109th CONGRESS
1st Session
H. R. 751
To reauthorize and improve the Temporary Assistance for Needy Families
(TANF) Program by promoting work, family, and opportunity, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
February 10, 2005
Mr. MCDERMOTT (for himself, Mr. CARDIN, Mr. STARK, Mr. BECERRA, and Mr. EMANUEL)
introduced the following bill; which was referred to the Committee on Ways
and Means, and in addition to the Committee on Energy and Commerce, for a
period to be subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To reauthorize and improve the Temporary Assistance for Needy Families
(TANF) Program by promoting work, family, and opportunity, and for other purposes.
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 `Work, Family, and Opportunity Promotion Act'.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 2. Table of contents.
TITLE I--REAL WORK REQUIREMENTS
Sec. 101. Universal engagement.
Sec. 102. Elimination of caseload reduction rate.
Sec. 103. State option to select job entry rate requirement in lieu of work
participation rate requirement.
Sec. 105. Employment credit.
Sec. 106. Effect of wage subsidies on 5-year limit.
Sec. 107. Workplace laws.
Sec. 108. Nondisplacement.
TITLE II--RESOURCES TO SUPPORT WORK
Sec. 201. Funding for child care.
Sec. 202. Family assistance grants.
Sec. 203 Social services block grant.
Sec. 204. 5-Year extension and simplification of the transitional medical
assistance program (TMA).
Sec. 205. Extension of supplemental grants.
Sec. 206. Additional grants for States with low Federal funding per poor
child.
Sec. 207. Bonus to reward high performance States.
Sec. 208. Contingency fund.
Sec. 209. Eligibility of Puerto Rico, the United States Virgin Islands,
and Guam for the supplemental grant for population increases, the contingency
fund, and mandatory child care funding.
TITLE III--ACCESS TO EDUCATION, TRAINING, AND REHABILITATIVE SERVICES
Sec. 301. Education and training.
Sec. 302. Rehabilitative services.
TITLE IV--REDUCING POVERTY
Sec. 401. Poverty reduction.
Sec. 402. Employment enhancement.
TITLE V--SUPPORTING FAMILIES AND RESPONSIBLE PARENTING
Sec. 501. Family formation fund.
Sec. 502. Two-parent eligibility.
TITLE VI--FAIRNESS FOR LEGAL IMMIGRANTS
Sec. 601. Treatment of aliens under the TANF program.
Sec. 602. Optional coverage of legal immigrants under the medicaid program
and SCHIP.
Sec. 603. Eligibility of disabled children who are qualified aliens for
SSI.
Sec. 604. SSI extension for humanitarian immigrants.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Clarification of authority of States to use TANF funds carried
over from prior years to provide TANF benefits and services.
Sec. 702. Definition of assistance.
Sec. 703. Continuation of pre-welfare reform waivers.
Sec. 704. Maintenance of effort.
Sec. 705. Funding for tribal TANF programs.
Sec. 706. Funding for families assisted by a territory program.
Sec. 707. Repeal of Federal loan fund for State welfare programs.
Sec. 708. Ban on using Federal TANF funds to replace State and local spending
that does not meet the definition of qualified State expenditures.
Sec. 709. Extension of funding of studies and demonstrations.
Sec. 710. Longitudinal studies of employment and earnings of TANF leavers.
Sec. 711. Study by the Census Bureau.
TITLE VIII--EXTENSION OF TANF PROGRAM THROUGH FISCAL YEAR 2005
Sec. 801. Extension of TANF program and related authorities through fiscal
year 2005.
TITLE IX--EFFECTIVE DATE
Sec. 901. Effective date.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, wherever in this Act an amendment
or repeal is expressed in terms of an amendment to, or repeal of, a section
or other provision, the amendment or repeal shall be considered to be made
to a section or other provision of the Social Security Act.
TITLE I--REAL WORK REQUIREMENTS
SEC. 101. UNIVERSAL ENGAGEMENT.
(a) Modification of Individual Responsibility Plans- Section 408(b) (42 U.S.C.
608(b)) is amended to read as follows:
`(b) Individual Responsibility Plans-
`(1) ASSESSMENT- The State agency responsible for administering the State
program funded under this part shall make an initial screening and assessment
of the following for each family with an adult or minor child head of household
receiving assistance under the program:
`(A) The education obtained, skills, prior work experience, work readiness,
and barriers to work of each adult or minor child head of household recipient
of assistance in the family who has attained age 18 or who has not completed
high school or obtained a certificate of high school equivalency, and
is not attending secondary school.
`(B) The work support, work readiness, and family support services for
which the family is eligible.
`(C) The well-being of the children in the family and, where appropriate,
activities or resources to improve the well-being of the children.
`(A) IN GENERAL- On the basis of the screening and assessment required
under paragraph (1) for a family with an adult or minor child head of
household recipient of the assistance, the State agency, in consultation
with the family, shall develop an individual responsibility plan that--
`(i) establishes for each such recipient a self-sufficiency plan that
specifies activities described in the State plan submitted pursuant
to section 402, including work activities specified in section 407(d),
as appropriate, that are designed to assist the family in achieving
the maximum degree of self-sufficiency for the family, and that provides
for the ongoing participation of the recipient in the activities;
`(ii) sets forth the obligations of each such recipient which may include
registering for work and commencing a search for employment for a specified
number of hours each week;
`(iii) requires, at a minimum, each such recipient to participate in
activities in accordance with the individual responsibility plan;
`(iv) sets forth the appropriate supportive services the State intends
to provide for the family;
`(v) 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
`(vi) includes a section designed to assist the family by informing
the family of the work support assistance for which the family may be
eligible, including--
`(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) child care funded under the Child Care Development Block Grant
Act of 1990 (42 U.S.C. 9858 et seq.);
`(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.
`(A) REGULAR REVIEW- The State agency shall--
`(i) monitor the participation of each adult recipient of the assistance
in the activities specified in the individual responsibility plan, and
regularly review the progress of each such 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) BEFORE IMPOSITION OF A SANCTION- The State agency shall--
`(i) review the individual responsibility plan before imposing a sanction
against such an adult recipient or such a family for failure to comply
with a requirement of the plan or the State program funded under this
part; and
`(ii) make a good faith effort to consult with the family as part of
such review.
`(4) TIMING- The State shall comply with this subsection--
`(A) in the case of a family that, as of October 1, 2005, is not receiving
assistance from the State program funded under this part, not later than
60 days after the family first receives assistance on the basis of the
most recent application for the assistance; and
`(B) in the case of a family that, as of such date, is receiving the assistance,
not later than September 30, 2006.
`(5) RULE OF INTERPRETATION- Nothing in this subsection shall preclude a
State from requiring participation in work and any other activities the
State deems appropriate for helping families achieve self-sufficiency and
improving child well-being.'.
(1) DEVELOPMENT OF MODEL SCREENING AND ASSESSMENT TOOLS-
(A) IN GENERAL- The Secretary of Health and Human Services shall develop
or identify model screening and assessment tools to assist States (at
their option) in identifying an individual's barriers to employment or
compliance with the State program funded under part A of title IV of the
Social Security Act.
