The Secretary
shall maintain within the National Directory of New
Hires a list of multistate employers that report
information regarding newly hired employees pursuant to
section 453A(b)(1)(B), and the State which each such
employer has designated to receive such information.
``(5) Calculation of employment credit for purposes
of determining state work participation rates under
tanf.--The Secretary may use the information in the
National Directory of New Hires for purposes of
calculating State employment credits pursuant to
section 407(b)(2).''.
* * * * * * *
(j) Information Comparisons and Other Disclosures.--
(1) Verification by social security administration.--
(A) In general.--The Secretary shall transmit
information on individuals and employers
maintained under this section to the Social
Security Administration to the extent necessary
for verification in accordance with
subparagraph (B).
(B) Verification by ssa.--The Social Security
Administration shall verify the accuracy of,
correct, or supply to the extent possible, and
report to the Secretary, the following
information supplied by the Secretary pursuant
to subparagraph (A):
(i) The name, social security number,
and birth date of each such individual.
(ii) The employer identification
number of each such employer.
(2) Information comparisons.--For the purpose of
locating individuals in a paternity establishment case
or a case involving the establishment, modification, or
enforcement of a support order, the Secretary shall--
(A) compare information in the National
Directory of New Hires against information in
the support case abstracts in the Federal Case
Registry of Child Support Orders not less often
than every 2 business days; and
(B) within 2 business days after such a
comparison reveals a match with respect to an
individual, report the information to the State
agency responsible for the case.
(3) Information comparisons and disclosures of
information in all registries for title iv program
purposes.--To the extent and with the frequency that
the Secretary determines to be effective in assisting
States to carry out their responsibilities under
programs operated under this part and programs funded
under part A, the Secretary shall--
(A) compare the information in each component
of the Federal Parent Locator Service
maintained under this section against the
information in each other such component (other
than the comparison required by paragraph (2)),
and report instances in which such a comparison
reveals a match with respect to an individual
to State agencies operating such programs; and
(B) disclose information in such components
to such State agencies.
(4) Provision of new hire information to the social
security administration.--The National Directory of New
Hires shall provide the Commissioner of Social Security
with all information in the National Directory.
(5) Research.--The Secretary may provide access to
data in each component of the Federal Parent Locator
Service maintained under this section and to
information reported by employers pursuant to section
453A(b) for research purposes found by the Secretary to
be likely to contribute to achieving the purposes of
part A or this part, but without personal identifiers.
(6) Information comparisons and disclosure for
enforcement of obligations on higher education act
loans and grants.--
(A) Furnishing of information by the
secretary of education.--The Secretary of
Education shall furnish to the Secretary, on a
quarterly basis or at such less frequent
intervals as may be determined by the Secretary
of Education, information in the custody of the
Secretary of Education for comparison with
information in the National Directory of New
Hires, in order to obtain the information in
such directory with respect to individuals
who--
(i) are borrowers of loans made under
title IV of the Higher Education Act of
1965 that are in default; or
(ii) owe an obligation to refund an
overpayment of a grant awarded under
such title.
(B) Requirement to seek minimum information
necessary.--The Secretary of Education shall
seek information pursuant to this section only
to the extent essential to improving collection
of the debt described in subparagraph (A).
(C) Duties of the secretary.--
(i) Information comparison;
disclosure to the secretary of
education.--The Secretary, in
cooperation with the Secretary of
Education, shall compare information in
the National Directory of New Hires
with information in the custody of the
Secretary of Education, and disclose
information in that Directory to the
Secretary of Education, in accordance
with this paragraph, for the purposes
specified in this paragraph.
(ii) Condition on disclosure.--The
Secretary shall make disclosures in
accordance with clause (i) only to the
extent that the Secretary determines
that such disclosures do not interfere
with the effective operation of the
program under this part. Support
collection under section 466(b) shall
be given priority over collection of
any defaulted student loan or grant
overpayment against the same income.
(D) Use of information by the secretary of
education.--The Secretary of Education may use
information resulting from a data match
pursuant to this paragraph only--
(i) for the purpose of collection of
the debt described in subparagraph (A)
owed by an individual whose annualized
wage level (determined by taking into
consideration information from the
National Directory of New Hires)
exceeds $16,000; and
(ii) after removal of personal
identifiers, to conduct analyses of
student loan defaults.
(E) Disclosure of information by the
secretary of education.--
(i) Disclosures permitted.--The
Secretary of Education may disclose
information resulting from a data match
pursuant to this paragraph only to--
(I) a guaranty agency holding
a loan made under part B of
title IV of the Higher
Education Act of 1965 on which
the individual is obligated;
(II) a contractor or agent of
the guaranty agency described
in subclause (I);
(III) a contractor or agent
of the Secretary; and
(IV) the Attorney General.
(ii) Purpose of disclosure.--The
Secretary of Education may make a
disclosure under clause (i) only for
the purpose of collection of the debts
owed on defaulted student loans, or
overpayments of grants, made under
title IV of the Higher Education Act of
1965.
(iii) Restriction on redisclosure.--
An entity to which information is
disclosed under clause (i) may use or
disclose such information only as
needed for the purpose of collecting on
defaulted student loans, or
overpayments of grants, made under
title IV of the Higher Education Act of
1965.
(F) Reimbursement of hhs costs.--The
Secretary of Education shall reimburse the
Secretary, in accordance with subsection
(k)(3), for the [additional] costs incurred by
the Secretary in furnishing the information
requested under this subparagraph.
(7) Information comparisons for housing assistance
programs.--
(A) Furnishing of information by hud.--
Subject to subparagraph (G), the Secretary of
Housing and Urban Development shall furnish to
the Secretary, on such periodic basis as
determined by the Secretary of Housing and
Urban Development in consultation with the
Secretary, information in the custody of the
Secretary of Housing and Urban Development for
comparison with information in the National
Directory of New Hires, in order to obtain
information in such Directory with respect to
individuals who are participating in any
program under--
(i) the United States Housing Act of
1937 (42 U.S.C. 1437 et seq.);
(ii) section 202 of the Housing Act
of 1959 (12 U.S.C. 1701q);
(iii) section 221(d)(3), 221(d)(5),
or 236 of the National Housing Act (12
U.S.C. 1715l(d) and 1715z-1);
(iv) section 811 of the Cranston-
Gonzalez National Affordable Housing
Act (42 U.S.C. 8013); or
(v) section 101 of the Housing and
Urban Development Act of 1965 (12
U.S.C. 1701s).
(B) Requirement to seek minimum
information.--The Secretary of Housing and
Urban Development shall seek information
pursuant to this section only to the extent
necessary to verify the employment and income
of individuals described in subparagraph (A).
(C) Duties of the secretary.--
(i) Information disclosure.--The
Secretary, in cooperation with the
Secretary of Housing and Urban
Development, shall compare information
in the National Directory of New Hires
with information provided by the
Secretary of Housing and Urban
Development with respect to individuals
described in subparagraph (A), and
shall disclose information in such
Directory regarding such individuals to
the Secretary of Housing and Urban
Development, in accordance with this
paragraph, for the purposes specified
in this paragraph.
(ii) Condition on disclosure.--The
Secretary shall make disclosures in
accordance with clause (i) only to the
extent that the Secretary determines
that such disclosures do not interfere
with the effective operation of the
program under this part.
(D) Use of information by hud.--The Secretary
of Housing and Urban Development may use
information resulting from a data match
pursuant to this paragraph only--
(i) for the purpose of verifying the
employment and income of individuals
described in subparagraph (A); and
(ii) after removal of personal
identifiers, to conduct analyses of the
employment and income reporting of
individuals described in subparagraph
(A).
(E) Disclosure of information by hud.--
(i) Purpose of disclosure.--The
Secretary of Housing and Urban
Development may make a disclosure under
this subparagraph only for the purpose
of verifying the employment and income
of individuals described in
subparagraph (A).
(ii) Disclosures permitted.--Subject
to clause (iii), the Secretary of
Housing and Urban Development may
disclose information resulting from a
data match pursuant to this paragraph
only to a public housing agency, the
Inspector General of the Department of
Housing and Urban Development, and the
Attorney General in connection with the
administration of a program described
in subparagraph (A). Information
obtained by the Secretary of Housing
and Urban Development pursuant to this
paragraph shall not be made available
under section 552 of title 5, United
States Code.
(iii) Conditions on disclosure.--
Disclosures under this paragraph shall
be--
(I) made in accordance with
data security and control
policies established by the
Secretary of Housing and Urban
Development and approved by the
Secretary;
(II) subject to audit in a
manner satisfactory to the
Secretary; and
(III) subject to the
sanctions under subsection
(l)(2).
(iv) Additional disclosures.--
(I) Determination by
secretaries.--The Secretary of
Housing and Urban Development
and the Secretary shall
determine whether to permit
disclosure of information under
this paragraph to persons or
entities described in subclause
(II), based on an evaluation
made by the Secretary of
Housing and Urban Development
(in consultation with and
approved by the Secretary), of
the costs and benefits of
disclosures made under clause
(ii) and the adequacy of
measures used to safeguard the
security and confidentiality of
information so disclosed.
(II) Permitted persons or
entities.--If the Secretary of
Housing and Urban Development
and the Secretary determine
pursuant to subclause (I) that
disclosures to additional
persons or entities shall be
permitted, information under
this paragraph may be disclosed
by the Secretary of Housing and
Urban Development to a private
owner, a management agent, and
a contract administrator in
connection with the
administration of a program
described in subparagraph (A),
subject to the conditions in
clause (iii) and such
additional conditions as agreed
to by the Secretaries.
(v) Restrictions on redisclosure.--A
person or entity to which information
is disclosed under this subparagraph
may use or disclose such information
only as needed for verifying the
employment and income of individuals
described in subparagraph (A), subject
to the conditions in clause (iii) and
such additional conditions as agreed to
by the Secretaries.
(F) Reimbursement of hhs costs.--The
Secretary of Housing and Urban Development
shall reimburse the Secretary, in accordance
with subsection (k)(3), for the costs incurred
by the Secretary in furnishing the information
requested under this paragraph.
(G) Consent.--The Secretary of Housing and
Urban Development shall not seek, use, or
disclose information under this paragraph
relating to an individual without the prior
written consent of such individual (or of a
person legally authorized to consent on behalf
of such individual).
(8) Information comparisons and disclosure to assist
in administration of unemployment compensation
programs.--
(A) In general.--If, for purposes of
administering an unemployment compensation
program under Federal or State law, a State
agency responsible for the administration of
such program transmits to the Secretary the
names and social security account numbers of
individuals, the Secretary shall disclose to
such State agency information on such
individuals and their employers maintained in
the National Directory of New Hires, subject to
this paragraph.
(B) Condition on disclosure by the
secretary.--The Secretary shall make a
disclosure under subparagraph (A) only to the
extent that the Secretary determines that the
disclosure would not interfere with the
effective operation of the program under this
part.
(C) Use and disclosure of information by
state agencies.--
(i) In general.--A State agency may
not use or disclose information
provided under this paragraph except
for purposes of administering a program
referred to in subparagraph (A).
(ii) Information security.--The State
agency shall have in effect data
security and control policies that the
Secretary finds adequate to ensure the
security of information obtained under
this paragraph and to ensure that
access to such information is
restricted to authorized persons for
purposes of authorized uses and
disclosures.
(iii) Penalty for misuse of
information.--An officer or employee of
the State agency who fails to comply
with this subparagraph shall be subject
to the sanctions under subsection
(l)(2) to the same extent as if such
officer or employee was an officer or
employee of the United States.
(D) Procedural requirements.--State agencies
requesting information under this paragraph
shall adhere to uniform procedures established
by the Secretary governing information requests
and data matching under this paragraph.
(E) Reimbursement of costs.--The State agency
shall reimburse the Secretary, in accordance
with subsection (k)(3), for the costs incurred
by the Secretary in furnishing the information
requested under this paragraph.
[(7)] (9) Information comparisons and disclosure to
assist in federal debt collection.--
(A) Furnishing of information by the
secretary of the treasury.--The Secretary of
the Treasury shall furnish to the Secretary, on
such periodic basis as determined by the
Secretary of the Treasury in consultation with
the Secretary, information in the custody of
the Secretary of the Treasury for comparison
with information in the National Directory of
New Hires, in order to obtain information in
such Directory with respect to persons--
(i) who owe delinquent nontax debt to
the United States; and
(ii) whose debt has been referred to
the Secretary of the Treasury in
accordance with 31 U.S.C. 3711(g).
(B) Requirement to seek minimum
information.--The Secretary of the Treasury
shall seek information pursuant to this section
only to the extent necessary to improve
collection of the debt described in
subparagraph (A).
(C) Duties of the secretary.--
(i) Information disclosure.--The
Secretary, in cooperation with the
Secretary of the Treasury, shall
compare information in the National
Directory of New Hires with information
provided by the Secretary of the
Treasury with respect to persons
described in subparagraph (A) and shall
disclose information in such Directory
regarding such persons to the Secretary
of the Treasury in accordance with this
paragraph, for the purposes specified
in this paragraph. Such comparison of
information shall not be considered a
matching program as defined in 5 U.S.C.
552a.
(ii) Condition on disclosure.--The
Secretary shall make disclosures in
accordance with clause (i) only to the
extent that the Secretary determines
that such disclosures do not interfere
with the effective operation of the
program under this part. Support
collection under section 466(b) of this
title shall be given priority over
collection of any delinquent Federal
nontax debt against the same income.
(D) Use of information by the secretary of
the treasury.--The Secretary of the Treasury
may use information provided under this
paragraph only for purposes of collecting the
debt described in subparagraph (A).
(E) Disclosure of information by the
secretary of the treasury.--
(i) Purpose of disclosure.--The
Secretary of the Treasury may make a
disclosure under this subparagraph only
for purposes of collecting the debt
described in subparagraph (A).
(ii) Disclosures permitted.--Subject
to clauses (iii) and (iv), the
Secretary of the Treasury may disclose
information resulting from a data match
pursuant to this paragraph only to the
Attorney General in connection with
collecting the debt described in
subparagraph (A).
(iii) Conditions on disclosure.--
Disclosures under this subparagraph
shall be--
(I) made in accordance with
data security and control
policies established by the
Secretary of the Treasury and
approved by the Secretary;
(II) subject to audit in a
manner satisfactory to the
Secretary; and
(III) subject to the
sanctions under subsection
(l)(2).
(iv) Additional disclosures.--
(I) Determination by
secretaries.--The Secretary of
the Treasury and the Secretary
shall determine whether to
permit disclosure of
information under this
paragraph to persons or
entities described in subclause
(II), based on an evaluation
made by the Secretary of the
Treasury (in consultation with
and approved by the Secretary),
of the costs and benefits of
such disclosures and the
adequacy of measures used to
safeguard the security and
confidentiality of information
so disclosed.
