To expand the purposes of the program of block grants to States for temporary assistance for needy families to include poverty reduction, and to make grants available under the program for that purpose.

February 5, 2003

Mr. STARK (for himself, Mr. RANGEL, Mr. CARDIN, Mr. LEVIN, Mr. MCDERMOTT, Mr. GEORGE MILLER of California, Mrs. CHRISTENSEN, Mr. CUMMINGS, Mr. DAVIS of Illinois, Ms. DELAURO, Ms. ESHOO, Mr. FORD, Mr. FRANK of Massachusetts, Mr. GRIJALVA, Mr. JACKSON of Illinois, Ms. JACKSON-LEE of Texas, Mr. JEFFERSON, Mr. KILDEE, Mr. KUCINICH, Ms. LEE, Ms. MCCARTHY of Missouri, Mr. BECERRA, Mr. MCNULTY, Mr. MARKEY, Mr. MATSUI, Mr. NADLER, Ms. NORTON, Mr. OWENS, Mr. PAYNE, Mr. RODRIGUEZ, Mr. RUSH, Mr. SANDERS, Ms. SCHAKOWSKY, Ms. SOLIS, Mr. TOWNS, Ms. VELAZQUEZ, Ms. WATSON, and Mr. WAXMAN) introduced the following bill; which was referred to the Committee on Ways and Means

To expand the purposes of the program of block grants to States for temporary assistance for needy families to include poverty reduction, and to make grants available under the program for that purpose.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Child Poverty Reduction Act'.

SEC. 2. ADDITIONAL PURPOSE OF PROGRAM OF BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES.

Section 401(a) of the Social Security Act (42 U.S.C. 601(a)) is amended--

(1) by striking `and' at the end of paragraph (3);

(2) by striking the period at the end of paragraph (4) and inserting `; and'; and

(3) by adding at the end the following:

`(5) reduce the extent and severity of poverty and promote self-sufficiency among families with children.'.

SEC. 3. ADDITION OF CHILD POVERTY REDUCTION BONUS GRANTS TO TANF PROGRAM.

Section 403(a) of the Social Security Act (42 U.S.C. 603(a)) is amended by adding at the end the following:

`(6) BONUS TO REWARD STATES THAT REDUCE CHILD POVERTY-

`(A) IN GENERAL- Beginning with fiscal year 2003, the Secretary shall make a grant pursuant to this paragraph to each State for each fiscal year for which the State is a qualified child poverty reduction State.

`(B) AMOUNT OF GRANT-

`(i) IN GENERAL- Subject to this subparagraph, the amount of the grant to be made to a qualified child poverty reduction State for a fiscal year shall be an amount equal to--

`(I) the number of children who had not attained 18 years of age by the end of the then most recently completed calendar year and who resided in the State as of the end of such calendar year, divided by the number of such children who resided in the United States as of the end of such calendar year; multiplied by

`(II) the amount appropriated pursuant to subparagraph (F) for the fiscal year.

`(ii) LIMITATIONS-

`(I) MINIMUM GRANT- The amount of the grant to be made to a qualified child poverty reduction State for a fiscal year shall be not less than $1,000,000.

`(II) MAXIMUM GRANT- The amount of the grant to be made to a

qualified child poverty reduction State for a fiscal year shall not exceed an amount equal to 5 percent of the State family assistance grant for the fiscal year.

`(iii) PRO RATA INCREASE- If the amount available for grants under this paragraph for a fiscal year is greater than the total amount of payments otherwise required to be made under this paragraph for the fiscal year, then the amount otherwise payable to any State for the fiscal year under this paragraph shall, subject to clause (ii)(II), be increased by such equal percentage as may be necessary to ensure that the total of the amounts payable for the fiscal year under this paragraph equals the amount available for the grants.

`(iv) PRO RATA REDUCTION- If the amount available for grants under this paragraph for a fiscal year is less than the total amount of payments otherwise required to be made under this paragraph for the fiscal year, then the amount otherwise payable to any State for the fiscal year under this paragraph shall, subject to clause (ii)(I), be reduced by such equal percentage as may be necessary to ensure that the total of the amounts payable for the fiscal year under this paragraph equals the amount available for the grants.

`(C) USE OF GRANT- A State to which a grant is made under this paragraph shall use the grant for any purpose for which a grant made under this part may be used.

`(D) DEFINITIONS- In this paragraph:

`(i) QUALIFIED CHILD POVERTY REDUCTION STATE- The term `qualified child poverty reduction State' means, with respect to a fiscal year, a State if--

`(I) the child poverty rate achieved by the State for the then most recently completed calendar year for which such information is available is less than the lowest child poverty rate achieved by the State during the applicable period; and

`(II) the average depth of child poverty in the State for the then most recently completed calendar year for which such information is available is not greater than the average depth of child poverty in the State for the calendar year that precedes such then most recently completed calendar year.

`(ii) APPLICABLE PERIOD- In clause (i), the term `applicable period' means, with respect to a State and the calendar year referred to in clause (i)(I), the period that--

`(I) begins with the calendar year that, as of October 1, 2002, precedes the then most recently completed calendar year for which such information is available; and

`(II) ends with the calendar year that precedes the calendar year referred to clause (i)(I).

`(iii) CHILD POVERTY RATE- The term `child poverty rate' means, with respect to a State and a calendar year, the percentage of children residing in the State during the calendar year whose family income for the calendar year is less than the poverty line then applicable to the family.

`(iv) AVERAGE DEPTH OF CHILD POVERTY- The term `average depth of child poverty' means with respect to a State and a calendar year, the average dollar amount by which family income is exceeded by the poverty line, among children in the State whose family income for the calendar year is less than the applicable poverty line.

`(v) POVERTY LINE- The term `poverty line' has the meaning given the term in section 673(2) of the Omnibus Budget Reconciliation Act of 1981, including any revision required by such section applicable to a family of the size involved.

`(E) FAMILY INCOME DETERMINATIONS- For purposes of this paragraph, family income includes cash income, child support payments, child care payments, government cash payments, and benefits under the Food Stamp Act of 1977 that are received by any family member, and family income shall be determined after payment of all taxes and receipt of any tax refund or rebate by any family member.

`(F) APPROPRIATIONS-

`(i) IN GENERAL- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal year 2003 and each fiscal year thereafter $150,000,000 for grants under this paragraph.

`(ii) AVAILABILITY- Amounts made available under clause (i) shall remain available until expended.'.

END