(B) CONSULTATION- The Secretary of Health and Human Services shall develop
or identify the model tools required under paragraph (1) in consultation
with individuals and groups with expertise in circumstances such as physical
or mental impairments (including learning disabilities), substance abuse,
limited English proficiency, domestic violence, or the need to care for
a family member with a disability.
(C) DISSEMINATION- The Secretary of Health and Human Services shall disseminate
the tools developed or identified under this paragraph to States (as defined
in section 1101(a)(1) of the Social Security Act (42 U.S.C. 1301(a)(1))
for purposes of part A of title IV of such Act) and Indian tribes with
programs funded under such part .
SEC. 102. ELIMINATION OF CASELOAD REDUCTION RATE.
(a) In General- Section 407(b) (42 U.S.C. 607(b)), as amended by section 503(b)
of this Act, is amended by striking paragraph (2) and redesignating paragraphs
(3) and (4) as paragraphs (2) and (3), respectively.
(b) State Option to Phase-in Replacement of Caseload Reduction Credit With
Employment Credit and Delay Applicability of Other Provisions- A State may
elect to have the amendments made by subsection (a) of this section not apply
to the State program funded under part A of title IV of the Social Security
Act until October 1, 2006, and if the State makes the election, then, in determining
the participation rate of the State for purposes of sections 407 and 409(a)(3)
of the Social Security Act for fiscal year 2006, the State shall be credited
with 1/2 of the reduction in the rate that would otherwise result from applying
section 407(b)(4) of the Social Security Act (as added by section 105(a)(1)
of this Act) to the State for fiscal year 2006 and 1/2 of the reduction in
the rate that would otherwise result from applying section 407(b)(2) of such
Act (as so redesignated by section 503(b)(2)(D) of this Act) to the State
for fiscal year 2006.
SEC. 103. STATE OPTION TO SELECT JOB ENTRY RATE REQUIREMENT IN LIEU OF WORK
PARTICIPATION RATE REQUIREMENT.
(a) In General- Part A of title IV (42 U.S.C. 601-619) is amended by inserting
after section 407 the following:
`SEC. 407A. JOB ENTRY RATE REQUIREMENT.
`(a) State Option- This section shall apply, in lieu of sections 402(a)(1)(A)(iii)
and 407(a), to a State program funded under this part if the Governor of the
State so notifies the Secretary in writing, or State law so provides, by such
deadline as the Secretary shall prescribe in regulations.
`(1) IN GENERAL- Except as otherwise provided in this subsection, a State
to which this section applies for a fiscal year shall achieve a job entry
rate for the fiscal year that is at least 2 percentage points greater than--
`(A) in the case of fiscal year 2006, the job entry rate of the State
for fiscal year 2003; or
`(B) in the case of any other fiscal year, the job entry rate of the State
for the preceding fiscal year.
`(2) EXCEPTION FOR HIGH PERFORMANCE- If the job entry rate of the State
for a fiscal year is at least 50 percent, then the State shall achieve a
job entry rate for the next fiscal year that is not less than 1 percentage
point greater than the greater of--
`(A) in the case of fiscal year 2006, the job entry rate of the State
for fiscal year 2003; or
`(B) in the case of any other fiscal year, the job entry rate of the State
for the preceding fiscal year.
`(3) EXCEPTION FOR HIGH UNEMPLOYMENT- If the average rate of total unemployment
in a State for the most recent 3-month period for which such information
is available has increased by not less than the lesser of 50 percent or
1.5 percentage points as compared to such rate for the corresponding 3-month
period in either of the 2 most recent preceding fiscal years, then the State
shall achieve a job entry rate that is not less than the the job entry rate
of the State for fiscal year 2003.
`(1) IN GENERAL- The term `job entry rate', with respect to a State, has
the meaning given the term for purposes of the regulations prescribed to
implement section 403(a)(4) and in effect on January 1, 2005, subject to
paragraph (2) of this subsection. The Secretary shall devise a method for
calculating, and shall determine, the job entry rate for fiscal year 2003
for each State for which the calculation has not been made, based on the
criteria used in determining the job entry rate for fiscal year 2003 for
the States for which the calculation has been made.
`(2) GOOD JOBS BONUS- In determining the job entry rate of a State for fiscal
year 2006 or thereafter, the Secretary shall count an individual who enters
employment at a wage that is not less than 33 percent of the average wage
in the State for the fiscal year as 1.5 individuals.'.
(b) Penalty for Noncompliance- Section 409(a)(3) (42 U.S.C. 609(a)(3)) is
amended--
(1) in the paragraph heading, by inserting `OR ACHIEVE MINIMUM JOB ENTRY
RATE' after `RATES';
(2) in subparagraph (A), by inserting `or 407A(b)' after `407(a)'.
SEC. 104. WORK RATES.
Section 407(a)(1) (42 U.S.C. 607(a)), as amended by section 503(b)(1) of this
Act, is amended to read as follows:
`(1) IN GENERAL- A State to which a grant is made under section 403 for
a fiscal year shall achieve a minimum participation rate 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.'.
SEC. 105. EMPLOYMENT CREDIT.
(1) EMPLOYMENT CREDIT TO REWARD STATES IN WHICH FAMILIES LEAVE WELFARE FOR
WORK; ADDITIONAL CREDIT FOR FAMILIES WITH HIGHER EARNINGS- Section 407(b)
(42 U.S.C. 607(b)), as amended by sections 503(b) and 102(a) of this Act,
is amended by adding at the end the following:
`(A) IN GENERAL- The participation rate, determined under paragraph (1),
of a State for a fiscal year shall be increased by the lesser of--
`(i) the number of percentage points (if any) of the employment credit
for the State for the fiscal year; or
`(ii) the number of percentage points (if any) by which the participation
rate, so determined, is less than 99 percent.
`(B) CALCULATION OF CREDIT-
`(i) IN GENERAL- The employment credit for a State for a fiscal year
is an amount equal to--
`(I) twice the average quarterly number of families with an adult
that ceased to receive assistance under the State program funded under
this part during the preceding fiscal year (but only if the adult
did not receive such assistance for at least 2 months after the cessation)
and that was employed during the calendar quarter immediately succeeding
the quarter in which the payments ceased; divided by
`(II) the average monthly number of families that include an adult
who received cash payments under the State program funded under this
part during the preceding fiscal year.
`(ii) SPECIAL RULE FOR FORMER RECIPIENTS WITH HIGHER EARNINGS- In calculating
the employment credit for a State for a fiscal year, a family that,
in the quarter in which the wage was examined, earned at least 33 percent
of the average quarterly wage in the State (determined on the basis
of State unemployment data) shall be considered to be 1.5 families.
`(C) REGULATIONS- The Secretary may prescribe such regulations as may
be necessary to carry out this paragraph.
`(D) REPORTS ON AMOUNT OF CREDIT- Not later than 6 months after the end
of each calendar quarter, the Secretary shall report to the Congress and
each State the amount of the employment credit for the State for the quarter.
The Secretary may carry out this subparagraph using funds made available
under this part for research.'.