(II) Permitted persons or
entities.--If the Secretary of
the Treasury and the Secretary
determine pursuant to subclause
(I) that disclosures to
additional persons or entities
shall be permitted, information
under this paragraph may be
disclosed by the Secretary of
the Treasury, in connection
with collecting the debt
described in subparagraph (A),
to a contractor or agent of
either Secretary and to the
Federal agency that referred
such debt to the Secretary of
the Treasury for collection,
subject to the conditions in
clause (iii) and such
additional conditions as agreed
to by the Secretaries.
(v) Restrictions on redisclosure.--A
person or entity to which information
is disclosed under this subparagraph
may use or disclose such information
only as needed for collecting the debt
described in subparagraph (A), subject
to the conditions in clause (iii) and
such additional conditions as agreed to
by the Secretaries.
(F) Reimbursement of hhs costs.--The
Secretary of the Treasury shall reimburse the
Secretary, in accordance with subsection
(k)(3), for the costs incurred by the Secretary
in furnishing the information requested under
this paragraph. Any such costs paid by the
Secretary of the Treasury shall be considered
costs of implementing 31 U.S.C. 3711(g) in
accordance with 31 U.S.C. 3711(g)(6) and may be
paid from the account established pursuant to
31 U.S.C. 3711(g)(7).
(k) Fees.--
(1) For ssa verification.--The Secretary shall
reimburse the Commissioner of Social Security, at a
rate negotiated between the Secretary and the
Commissioner, for the costs incurred by the
Commissioner in performing the verification services
described in subsection (j).
(2) For information from state directories of new
hires.--The Secretary shall reimburse costs incurred by
State directories of new hires in furnishing
information as required by section 453A(g)(2), at rates
which the Secretary determines to be reasonable (which
rates shall not include payment for the costs of
obtaining, compiling, or maintaining such information).
(3) For information and enforcement services
furnished to state and federal agencies.--A State or
Federal agency that receives information or
enforcement services from the Secretary pursuant to
this section or subsection (l) or (m) of section 452
shall reimburse the Secretary for costs incurred by the
Secretary [in furnishing the information] in furnishing
such information or enforcement services, at rates
which the Secretary determines to be reasonable (which
rates shall include payment for the costs of obtaining,
verifying, maintaining, and comparing the information).
(l) Restriction on Disclosure and Use.--
(1) In general.--Information in the Federal Parent
Locator Service, and information resulting from
comparisons using such information, shall not be used
or disclosed except as expressly provided in this
section, subject to section 6103 of the Internal
Revenue Code of 1986.
(2) Penalty for misuse of information in the national
directory of new hires.--The Secretary shall require
the imposition of an administrative penalty (up to and
including dismissal from employment), and a fine of
$1,000, for each act of unauthorized access to,
disclosure of, or use of, information in the National
Directory of New Hires established under subsection (i)
by any officer or employee of the United States or any
other person who knowingly and willfully violates this
paragraph.
(m) Information Integrity and Security.--The Secretary shall
establish and implement safeguards with respect to the entities
established under this section designed to--
(1) ensure the accuracy and completeness of
information in the Federal Parent Locator Service; and
(2) restrict access to confidential information in
the Federal Parent Locator Service to authorized
persons, and restrict use of such information to
authorized purposes.
(n) Federal Government Reporting.--Each department, agency,
and instrumentality of the United States shall on a quarterly
basis report to the Federal Parent Locator Service the name and
social security number of each employee and the wages paid to
the employee during the previous quarter, except that such a
report shall not be filed with respect to an employee of a
department, agency, or instrumentality performing intelligence
or counterintelligence functions, if the head of such
department, agency, or instrumentality has determined that
filing such a report could endanger the safety of the employee
or compromise an ongoing investigation or intelligence mission.
(o) Use of Set-Aside Funds.--Out of any money in the Treasury
of the United States not otherwise appropriated, there is
hereby appropriated to the Secretary for each fiscal year an
amount equal to 2 percent of the total amount paid to the
Federal Government pursuant to a plan approved under this part
during the immediately preceding fiscal year (as determined on
the basis of the most recent reliable data available to the
Secretary as of the end of the third calendar quarter following
the end of such preceding fiscal year), or the amount
appropriated under this paragraph for fiscal year 2002,
whichever is greater which shall be available for use by the
Secretary, either directly or through grants, contracts, or
interagency agreements, for operation of the Federal Parent
Locator Service under this section, to the extent such costs
are not recovered through user fees. Amounts appropriated under
this subsection [for each of fiscal years 1997 through 2001]
shall remain available until expended.
(p) Support Order Defined.--As used in this part, the term
``support order'' means a judgment, decree, or order, whether
temporary, final, or subject to modification, issued by a court
or an administrative agency of competent jurisdiction, for the
support and maintenance of a child, including a child who has
attained the age of majority under the law of the issuing
State, or of the parent with whom the child is living, which
provides for monetary support, health care, arrearages, or
reimbursement, and which may include related costs and fees,
interest and penalties, income withholding, attorneys' fees,
and other relief.
SEC. 453A. [42 U.S.C. 653A] STATE DIRECTORY OF NEW HIRES.
(a) Establishment.--
(1) In general.--
(A) Requirement for states that have no
directory.--Except as provided in subparagraph
(B), not later than October 1, 1997, each State
shall establish an automated directory (to be
known as the ``State Directory of New Hires'')
which shall contain information supplied in
accordance with subsection (b) by employers on
each newly hired employee.
(B) States with new hire reporting law in
existence.--A State which has a new hire
reporting law in existence on the date of the
enactment of this section may continue to
operate under the State law, but the State must
meet the requirements of subsection (g)(2) not
later than October 1, 1997, and the
requirements of this section (other than
subsection (g)(2)) not later than October 1,
1998.
(2) Definitions.--As used in this section:
(A) Employee.--The term ``employee''--
(i) means an individual who is an
employee within the meaning of chapter
24 of the Internal Revenue Code of
1986; and
(ii) does not include an employee of
a Federal or State agency performing
intelligence or counterintelligence
functions, if the head of such agency
has determined that reporting pursuant
to paragraph (1) with respect to the
employee could endanger the safety of
the employee or compromise an ongoing
investigation or intelligence mission.
(B) Employer.--
(i) In general.--The term
``employer'' has the meaning given such
term in section 3401(d) of the Internal
Revenue Code of 1986 and includes any
governmental entity and any labor
organization.
(ii) Labor organization.--The term
``labor organization'' shall have the
meaning given such term in section 2(5)
of the National Labor Relations Act,
and includes any entity (also known as
a ``hiring hall'') which is used by the
organization and an employer to carry
out requirements described in section
8(f)(3) of such Act of an agreement
between the organization and the
employer.
(b) Employer Information.--
(1) Reporting requirement.--
(A) In general.--Except as provided in
subparagraphs (B) and (C), each employer shall
furnish to the Directory of New Hires of the
State in which a newly hired employee works, a
report that contains the name, address, and
social security number of the employee, and the
name and address of, and identifying number
assigned under section 6109 of the Internal
Revenue Code of 1986 to, the employer.
(B) Multistate employers.--An employer that
has employees who are employed in 2 or more
States and that transmits reports magnetically
or electronically may comply with subparagraph
(A) by designating 1 State in which such
employer has employees to which the employer
will transmit the report described in
subparagraph (A), and transmitting such report
to such State. Any employer that transmits
reports pursuant to this subparagraph shall
notify the Secretary in writing as to which
State such employer designates for the purpose
of sending reports.
(C) Federal government employers.--Any
department, agency, or instrumentality of the
United States shall comply with subparagraph
(A) by transmitting the report described in
subparagraph (A) to the National Directory of
New Hires established pursuant to section 453.
(2) Timing of report.--Each State may provide the
time within which the report required by paragraph (1)
shall be made with respect to an employee, but such
report shall be made--
(A) not later than 20 days after the date the
employer hires the employee; or
(B) in the case of an employer transmitting
reports magnetically or electronically, by 2
monthly transmissions (if necessary) not less
than 12 days nor more than 16 days apart.
(c) Reporting Format and Method.--Each report required by
subsection (b) shall be made on a W-4 form or, at the option of
the employer, an equivalent form, and may be transmitted by 1st
class mail, magnetically, or electronically.
(d) Civil Money Penalties on Noncomplying Employers.--The
State shall have the option to set a State civil money penalty
which shall not exceed--
(1) $25 per failure to meet the requirements of this
section with respect to a newly hired employee; or
(2) $500 if, under State law, the failure is the
result of a conspiracy between the employer and the
employee to not supply the required report or to supply
a false or incomplete report.
(e) Entry of Employer Information.--Information shall be
entered into the data base maintained by the State Directory of
New Hires within 5 business days of receipt from an employer
pursuant to subsection (b).
(f) Information Comparisons.--
(1) In general.--Not later than May 1, 1998, an
agency designated by the State shall, directly or by
contract, conduct automated comparisons of the social
security numbers reported by employers pursuant to
subsection (b) and the social security numbers
appearing in the records of the State case registry for
cases being enforced under the State plan.
(2) Notice of match.--When an information comparison
conducted under paragraph (1) reveals a match with
respect to the social security number of an individual
required to provide support under a support order, the
State Directory of New Hires shall provide the agency
administering the State plan approved under this part
of the appropriate State with the name, address, and
social security number of the employee to whom the
social security number is assigned, and the name
* * * * * * *
STATE PLAN FOR CHILD AND SPOUSAL SUPPORT
Sec. 454. A State plan for child and spousal support must--
* * * * * * *
(31) provide that the State agency will have in
effect a procedure for certifying to the Secretary, for
purposes of the procedure under section 452(k),
determinations that individuals owe arrearages of child
support in an amount exceeding [$5,000] $2,500, under
which procedure--
* * * * * * *
(C) provide that no applications will be required
from, and no costs will be assessed for such services
against, the foreign reciprocating country or foreign
obligee (but costs may at State option be assessed
against the obligor); [and]
(33) provide that a State [that receives funding
pursuant to section 428 and] that has within its
borders Indian country (as defined in section 1151 of
title 18, United States Code) may enter into
cooperative agreements with an Indian tribe or tribal
organization (as defined in subsections (e) and (l) of
section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b)), if the
Indian tribe or tribal organization demonstrates that
such tribe or organization has an established tribal
court system or a Court of Indian Offenses with the
authority to establish paternity, establish, modify, or
enforce support orders, or to enter support orders in
accordance with child support guidelines established or
adopted by such tribe or organization, under which the
State and tribe or organization shall provide for the
cooperative delivery of child support enforcement
services in Indian country and for the forwarding of
all collections pursuant to the functions performed by
the tribe or organization to the State agency, or
conversely, by the State agency to the tribe or
organization, which shall distribute such collections
in accordance with such agreement.
The State may allow the jurisdiction which makes the collection
involved to retain any application fee under paragraph (6)(B)
or any late payment fee under paragraph (21). Nothing in
paragraph (33) shall void any provision of any cooperative
agreement entered into before the date of the enactment of such
paragraph, nor shall such paragraph deprive any State of
jurisdiction over Indian country (as so defined) that is
lawfully exercised under section 402 of the Act entitled ``An
Act to prescribe penalties for certain acts of violence or
intimidation, and for other purposes'', approved April 11, 1968
(25 U.S.C. 1322)[.];
(34) include an election by the State to apply
section 457(a)(2)(B) of this Act or former section
457(a)(2)(B) of this Act (as in effect for the State
immediately before the date this paragraph first
applies to the State) to the distribution of the
amounts which are the subject of such sections and, for
so long as the State elects to so apply such former
section, the amendments made by section 301(d)(1) of
the Personal Responsibility and Individual Development
for Everyone Act shall not apply with respect to the
State, notwithstanding section 301(e) of that Act; and
* * * * * * *
(35) provide that the State shall--
(A) upon furnishing the Secretary with
information under section 452(l) with respect
to individuals owing past-due support, provide
notice to such individuals that their assets
held in financial institutions shall be subject
to seizure to pay such past-due support, and
shall--
(i) instruct such individuals of the
steps which may be taken to contest the
State's determination that past-due
support is owed or the amount of the
past-due support; and
(ii) include, in the case of jointly
owned assets, a description of the
process by which other owners may
secure their share of such assets, in
accordance with such policies and
procedures as the Secretary may specify
with respect to seizure of such assets;
(B) promptly resolve cases in which such
individuals contest the State's determination
with respect to past-due support, and provide
for expedited refund of any assets erroneously
seized and transferred to the State under such
section 452(l); and
(C) except as otherwise specified under this
paragraph or by the Secretary, ensure that the
due process protections afforded under this
paragraph to individuals whose assets are
subject to seizure under section 452(l) are
generally consistent with, and to the extent
practicable conform to, the due process
protections afforded by the State to
individuals subject to offset of tax refunds
under section 464.
SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
[(a) In General.--Subject to subsections (d) and (e), an
amount collected on behalf of a family as support by a State
pursuant to a plan approved under this part shall be
distributed as follows:
[(1) Families receiving assistance.--In the case of a
family receiving assistance from the State, the State
shall--
[(A) pay to the Federal Government the
Federal share of the amount so collected; and
[(B) retain, or distribute to the family, the
State share of the amount so collected.
In no event shall the total of the amounts paid to the
Federal Government and retained by the State exceed the
total of the amounts that have been paid to the family
as assistance by the State.
[(2) Families that formerly received assistance.--In
the case of a family that formerly received assistance
from the State:
[(A) Current support payments.--To the extent
that the amount so collected does not exceed
the amount required to be paid to the family
for the month in which collected, the State
shall distribute the amount so collected to the
family.
[(B) Payments of arrearages.--To the extent
that the amount so collected exceeds the amount
required to be paid to the family for the month
in which collected, the State shall distribute
the amount so collected as follows:
[(i) Distribution of arrearages that
accrued after the family ceased to
receive assistance.--
[(I) Pre-october 1997.--
Except as provided in subclause
(II), the provisions of this
section as in effect and
applied on the day before the
date of the enactment of
section 302 of the Personal
Responsibility and Work
Opportunity Reconciliation Act
of 1996 (other than subsection
(b)(1) (as so in effect)) shall
apply with respect to the
distribution of support
arrearages that--
[(aa) accrued after
the family ceased to
receive assistance, and
[(bb) are collected
before October 1, 1997.
[(II) Post-september 1997.--
With respect to the amount so
collected on or after October
1, 1997 (or before such date,
at the option of the State)--
[(aa) In general.--
The State shall first
distribute the amount
so collected (other
than any amount
described in clause
(iv)) to the family to
the extent necessary to
satisfy any support
arrearages with respect
to the family that
accrued after the
family ceased to
receive assistance from
the State.
[(bb) Reimbursement
of governments for
assistance provided to
the family.--After the
application of division
(aa) and clause
(ii)(II)(aa) with
respect to the amount
so collected, the State
shall retain the State
share of the amount so
collected, and pay to
the Federal Government
the Federal share (as
defined in subsection
(c)(2)) of the amount
so collected, but only
to the extent necessary
to reimburse amounts
paid to the family as
assistance by the
State.
[(cc) Distribution of
the remainder to the
family.--To the extent
that neither division
(aa) nor division (bb)
applies to the amount
so collected, the State
shall distribute the
amount to the family.