(2) AUTHORITY OF SECRETARY TO USE INFORMATION IN NATIONAL DIRECTORY OF NEW
HIRES- Section 453(i) (42 U.S.C. 653(i)) is amended by adding at the end
the following:
`(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)(4).'.
(b) States to Receive Partial Credit Toward Work Participation Rate for Recipients
Engaged in Part-Time Work- Section 407(c)(1)(A) (42 U.S.C. 607(c)(1)(A)) is
amended by adding at the end the following flush sentence:
`For purposes of subsection (b)(1)(B)(i), a family that does not include a
recipient who is participating in work activities for an average of 30 hours
per week during a month but includes a recipient who is participating in such
activities during the month for an average of at least 50 percent of the minimum
average number of hours per week specified for the month in the table set
forth in this subparagraph shall be counted as a percentage of a family that
includes an adult or minor child head of household who is engaged in work
for the month, which percentage shall be the number of hours for which the
recipient participated in such activities during the month divided by the
number of hours of such participation required of the recipient under this
section for the month.'.
SEC. 106. EFFECT OF WAGE SUBSIDIES ON 5-YEAR LIMIT.
Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by adding at the end the
following:
`(H) LIMITATION ON MEANING OF `ASSISTANCE' FOR FAMILIES WITH INCOME FROM
EMPLOYMENT- For purposes of this paragraph, at the option of the State,
a benefit or service provided to a family during a month under the State
program funded under this part shall not be considered assistance under
the program if--
`(i) during the month, the family includes an adult or a minor child
head of household who has received at least such amount of income from
employment as the State may establish; and
`(ii) the average weekly earned income of the family for the month is
at least $100.'.
SEC. 107. WORKPLACE LAWS.
Section 408 (42 U.S.C. 608) is amended by adding at the end the following:
`(h) Workplace Laws- An individual engaged in an activity funded in whole
or in part by the TANF program shall not be subjected to discrimination based
on race, color, religion, sex, national origin, age, or disability, and shall
not be denied the benefits or protections of any Federal, State or local employment,
civil rights, or health and safety law because of the status of the individual
as a participant in the TANF program.'.
SEC. 108. NONDISPLACEMENT.
(a) In General- Section 408 (42 U.S.C. 608), as amended by section 107 of
this Act, is amended by adding at the end the following:
`(i) Nondisplacement- With respect to activities funded in whole or in part
under this part, a State shall establish and maintain such procedures as are
necessary to prohibit the placement of an individual in a work activity specified
in section 407(d) from resulting in the displacement of any employee or position
(including partial displacement, such as a reduction in the hours of nonovertime
work wages or in employment benefits, a filling of any unfilled vacancy, or
the performance of work when any other individual is on layoff from the same
or any substantially equivalent job).'.
(b) State Plan Requirement- Section 402(a) (42 U.S.C. 602(a)) is amended by
adding at the end the following:
`(8) A plan that outlines the resources and procedures that will be used
to ensure that the State will establish and maintain the procedures described
in section 408(i).'.
TITLE II--RESOURCES TO SUPPORT WORK
SEC. 201. FUNDING FOR CHILD CARE.
(a) Increase in Mandatory Funding- Section 418(a)(3) (42 U.S.C. 618(a)(3))
is amended--
(1) by striking `and' at the end of subparagraph (E);
(2) by striking the period at the end of subparagraph (F) and inserting
`; and'; and
(3) by adding at the end the following:
`(G) $2,917,000,000 for each of fiscal years 2006 through 2010.'.
(b) Reservation of Child Care Funds-
(1) IN GENERAL- Section 418(a)(4) (42 U.S.C. 618(a)(4)) is amended to read
as follows:
`(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.
`(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.'.
(2) CONFORMING AMENDMENT- Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended
by striking `or 413(f)' and inserting `413(f), or 418(a)(4)(B)'.
(c) Supplemental Grants- Section 418(a) (42 U.S.C. 618(a)) is amended--
(1) by redesignating paragraph (5) as paragraph (7); and
(2) by inserting after paragraph (4) the following:
`(5) SUPPLEMENTAL GRANTS-
`(i) IN GENERAL- For supplemental grants under this section, there are
appropriated--
`(I) $1,200,000,000 for fiscal year 2006;
`(II) $1,500,000,000 for fiscal year 2007;
`(III) $1,900,000,000 for fiscal year 2008;
`(IV) $2,400,000,000 for fiscal year 2009; and
`(V) $3,000,000,000 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 without fiscal year
limitation.
`(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) for the fiscal year and subject to paragraph
(6), shall pay each State an amount which bears the same ratio to the
amount specified in subparagraph (A)(i) of this paragraph for the fiscal
year (after the 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 paragraph (2)(B)for fiscal year 2003.
`(A) MAINTENANCE OF EFFORT- The Secretary may not pay a supplemental grant
to a State under paragraph (5) for a fiscal year unless the State ensures
that the level of State expenditures for child care for the fiscal year
is not less than the total amount of State expenditures that were taken
into account in determining the grant (if any) made to the State under
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 exceeds the amount of
the grant made to the State under paragraph (5) for fiscal year 2008,
paragraph (2)(C) shall apply to the excess amount in the same manner as
paragraph (2)(C) applies to grants made under paragraph (2)(A) 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) of this paragraph 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).'.
(d) Amendments to the Child Care and Development Block Grant Act of 1990-
(1) AUTHORIZATION OF APPROPRIATIONS- Section 658B of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9858) is amended to read
as follows:
`SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
`There are authorized to be appropriated to carry out this subchapter $2,350,000,000
for fiscal year 2006 and such sums as may be necessary for fiscal years 2007
through 2010.'.
(2) CONFORMING AMENDMENT- Section 658E(c)(3)(D) of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858c(c)(3)(D)) is amended by striking
`1997 through 2002' and inserting `2006 through 2010'.
SEC. 202. FAMILY ASSISTANCE GRANTS.
(a) In General- Section 403(a)(1)(A) (42 U.S.C. 603(a)(1)(A)) is amended by
striking `1996' and all that follows through `2003' and inserting `2005 through
2010'.
(1) IN GENERAL- Section 403(a)(1) (42 U.S.C. 603(a)(1)) is amended--
(A) by striking subparagaph (B) and inserting the following:
`(B) STATE FAMILY ASSISTANCE GRANT- The State family assistance grant
payable to a State for a fiscal year specified in subparagraph (A) of
this paragraph shall be--
`(i) 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); multiplied by
`(ii) 1.00, plus the inflation percentage (as defined in subparagraph
(D) of this paragraph) in effect for the fiscal year so specified.';
and
(B) by adding at the end the following:
`(D) INFLATION PERCENTAGE- For purposes of subparagraph (B) of this paragraph,
the inflation percentage applicable to a fiscal year is the percentage
(if any) by which--
`(i) the average of the Consumer Price Index (as defined in section
1(f)(5) of the Internal Revenue Code of 1986) for the 12-month period
ending on September 30 of the immediately preceding fiscal year; exceeds
`(ii) the average of the Consumer Price Index (as so defined) for the
12-month period ending on September 30, 2007.'.
(2) Effective Date- The amendments made by paragraph (1) shall take effect
on October 1, 2008.
SEC. 203 SOCIAL SERVICES BLOCK GRANT.
(a) Restoration of Funds- Section 2003(c)(11) (42 U.S.C. 1397b(c)(11)) is
amended by inserting `, except that, for fiscal year 2006, the amount shall
be $1,975,000,000, and for fiscal year 2007, the amount shall be $2,800,000,000'
after `thereafter'.
(b) Restoration of Authority to Transfer Up to 10 Percent of TANF Funds to
the Social Services Block Grant-
(1) IN GENERAL- Section 404(d)(2) (42 U.S.C. 604(d)(2)) is amended to read
as follows:
`(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.'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to amounts
made available for fiscal year 2006 or for any fiscal year thereafter.
(c) Requirement to Submit Annual Report on State Activities-
(1) IN GENERAL- Section 2006(a) (42 U.S.C. 1397e(a)) is amended by adding
at the end the following: `The Secretary shall compile the reports submitted
by the States pursuant to this section and submit the compilation to the
Congress on an annual basis.'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to information
submitted by States under section 2006 of the Social Security Act (42 U.S.C.
1397e) with respect to fiscal year 2006 and each fiscal year thereafter.
SEC. 204. 5-YEAR EXTENSION AND SIMPLIFICATION OF THE TRANSITIONAL MEDICAL
ASSISTANCE PROGRAM (TMA).
(a) Option of Continuous Eligibility for 12 Months; Option of Continuing Coverage
for Up to an Additional Year-
(1) OPTION OF CONTINUOUS ELIGIBILITY FOR 12 MONTHS BY MAKING REPORTING REQUIREMENTS
OPTIONAL- Section 1925(b) (42 U.S.C. 1396r-6(b)) is amended--
(A) in paragraph (1), by inserting `, at the option of a State,' after
`and which';
(B) in paragraph (2)(A), by inserting `Subject to subparagraph (C):' after
`(A) Notices- ';
(C) in paragraph (2)(B), by inserting `Subject to subparagraph (C):' after
`(B) Reporting requirements- ';
(D) by adding at the end the following new subparagraph:
`(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.'; and
(E) in paragraph (3)(A)(iii), by inserting `the State has not waived under
paragraph (2)(C) the reporting requirement with respect to such month
under paragraph (2)(B) and if' after `6-month period if'.
(2) STATE OPTION TO EXTEND ELIGIBILITY FOR LOW-INCOME INDIVIDUALS FOR UP
TO 12 ADDITIONAL MONTHS- Section 1925 (42 U.S.C. 1396r-6) is further amended--
(A) by redesignating subsections (c) through (f) as subsections (d) through
(g), respectively; and
(B) by inserting after subsection (b) the following new subsection:
`(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.'.
(b) State Option to Waive Receipt of Medicaid for 3 of Previous 6 Months to
Qualify for TMA- Section 1925(a)(1) (42 U.S.C. 1396r-6(a)(1)) is amended by
adding at the end the following: `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.'.
(c) 5-Year Extension of Sunset for TMA-
(1) IN GENERAL- Subsection (g) of section 1925 (42 U.S.C. 1396r-6), as redesignated
under subsection (a)(2)(A), is further redesignated as subsection (i) and
is amended by striking `2003' and inserting `2010'.
(2) CONFORMING AMENDMENT- Section 1902(e)(1)(B) (42 U.S.C. 1396a(e)(1)(B))
is amended by striking `2003' and inserting `2010'.
(d) CMS Report on Enrollment and Participation Rates Under TMA- Section 1925
(42 U.S.C. 1396r-6), as amended by subsections (a)(2)(A) and (c), is amended
by adding at the end the following:
`(h) 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.'.
(e) Coordination of Work- Section 1925(h) (42 U.S.C. 1396r-6(h)), as added
by subsection (d), is amended by adding at the end the following new paragraph:
`(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.'.
(f) Elimination of TMA Requirement for States That Extend Coverage to Children
and Parents Through 185 Percent of Poverty-
(1) IN GENERAL- Section 1925 (42 U.S.C. 1396r-6) is further amended by inserting
after subsection (h), as added by subsection (d), the following:
`(i) 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.'.
(2) CONFORMING AMENDMENTS- Section 1925 (42 U.S.C. 1396r-6) is further amended,
in subsections (a)(1) and (b)(1), by inserting `, but subject to subsection
(i),' after `Notwithstanding any other provision of this title,' each place
it appears.
(g) Requirement of Notice for All Families Losing TANF- Subsection (a)(2)
of section 1925 (42 U.S.C. 1396r-6) is amended by adding at the end the following
flush sentences:
`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.'.
(h) Extending Use of Outstationed Workers to Accept Applications for Transitional
Medical Assistance- Section 1902(a)(55) (42 U.S.C. 1396a(a)(55)) is amended
by inserting `and under section 1931' after `(a)(10)(A)(ii)(IX)'.
(1) IN GENERAL- Except as provided in this subsection, the amendments made
by this section shall apply to calendar quarters beginning on or after October
1, 2005, without regard to whether or not final regulations to carry out
such amendments have been promulgated by such date.
(2) NOTICE- The amendment made by subsection (g) shall take effect 6 months
after the date of enactment of this Act.
(3) DELAY PERMITTED FOR STATE PLAN AMENDMENT- In the case of a State plan
for medical assistance under title XIX of the Social Security Act which
the Secretary of Health and Human Services determines requires State legislation
(other than legislation appropriating funds) in order for the plan to meet
the additional requirements imposed by the amendments made by this section,
the State plan shall not be regarded as failing to comply with the requirements
of such title solely on the basis of its failure to meet these additional
requirements before the first day of the first calendar quarter beginning
after the close of the first regular session of the State legislature that
begins after the date of enactment of this Act. For purposes of the previous
sentence, in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate regular session
of the State legislature.
SEC. 205. EXTENSION OF SUPPLEMENTAL GRANTS.
Section 403(a)(3) (42 U.S.C. 603(a)(3)) is amended--
(1) in subparagraph (A)--
(A) by striking `and' at the end of clause (i);
(B) by striking the period at the end of clause (ii) and inserting `;
and'; and
(C) by adding at the end the following:
`(iii) for each of fiscal years 2006 through 2010, a grant in an amount
equal to the amount required to be paid to the State under this paragraph
in fiscal year 2001.';
(2) in subparagraph (E), by striking `1998' and all that follows and inserting
`2006 through 2010 $1,597,250,000 for grants under this paragraph.';
(3) by striking subparagraph (G); and
(4) by striking subparagraph (H), as amended by section 801(b)(1) of this
Act.
SEC. 206. ADDITIONAL GRANTS FOR STATES WITH LOW FEDERAL FUNDING PER POOR
CHILD.