[(ii) Distribution of arrearages that
accrued before the family received
assistance.--
[(I) Pre-october 2000.--
Except as provided in subclause
(II), the provisions of this
section as in effect and
applied on the day before the
date of the enactment of
section 302 of the Personal
Responsibility and Work
Opportunity Reconciliation Act
of 1996 (other than subsection
(b)(1) (as so in effect)) shall
apply with respect to the
distribution of support
arrearages that--
[(aa) accrued before
the family received
assistance, and
[(bb) are collected
before October 1, 2000.
[(II) Post-september 2000.--
Unless, based on the report
required by paragraph (5), the
Congress determines otherwise,
with respect to the amount so
collected on or after October
1, 2000 (or before such date,
at the option of the State)--
[(aa) In general.--
The State shall first
distribute the amount
so collected (other
than any amount
described in clause
(iv)) to the family to
the extent necessary to
satisfy any support
arrearages with respect
to the family that
accrued before the
family received
assistance from the
State.
[(bb) Reimbursement
of governments for
assistance provided to
the family.--After the
application of clause
(i)(II)(aa) and
division (aa) with
respect to the amount
so collected, the State
shall retain the State
share of the amount so
collected, and pay to
the Federal Government
the Federal share (as
defined in subsection
(c)(2)) of the amount
so collected, but only
to the extent necessary
to reimburse amounts
paid to the family as
assistance by the
State.
[(cc) Distribution of
the remainder to the
family.--To the extent
that neither division
(aa) nor division (bb)
applies to the amount
so collected, the State
shall distribute the
amount to the family.
[(iii) Distribution of arrearages
that accrued while the family received
assistance.--In the case of a family
described in this subparagraph, the
provisions of paragraph (1) shall apply
with respect to the distribution of
support arrearages that accrued while
the family received assistance.
[(iv) Amounts collected pursuant to
section 464.--Notwithstanding any other
provision of this section, any amount
of support collected pursuant to
section 464 shall be retained by the
State to the extent past-due support
has been assigned to the State as a
condition of receiving assistance from
the State, up to the amount necessary
to reimburse the State for amounts paid
to the family as assistance by the
State. The State shall pay to the
Federal Government the Federal share of
the amounts so retained. To the extent
the amount collected pursuant to
section 464 exceeds the amount so
retained, the State shall distribute
the excess to the family.
[(v) Ordering rules for
distributions.--For purposes of this
subparagraph, unless an earlier
effective date is required by this
section, effective October 1, 2000, the
State shall treat any support
arrearages collected, except for
amounts collected pursuant to section
464, as accruing in the following
order:
[(I) To the period after the
family ceased to receive
assistance.
[(II) To the period before
the family received assistance.
[(III) To the period while
the family was receiving
assistance.
[(3) Families that never received assistance.--In the
case of any other family, the State shall distribute
the amount so collected to the family.
[(4) Families under certain agreements.--In the case
of an amount collected for a family in accordance with
a cooperative agreement under section 454(33),
distribute the amount so collected pursuant to the
terms of the agreement.
[(5) Study and report.--Not later than October 1,
1999, the Secretary shall report to the Congress the
Secretary's findings with respect to--
[(A) whether the distribution of post-
assistance arrearages to families has been
effective in moving people off of welfare and
keeping them off of welfare;
[(B) whether early implementation of a pre-
assistance arrearage program by some States has
been effective in moving people off of welfare
and keeping them off of welfare;
[(C) what the overall impact has been of the
amendments made by the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996
with respect to child support enforcement in
moving people off of welfare and keeping them
off of welfare; and
[(D) based on the information and data the
Secretary has obtained, what changes, if any,
should be made in the policies related to the
distribution of child support arrearages.
[(6) State option for applicability.--Notwithstanding
any other provision of this subsection, a State may
elect to apply the rules described in clauses (i)(II),
(ii)(II), and (v) of paragraph (2)(B) to support
arrearages collected on and after October 1, 1998, and,
if the State makes such an election, shall apply the
provisions of this section, as in effect and applied on
the day before the date of enactment of section 302 of
the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (Public Law 104-193, 110
Stat. 2200), other than subsection (b)(1) (as so in
effect), to amounts collected before October 1, 1998.]
(a) In General.--Subject to subsections (d) and (e), the
amounts collected on behalf of a family as support by a State
pursuant to a plan approved under this part shall be
distributed as follows:
(1) Families receiving assistance.--In the case of a
family receiving assistance from the State, the State
shall--
(A) pay to the Federal Government the Federal
share of the amount collected, subject to
paragraph (3)(A);
(B) retain, or pay to the family, the State
share of the amount collected, subject to
paragraph (3)(B); and
(C) pay to the family any remaining amount.
(2) Families that formerly received assistance.--In
the case of a family that formerly received assistance
from the State:
(A) Current support.--To the extent that the
amount collected does not exceed the current
support amount, the State shall pay the amount
to the family.
(B) Arrearages.--Except as otherwise provided
in an election made under section 454(34), to
the extent that the amount collected exceeds
the current support amount, the State--
(i) shall first pay to the family the
excess amount, to the extent necessary
to satisfy support arrearages not
assigned pursuant to section 408(a)(3);
(ii) if the amount collected exceeds
the amount required to be paid to the
family under clause (i), shall--
(I) pay to the Federal
Government the Federal share of
the excess amount described in
this clause, subject to
paragraph (3)(A); and
(II) retain, or pay to the
family, the State share of the
excess amount described in this
clause, subject to paragraph
(3)(B); and
(iii) shall pay to the family any
remaining amount.
(3) Limitations.--
(A) Federal reimbursements.--The total of the
amounts paid by the State to the Federal
Government under paragraphs (1) and (2) of this
subsection with respect to a family shall not
exceed the Federal share of the amount assigned
with respect to the family pursuant to section
408(a)(3).
(B) State reimbursements.--The total of the
amounts retained by the State under paragraphs
(1) and (2) of this subsection with respect to
a family shall not exceed the State share of
the amount assigned with respect to the family
pursuant to section 408(a)(3).
(4) Families that never received assistance.--In the
case of any other family, the State shall pay the
amount collected to the family.
(5) Families under certain agreements.--
Notwithstanding paragraphs (1) through (3), in the case
of an amount collected for a family in accordance with
a cooperative agreement under section 454(33), the
State shall distribute the amount collected pursuant to
the terms of the agreement.
(6) State financing options.--To the extent that the
State's share of the amount payable to a family
pursuant to paragraph (2)(B) of this subsection exceeds
the amount that the State estimates (under procedures
approved by the Secretary) would have been payable to
the family pursuant to former section 457(a)(2)(B) (as
in effect for the State immediately before the date
this subsection first applies to the State) if such
former section had remained in effect, the State may
elect to have the payment considered a qualified State
expenditure for purposes of section 409(a)(7).
(7) State option to pass through additional support
with federal financial participation.--
(A) Families that formerly received
assistance.--Notwithstanding paragraph (2), a
State shall not be required to pay to the
Federal Government the Federal share of an
amount collected on behalf of a family that
formerly received assistance from the State to
the extent that the State pays the amount to
the family.
(B) Families that currently receive
assistance.--
(i) In general.--Notwithstanding
paragraph (1), in the case of a family
that receives assistance from the
State, a State shall not be required to
pay to the Federal Government the
Federal share of the excepted portion
(as defined in clause (ii)) of any
amount collected on behalf of such
family during a month to the extent
that--
(I) the State pays the
excepted portion to the family;
and
(II) the excepted portion is
disregarded in determining the
amount and type of assistance
provided to the family under
such program.
(ii) Excepted portion defined.--For
purposes of this subparagraph, the term
``excepted portion'' means that portion
of the amount collected on behalf of a
family during a month that does not
exceed $400 per month, or in the case
of a family that includes 2 or more
children, that does not exceed an
amount established by the State that is
not more than $600 per month.
(8) States with demonstration waivers.--
Notwithstanding the preceding paragraphs, in the case
of a State that, on the date of enactment of this
paragraph, has had in effect since October 1, 1997, a
waiver under section 1115 permitting pass-through
payments of child support collections--
(A) the State may continue to distribute such
payments to families without regard to the
expiration date of such waiver; and
(B) the requirement under paragraph (1) to
pay to the Federal Government the Federal share
of the amount collected on behalf of a family
shall not apply to the extent that--
(i) the State distributes such amount
to the family; and
(ii) such amount is disregarded in
determining the amount and type of
assistance paid to the family.[(b)
(b) Continuation of Assignments.--Any rights to support
obligations, assigned to a State as a condition of receiving
assistance from the State under part A and in effect on
September 30, 1997 (or such earlier date, on or after August
22, 1996, as the State may choose). shall remain assigned after
such date.]
(b) Continuation of Assignments.--
(1) State option to discontinue pre-1997 support
assignments.--
(A) In general.--Any rights to support
obligations assigned to a State as a condition
of receiving assistance from the State under
part A and in effect on September 30, 1997 (or
such earlier date on or after August 22, 1996,
as the State may choose), may remain assigned
after such date.
(B) Distribution of amounts after assignment
discontinuation.--If a State chooses to
discontinue the assignment of a support
obligation described in subparagraph (A), the
State may treat amounts collected pursuant to
such assignment as if such amounts had never
been assigned and may distribute such amounts
to the family in accordance with subsection
(a)(4).
(2) State option to discontinue post-1997
assignments.--
(A) In general.--Any rights to support
obligations accruing before the date on which a
family first receives assistance under part A
that are assigned to a State under that part
and in effect before the implementation date of
this section may remain assigned after such
date.
(B) Distribution of amounts after assignment
discontinuation.--If a State chooses to
discontinue the assignment of a support
obligation described in subparagraph (A), the
State may treat amounts collected pursuant to
such assignment as if such amounts had never
been assigned and may distribute such amounts
to the family in accordance with subsection
(a)(4).
(c) Definitions.--As used in subsection (a):
(1) Assistance.--The term ``assistance from the
State'' means--
* * * * * * *
``(5) Current support amount.--The term ``current
support amount'' means, with respect to amounts
collected as support on behalf of a family, the amount
designated as the monthly support obligation of the
noncustodial parent in the order requiring the support
or calculated by the State based on such order.
* * * * * * *
SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING,
GARNISHMENT, AND SIMILAR PROCEEDINGS FOR
ENFORCEMENT OF CHILD SUPPORT AND ALIMONY
OBLIGATIONS.
(a) * * *
* * * * * * *
(h) Moneys Subject to Process.--
(1) In general.--Subject to paragraph (2), moneys
payable to an individual which are considered to be
based upon remuneration for employment, for purposes of
this section--
(A) consist of--
* * * * * * *
(V) by the Secretary of
Veterans Affairs as
compensation for a service-
connected disability paid by
the Secretary to a former
member of the Armed Forces [who
is in receipt of retired or
retainer pay if the former
member has waived a portion of
the retired or retainer pay in
order to receive such
compensation;] , except that
such compensation shall not be
subject to withholding pursuant
to this section for payment of
alimony unless the former
member to whom it is payable is
in receipt of retired or
retainer pay and has waived a
portion of such pay in order to
receive such compensation;
* * * * * * *
COLLECTION OF PAST-DUE SUPPORT FROM FEDERAL TAX REFUNDS
Sec. 464. (a)(1) * * *
(2)(A) Upon receiving notice from a State agency
administering a plan approved under this part that a named
individual owes past-due support [(as that term is defined for
purposes of this paragraph under subsection (c))] which such
State has agreed to collect under section 454(4)(A)(ii), and
that the State agency has sent notice to such individual in
accordance with paragraph (3)(A), the Secretary of the Treasury
shall determine whether any amounts, as refunds of Federal
taxes paid, are payable to such individual (regardless of
whether such individual filed a tax return as a married or
unmarried individual). If the Secretary of the Treasury finds
that any such amount is payable, he shall withhold from such
refunds an amount equal to such past-due support, and shall
concurrently send notice to such individual that the
withholding has been made, including in or with such notice a
notification to any other person who may have filed a joint
return with such individual of the steps which such other
person may take in order to secure his or her proper share of
the refund. The Secretary of the Treasury shall pay the amount
withheld to the State agency, and the State shall pay to the
Secretary of the Treasury any fee imposed by the Secretary of
the Treasury to cover the costs of the withholding and any
required notification. The State agency shall, subject to
paragraph (3)(B), distribute such amount to or on behalf of the
child to whom the support was owed in accordance with section
457. This subsection may be executed by the Secretary of the
Department of the Treasury or his designee.
* * * * * * *
(B) The fee which the Secretary of the Treasury may
impose to cover the costs of the withholding and
notification may not exceed $25 per case submitted.
(c)[(1) Except as provided in paragraph (2), as used in] In
this part the term ``past-due support'' means the amount of a
delinquency, determined under a court order, or an order of an
administrative process established under State law, for support
and maintenance of a child (whether or not a minor), or of a
child (whether or not a minor) and the parent with whom the
child is living.
[(2) For purposes of subsection (a)(2), the term ``past-due
support'' means only past-due support owed to or on behalf of a
qualified child (or a qualified child and the parent with whom
the child is living if the same support order includes support
for the child and the parent).
[(3) For purposes of paragraph (2), the term ``qualified
child'' means a child--
[(A) who is a minor; or
[(B)(i) who, while a minor, was determined to be
disabled under title II or XVI; and
[(ii) for whom an order of support is in force.]
* * * * * * *
REQUIREMENT OF STATUTORILY PRESCRIBED PROCEDURES TO IMPROVE
EFFECTIVENESS OF CHILD SUPPORT ENFORCEMENT
Sec. 466. (a) In order to satisfy section 454(20)(A), each
State must have in effect laws requiring the use of the
following procedures, consistent with this section and with
regulations of the Secretary, to increase the effectiveness of
the program which the State administers under this part:
* * * * * * *
(10) Review and adjustment of support orders upon
request.--
(A) 3-year cycle.--
(i) In general.--Procedures under
which every 3 years (or such shorter
cycle as the State may determine), upon
the request of either [parent, or,]
parent or if there is an assignment
under part A, [upon the request of the
State agency under the State plan or of
either parent,] the State shall with
respect to a support order being
enforced under this part, taking into
account the best interests of the child
involved--
* * * * * * *
(14) High-volume, automated administrative
enforcement in interstate cases.--
(A) In general.--Procedures under which--
(i) the State shall use high-volume
automated administrative enforcement,
to the same extent as used for
intrastate cases, in response to a
request made by another State to
enforce support orders, and shall
promptly report the results of such
enforcement procedure to the requesting
State;
* * * * * * *
(iii) if the State provides
assistance to another State pursuant to
this paragraph with respect to a case,
neither State shall consider the case
to be transferred to the caseload of
such other State (but the assisting
State may establish a corresponding
case based on such other State's
request for assistance); and
(iv) the State shall maintain records
of--
* * * * * * *
(17) Financial institution data matches.--
(A) In general.--Procedures under which the
State agency shall enter into agreements with
financial institutions doing business in the
State--
(i) to develop and operate, in
coordination with such financial
institutions, and the Federal Parent
Locator Service pursuant to section
452(l) in the case of financial
institutions doing business in two or
more States, a data match system, using
automated data exchanges to the maximum
extent feasible, in which each such
financial institution is required to
provide for each calendar quarter the
name, record address, social security
number or other taxpayer identification
number, and other identifying
information for each noncustodial
parent who maintains an account at such
institution and who owes past-due
support, as identified by the State by
name and social security number or
other taxpayer identification number;
and
(ii) in response to a notice of lien
or levy issued by the State agency or
by the Secretary under section 452(l),
encumber or surrender, as the case may
be, assets held by such institution on
behalf of any noncustodial parent who
is subject to a child support lien
pursuant to paragraph (4).