Section 403(a) (42 U.S.C. 603(a)) is amended by adding at the end the following:
`(6) Additional Grants for States With Low Federal Funding Per Poor Child-
`(A) IN GENERAL- The Secretary shall make a grant pursuant to this paragraph
to a State--
`(i) for fiscal year 2006, if the State is an inadequately poverty-funded
State for fiscal year 2005; and
`(ii) for any of fiscal years 2006 through 2010, if the State is an inadequately
poverty-funded State for any prior fiscal year after fiscal year 2005.
`(B) INADEQUATELY POVERTY-FUNDED STATE- For purposes of this paragraph,
a State is an inadequately poverty-funded State for a particular fiscal
year if--
`(i) the total amount of the grants made to the State under paragraph
(1), paragraph (3), and this paragraph for the particular fiscal year,
divided by the number of children in poverty in the State with respect
to the particular fiscal year is less than 75 percent of the total amount
of grants made to all eligible States under paragraph (1), paragraph (3),
and this paragraph for the particular fiscal year, divided by the total
number of children living in poverty in all eligible States with respect
to the particular fiscal year; and
`(ii) the total of the amounts paid to the State under this subsection
for all prior fiscal years that have not been expended by the State by
the end of the preceding fiscal year is less than 50 percent of State
family assistance grant for the particular fiscal year.
`(C) AMOUNT OF GRANT- The amount of the grant to be made under this paragraph
to a State for a particular fiscal year shall be--
`(i) if the particular fiscal year is fiscal year 2006, an amount equal
to--
`(I) the number of children in poverty in the State for the then preceding
fiscal year, divided by the total number of children in poverty in all
States that are inadequately poverty-funded States for the then preceding
fiscal year; multiplied by
`(II) the amount appropriated pursuant to subparagraph (G) for the particular
fiscal year; or
`(ii) if the particular fiscal year is any of fiscal years 2007 through
2010, an amount equal to--
`(I) the amount required to be paid to the State under this paragraph
for the then preceding fiscal year; plus
`(II) if the State is an inadequately poverty-funded State for the then
preceding fiscal year--
`(aa) the number of children in poverty in the State for the then
preceding fiscal year, divided by the total number of children in
poverty in all States that are inadequately poverty-funded States
for the then preceding fiscal year; multiplied by
`(bb) the amount appropriated pursuant to subparagraph (G) for the
particular fiscal year.
`(D) 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.
`(E) DEFINITIONS- In this paragraph:
`(i) CHILDREN IN POVERTY- The term `children in poverty' means, with respect
to a State and a fiscal year, the number of children residing in the State
who had not attained 18 years of age and whose family income was less
than the poverty line then applicable to the family, as of the end of
the fiscal year.
`(ii) 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.
`(F) FAMILY INCOME DETERMINATIONS- For purposes of this paragraph, family
income includes cash income, except cash benefits from means-tested public
programs and child support payments.
`(i) IN GENERAL- Out of any money in the Treasury of the United States
not otherwise appropriated, there are appropriated for grants under this
paragraph--
`(I) $45,000,000 for fiscal year 2006;
`(II) $90,000,000 for fiscal year 2007;
`(III) $135,000,000 for fiscal year 2008;
`(IV) $180,000,000 for fiscal year 2009; and
`(V) $225,000,000 for fiscal year 2010.
`(ii) AVAILABILITY- Amounts made available under clause (i) shall remain
available until expended.'.
SEC. 207. BONUS TO REWARD HIGH PERFORMANCE STATES.
Section 403(a)(4) (42 U.S.C. 603(a)(4)) is amended--
(1) in subparagraph (D), by striking `$1,000,000,000' and inserting `$1,800,000,000';
(2) in subparagraph (E), by striking `and 2003' and inserting `2005, 2006,
2007, 2008, 2009, and 2010'; and
(3) in subparagraph (F), by striking `$1,000,000,000' and inserting `$800,000,000,
and for fiscal years 2006 through 2010 $1,000,000,000,'.
SEC. 208. CONTINGENCY FUND.
(a) Contingency Funding Available to Needy States- Section 403(b) (42 U.S.C.
603(b)) is amended--
(1) by striking paragraphs (1) through (3) and inserting the following:
`(1) CONTINGENCY FUND GRANTS-
`(A) PAYMENTS- Subject to subparagraph (C), and out of funds appropriated
under subparagraph (E), 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 higher of $0 and the applicable percentage (as
defined in subparagraph (D)(i)) of the product of--
`(i) the applicable benefit level (as defined in subparagraph (D)(ii));
and
`(ii) the adjusted increase in the number of families receiving assistance
under the State program funded under this part and all programs funded
with qualified State expenditures (as defined in subparagraph (D)(iii)).
`(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) and increased under subparagraph (E) of that subsection).
`(D) DEFINITIONS- In this paragraph:
`(i) APPLICABLE PERCENTAGE- The term `applicable percentage' means the
higher of--
`(II) 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
and all programs funded with qualified State expenditures (as defined
in section 409(a)(7)(B)(i)).
`(iii) ADJUSTED INCREASE IN THE NUMBER OF FAMILIES RECEIVING ASSISTANCE
UNDER THE STATE PROGRAM FUNDED UNDER THIS PART AND ALL PROGRAMS FUNDED
WITH QUALIFIED STATE EXPENDITURES- The term `adjusted increase in the
number of families receiving assistance under the State program funded
under this part and all programs funded with qualified State expenditures'
means the increase in--
`(I) the unduplicated number of families receiving assistance under
the State program funded under this part and all programs funded with
qualified State expenditures (as defined in section 409(a)(7)(B)(i))
in the most recent month for which data from the State are available;
as compared to
`(aa) the lower of the average monthly number of families receiving
such assistance in either of the 2 completed fiscal years immediately preceding
the fiscal year in which the State initially qualifies as a needy State; and
`(bb) 1.04.
`(E) 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.';
(2) by redesignating paragraph (4) as paragraph (2); and
(3) in paragraph (2) (as so redesignated)--
(A) by striking `(3)(A)' and inserting `(1)'; and
(B) by striking `2-month period that begins with any' and inserting `fiscal
year quarter that includes a'.
(b) Modification of Definition of Needy State- Section 403(b) (42 U.S.C. 603(b)),
as amended by subsection (a) of this section, is amended--
(1) by striking paragraphs (5) and (6);
(2) by redesignating paragraphs (7) and (8) as paragraphs (5) and (6), respectively;
and
(3) by inserting after paragraph (2) (as so redesignated by subsection (a)(2)
of this section) the following:
`(3) INITIAL DETERMINATION OF WHETHER A STATE QUALIFIES AS A NEEDY STATE-
`(A) IN GENERAL- For purposes of paragraph (1), a State shall be initially
determined to be a needy State for a month if the State satisfies any
of the following:
`(I) average rate of total unemployment in the State 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; or
`(II) average insured unemployment rate for the most recent 3 months
for which data are available has increased by 1 percentage point over
the corresponding 3-month period in either of the 2 most recent preceding
fiscal years.
`(ii) 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 10 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 of Agriculture makes a 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.
`(iii) As determined by the Secretary, the monthly average of the unduplicated
number of families that received assistance under the State program
funded under this part and all programs funded with qualified State
expenditures (as defined in section 409(a)(7)(B)(i)) in the most recently
concluded 3-month period for which data are available from the State
increased by at least 10 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, but only if the Secretary
makes a determination that the State's increased caseload was due, in
large measure, to economic conditions rather than State policy changes.
`(i) IN GENERAL- A State that qualifies as a needy State--
`(I) under subparagraph (A)(i), shall be considered a needy State
until either the State's (seasonally adjusted) total unemployment
rate or (seasonally adjusted) insured unemployment rate, whichever
rate was used to meet the definition as a needy State under that subparagraph
for the most recently concluded 3-month period for which data are
available, falls below the level attained in the 3-month period that
was used to first determine that the State qualified as a needy State
under that subparagraph;
`(II) under subparagraph (A)(ii), shall be considered a needy State
until the average monthly number of households participating in the
food stamp program for the most recently concluded 3-month period
for which data are available nationally falls below the food stamp
base period level; and
`(III) under subparagraph (A)(iii), shall be considered a needy State
until the unduplicated number of families receiving assistance under
the State program funded under this part and all programs funded with
qualified State expenditures (as defined in section 409(a)(7)(B)(i))
for the most recently concluded 3-month period for which data are
available falls below the TANF base period level.
`(ii) SEASONAL VARIATIONS-
`(I) IN GENERAL- Subject to subclause (II) of this clause, notwithstanding
subclauses (II) and (III) of clause (i), a State shall be considered
a needy State--
`(aa) under subparagraph (A)(ii) of this paragraph, if with respect
to the State, the monthly average number of households participating in the
food stamp program for the most recent 3-month period for which data are available
nationally falls below the food stamp base period level and the Secretary
determines that this is due to expected seasonal variations in food stamp
receipt in the State; and
`(bb) under subparagraph (A)(iii) of this paragraph, if, with respect
to a State, the monthly average of the number of unduplicated families receiving
assistance under the State program funded under this part and all programs
funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i))
for the most recently concluded 3-month period for which data are available
nationally falls below the TANF base period level and the Secretary determines
that this is due to expected seasonal variations in assistance receipt in
the State.
`(II) LIMITATIONS- A State shall not be considered a needy State pursuant
to--
`(aa) subclause (I)(aa) of this clause, unless the Secretary of Agriculture
determines that the number of households receiving food stamps remained at
elevated levels largely due to economic factors; and
`(bb) subclause (I)(bb) of this clause, unless the Secretary determines
that the unduplicated number of families receiving assistance under the State
program funded under this part and all programs funded with qualified State
expenditures (as defined in section 409(a)(7)(B)(i)) remained at elevated
levels largely due to economic factors.
`(iii) FOOD STAMP BASE PERIOD LEVEL- In this subparagraph, the term
`food stamp base period level' means the monthly average number of households
participating in the food stamp program that corresponds to the most
recent 3-month period for which data are available at the time when
the State first was determined to be a needy State under this paragraph.
`(iv) TANF BASE PERIOD LEVEL- In this subparagraph, the term `TANF base
period level' means the monthly average of the unduplicated number of
families receiving assistance under the State program funded under this
part and all programs funded with qualified State expenditures (as defined
in section 409(a)(7)(B)(i)) that corresponds to the most recent 3 months
for which data are available at the time when the State first was determined
to be a needy State under this paragraph.
`(A) UNEXPENDED BALANCES-
`(i) IN GENERAL- Notwithstanding paragraph (3) of this subsection, 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 subsection (a)(5) before 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 lessor 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 subsection (a)(5) before
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 subsection (a)(5)
before 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) of this subsection, 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.'.
(c) Clarification of Reporting Requirements- Paragraph (6) (as so redesignated
by subsection (b)(2) of this section) of section 403(b) (42 U.S.C. 603(b))
is amended by striking `on the status of the Fund' and inserting `on the States
that qualified for contingency funds and the amount of funding awarded under
this subsection'.
(d) Elimination of Penalty for Failure to Maintain 100 Percent Maintenance
of Effort- Section 409(a) (42 U.S.C. 609(a)) is amended--
(1) by striking paragraph (10); and
(2) be redesignating paragraphs (11) through (14) as paragraphs (10) through
(13), respectively.
SEC. 209. ELIGIBILITY OF PUERTO RICO, THE UNITED STATES VIRGIN ISLANDS,
AND GUAM FOR THE SUPPLEMENTAL GRANT FOR POPULATION INCREASES, THE CONTINGENCY
FUND, AND MANDATORY CHILD CARE FUNDING.
(a) Supplemental Grant for Population Increases-
(1) IN GENERAL- Section 403(a)(3)(D)(iii) (42 U.S.C. 603(a)(3)(D)(iii))
is amended by striking `and the District of Columbia.' and inserting `,
the District of Columbia, Puerto Rico, the United States Virgin Islands,
and Guam. For fiscal years beginning after the effective date of this sentence,
this paragraph shall be applied and administered as if the term `State'
included the Commonwealth of Puerto Rico, the United States Virgin Islands,
and Guam for fiscal year 1998 and thereafter.'.
(2) GRANT PAYMENT DISREGARDED FOR PURPOSES OF SECTION 1108 LIMITATION- Section
1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by inserting `, or any payment
made to the Commonwealth of Puerto Rico, the United States Virgin Islands,
or Guam under section 403(a)(3)' before the period.
(1) IN GENERAL- Section 403(b)(7) (42 U.S.C. 603(b)(7)) is amended by striking
`and the District of Columbia' and inserting `, the District of Columbia,
the Commonwealth of Puerto Rico, the United States Virgin Islands, and Guam.'.
(2) GRANT PAYMENT DISREGARDED FOR PURPOSES OF SECTION 1108 LIMITATION- Section
1108(a)(2) (42 U.S.C. 1308(a)(2)), as amended by subsection (a)(2) of this
section, is amended by inserting `or 403(b)' after `403(a)(3)'.
(c) Child Care Entitlement Funds-
(1) IN GENERAL- Section 418(d) (42 U.S.C. 618(d)) is amended by striking
`and the District of Columbia' and inserting `, the District of Columbia,
the Commonwealth of Puerto Rico, the United States Virgin Islands, and Guam'.
(A) GENERAL ENTITLEMENT- Section 418(a)(1) (42 U.S.C. 618(a)(1)) is amended
by striking `the greater of--' and all that follows and inserting the
following:
`(A) in the case of the Commonwealth of Puerto Rico, the United States
Virgin Islands, and Guam, 60 percent of the amount required to be paid
to the State for fiscal year 2001 under the Child Care and Development
Block Grant Act of 1990; or
`(B) in the case of any other State, the greater of--
`(i) the total amount required to be paid to the State under section
403 for fiscal year 1994 or 1995 (whichever is greater) with respect
to expenditures for child care under subsections (g) and (i) of section
402 (as in effect before October 1, 1995); or
`(ii) the average of the total amounts required to be paid to the State
for fiscal years 1992 through 1994 under the subsections referred to
in clause (i).'.