(B) Reasonable fees.--The State agency may
pay a reasonable fee to a financial institution
for conducting the data match provided for in
subparagraph (A)(i), not to exceed the actual
costs incurred by such financial institution.
(C) Liability.--A financial institution shall
not be liable under any Federal or State law to
any person--
(i) for any disclosure of information
to the State agency or to the Federal
Parent Locator Service under
subparagraph (A)(i);
(ii) for encumbering or surrendering
any assets held by such financial
institution in response to a notice of
lien or levy [issued by the State
agency] as provided for in subparagraph
(A)(ii); or
* * * * * * *
(19) Health care coverage.--Procedures under which--
(A) effective as provided in [section
401(c)(3)] section 401(e) of the Child Support
Performance and Incentive Act of 1998, all
child support orders enforced pursuant to this
part [which include a provision for the health
care coverage of the child are enforced] shall
include a provision for medical support for the
child to be provided by either or both parents,
and shall be enforced, where appropriate,
through the use of the National Medical Support
Notice promulgated pursuant to section 401(b)
of the Child Support Performance and Incentive
Act of 1998 (and referred to in section
609(a)(5)(C) of the Employee Retirement Income
Security Act of 1974 in connection with group
health plans covered under title I of such Act,
in section 401(e)(3)(C) of the Child Support
Performance and Incentive Act of 1998 in
connection with State or local group health
plans, and in section [401(f )(5)(C)] section
401(f) of such Act in connection with church
group health plans);
(B) unless alternative coverage is allowed
for in any order of the court (or other entity
issuing the child support order), in any case
in which a [noncustodial] parent is required
under the child support order to provide such
health care coverage and the employer of such
[noncustodial] parent is known to the State
agency--
(i) the State agency uses the
National Medical Support Notice to
transfer notice of the provision for
the health care coverage of the child
to the employer;
(ii) within 20 business days after
the date of the National Medical
Support Notice, the employer is
required to transfer the Notice,
excluding the severable employer
withholding notice described in section
401(b)(2)(C) of the Child Support
Performance and Incentive Act of 1998,
to the appropriate plan providing any
such health care coverage for which the
child is eligible;
(iii) in any case in which the
noncustodial parent is a newly hired
employee entered in the State Directory
of New Hires pursuant to section
453A(e), the State agency provides,
where appropriate, the National Medical
Support Notice, together with an income
withholding notice issued pursuant to
[section 466(b)] subsection (b), within
two days after the date of the entry of
such employee in such Directory; and
(iv) in any case in which the
employment of the noncustodial parent
with any employer who has received a
National Medical Support Notice is
terminated, such employer is required
to notify the State agency of such
termination; and
(C) any liability of the [noncustodial]
obligated parent to such plan for employee
contributions which are required under such
plan for enrollment of the child is effectively
subject to appropriate enforcement, unless the
[noncustodial] obligated parent contests such
enforcement based on a mistake of fact.
* * * * * * *
(f) Uniform Interstate Family Support Act.--In order to
satisfy section 454(20)(A), on and after January 1, 1998, each
State must have in effect the Uniform Interstate Family Support
Act, as approved by the American Bar Association on February 9,
1993, [and as in effect on August 22, 1996,] including any
amendments officially [adopted as of such date] adopted as of
August, 2001 by the National Conference of Commissioners on
Uniform State Laws.
* * * * * * *
SEC. 469A. [42 U.S.C. 669A] NONLIABILITY FOR FINANCIAL INSTITUTIONS
PROVIDING FINANCIAL RECORDS TO STATE CHILD SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.
(a) In General.--Notwithstanding any other provision of
Federal or State law, a financial institution shall not be
liable under any Federal or State law to any person for
disclosing any financial record of an individual to a State
child support enforcement agency attempting to establish,
modify, or enforce a child support obligation of such
individual, or for disclosing any such record to the Federal
Parent Locator Service pursuant to section 452(l) or section
466(a)(17)(A).
* * * * * * *
SEC. 469B. GRANTS TO STATES AND INDIAN TRIBES FOR ACCESS AND VISITATION
PROGRAMS.
(a) In General.--The Administration for Children and Families
shall make grants under this section to enable States and
Indian tribes or tribal organizations to establish and
administer programs to support and facilitate noncustodial
parents' access to and visitation of their children, by means
of activities including mediation (both voluntary and
mandatory), counseling, education, development of parenting
plans, visitation enforcement (including monitoring,
supervision and neutral drop-off and pickup), and development
of guidelines for visitation and alternative custody
arrangements.
[(b) Amount of Grant.--The amount of the grant to be made to
a State under this section for a fiscal year shall be an amount
equal to the lesser of--
[(1) 90 percent of State expenditures during the
fiscal year for activities described in subsection (a);
or
[(2) the allotment of the State under subsection (c)
for the fiscal year.]
(b) Amount of Grants.--
(1) Grants to states.--The amount of the grant to be
made to a State under this section for a fiscal year
shall be an amount equal to the lesser of--
(A) 90 percent of State expenditures during
the fiscal year for activities described in
subsection (a); or
(B) the allotment of the State under
subsection (c) for the fiscal year.
(2) Grants to indian tribes.--An Indian tribe or
tribal organization operating a program under section
455 that has operated such program throughout the
preceding fiscal year and has an application under this
section approved by the Secretary shall receive a grant
under this section for a fiscal year in an amount equal
to the allotment of such Indian tribe or tribal
organization under subsection (c)(2) for the fiscal
year.
[(c) Allotments to States.--
[(1) In general.--The allotment of a State for a
fiscal year is the amount that bears the same ratio to
$10,000,000 for grants under this section for the
fiscal year as the number of children in the State
living with only 1 biological parent bears to the total
number of such children in all States.
[(2) Minimum allotment.--The Administration for
Children and Families shall adjust allotments to States
under paragraph (1) as necessary to ensure that no
State is allotted less than--
[(A) $50,000 for fiscal year 1997 or 1998; or
[(B) $100,000 for any succeeding fiscal
year.]
(c) Allotments.--
(1) Allotments to states.--
(A) In general.--Subject to the subparagraph
(C), the allotment of a State for a fiscal year
is the amount that bears the same ratio to the
amount specified in subparagraph (B) for such
fiscal year as the number of children in the
State living with only 1 parent bears to the
total number of such children in all States.
(B) Amount available for allotment.--For
purposes of subparagraph (A), the amount
specified in this subparagraph is the following
amount, reduced by the total allotments to
Indian tribes or tribal organizations in
accordance with paragraph (2):
(i) $12,000,000 for fiscal year 2006.
(ii) $14,000,000 for fiscal year
2007.
(iii) $16,000,000 for fiscal year
2008.
(iv) $20,000,000 for fiscal year 2009
and each succeeding fiscal year.
(C) Minimum state allotment.--The Secretary
shall adjust allotments to States under
subparagraph (A) as necessary to ensure that no
State is allotted less than--
(i) $120,000 for fiscal year 2006;
(ii) $140,000 for fiscal year 2007;
(iii) $160,000 for fiscal year 2008;
and
(iv) $180,000 for fiscal year 2009
and each succeeding fiscal year.
(2) Allotments to indian tribes.--
(A) In general.--Subject to subparagraph (C),
the allotment of an Indian tribe or tribal
organization described in subsection (b)(2) for
a fiscal year is an amount that bears the same
ratio to the amount specified in subparagraph
(B) for such fiscal year as the number of
children in the Indian tribe or tribal
organization living with only 1 parent bears to
the total number of such children in all Indian
tribes and tribal organizations eligible to
receive grants under this section for such
year.
(B) Amount available for allotment.--For
purposes of subparagraph (A), the amount
available under this subparagraph is an amount,
deducted from the amount specified in paragraph
(1)(B), not to exceed--
(i) $250,000 for fiscal year 2006;
(ii) $600,000 for fiscal year 2007;
(iii) $800,000 for fiscal year 2008;
and
(iv) $1,670,000 for fiscal year 2009
and each succeeding year.
(C) Minimum and maximum tribal allotment.--
The Secretary shall adjust allotments to Indian
tribes and tribal organizations under
subparagraph (A) as necessary to ensure that no
Indian tribe or tribal organization is
allotted, for a fiscal year, an amount which is
less than $10,000 or more than the minimum
State allotment for such fiscal year.
(d) No Supplantation of State Expenditures for Similar
Activities.--A State to which a grant is made under this
section may not use the grant to supplant expenditures by the
State for activities specified in subsection (a), but shall use
the grant to supplement such expenditures at a level at least
equal to the level of such expenditures for fiscal year 1995.
[(e) State Administration.--Each State to which a grant is
made under this section--
[(1) may administer State programs funded with the
grant, directly or through grants to or contracts with
courts, local public agencies, or nonprofit private
entities;
[(2) shall not be required to operate such programs
on a statewide basis; and
[(3) shall monitor, evaluate, and report on such
programs in accordance with regulations prescribed by
the Secretary.]
(e) Administration.--
(1) Grants to states.--Each State to which a grant is
made under this section--
(A) may administer State programs funded with
the grant, directly or through grants to or
contracts with courts, local public agencies,
or nonprofit private entities; and
(B) shall not be required to operate such
programs on a statewide basis.
(2) Grants to states or indian tribes.--Each State or
Indian tribe or tribal organization to which a grant is
made under this section shall monitor, evaluate, and
report on such programs in accordance with regulations
prescribed by the Secretary.
Part E--Federal Payments for Foster Care and Adoption Assistance
PURPOSE: APPROPRIATION
Sec. 470. * * *
* * * * * * *
FOSTER CARE MAINTENANCE PAYMENTS PROGRAM
Sec. 472. (a) Each State with a plan approved under this part
shall make foster care maintenance payments (as defined in
section 475(4)) under this part with respect to a child who
would have met the requirements of section 406(a) or of section
407 (as such sections were in effect on July 16, 1996) but for
his removal from the home of a relative (specified in section
406(a)), if--
(1) the removal from the home occurred pursuant to a
voluntary placement agreement entered into by the
child's parent or legal guardian, or was the result of
a judicial determination to the effect that
continuation therein would be contrary to the welfare
of such child and (effective October 1, 1983) that
reasonable efforts of the type described in section
471(a)(15) for a child have been made;
(2) such child's placement and care are the
responsibility of (A) the State agency administering
the State plan approved under section 471, [or (B)] (B)
any other public agency with whom the State agency
administering or supervising the administration of the
State plan approved under section 471 has made an
agreement which is still in effect, or (C) an Indian
tribe or tribal organization (as defined in section
479B(e)) or an intertribal consortium if the Indian
tribe, tribal organization, or consortium (i) is
operating a program pursuant to section 479B, (ii) has
a cooperative agreement with a State pursuant to
section 479B(c), or (iii) submits to the Secretary a
description of the arrangements (jointly developed or
developed in consultation with the State) made by the
Indian tribe, tribal organization, or consortium for
the payment of funds and the provision of the child
welfare services and protections required by this title
* * * * * * *
TITLE V--MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT
* * * * * * *
SEPARATE PROGRAM FOR ABSTINENCE EDUCATION
Sec. 510. (a) For the purpose described in subsection (b),
the Secretary shall, for fiscal year 1998 and each subsequent
fiscal year, allot to each State which has transmitted [an
application for the fiscal year under section 505(a)], for the
fiscal year, an application under section 505(a), and an
application under this section (in such form and meeting such
terms and conditions as determined appropriate by the
Secretary), an amount equal to the product of--
(1) the amount appropriated in subsection (d) for the
fiscal year; and
[(2) the percentage determined for the State under
section 502(c)(1)(B)(ii).]
(2) the percentage described in section
502(c)(1)(B)(ii) that would be determined for the State
under section 502(c) if such determination took into
consideration only those States that transmitted both
such applications for such fiscal year.
(b)(1) The purpose of an allotment under subsection (a) to
a State is to enable the State to provide abstinence education,
and at the option of the State, where appropriate, mentoring,
counseling, and adult supervision to promote abstinence from
sexual activity, with a focus on those groups which are most
likely to bear children out-of-wedlock.
* * * * * * *
(d) For the purpose of allotments under subsection (a),
there is appropriated, out of any money in the Treasury not
otherwise appropriated, an additional $50,000,000 for each of
the fiscal years 1998 through [2002] 2010. The appropriation
under the preceding sentence for a fiscal year is made on
October 1 of the fiscal year.
(e)(1) With respect to allotments under subsection (a) for
fiscal year 2006 and subsequent fiscal years, the amount of any
allotment to a State for a fiscal year that the Secretary
determines will not be expended to carry out a program under
this section during such fiscal year or the succeeding fiscal
year shall be available for reallotment from time to time
during such fiscal years on such dates as the Secretary may
fix, to other States that the Secretary determines--
(A) require amounts in excess of amounts previously
allotted under subsection (a) to carry out a program
under this section; and
(B) will expend such excess amounts during such
fiscal years.
(2) Reallotments under paragraph (1) shall be made on the
basis of such States' applications under this section, after
taking into consideration the population of low-income children
in each such State as compared with the population of low-
income children in all such States with respect to which a
determination under paragraph (1) has been made by the
Secretary.
(3) Any amount reallotted under paragraph (1) to a State is
deemed to be part of its allotment under subsection (a).
TITLE XI--GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE
SIMPLIFICATION
Part A--General Provisions
* * * * * * *
ADDITIONAL GRANTS TO PUERTO RICO, THE VIRGIN ISLANDS, GUAM, AND
AMERICAN SAMOA; LIMITATION ON TOTAL PAYMENTS
Sec. 1108. (a) Limitation on Total Payments to Each
Territory.--
(1) In general.--Notwithstanding any other provision
of this Act (except for paragraph (2) of this
subsection), the total amount certified by the
Secretary of Health and Human Services under titles I,
X, XIV, and XVI, under parts A and E of title IV, and
under subsection (b) of this section, for payment to
any territory for a fiscal year shall not exceed the
ceiling amount for the territory for the fiscal year.
(2) Certain payments disregarded.--[Paragraph (1)]
(A) In general.--Paragraph (1) of this
subsection shall be applied without regard to
any payment made under section 403(a)(2),
403(a)(4), 403(a)(5), [406, or
413(f)]``418(a)(4)(B), 473A, or, subject to clause (ii) of subparagraph
(B), payments to Puerto Rico described in clause (i) of that
subparagraph'' before the period; and
(B) Certain payments to puerto rico.--
(i) Payments described.--For purposes of
subparagraph (A), payments described in this
subparagraph are payments made to Puerto Rico
under section 474 for each of fiscal years 2007
through 2010 that exceed the total amount of
payments made to Puerto Rico under that section
for fiscal year 2003.
(ii) Limitation.--The total amount of
payments to Puerto Rico described in clause (i)
that are disregarded under subparagraph (A) may
not exceed $6,250,000 for each of fiscal years
2007 through 2010.
(b) Entitlement to Matching Grant.--
(1) In general.--Each territory shall be entitled to
receive from the Secretary for each fiscal year a grant
in an amount equal to 75 percent of the amount (if any)
by which--
(A) the total expenditures of the territory
during the fiscal year under the territory
programs funded under parts A and E of title
IV, including any amount paid to the State
under part A of title IV that is transferred in
accordance with section 404(d) and expended
under the program to which transferred; exceeds
(B) the sum of--
(i) the amount of the family
assistance grant payable to the
territory without regard to section
409; and
(ii) the total amount expended by the
territory during fiscal year 1995
pursuant to parts A and F of title IV
(as so in effect), other than for child
care.
(2) Appropriation.--Out of any money in the Treasury
of the United States not otherwise appropriated, there
are appropriated for fiscal years [1997 through 2003]
2006 through 2010, such sums as are necessary for
grants under this paragraph.
* * * * * * *
DEMONSTRATION PROJECTS
Sec. 1130. (a) Authority To Approve Demonstration
Projects.--
(1) In general.--The Secretary may authorize States
to conduct demonstration projects pursuant to this
section which the Secretary finds are likely to promote
the objectives of part B or E of title IV.
(2) Limitation.--The Secretary may authorize not more
than 10 demonstration projects under paragraph (1) in
each of fiscal years 1998 through [2003] 2010.
(3) Certain types of proposals required to be
considered.--
* * * * * * *
(b) Waiver Authority.--The Secretary may waive compliance
with any requirement of part B or E of title IV which (if
applied) would prevent a State from carrying out a
demonstration project under this section or prevent the State
from effectively achieving the purpose of such a project,
except that the Secretary may not waive--
(1) any provision of section 427 (as in effect before
April 1, 1996), section [422(b)(9)] 422(b)(10) (as in
effect after such date), or section 479; or
* * * * * * *
INCOME AND ELIGIBILITY VERIFICATION SYSTEM \60\
Sec. 1137 * * *
* * * * * * *
(b) The programs which must participate in the income and
eligibility verification system are--
(1) any State program funded under part A of title IV
of this Act but only with respect to applicants for, or
recipients of, assistance (as defined in section
419(6)) under such program;
* * * * * * *
TITLE XVI--GRANTS TO STATES FOR AID TO THE AGED, BLIND, OR DISABLED
* * * * * * *
ADMINISTRATION
Sec. 1633. (a) Subject to subsection (b), the Commissioner
of Social Security may make such administrative and other
arrangements (including arrangements for the determination of
blindness and disability under section 1614(a)(2) and (3) in
the same manner and subject to the same conditions as provided
with respect to disability determinations under section 221) as
may be necessary or appropriate to carry out the Commissioner's
functions under this title.
(b) In determining, for purposes of this title, whether an
individual is blind, there shall be an examination of such
individual by a physician skilled in the diseases of the eye or
by an optometrist, whichever the individual may select.
* * * * * * *
(e)(1) The Commissioner of Social Security shall review
determinations, made by State agencies pursuant to subsection
(a) in connection with applications for benefits under this
title on the basis of blindness or disability, that individuals
who have attained 18 years of age are blind or disabled. Any
review by the Commissioner of Social Security of a State agency
determination under this paragraph shall be made before any
action is taken to implement the determination.
(2)(A) In carrying out paragraph (1), the Commissioner of
Social Security shall review--
(i) with respect to fiscal year 2006, at least 25
percent of all determinations referred to in paragraph
(1) that are made in such fiscal year; and
(ii) with respect to each of fiscal years 2006
through 2015, at least 50 percent of all such
determinations that are made in each such fiscal year.
(B) In conducting reviews pursuant to subparagraph (A), the
Commissioner of Social Security shall, to the extent feasible,
select for review those determinations which the Commissioner
of Social Security identifies as being the most likely to be
incorrect.
* * * * * * *
TITLE XIX--GRANTS TO STATES FOR MEDICAL ASSISTANCE PROGRAMS
* * * * * * *
STATE PLANS FOR MEDICAL ASSISTANCE
Sec. 1902. (a) A State plan for medical assistance must--
* * * * * * *
(e)(1)(A) Notwithstanding any other provision of this
title, effective January 1, 1974, subject to subparagraph (B)
each State plan approved under this title must provide that
each family which was receiving aid pursuant to a plan of the
State approved under part A of title IV in at least 3 of the 6
months immediately preceding the month in which such family
became ineligible for such aid because of increased hours of,
or increased income from, employment, shall, while a member of
such family is employed, remain eligible for assistance under
the plan approved under this title (as though the family was
receiving aid under the plan approved under part A of title IV)
for 4 calendar months beginning with the month in which such
family became ineligible for aid under the plan approved under
part A of title IV because of income and resources or hours of
work limitations contained in such plan.
(B) Subparagraph (A) shall not apply with respect to
families that cease to be eligible for aid under part A of
title IV during the period beginning on April 1, 1990, and
ending on [September 30, 2003], the last date (if any) on which
section 1925 applies under subsection (i) of that section.
During such period, for provisions relating to extension of
eligibility for medical assistance for certain families who
have received aid pursuant to a State plan approved under part
A of title IV and have earned income, see section 1925.
* * * * * * *
(55) provide for receipt and initial processing of
applications of individuals for medical assistance
under subsection (a)(10)(A)(i)(IV), (a)(10)(A)(i)(VI),
(a)(10)(A)(i)(VII), or (a)(10)(A)(ii)(IX) and under
section 1931--
* * * * * * *
EXTENSION OF ELIGIBILITY FOR MEDICAL ASSISTANCE
Sec. 1925. (a) Initial 6-Month Extension.--
(1) Requirement.--Notwithstanding any other provision
of this title, but subject to subsection (h), each
State plan approved under this title must provide that
each family which was receiving aid pursuant to a plan
of the State approved under part A of title IV in at
least 3 of the 6 months immediately preceding the month
in which such family becomes ineligible for such aid,
because of hours of, or income from, employment of the
caretaker relative (as defined in subsection (e)) or
because of section 402(a)(8)(B)(ii)(II) (providing for
a time-limited earned income disregard), shall, subject
to paragraph (3) and without any re-application for
benefits under the plan, remain eligible for assistance
under the plan approved under this title during the
immediately succeeding 6-month period in accordance
with this subsection.
(2) Notice of benefits.--Each State, in the notice of
termination of aid under part A of title IV sent to a
family meeting the requirements of paragraph (1)--
(A) shall notify the family of its right to
extended medical assistance under this
subsection and include in the notice a
description of the reporting requirement of
subsection (b)(2)(B)(i) and of the
circumstances (described in paragraph (3))
under which such extension may be terminated;
and
(B) shall include a card or other evidence of
the family's entitlement to assistance under
this title for the period provided in this
subsection.
* * * * * * *
Each State shall provide, to families whose aid under
part A or E of title IV has terminated but whose
eligibility for medical assistance under this title
continues, written notice of their ongoing eligibility
for such medical assistance. If a State makes a
determination that any member of a family whose aid
under part A or E of title IV is being terminated is
also no longer eligible for medical assistance under
this title, the notice of such determination shall be
supplemented by a 1-page notification form describing
the different ways in which individuals and families
may qualify for such medical assistance and explaining
that individuals and families do not have to be
receiving aid under part A or E of title IV in order to
qualify for such medical assistance. Such notice shall
further be supplemented by information on how to apply
for child health assistance under the State children's
health insurance program under title XXI and how to
apply for medical assistance under this title.
* * * * * * *
(b) Additional 6-Month Extension.--
(1) Requirement.--Notwithstanding any other provision
of this title, but subject to subsection (h), each
State plan approved under this title shall provide that
the State shall offer to each family, which has
received assistance during the entire 6-month period
under subsection (a) and which, at the option of a
State, meets the requirement of paragraph (2)(B)(i), in
the last month of the period the option of extending
coverage under this subsection for the succeeding 6-
month period, subject to paragraph (3).
(2) Notice and reporting requirements.--
(A) Notices.--Subject to subparagraph (c)
* * * * * * *
(B) Reporting requirements.--Subject to
subparagraph (c)
(i) During initial extension
period.--Each State shall require (as a
condition for additional extended
assistance under this subjection) that
a family receiving extended assistance
under subsection (a) report to the
State, not later than the 21st day of
the 4th month in the period of extended
assistance under subsection (a), on the
family's gross monthly earnings and on
the family's costs for such child care
as is necessary for the employment of
the caretaker relative in each of the
first 3 months of that period. A State
may permit such additional extended
assistance under this subsection
notwithstanding a failure to report
under this clause if the family has
established, to the satisfaction of the
State, good cause for the failure to
report on a timely basis.
* * * * * * *
(C) State option to waive notice and
reporting requirements.--A State may waive some
or all of the reporting requirements under
clauses (i) and (ii) of subparagraph (B).
Insofar as it waives such a reporting
requirement, the State need not provide for a
notice under subparagraph (A) relating to such
requirement.
(3) Termination of extension.--
(A) In general.--Subject to subparagraphs (B)
and (C), extension of assistance during the 6-
month period described in paragraph (1) to a
family shall terminate (during the period) as
follows:
(i) No dependent child.--The
extension shall terminate at the close
of the first month in which the family
ceases to include a child, whether or
not the child is (or would if need be)
a dependent child under part A of title
IV.
* * * * * * *
(iii) Quarterly income reporting and
test.--The extension under this
subsection shall terminate at the close
of the 1st or 4th month of the 6-month
period if the State has not waived
under paragraph (2)(C) the reporting
requirement with respect to such month
under paragraph (2)(B) and if--
* * * * * * *
(c) State Option of Up to 12 Months of Additional
Eligibility.--
(1) In general.--Notwithstanding any other provision
of this title, each State plan approved under this
title may provide, at the option of the State, that the
State shall offer to each family which received
assistance during the entire 6-month period under
subsection (b) and which meets the applicable
requirement of paragraph (2), in the last month of the
period the option of extending coverage under this
subsection for the succeeding period not to exceed 12
months.
(2) Income restriction.--The option under paragraph
(1) shall not be made available to a family for a
succeeding period unless the State determines that the
family's average gross monthly earnings (less such
costs for such child care as is necessary for the
employment of the caretaker relative) as of the end of
the 6-month period under subsection (b) does not exceed
185 percent of the official 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) applicable
to a family of the size involved.
(3) Application of extension rules.--The provisions
of paragraphs (2), (3), (4), and (5) of subsection (b)
shall apply to the extension provided under this
subsection in the same manner as they apply to the
extension provided under subsection (b)(1), except that
for purposes of this subsection--
(A) any reference to a 6-month period under
subsection (b)(1) is deemed a reference to the
extension period provided under paragraph (1)
and any deadlines for any notices or reporting
and the premium payment periods shall be
modified to correspond to the appropriate
calendar quarters of coverage provided under
this subsection; and
(B) any reference to a provision of
subsection (a) or (b) is deemed a reference to
the corresponding provision of subsection (b)
or of this subsection, respectively.
[(c)] (d) Applicability in States and Territories.--
(1) States operating under demonstration projects.--
In the case of any State which is providing medical
assistance to its residents under a waiver granted
under section 1115(a), the Secretary shall require the
State to meet the requirements of this section in the
same manner as the State would be required to meet such
requirement if the State had in effect a plan approved
under this title.
(2) Inapplicability in commonwealths and
territories.--The provisions of this section shall only
apply to the 50 States and the District of Columbia.
[(d)] (e) General Disqualification for Fraud.--
(1) Ineligibility for aid.--This section shall not
apply to an individual who is a member of a family
which has received aid under part A of title IV if the
State makes a finding that, at any time during the last
6 months in which the family was receiving such aid
before otherwise being provided extended eligibility
under this section, the individual was ineligible for
such aid because of fraud.
(2) General disqualifications.--For additional
provisions relating to fraud and program abuse, see
sections 1128, 1128A, and 1128B.
[(e)] (f) Caretaker Relative Defined.--In this section,
the term ``caretaker relative'' has the meaning of such term as
used in part A of title IV.
(g) Additional Provisions.--
(1) Collection and reporting of participation
information.--Each State shall--
(A) collect and submit to the Secretary, in a
format specified by the Secretary, information
on average monthly enrollment and average
monthly participation rates for adults and
children under this section; and
(B) make such information publicly available.
Such information shall be submitted under subparagraph
(A) at the same time and frequency in which other
enrollment information under this title is submitted to
the Secretary. Using such information, the Secretary
shall submit to Congress annual reports concerning such
rates.
(2) Coordination with administration for children and
families.--The Administrator of the Centers for
Medicare & Medicaid Services, in carrying out this
section, shall work with the Assistant Secretary for
the Administration for Children and Families to develop
guidance or other technical assistance for States
regarding best practices in guaranteeing access to
transitional medical assistance under this section.
``(h) Provisions Optional for States That Extend Coverage to
Children and Parents Through 185 Percent of Poverty.--A State
may meet (but is not required to meet) the requirements of
subsections (a) and (b) if it provides for medical assistance
under section 1931 to families (including both children and
caretaker relatives) the average gross monthly earning of which
(less such costs for such child care as is necessary for the
employment of a caretaker relative) is at or below a level that
is at least 185 percent of the official 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) applicable to a family of
the size involved.
[(f)] (i) Sunset.--This section shall not apply with
respect to families that cease to be eligible for aid under
part A of title IV after September 30, [2003] 2010.
* * * * * * *
TITLE XX--BLOCK GRANTS TO STATES FOR SOCIAL SERVICES
* * * * * * *
PURPOSES OF TITLE; AUTHORIZATION OF APPROPRIATIONS
Sec. 2001. For the purposes of consolidating Federal
assistance to States for social services into a single grant,
increasing State flexibility in using social services grants,
and encouraging each state, as far as practicable under the
conditions in that State, to furnish services directed at the
goals of--
* * * * * * *
ALLOTMENTS
Sec. 2003. * * *
* * * * * * *
(c) The amount specified for purposes of subsections (a)
and (b) shall be--
(1) $2,400,000,000 for the fiscal year 1982;
(2) $2,450,000,000 for the fiscal year 1983;
(3) $2,700,000,000 for the fiscal years 1984, 1985,
1986, 1987, and 1989;
(4) $2,750,000,000 for the fiscal year 1988;
(5) $2,800,000,000 for each of the fiscal years 1990
through 1995;
(6) $2,381,000,000 for the fiscal year 1996;
(7) $2,380,000,000 for the fiscal year 1997;
(8) $2,299,000,000 for the fiscal year 1998;
(9) $2,380,000,000 for the fiscal year 1999;
(10) $2,380,000,000 for the fiscal year 2000; and
(11) $1,700,000,000 for the fiscal year 2001 and each
fiscal year thereafter, except that with respect to
each of fiscal years 2006 through 2010, the amount
shall be $1,900,000,000'' after ``thereafter''.