(B) ALLOTMENT OF REMAINDER- Section 418(a)(2)(B) (42 U.S.C. 618(a)(2)(B))
is amended to read as follows:
`(B) ALLOTMENTS TO STATES- Of the total amount available for payments
to States under this paragraph, as determined under subparagraph (A) of
this paragraph--
`(i) an amount equal to 65 percent of the amount required to be paid
to each of the Commonwealth of Puerto Rico, the United States Virgin
Islands, and Guam for fiscal year 2001 under the Child Care and Development
Block Grant Act of 1990, shall be allotted to the Commonwealth of Puerto
Rico, the United States Virgin Islands, and Guam, respectively; and
`(ii) the remainder shall be allotted among the other States based on
the formula used for determining the amount of Federal payments to each
State under section 403(n) of this Act (as in effect before October
1, 1995).'.
(3) GRANT PAYMENT DISREGARDED FOR PURPOSES OF SECTION 1108 LIMITATION- Section
1108(a)(2) (42 U.S.C. 1308(a)(2)), as amended by subsections (a)(2) and
(b)(2) of this section, is amended by striking `or 403(b)' and inserting
`, 403(b), or 418'.
TITLE III--ACCESS TO EDUCATION, TRAINING, AND REHABILITATIVE SERVICES
SEC. 301. EDUCATION AND TRAINING.
(a) Vocational and Postsecondary Education-
(1) IN GENERAL- Section 407(d)(8) is amended to read as follows:
`(8) vocational education and training and postsecondary education that
is a requirement of the individual's individual responsibility plan under
section 408(b) (not to exceed 24 months with respect to any individual);'.
(2) ELIMINATION OF RECIPIENTS COMPLETING SECONDARY SCHOOL FROM LIMIT ON
NUMBER OF TANF RECIPIENTS PARTICIPATING IN VOCATIONAL EDUCATION TRAINING-
(A) IN GENERAL- Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is amended
by striking `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' and inserting `education and training
(determined without regard to any individual described in subparagraph
(C))'.
(B) CONFORMING AMENDMENTS-
(i) Section 407(c)(2)(C)(ii) (42 U.S.C. 607(c)(2)(C)(ii) is amended
by inserting `, including vocational education and training,' after
`employment'.
(ii) Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)) is amended in the
heading, by striking `EDUCATIONAL' and inserting `VOCATIONAL EDUCATION'.
(b) State Option to Treat Limited Number of Participants in Postsecondary
Educational Activities as Engaged in Work-
(1) IN GENERAL- Section 407(c)(2) (42 U.S.C. 607(c)(2)) is amended by adding
at the end the following:
`(E) STATE OPTION TO TREAT LIMITED NUMBER OF PARTICIPANTS IN POSTSECONDARY
EDUCATIONAL ACTIVITIES AS ENGAGED IN WORK-
`(i) IN GENERAL- For purposes of determining monthly participation rates
under subsection (b)(1)(B)(i), a State may treat a recipient who has
participated in postsecondary educational activities in connection with
a course of study, training, study time, employment, or work experience
for an average of not less than 24 hours (or, in the case of a recipient
described in subparagraph (B) of this paragraph, 20 hours) per week
in a month as engaged in work for the month, subject to clauses (ii)
and (iii) of this subparagraph.
`(ii) LIMITATION- The number of families that include a recipient treated
as engaged in work for a month by reason of clause (i) may not exceed
10 percent of the average monthly number of families to which assistance
is provided under the State program funded under this part during the
fiscal year.
`(iii) WORK REQUIRED AFTER 24 MONTHS- A State may not treat a recipient
as engaged in work for a month by reason of clause (i) after the first
24 months of such treatment, unless the recipient works for an average
of not less than 15 hours per week in the month. '.
(2) CONFORMING AMENDMENTS-
(A) Section 407(c)(2)(D) (42 U.S.C. 607(c)(2)(D)), as amended by subsection
(a)(2)(A) of this section, is amended--
(i) in the heading, by inserting `certain' after `participation in';
and
(ii) by inserting `and without regard to individuals treated as engaged
in work by reason of subparagraph (E)' before the last close parenthesis.
(B) Section 407(d)(8), as amended by subsection (a)(1) of this section,
is amended by inserting `, or such longer period as the State may allow
for an individual who is treated as engaged in work by reason of subsection
(c)(2)(E)' after `any individual'.
SEC. 302. REHABILITATIVE SERVICES.
(a) Additional Work Activities- Section 407(d) (42 U.S.C. 607(d)) is amended--
(1) in paragraph (11), by striking `and' at the end;
(2) in paragraph (12), by striking the period and inserting `; and'; and
(3) by adding at the end the following:
`(13) rehabilitative services and employment-related services, such as adult
basic education, participation in a program designed to increase proficiency
in the English language, or, in the case of an individual determined 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 rehabilitative services, substance abuse treatment, mental
health treatment, or other rehabilitative services, if the obtaining of
such services is a requirement of the individual's individual responsibility
plan under section 408(b) (not to exceed 6 months, or, if the obtaining
of the services for a longer period is a requirement of the individual's
plan under section 408(b), not to exceed 18 months, but only if, during
the last 12 of such 18 months, such services are combined with work or job-readiness
activities), until an individual successfully completes obtaining the services.'.
(b) Conforming Amendments- Section 407(c)(1) (42 U.S.C. 607(c)(1)) is amended
by striking `or (12)' and inserting `(12), or (13)'.
TITLE IV--REDUCING POVERTY
SEC. 401. POVERTY REDUCTION.
Section 401(a) (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. 402. EMPLOYMENT ENHANCEMENT.
(a) In General- Section 402(a)(1)(A) (42 U.S.C. 602(a)(1)(A)) is amended by
adding at the end the following:
`(vii) Establish goals and take action to improve initial earnings,
job advancement, and employment retention for individuals in and individuals
leaving the program.'.
(b) Inclusion in Annual Reports of Progress in Achieving Employment Advancement
Goals- Section 411(b) (42 U.S.C. 611(b)) 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) in each report submitted after fiscal year 2005, the progress made
by the State in achieving the goals referred to in section 402(a)(1)(A)(vii)
in the most recent State plan submitted pursuant to section 402(a).'.
TITLE V--SUPPORTING FAMILIES AND RESPONSIBLE PARENTING
SEC. 501. FAMILY FORMATION FUND.
Section 403(a)(2) (42 U.S.C. 603(a)(2)) is amended to read as follows:
`(2) FAMILY FORMATION FUND-
`(A) IN GENERAL- The Secretary shall provide grants to States and localities
for research, technical assistance, and demonstration projects to promote
and fund best practices in the following areas:
`(i) Promoting the formation of 2-parent families.
`(ii) Reducing teenage pregnancies.
`(iii) Increasing the ability of noncustodial parents to financially
support and be involved with their children.
`(B) ALLOCATION OF FUNDS- In making grants under this paragraph, the Secretary
shall ensure that not less than 30 percent of the funds made available
pursuant to this paragraph for a fiscal year are used in each of the areas
described in subparagraph (A).
`(C) CONSIDERATION OF DOMESTIC VIOLENCE IMPACT- In making grants under
this paragraph, the Secretary shall consider the potential impact of a
project on the incidence of domestic violence.