* * * * * * *
CONSOLIDATED APPROPRIATIONS ACT, 2005
* * * * * * *
DIVISION H--TRANSPORTATION, TREASURY, INDEPENDENT AGENCIES, AND GENERAL
GOVERNMENT APPROPRIATIONS ACT, 2005
* * * * * * *
Title VI--General Provisions
* * * * * * *
Sec. 643. [Section 653(j) of title 42, United States Code,
is amended by adding at the end the following new paragraph]
Section 453(j) of the Social Security Act (42 U.S.C. 653(j) is
amended by adding at the end the following new paragraph:
* * * * * * *
``(7) Information comparisons and disclosure to
assist in federal debt collection.--
* * * * * * *
A State may, at its option, also apply the previous
sentence in the case of a family that was receiving such aid
for fewer than 3 months, or that had applied for and was
eligible for such aid for fewer than 3 months, during the 6
immediately preceding months described in such sentence.
FOOD STAMP ACT OF 1977
* * * * * * *
ELIGIBLE HOUSEHOLDS
Sec. 5. * * *
(g)(1) The Secretary shall prescribe the types and
allowable amounts of financial resources (liquid and nonliquid
assets) an eligible household may own, and shall, in so doing,
assure that a household otherwise eligible to participate in
the food stamp program will not be eligible to participate if
its resources exceed $2,000, or, in the case of a household
which consists of or includes an elderly or disabled member, if
its resources exceed $3,000.
(2) Included assets.--
(D) Alternative vehicle allowance.--[If the
vehicle allowance]
(i) In general.--If the vehicle
allowance standards that a State agency
uses to determine eligibility for
assistance under the State program
funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et
seq.) would result in a lower
attribution of resources to certain
households than under subparagraph
(B)(iv), in lieu of applying
subparagraph (B)(iv), the State agency
may elect to apply the State vehicle
allowance standards.
(ii) Definition of assistance.--In
clause (i), the term ``assistance''
shall have the meaning given such term
in section 260.31 of title 45 of the
Code of Federal Regulations, as in
effect on June 1, 2002.
* * * * * * *
INTERNAL REVENUE CODE OF 1986
* * * * * * *
CHAPTER 1--NORMAL TAXES AND SURTAXES
* * * * * * *
Sec. 21. Expenses for household and dependent care services
necessary for gainful employment.
(a) Allowance of credit.
* * * * * * *
(b) Definitions of qualifying individual and employment-related
expenses.
For purposes of this section--
* * * * * * *
(1) Qualifying individual. The term ``qualifying
individual'' means--
(A) a dependent of the taxpayer (as defined in
section 152(a)(1)) who has not attained age 13,
(B) a dependent of the taxpayer (as defined in
section 152, determined without regard to subsections
(b)(1), (b)(2), and (d)(1)(B)) who is physically or
mentally incapable of caring for himself or herself and
who has the same principal place of abode as the
taxpayer for more than one-half of such taxable year,
or
(C) the spouse of the taxpayer, if the spouse is
physically or mentally incapable of caring for himself
or herself and who has the same principal place of
abode as the taxpayer for more than one-half of such
taxable year.
* * * * * * *
Sec. 24. Child tax credit.
(a) Allowance of credit.
* * * * * * *
(b) Limitation based on adjusted gross income.
(1) In general. The amount of the credit allowable under
subsection (a) shall be reduced (but not below zero) by $50 for
each $1,000 (or fraction thereof) by which the taxpayer's
modified adjusted gross income exceeds the threshold amount.
For purposes of the preceding sentence, the term ``modified
adjusted gross income'' means adjusted gross income increased
by any amount excluded from gross income under [section 911,
931, or 933] section 931 or 933.
* * * * * * *
(f) Taxable Year Must Be Full Taxable Year.--
* * * * * * *
(g) Denial of Credit for Individuals Electing Section 911.
No credit shall be allowed under this section for any
taxable year to a taxpayer who claims the benefits of section
911 (relating to citizens or residents living abroad) for such
taxable year.
* * * * * * *
Sec. 32. Earned income.
(a) Allowance of credit.
* * * * * * *
(c) Definitions and special rules.
For purposes of this section--
(1) Eligible individual.
(A) In general. The term ``eligible individual''
means--
* * * * * * *
(B) Qualifying child ineligible. If an individual is
the qualifying child of a taxpayer for any taxable year
of such taxpayer beginning in a calendar year, such
individual shall not be treated as an eligible
individual for any taxable year of such individual
beginning in such calendar year. The preceding sentence
shall not apply with respect to any individual who is a
qualifying child of 1 or more brothers, sisters,
stepbrothers, and stepsisters who are also qualifying
children of such individual if among all such
qualifying children, such individual has the highest
adjusted gross income.
[(m) Identification numbers.
[Solely for purposes of subsections (c)(1)(E) and
(c)(3)(D), a taxpayer identification number means a social
security number issued to an individual by the Social Security
Administration (other than a social security number issued
pursuant to clause (II) (or that portion of clause (III) that
relates to clause (II) of section 205(c)(2)(B)(i) of the Social
Security Act).]
(m) Identification numbers.
Solely for purposes of subsections (c)(1)(E) and (c)(3)(D),
a taxpayer identification number means a social security number
assigned by the Social Security Administration--
(1) to a citizen of the United States, or
(2) to an individual pursuant to subclause (I) (or
that portion of subclause (III) that relates to
subclause (I)) of section 205(c)(2)(B)(i) of the Social
Security Act.
* * * * * * *
SEC. 152. DEPENDENT DEFINED.
(a) In general.
* * * * * * *
(c) Qualifying child.
For purposes of this section--
(1) In general. The term ``qualifying child'' means, with
respect to any taxpayer for any taxable year, an individual--
* * * * * * *
[(4) Special rule relating to 2 or more claiming qualifying
child.
[(A) In general. Except as provided in subparagraph
(B), if (but for this paragraph) an individual may be
and is claimed as a qualifying child by 2 or more
taxpayers for a taxable year beginning in the same
calendar year, such individual shall be treated as the
qualifying child of the taxpayer who is--
[(i) a parent of the individual, or
[(ii) if clause (i) does not apply, the
taxpayer with the highest adjusted gross income
for such taxable year.
[(B) More than 1 parent claiming qualifying child. If
the parents claiming any qualifying child do not file a
joint return together, such child shall be treated as
the qualifying child of--
[(i) the parent with whom the child resided
for the longest period of time during the
taxable year, or
[(ii) if the child resides with both parents
for the same amount of time during such taxable
year, the parent with the highest adjusted
gross income.]
(4) Special rules for claiming qualifying child.
(A) Rules involving parents.
(i) In general. A taxpayer other than a
parent of an individual may not claim such
individual as a qualifying child for any
taxable year beginning in a calendar year if--
(I) a parent is eligible to claim and
claims such individual as a qualifying
child for any taxable year beginning in
such calendar year, or
(II) the taxpayer has a lower
adjusted gross income than any parent
who may claim such individual as a
qualifying child for any taxable year
beginning in such calendar year.
(ii) More than 1 parent claiming qualifying
child. If the parents claiming any qualifying
child do not file a joint return together, such
child shall be treated as the qualifying child
of--
(I) the parent with whom the child
resided for the longest period of time
during the taxable year, or
(II) if the child resides with both
parents for the same amount of time
during such taxable year, the parent
with the highest adjusted gross income.
(B) Rule for 2 or more nonparents claiming qualifying
child.
If an individual may be and is claimed as a
qualifying child by 2 or more taxpayers,
neither of whom is a parent of the individual,
for a taxable year beginning in the same
calendar year, such individual shall be treated
as the qualifying child of the taxpayer with
the highest adjusted gross income for such
taxable year.
* * * * * * *
SEC. 223. HEALTH SAVINGS ACCOUNTS.
(a) Deduction allowed.
* * * * * * *
(d) Health savings account.
For purposes of this section--
(1) In general. The term ``health savings account'' means a
trust created or organized in the United States as a health
savings account exclusively for the purpose of paying the
qualified medical expenses of the account beneficiary, but only
if the written governing instrument creating the trust meets
the following requirements:
* * * * * * *
(2) Qualified medical expenses.
(A) In general. The term ``qualified medical
expenses'' means, with respect to an account
beneficiary, amounts paid by such beneficiary for
medical care (as defined in section 213(d) for such
individual, the spouse of such individual, and any
dependent (as defined in section 152, determined
without regard to subsections (b)(1), (b)(2), and
(d)(1)(B) thereof) of such individual, but only to the
extent such amounts are not compensated for by
insurance or otherwise.
* * * * * * *
CHAPTER 43--QUALIFIED PENSION, ETC., PLANS
* * * * * * *
SEC. 4980B. FAILURE TO SATISFY CONTINUATION COVERAGE REQUIREMENTS OF
GROUP HEALTH PLANS.
(a) General rule.
* * * * * * *
(f) Continuation coverage requirements of group health plans.
(1) In general. * * *
* * * * * * *
(6) Notice requirement. In accordance with regulations
prescribed by the Secretary--
(A) * * *
* * * * * * *
(D) The plan administrator shall notify--
(i) in the case of a qualifying event
described in subparagraph (A), (B), (D), or (F)
of paragraph (3), any qualified beneficiary
with respect to such event, [and]
(ii) in the case of a qualifying event
described in subparagraph (C) or (E) of
paragraph (3) where the covered employee
notifies the plan administrator under
subparagraph (C), any qualified beneficiary
with respect to such event, and
(iii) in any case in which the qualifying
event with respect to which notice to a
qualified beneficiary is required by clause (i)
or (ii) is a qualifying event with respect to
the parent of a qualified beneficiary who is an
alternative recipient under a qualified medical
child support order (as such terms are defined
in section 609(a)(2) of the Employee Retirement
Income Security Act of 1974), the State agency
administering the program under part D of title
IV of the Social Security Act which issued, or
is authorized to enforce, such order,
of such beneficiary's rights under this subsection.
* * * * * * *
CHAPTER 65.--ABATEMENTS, CREDITS, AND REFUNDS
* * * * * * *
SEC. 6402. AUTHORITY TO MAKE CREDITS OR REFUNDS.
* * * * * * *
(C) Offset of Past-Due Support Against Overpayments.--The
amount of any overpayment to be refunded to the person making
the overpayment shall be reduced by the amount of any past-due
support (as defined in section 464(c) of the Social Security
Act) owed by that person of which the Secretary has been
notified by a State in accordance with section 464 of [the
Social Security Act] such Act. The Secretary shall remit the
amount by which the over-payment is so reduced to the State
collecting such support and notify the person making the
overpayment that so much of the over-payment was necessary to
satisfy his obligation for past-due support has been paid to
the State. [A reduction under this subsection shall be applied
first to satisfy any past-due support which has been assigned
to the State under section 402(a)(26) or 471(a)(17) of the
Social Security Act, and shall be applied to satisfy any other
past-due support after any other reductions allowed by law (but
before a credit against future liability for an internal
revenue tax) have been made.] The Secretary shall apply a
reduction under this subsection first to an amount certified by
the State as past due support under section 464 of the Social
Security Act before any other reductions allowed by law. This
subsection shall be applied to any overpayment prior to its
being credited to a person's future liability for an internal
revenue tax.
* * * * * * *
PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1966
* * * * * * *
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
Sec. 101. Findings.
* * * * * * *
Sec. 117. Responsible fatherhood program.
* * * * * * *
TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES
* * * * * * *
SEC. 116. EFFECTIVE DATE; TRANSITION RULE.
(a) Effective Dates.--* * *
* * * * * * *
SEC. 117. FATHERHOOD PROGRAM.
(a) In General.--Title IV (42 U.S.C. 601-679b) is amended
by inserting after part B the following:
``PART C--RESPONSIBLE FATHERHOOD PROGRAM
``SEC. 441. RESPONSIBLE FATHERHOOD GRANTS.
``(a) Grants to States To Conduct Demonstration Programs.--
``(1) Authority To Award Grants.--
``(A) In general.--The Secretary shall award
grants to up to 10 eligible States to conduct
demonstration programs to carry out the
purposes described in paragraph (2).
``(B) Eligible state.--For purposes of this
subsection, an eligible State is a State that
submits to the Secretary the following:
``(i) Application.--An application
for a grant under this subsection, at
such time, in such manner, and
containing such information as the
Secretary may require.
(ii) State plan.--A State plan that
includes the following:
``(I) Project description.--A
description of the programs or
activities the State will fund
under the grant, including a
good faith estimate of the
number and characteristics of
clients to be served under such
projects and how the State
intends to achieve at least 2
of the purposes described in
paragraph (2).
``(II) Coordination efforts.--A
description of how the State
will coordinate and cooperate
with State and local entities
responsible for carrying out
other programs that relate to
the purposes intended to be
achieved under the
demonstration program,
including as appropriate,
entities responsible for
carrying out jobs programs and
programs serving children and
families.
``(III) Records, reports, and
audits.--An agreement to
maintain such records, submit
such reports, and cooperate
with such reviews and audits as
the Secretary finds necessary
for purposes of oversight of
the demonstration program.
``(iii) Certifications.--The
following certifications from the chief
executive officer of the State:
``(I) A certification that
the State will use funds
provided under the grant to
promote at least 2 of the
purposes described in paragraph
(2).
``(II) A certification that
the State will return any
unused funds to the Secretary
in accordance with the
reconciliation process under
paragraph (5).
``(III) A certification that
the funds provided under the
grant will be used for programs
and activities that target low-
income participants and that
not less than 50 percent of the
participants in each program or
activity funded under the grant
shall be--
``(aa) parents of a
child who is, or within
the past 24 months has
been, a recipient of
assistance or services
under a State program
funded under part A, D,
or E of this title,
title XIX, or the Food
Stamp Act of 1977; or
``(bb) parents,
including an expectant
parent or a married
parent, whose income
(after adjustment for
court-ordered child
support paid or
received) does not
exceed 150 percent of
the poverty line.
``(IV) A certification that
the State has or will comply
with the requirements of
paragraph (4).
``(V) A certification that
funds provided to a State under
this subsection shall not be
used to supplement or supplant
other Federal, State, or local
funds that are used to support
programs or activities that are
related to the purposes
described in paragraph (2).
``(C) Preferences and factors of
consideration.--In awarding grants under this
subsection, the Secretary shall take into
consideration the following:
``(i) Diversity of entities used to
conduct programs and activities.--The
Secretary shall, to the extent
practicable, achieve a balance among
the eligible States awarded grants
under this subsection with respect to
the size, urban or rural location, and
employment of differing or unique
methods of the entities that the
eligible States intend to use to
conduct the programs and activities
funded under the grants.
``(ii) Priority for certain states.--
The Secretary shall give priority to
awarding grants to eligible States that
have--
``(I) demonstrated progress
in achieving at least 1 of the
purposes described in paragraph
(2) through previous State
initiatives; or
``(II) demonstrated need with
respect to reducing the
incidence of out-of-wedlock
births or absent fathers in the
State.
``(2) Purposes.--The purposes described in this
paragraph are the following:
``(A) Promoting responsible fatherhood
through marriage promotion.--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.
``(B) Promoting responsible fatherhood
through parenting promotion.--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.
``(C) Promoting responsible fatherhood
through fostering through fostering economic
stability of fathers.--To foster economic
stability by helping fathers improve their
economic status by providing activities such as
work for 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.
``(3) Restriction on use of funds.--No funds provided
under this subsection may be used for costs
attributable to court proceedings regarding matters of
child visitation or custody, or for legislative
advocacy.
``(4) Requirements for receipt of funds.--A State may
not be awarded a grant under this section unless the
State, as a condition of receiving funds under such a
grant--
``(A) consults with experts in domestic
violence or with relevant community domestic
violence coalitions in dveloping such programs
or activities; and
``(B) describes in the application for a
grant under this section--
``(i) how the programs or activities
proposed to be conducted will address,
as appropriate, issues of domestic
violence; and
``(ii) what the State will do, to the
extent relevant, to ensure that
participation in such programs or
activities is voluntary, and to inform
potential participants that their
involvement is voluntary.
``(5) Reconciliation process.--
``(A) 3-Year availability of amounts
alloted.--Each eligible State that receives a
grant under this subsection for a fiscal year
shall return to the Secretary any unused
portion of the grant for such fiscal year not
later than the last day of the second
succeeding fiscal year, together with any
earnings on such unused portion.
``(B) Procedure for redistribution.--The
Secretary shall establish an appropriate
procedure for the redistributing to eligible
States that have expended the entire amount of
a grant made under this subsection for a fiscal
year any amount that is returned to the
Secretary by eligible States under subparagraph
(A).
``(6) Amount of grants.--
``(A) In General.--Subject to subparagraph
(B), the amount of each grant awarded under
this subsection shall be an amount sufficient
to implement the State plan submitted under
paragraph (1)(B)(ii).
``(B) Minimum amounts.--No eligible State
shall--
``(i) in the case of the District of
Columbia or a State other than the
Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the
Northern Mariana Islands, receive a
grant for a fiscal year in an amount
that is less than $1,000,000; and
``(ii) in the case of the
Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the
Northern Mariana Islands, receive a
grant for a fiscal year in an amount
that is less than $500,000.
``(7) Definition of state.--In this subsection the
term `State' means each of the 50 States, the District
of Columbia, the Commonwealth of Puerto Rico, the
United State Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands.
``(8) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for each of fiscal
years 2006 through 2010, $20,000,000 for purposes of
making grants to eligible States under this subseciton.
``(b) Grants to Eligible Entities To Conduct Demonstration
Programs.--
``(1) Authority to award grants.--
``(A) In general.--The Secretary shall award
grants to eligible entities to conduct
demonstration programs to carry out the
purposes described in subsection (a)(2).
``(B) Eligibility entity.--For purposes of
this subsection, an eligible entity is a local
government, local public agency, community-
based or nonprofit organization, or private
entity, including any charitable or faith-based
organization, or an Indian tribe or tribal
organization (as defined in sectin 419(4)),
that submits to the Secretary the following:
``(i) Application.--An application
for a grant under this subsection, at
such time, in such manner, and
containing such information as the
Secretary may require.
``(ii) Project description.--A
description of the programs or
activities the entity intends to carry
out with funds provided under the
grant, including a good faith estimate
of the number and chracteristics of
clients tob e served under such
programs or activities and how the
entity intends to achieve at least 20
of the purposes described in subsection
(a)(2).
``(iii) Coordination efforts.--A
description of how the entity will
coordinate and cooperate with State and
local entities responsible for carrying
out other programs that relate to the
purposes intended to be achieved under
the demonstration program, including as
appropriate, entities responsible for
carrying out jobs programs and programs
serving children and families.
``(iv) Records, reports, and
audits.--An agreement to maintain such
records, submit such reports, and
cooperate with such reviews and audits
as the Secretary finds necessary for
purposes of oversight of the
demonstration program.
``(v) Certifications.--The following
certifications:
``(I) A certification that
the entity will use funds
provided udner the grant to
promote at least 2 of the
purposes described in
subsection (a)(2).
``(II) A certification that
the entity will return any
unused funds to the Secretary
in accordance with the
reconcilation process under
paragraph (3).
(III) A certification that
the funds provided under the
grant will be used for programs
and activities that target low-
income participants in each
program or activity funded
under the grant shall be--
``(aa) parents of a
child who is, or within
the past 24 months has
been, a recipient of
assistance or services
under a State program
funded under part A, D,
or E of this title,
title XIX, or the Food
Stamp Act of 1977; or
``(bb) parents,
including an expectant
parent or a married
parent, whose income
(after adjustment for
court-ordered child
support paid or
received) does not
exceed 150 percent of
the poverty line.
``(IV) A certification that
the entity has or will comply
with the requirements of
paragraph (3).
``(V) A certification that
funds provided to an entity
under this subsection shall not
be used to supplement or
supplant other Federal, State,
or local fundsprovided to the
entity that are used to support
programs or activities that are
related to the purposes
described in subsection (a)(2).
``(C) Preferences and factors of
consideration.--In awarding grants under this
subsection, the Secretary shall, to the extent
practicable, achieve a balance mong the
eligible entities awarded grants under this
subsectinw ith respect to the size, urban or
rural location, and employment of differing or
unique methods of the entities.
``(2) Restriction on use of funds.-- No funds provded
under this subsection may be used for costs
attributable to court proceedings regarding matters of
child visitation or custody, or for legislative
advocacy.
``(3) Requirements for use of funds.--The Secretary
may not award a grant under this subsection to an
eligible entity unless the entity, as a condition of
receiving funds under such a grant--
``(A) consults with experts in domestic
violence or with relevant community domestic
violence coalitions in developing the programs
or activities to be conducted with such funds
awarded under the grant; and
``(B) describes in the application for a
grant under this section--
``(i) how the programs or activities
proposed to be conducted will address,
as appropriate, issues of domestic
violence; and
``(ii) what the entity will do, to
the extent relevant, to ensure that
participation in such programs or
activities is voluntary, and to inform
potential participants that their
involvement is voluntary.
``(4) Reconcilitation process.--
``(A) 3-Year availability of amounts
allotted.--Each eligible entity that receives a
grant under this subseciton for a fiscal year
shll return tot he Secretary any unused portion
of the grant for such fiscal year not later
than the last day of the second succeeding
fiscal year, together with any earnings on such
unused portion.
``(B) Procedure for redistribution.--The
Secretary shall establish an appropriate
procedure for redistributing to eligible
entities that have expended the entire amount
of a grant made under this subsection for
fiscal year any amount that is returned to the
Secretary by eligible entities amount that is
returned to the Secretary by eligible entities
under subparagraph (A).
``(5) Appropriation.--Out of any money in the
Treasury oft he United States not otherwise
appropriated, there are appropriated for each of fiscal
years 2006 through 2010, $30,000,000 for purposes of
making grant to eligible entities under this
subsection.
``SEC. 442. NATIONAL CLEARINGHOUSE FOR RESPONSIBLE FATHERHOOD PROGRAMS.
``(a) Media Campaign National Clearinghouse for Responsible
Fatherhood.--
``(1) In general.--From any funds appropriated under
subsection (c), the Secretary shall contract with a
nationally recognized, nonprofit fatherhood promotion
organization described in subsection (b) to--
``(A) develop, promote, and distribute to
interested States, local governments, public
agencies, and private entities a media campaign
that encourages the appropriate involvement of
parents in the life of any child, with a
priority forprograms that specifically address
the issue of responsible fatherhood; and
``(B) develop a national clearinghouse to
assist States and communities in efforts to
promote and support marriage and responsible
fatherhood by collecting, evaluating, and
making available (through the Internet and by
other means) to other States information
regarding the media campaigns established under
section 443.
``(2) Coordination with domestic violence programs.--
The Secretary shall ensure that the nationally
recognized non-profit fatherhood promotion organization
with a contract under paragraph (1) coordinates the
media campaign developed under subparagraph (A) of such
paragraph and the national clearinghouse developed
under subparagraph (B) of such paragraph with national,
State, or local domestic violence programs.
``(b) Nationally Recognized, Nonprofit Fatherhood Promotion
Organization Described.--The nationally recognized, nonprofit
fatherhood promotion organization described in this subsection
is an organization that has at least 4 years of experience in--
``(1) designing and disseminating a national public
education campaign, as evidenced by the production and
successful placement of television, radio, and print
public service announcements that promote the
importance of responsible fatherhood, a track record of
service to Spanish-speaking populations and
historically underserved or minority populations, the
capacity to fulfill requests for information and a
proven history of fulfilling such requests, and a
mechanism through which the public can request
additional information about the campaign; and
``(2) providing consultation and training to
community-based organizations interested in
implementing fatherhood outreach, support, or skill
development programs with an emphasis on promoting
married fatherhood as the ideal.
``(c) Authorization of Appropriations.--There is authorized
to be appropriated $5,000,000 for each of fiscal years 2006
through 2010 to carry out this section.
``SEC. 443. BLOCK GRANTS TO STATES TO ENCOURAGE MEDIA CAMPAIGNS.
``(a) Definitions.--In this section:
``(1) Broadcast advertisement.--The term `broadcast
advertisement' means a communication intended to be
aired by a television or radio broadcast station,
including a communication intended to be transmitted
through a cable channel.
``(2) Child at risk.--The term `child at risk' means
each young child whose family income does not exceed
the poverty line.
``(3) Poverty line.--The term `poverty line' has the
meaning given such term in section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2)),
including any revision required by such section, that
is applicable to a family of the size involved.
``(4) Printed or other advertisement.--The term
`printed or other advertisement' includes any
communication intended to be distributed through a
newspaper, magazine, outdoor advertising facility,
mailing, or any other type of general public
advertising, but does not include any broadcast
advertisement.
``(5) State.--The term `State' means each of the 50
States, the District of Columbia, the Commonwealth of
Puerto Rico, the United States Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern
Mariana Islands.
``(6) Young child.--The term `young child' means an
individual under age 5.
``(b) State Certifications.--Not later than October 1 of
each of fiscal year for which a State desires to receive an
allotment under this section, the chief executive officer of
the State shall submit to the Secretary a certification that
the State shall--
``(1) use such funds to promote the formation and
maintenance of healthy 2-parent married families,
strengthen fragile families, and promote responsible
fatherhood through media campaigns conducted in
accordance with the requirements of subsection (d);
``(2) return any unused funds to the Secretary in
accordance with the reconciliation process under
subsection (e); and
``(3) comply with the reporting requirements under
subsection (f).
``(c) Payments to States.--For each of fiscal years 2006
through 2010, the Secretary shall pay to each State that
submits a certification under subsection (b), from any funds
appropriated under subsection (i), for the fiscal year an
amount equal to the amount of the allotment determined for the
fiscal year under subsection (g).
``(d) Establishment of Media Campaigns.--Each State
receiving an allotment under this section for a fiscal year
shall use the allotment to conduct media campaigns as follows:
``(1) Conduct of media campaigns.--
``(A) Radio and television media campaigns.--
``(i) Production of broadcast
advertisements.--At the option of the
State, to produce broadcast
advertisements that promote the
formation and maintenance of healthy 2-
parent married families, strengthen
fragile families, and promote
responsible fatherhood.
``(ii) Airtime challenge program.--At
the option of the State, to establish
an airtime challenge program under
which the State may spend amounts
allotted under this section to purchase
time from a broadcast station to air a
broadcast advertisement produced under
clause (i), but only if the State
obtains an amount of time of the same
class and during a comparable period to
air the advertisement using non-Federal
contributions.
``(B) Other media campaigns.--At the option
of the State, to conduct a media campaign that
consists of the production and distribution of
printed or other advertisements that promote
the formation and maintenance of healthy 2-
parent married families, strengthen fragile
families, and promote responsible fatherhood.
``(2) Administration of media campaigns.--A State may
administer media campaigns funded under this section
directly or through grants, contracts, or cooperative
agreements with public agencies, local governments, or
private entities, including charitable and faith-based
organizations.
``(3) Consultation with domestic violence assistance
centers.--In developing broadcast and printed
advertisements to be used in the media campaigns
conducted under paragraph (1), the State or other
entity administering the campaign shall consult with
representatives of State and local domestic violence
centers.
``(4) Non-federal contributions.--In this section,
the term `non-Federal contributions' includes
contributions by the State and by public and private
entities. Such contributions may be in cash or in kind.
Such term does not include any amounts provided by the
Federal Government, or services assisted or subsidized
to any significant extent by the Federal Government, or
any amount expended by a State before October 1, 2005.
``(e) Reconciliation Process.--
``(1) 3-year availability of amounts allotted.--Each
Stated that receives an allotment under this section
shall return to the Secretary any unused portion of the
amount allotted to a State for a fiscal year not later
than the last day of the second succeeding fiscal year
together with any earnings on such unused portion.
``(2) Procedure for redistribution of unused
allotments.--The Secretary shall establish an
appropriate procedure for redistributing to States that
have expended the entire amount allotted under this
section any amount that is--
``(A) returned to the Secretary by States
under paragraph (1); or
``(B) not allotted to a State under this
section because the State did not submit a
certification under subsection (b) by October 1
of a fiscal year.
``(f) Reporting Requirements.--
``(1) Monitoring and evaluation.--Each State
receiving an allotment under this section for a fiscal
year shall monitor and evaluate the media campaigns
conducted using funds made available under this section
in such manner as the Secretary, in consultation with
the States, determines appropriate.
``(2) Annual reports.--Not less frequently than
annually, each State receiving an allotment under this
section for a fiscal year shall submit to the Secretary
reports on the media campaigns conducted using funds
made available under this section at such time, in such
manner, and containing such information as the
Secretary may require.
``(g) Amount of Allotments.--
``() In general.--Except as provided in paragraph
(2), of the amount appropriated for the purpose of
making allotments under this section for a fiscal year,
the Secretary shall allot to each State that submits a
certification under subsection (b) for the fiscal year
an amount equal to the sum of--
``(A) the amount that bears the same ratio to
50 percent of such funds as the number of young
children in the State (as determined by the
Secretary based on the most current reliable
data available) bears to the number of such
children in all States; and
``(B) the amount that bears the same ratio to
50 percent of such funds as the number of
children at risk in the State (as determined by
the Secretary based on the most current
reliable data available) bears to the number of
such children in all States.
``(2) Minimum allotments.--No allotment for a fiscal
year under this section shall be less than--
``(A) in the case of the District of Columbia
or a State other than the Commonwealth of
Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, 1 percent of the
amount appropriated for the fiscal year under
subsection (i); and
``(B) in the case of the Commonwealth of
Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, 0.5 percent of
such amount.