`(D) 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 $100,000,000 for grants under this paragraph.'.
SEC. 502. TWO-PARENT ELIGIBILITY.
(a) Ban on Imposition of Stricter Eligibility Criteria for 2-Parent Families-
(1) PROHIBITION- Section 408(a) (42 U.S.C. 608(a)) is amended by adding
at the end the following:
`(12) BAN ON IMPOSITION OF STRICTER ELIGIBILITY CRITERIA FOR 2-PARENT FAMILIES-
In determining the eligibility of a 2-parent family for any benefit or service
funded under this part or funded with non-Federal funds that are qualified
expenditures of the State under section 409(a)(7), the State shall not impose
a requirement that does not apply in determining the eligibility of a 1-parent
family for the benefit or service.'.
(2) PENALTY- Section 409(a) (42 U.S.C. 609(a)), as amended by section 707(b)(1)
of this Act, is amended by inserting after paragraph (5) the following:
`(6) PENALTY FOR IMPOSITION OF STRICTER ELIGIBILITY CRITERIA FOR 2-PARENT
FAMILIES-
`(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 408(a)(12)
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 that does not exceed 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.'.
(3) ASSURANCE OF EQUAL TREATMENT- Section 402(a) (42 U.S.C. 602(a)), as
amended by section 108(b) of this Act, is amended by adding at the end the
following:
`(9) CERTIFICATION OF EQUAL TREATMENT OF 2-PARENT FAMILIES- The chief executive
officer of the State shall submit to the Secretary a certification that
in conducting the State program funded under this part, the State does not
have rules or procedures that discriminate against 2-parent families.'.
(b) Elimination of Separate Work Participation Rate for 2-Parent Families-
Section 407 (42 U.S.C. 607) is amended--
(1) in subsection (a), by striking paragraph (2); and
(A) by striking paragraph (2);
(B) in paragraph (4), by striking `paragraphs (1)(B) and (2)(B)' and inserting
`paragraph (1)(B)';
(C) in paragraph (5), by striking `rates' and inserting `rate'; and
(D) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3),
and (4), respectively.
SEC. 503. CHILD SUPPORT.
(a) Modification of Rule Requiring Assignment of Support Rights as a Condition
of Receiving TANF- Section 408(a)(3) (42 U.S.C. 608(a)(3)) is amended to read
as follows:
`(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.'.
(b) Increasing Child Support Payments to Families and Simplifying Child Support
Distribution Rules-
(A) IN GENERAL- Section 457(a) (42 U.S.C. 657(a)) is amended to read as
follows:
`(a) In General- Subject to subsections (e) and (f), 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.
`(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 use the grant made to the
State under section 403(a) to pay the amount, or to have the payment considered
a qualified State expenditure for purposes of section 409(a)(7)(B)(i), but
not both.
`(7) STATE OPTION TO PASS THROUGH ADDITIONAL SUPPORT WITH FEDERAL COST-SHARING-
`(A) IN GENERAL- 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 under the State
program funded under part A, to the extent that the State pays the amount
to the family.
`(B) RECIPIENTS OF TANF FOR LESS THAN 5 YEARS-
`(i) IN GENERAL- Notwithstanding paragraph (1), 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 is a recipient of assistance under
the State program funded under part A and, if the family includes an
adult, that has received the assistance for not more than 5 years after
the date of enactment of this paragraph, to the extent that--
`(I) the State pays the amount to the family; and
`(II) subject to clause (ii), the amount is disregarded in determining
the amount and type of the assistance provided to the family.
`(ii) LIMITATION- Of the amount disregarded as described in clause (i)(II),
the maximum amount that may be taken into account for purposes of clause
(i) shall not exceed $400 per month, except that, in the case of a family
that includes 2 or more children, the State may elect to increase the
maximum amount to not more than $600 per month.
`(8) STATES WITH DEMONSTRATION WAIVERS- Notwithstanding the preceding paragraphs,
a State with a waiver under section 1115, effective on or before October
1, 1997, the terms of which allow pass-through of child support payments,
may pass through payments in accordance with such terms with respect to
families subject to the waiver.'.
(B) STATE PLAN TO INCLUDE ELECTION AS TO WHICH RULES TO APPLY IN DISTRIBUTING
CHILD SUPPORT ARREARAGES COLLECTED ON BEHALF OF FAMILIES FORMERLY RECEIVING
ASSISTANCE- Section 454 (42 U.S.C. 654) is amended--
(i) by striking `and' at the end of paragraph (32);
(ii) by striking the period at the end of paragraph (33) and inserting
`; and'; and
(iii) by inserting after paragraph (33) the following:
`(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 subsection (e) of section 503 of the Work, Family, and
Opportunity Promotion Act shall not apply with respect to the State, notwithstanding
subsection (f)(1) of such section 503.'.
(C) APPROVAL OF ESTIMATION PROCEDURES- Not later than October 1, 2006,
the Secretary of Health and Human Services, in consultation with the States
(as defined for purposes of part D of title IV of the Social Security
Act), shall establish the procedures to be used to make the estimate described
in section 457(a)(6) of such Act.
(2) CURRENT SUPPORT AMOUNT DEFINED- Section 457(c) (42 U.S.C. 657(c)) is
amended by adding at the end the following:
`(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.'.
(c) Ban on Recovery of Medicaid Costs for Certain Births-
(1) IN GENERAL- Section 454 (42 U.S.C. 654) as amended by subsection (b)(1)(B)
of this section, is amended--
(A) by striking `and' at the end of paragraph (33);
(B) by striking the period at the end of paragraph (34) and inserting
`; and'; and
(C) by inserting after paragraph (34) the following:
`(35) provide that the State shall not use the State program operated under
this part to collect any amount owed to the State by reason of costs incurred
under the State plan approved under title XIX for the birth of a child for
whom support rights have been assigned pursuant to section 408(a)(3), 471(a)(17),
or 1912.'.
(2) EFFECTIVE DATE- The amendments made by paragraph (1) shall take effect
on October 1, 2006.
(d) State Option to Discontinue Pre-1997 Support Assignments- Section 457(b)
(42 U.S.C. 657(b)) is amended by striking `shall' and inserting `may'.
(e) Conforming Amendments- Section 404(a) (42 U.S.C. 604(a)) is amended--
(1) by striking `or' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and inserting `;
or'; and
(3) by adding at the end the following:
`(3) to fund payment of an amount 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 use the grant to fund the payment.'.
(1) IN GENERAL- Except as provided in subsection (c)(2), the amendments
made by this section shall take effect on October 1, 2009, and shall 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, and without regard to
whether regulations to implement such amendments (in the case of State programs
operated under such part D) are promulgated by such date.
(2) STATE OPTION TO ACCELERATE EFFECTIVE DATE- A State may elect to have
the amendments made by this section apply to the State and to amounts collected
by the State, on and after such date as the State may select that is after
the date of enactment of this Act and before October 1, 2009.
TITLE VI--FAIRNESS FOR LEGAL IMMIGRANTS
SEC. 601. TREA