``(3) Pro rata reductions.--The Secretary shall make
such pro rata reductions to the allotments determined
under this subsection as are necessary to comply with
the requirements of paragraph (2).
``(h) Evaluation.--
``(1) In general.--The Secretary shall conduct an
evaluation of the impact of the media campaigns funded
under this section.
``(2) Report.--Not later than December 31, 2008, the
Secretary shall report to Congress the results of the
evaluation under paragraph (1).
``(3) Funding.--Of the amount appropriated under
subsection (i) for fiscal year 2006, $1,000,000 of such
amount shall be transferred and made available for
purposes of conducting the evaluation required under
this subsection, and shall remain available until
expended.
``(i) Authorization of Appropriations.--There is authorized
to be appropriated $20,000,000 for each of fiscal years 2006
through 2010 for purposes of making allotments to States under
this section.
``SEC. 444. NATIONAL RESOURCE CENTER FOR RESPONSIBLE FATHERHOOD
``(a) In General.--The Secretary shall contract with a
nationally recognized, nonprofit research and education
fatherhood organization described in subsection (b) to--
``(1) provide technical assistance and training to
public and private agencies and grass roots
organizations that promote responsible fatherhood and
healthy marriage; and
``(2) develop a clearinghouse of resource materials
to assist community-based organizations in developing
local responsible fatherhood programs, with an emphasis
on training and outcome evaluation.
``(b) Nationally Recognized Nonprofit Research and
Education Fatherhood Organization Described.--A nationally
recognized nonprofit research and education fatherhood
organization described in this subsection is an organization
that has been in existence for at least 12 years with
experience in--
``(1) developing and distributing research-based
curriculum that promotes responsible fatherhood and
healthy marriage with an emphasis on low-income and
noncustodial fathers;
``(2) providing consultation and training to
community-based organizations with a track record of
working with social service, government, and faith-
based organizations; and
``(3) providing direct training to fathers, father
figures, and mothers using research-based curriculum in
a variety of economic, cultural and family situations.
``(c) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section,
$1,000,000 for each of fiscal years 2006 through 2010.
``SEC. 445. NONDISCRIMINATION.
``The projects and activities assisted under this part
shall be available on the same basis to all fathers and
expectant fathers able to benefit from such projects and
activities, including married and unmarried fathers and
custodial and noncustodial fathers, with particular attention
to low-income fathers, and to mothers and expectant mothers on
the same basis as to fathers.
``(b) Inapplicability of Effective Date Provisions.--
Section 116 shall not apply to the amendment made by subsection
(a) of this section.''.
* * * * * * *
TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
PART V--PROCEDURE
CHAPTER 115--EVIDENCE; DOCUMENTARY
SEC. 1738B. FULL FAITH AND CREDIT FOR CHILD SUPPORT ORDERS.
(a) General Rule.--The appropriate authorities of each
State--
* * * * * * *
[(d) Continuing Jurisdiction.--A court of a State that has
made a child support order consistently with this section has
continuing, exclusive jurisdiction over the order if the State
is the child's State or the residence of any individual
contestant unless the court of another State, acting in
accordance with subsections (e) and (f), has made a
modification of the order.]
(d) Continuing Exclusive Jurisdiction.--
(1) In general.--Subject to paragraph (2), a court of
a State that has made a child support order consistent
with this section has continuing, exclusive
jurisdiction to modify its order if the order is the
controlling order and--
(A) the State is the child's State or the
residence of any individual contestant; or
(B) if the State is not the residence of the
child or an individual contestant, the
contestants consent in a record or in open
court that the court may continue to exercise
jurisdiction to modify its order.
(2) Requirement.--A court may not exercise its
continuing, exclusive jurisdiction to modify the order
if the court of another State, acting in accordance
with subsections (e) and (f), has made a modification
of the order.
(e) Authority To Modify Orders.--A court of a State may
modify a child support order issued by a court of another state
if--
(1) the court has jurisdiction to make such a child
support order pursuant to subsection (i); and
(2)(A) the court of the other State no longer has
continuing, exclusive jurisdiction of the child support
order [because that State no longer is the child's
State or the residence of any individual contestant;]
pursuant to paragraph (1) or (2) of subsection (d); or
(B) each individual contestant has filed written
consent with the State of continuing, exclusive
jurisdiction for a court of another State with
jurisdiction over at least 1 of the individual
contestants or that is located in the child's State to
modify the order and assume continuing, exclusive
jurisdiction over the order.
(f) [Recognition of] Determination of Controlling Child
Support Orders.--If 1 or more child support orders have been
issued with regard to an obligor and a child, a court [shall
apply the following rules in determining which order to
recognize for purposes of continuing, exclusive jurisdiction
and enforcement:] having personal jurisdiction over both
individual contestants shall apply the following rules and by
order shall determine which order controls:
(1) If only 1 court has issued a child support order,
the order of that court [must be] controls and must be
so recognized.
(2) If 2 or more courts have issued child support
orders for the same obligor and child, and only 1 of
the courts would have continuing, exclusive
jurisdiction under this section, the order of that
court [must be recognized] controls.
(3) If 2 or more courts have issued child support
orders for the same obligor and child, and more than 1
of the courts would have continuing, exclusive
jurisdiction under this section, an order issued by a
court in the current home State of the child [must be
recognized] controls, but if an order has not been
issued in the current home State of the child, the
order most recently issued [must be recognized]
controls.
(4) If 2 or more courts have issued child support
orders for the same obligor and child, and none of the
courts would have continuing, exclusive jurisdiction
under this section, a court having jurisdiction over
the parties [may] shall issue a child support order,
which [must be recognized] controls.
[(5) The court that has issued an order recognized
under this subsection is the court having continuing,
exclusive jurisdiction under subsection (d).]
[(g) Enforcement of Modified Orders.--A court of a State
that no longer has continuing, exclusive jurisdiction of a
child support order may enforce the order with respect to
nonmodifiable obligations and unsatisfied obligations that
accrued before the date on which a modification of the order is
made under subsections (e) and (f).]
(g) Enforcement of Modified Orders.--If a child support
order issued by a court of a State modified by a court of
another State which properly assumed jurisdiction, the issuing
court--
(1) may enforce its order that was modified only as
to arrears and interest accruing before the
modification;
(2) may provide appropriate relief for violations of
its order which occurred before the effective date of
the modification; and
(3) shall recognize the modifying order of the other
State for the purpose of enforcement.
(h) Choice of Law--
(1) In general.--In a proceeding to establish, modify
or enforce a child support order, the forum State's law
shall apply except as provided in paragraphs (2) [and
(3)], (3), and (4).
(2) Law of state of issuance of order.--In
interpreting a child support order including the
duration of current payments and other obligations of
support the computation and payment of arrearages, and
the accrual of interest on the arrearages, a court
shall apply the law of the State of the court that
issued the order.
* * * * * * *
(4) Prospective application.--After a court
determines which is the controlling order and issues an
order consolidating arrears, if any, a court shall
prospectively apply the law of the State issuing the
controlling order, including that State's law with
respect to interest on arrears, current and future
support, and consolidated arrears.
* * * * * * *
(i) Registrtion for Modification.--If there is no
individual contestant or child residing in the issuing State
and subsection (d)(2) does not apply, the party or support
enforcement agency seeking to modify, or to modify and enforce,
a child support order issued in another State shall register
that order in a State with jurisdiction over the nonmovant for
the purpose of modification.
* * * * * * *
TITLE 29--LABOR
Subtitle B--Regulatory Provisions
CHAPTER 18--EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM
Subchapter I--Protection of employee benefit rights
SEC. 1166. NOTICE REQUIREMENTS
(a) In general
In accordance with regulations prescribed by the
Secretary--
(1) * * *
* * * * * * *
(4) the administrator shall notify--
(A) in the case of a qualifying event
described in paragraph (1), (2), (4), or (6) of
section 1163 of this title, any qualified
beneficiary with respect to such event, [and]
(B) in the case of a qualifying event
described in paragraph (3) or (5) of section
1163 of this title where the covered employee
notifies the administrator under paragraph (3),
any qualified beneficiary with respect to such
event, and
(C) in any case in which the qualifying event
with respect to which notice to a qualified
beneficiary is required by subparagraph (A) or
(B) is a qualifying event with respect to the
parent of a qualified beneficiary who is an
alternative recipient under a qualified medical
child support order (as such terms are defined
in section 609(a)(2)), the State agency
administering the program under part D of title
IV of the Social Security Act that issued, or
is authorized to enforce, such order, of such
beneficiary's rights under this subsection.
* * * * * * *
SEC. 1169. ADDITIONAL STANDARDS FOR GROUP HEALTH PLANS
(a) Group health plan coverage pursuant to medical child
support orders
(1) In general
* * * * * * *
(5) Procedural requirements
(A) Timely notifications and determinations
* * * * * * *
(C) National Medical Support Notice deemed to
be a qualified medical child support order
(i) In general
If the plan administrator of a group health plan
which is maintained by the employer of a [noncustodial]
parent of a child or to which such an employer
contributes receives an appropriately completed
National Medical Support Notice promulgated pursuant to
section 401(b) of the Child Support Performance and
Incentive Act of 1998 is the case of such child, and
the Notice meets the requirements of paragraphs (3) and
(4), the Notice shall be deemed to be a qualified
medical child support order in the case of such child.
(ii) Enrollment of child in plan
In any case in which an appropriately completed
National Medical Support Notice is issued in the case
of a child of a participant under a group health plan
who is a [noncustodial] parent of the child and the
Notice is deemed under clause (i) to be a qualified
medical child support order, the plan administrator,
within 40 business days after the date of the Notice,
shall--
* * * * * * *
29 Sec. 1169. NOTE.
* * * * * * *
National Medical Support Notices for State or Local Governmental Group
Health Plans
Pub. L. 105-200, title IV Sec. 401(e), July 16, 1998, 112
Stat. 663, provided that:
``(1) In general.--Each State or local governmental group
health plan shall provide benefits in accordance with the
applicable requirements of any National Medical Support Notice.
``(2) Enrollment of child in plan.--In any case in which an
appropriately completed National Medical Support Notice is
issued in the case of a child of a participant under a State or
local governmental group health plan [who is a noncustodial
parent of the child] the plan administrator, within 40 business
days after the date of the Notice, shall--
Qualified Medical Child Support Orders and National Medical Support
Notices for Church Plans
Pub. L. 105-200, Title IV, Sec. 401(f), July 16, 1998, 112
Stat. 664, provided that:
``(1) * * *
``(5) Procedural requirements.--
``(A) * * *
``(C) National Medical Support Notice deemed to be a
qualified medical child support order.--
``(i) In general.--If the plan administrator of any
church group health plan which is maintained by the
employer of a [noncustodial] parent of a child or to
which such an employer contributes receives an
appropriately completed National Medical Support Notice
promulgated pursuant to subsection (b) of this section
[Pub.L. 105-200, Title IV, Sec. 401(b), July 16, 1998,
112 Stat. 660, which is classified as a note under
section 651 of Title 42] in the case of such child, and
the Notice meets the requirements of paragraphs (3) and
(4) of this subsection [this note], the Notice shall be
deemed to be a qualified medical child support order in
the case of such child.
``(ii) Enrollment of child in plan.--In any case in
which an appropriately completed National Medical
Support Notice is issued in the case of a child of a
participant under a church group health plan who is a
[noncustodial] parent of the child, and the Notice is
deemed under clause (i) to be a qualified medical child
support order, the plan administrator, within 40
business days after the date of the Notice, shall--
* * * * * * *
TITLE 31--MONEY AND FINANCE
Subtitle III--Financial Management
CHAPTER 37--CLAIMS
Subchapter II--Claims of the United States Government
* * * * * * *
SEC. 3701. DEFINITIONS AND APPLICATION.
(a) * * *
(d) Sections 3711(e) and 3716-3719 of this title do not apply
to a claim or debt under, or to an amount payable under--
(1) the Internal Revenue Code of 1986 (26 U.S.C. 1 et
seq.),
(2) the Social Security Act (42 U.S.C. 301 et seq.), except
to the extent provided under sections 204(f) and 1631(b)(4) of
such Act and [section 3716(c) of this title] subsections (c)
and (h)(3) of section 3716 of this title, or
* * * * * * *
SEC. 3716. ADMINISTRATIVE OFFSET.
* * * * * * *
(h)(1) The Secretary may, in the discretion of the
Secretary, apply subsection (a) with respect to any past-due,
legally-enforceable debt owed to a State if--
* * * * * * *
[(3) In applying this section with respect to any debt owed
to a State, subsection (c)(3)(A) shall not apply.]
(3)(A) Except as provided in subparagraph (B), in applying
this section with respect to any debt owed to a State,
subsection (c)(3)(A) shall not apply.
(B) Subsection (c)(3)(A) shall apply with respect to
payments owed to an individual under title II of the Social
Security Act (notwithstanding any other provision of law,
including section 207 of the Social Security Act (42 U.S.C.
407)) for purposes of offset under this section of such
payments to collect past-due support being enforced by a State.
* * * * * * *
LONGSHORE AND HARBOR WORKERS' COMPENSATION ACT
ASSIGNMENT AND EXEMPTION FROM CLAIMS OF CREDITORS
Sec. 16. [No] Except as provided by this Act, no
assignment, release, or commutation of compensation or benefits
due or payable under this Act[, except as provided by this
Act,] shall be valid, and such compensation and benefits shall
be exempt from all claims of creditors and from levy,
execution, and attachment or other remedy for recovery or
collection of a debt, which exemption may not be waived.
[LIEN AGAINST COMPENSATION
[Sec. 17. Where a trust fund which complies with section
186(c) of title 29 established pursuant to a collective-
bargaining agreement in effect between an employer and an
employee covered under this chapter has paid disability
benefits to an employee which the employee is legally obligated
to repay by reason of his entitlement to compensation under
this chapter or under a settlement, the Secretary shall
authorize a lien on such compensation in favor or the trust
fund for the amount of such payments.]
LIENS ON COMPENSATION; CHILD SUPPORT ENFORCEMENT
Sec. 17. (a) Liens.--Where a trust fund which complies with
section 302(c) of the Labor Management Relations Act, 1947 (29
U.S.C. 186(c) established pursuant to a collective-bargaining
agreement in effect between an employer and an employee covered
under this Act has paid disability benefits to an employee
which the employee is legally obligated to repay by reason of
the employee's entitlement to compensation under this Act or
under a settlement, the Secretary shall authorize a lien on
such compensation in favor of the trust fund for the amount of
such payments.
(b) Child Support.--Compensation or benefits due or payable
to an individual under this Act (other than medical benefits)
shall be subject, in like manner and to the same extent as
similar compensation or benefits under a workers' compensation
program if established under State law--
(1) to withholding in accordance with State law
enacted pursuant to subsections (a)(1) and (b) of
section 466 of the Social Security Act and regulations
under such subsections; and
(2) to any other legal process brought, by a State
agency administering a program under a State plan
approved under part D of title IV of the Social
Security Act or by an individual obligee, to enforce
the legal obligation of the individual to provide child
support or alimony.
* * * * * * *