Work, Family, and Opportunity Promotion Act - Amends part A (Temporary Assistance for Needy Families) (TANF) of the Social Security Act (SSA), including with respect to: (1) modification of individual responsibility plans; (2) elimination of the caseload reduction rate under mandatory work requirements; (3) the State option to select a job entry rate requirement in lieu of the work participation rate requirement; (4) work rates; (5) employment credit; (6) the effect of wage subsidies on the five-year limit of assistance; (7) workplace discrimination laws; (8) the funding for child care; (9) extension of supplemental grants; (10) additional grants for States with low Federal funding per poor child; (11) the bonus to reward high performance States; (12) contingency fund grants; (13) 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; (14) education and training; (15) poverty reduction; (16) the family formation fund; (17) two-parent eligibility; (18) treatment of aliens under the TANF program; (19) the authority of States to use TANF funds carried over from prior years to provide TANF benefits and services; (20) funding for tribal TANF programs; and (21) the ban on using Federal TANF funds to replace State and local spending that does not meet the definition of qualified State expenditures.
Amends SSA title XX (Block Grants to States for Social Services) to provide for the restoration of funds for the social services block grant.
Amends SSA title XIX (Medicaid) to provide for a five-year extension and modification of the transitional medical assistance program.
Amends SSA title XIX and XXI (State Children's Health Insurance) (SCHIP) to provide for optional coverage of legal immigrants under Medicaid and SCHIP.
Amends the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 with respect to: (1) treatment of aliens under the TANF program; (2) the eligibility of disabled children who are qualified aliens for SSI (SSA title XVI (Supplemental Security Income)); and (3) an SSI extension for humanitarian immigrants.
Amends SSA title XI to provide for an increase in the mandatory ceiling amount with respect to funding for families assisted by a territory program.
Extends the TANF program and related authorities through FY 2005.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 751 Introduced in House (IH)]
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. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
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. 104. Work rates.
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.
Sec. 503. Child support.
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.
``(2) Contents of plans.--
``(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.
``(3) Review.--
``(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.''.
(b) Implementation.--
(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.
``(b) Requirement.--
``(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.
``(c) Job Entry Rate.--
``(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.
(a) In General.--
(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:
``(4) Employment credit.--
``(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:
``(4) Amounts reserved.--
``(A) Indian tribes.--
``(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.''.
(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.--
``(A) Appropriation.--
``(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.
``(6) Requirements.--
``(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''.
(b) Inflation Increase.--
(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)''.
(i) Effective Dates.--
(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.
``(G) Appropriations.--
``(i) In general.--Out of any money in the Treasury
of the United States not otherwise appropriated, there
are appropriated for grants under this paragraph--
``(I) $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--
``(I) 60 percent; and
``(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
``(II) the product of--
``(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) The--
``(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.
``(B) Duration.--
``(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.
``(4) Exceptions.--
``(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.
(b) Contingency Fund.--
(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''.
(2) Amount of payment.--
(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
(2) in subsection (b)--
(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.--
(1) 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.
``(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 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.''.
(f) Effective Date.--
(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. TREATMENT OF ALIENS UNDER THE TANF PROGRAM.
(a) Exception to 5-Year Ban for Qualified Aliens.--Section
403(c)(2) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)) is amended by adding
at the end the following:
``(M) Benefits under the Temporary Assistance for
Needy Families program described in section
402(b)(3)(A).''.
(b) Benefits not Subject to Reimbursement.--Section 423(d) of the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(8 U.S.C. 1138a note) is amended by adding at the end the following:
``(12) Benefits under part A of title IV of the Social
Security Act except for cash assistance provided to a sponsored
alien who is subject to deeming pursuant to section 408(j) of
the Social Security Act.''.
(c) Treatment of Aliens.--Section 408 (42 U.S.C. 608), as amended
by sections 107 and 108 of this Act, is further amended by adding at
the end the following:
``(j) Special Rules Relating to the Treatment of 213a Aliens.--
``(1) In general.--In determining whether a 213A alien is
eligible for cash assistance under a State program funded under
this part, and in determining the amount or types of such
assistance to be provided to the alien, the State shall apply
the rules of paragraphs (1), (2), (3), (5), and (6) of
subsection (f) of this section by substituting `213A' for `non-
213A' each place it appears, subject to section 421(e) of the
Personal Responsibility and Work Opportunity Reconciliation Act
of 1996, and subject to section 421(f) of such Act (which shall
be applied by substituting `section 408(j) of the Social
Security Act' for `subsection (a)').
``(2) 213a alien defined.--An alien is a 213A alien for
purposes of this subsection if the affidavit of support or
similar agreement with respect to the alien that was executed
by the sponsor of the alien's entry into the United States was
executed pursuant to section 213A of the Immigration and
Nationality Act.''.
(d) Effective Date and Applicability.--
(1) Effective date.--The amendments made by this section
shall take effect October 1, 2005.
(2) Applicability.--The amendments made by this section
shall apply to benefits provided on or after the effective date
of this section.
SEC. 602. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS UNDER THE MEDICAID
PROGRAM AND SCHIP.
(a) Medicaid Program.--Section 1903(v) (42 U.S.C. 1396b(v)) is
amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (4)''; and
(2) by adding at the end the following new paragraph:
``(4)(A) A State may elect (in a plan amendment under this title)
to provide medical assistance under this title, notwithstanding
sections 401(a), 402(b), 403, and 421 of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996, for aliens who are
lawfully residing in the United States (including battered aliens
described in section 431(c) of such Act) and who are otherwise eligible
for such assistance, within either or both of the following eligibility
categories:
``(i) Pregnant women.--Women during pregnancy (and during
the 60-day period beginning on the last day of the pregnancy).
``(ii) Children.--Children (as defined under such plan),
including optional targeted low-income children described in
section 1905(u)(2)(B).
``(B) In the case of a State that has elected to provide medical
assistance to a category of aliens under subparagraph (A), no debt
shall accrue under an affidavit of support against any sponsor of such
an alien on the basis of provision of assistance to such category and
the cost of such assistance shall not be considered as an unreimbursed
cost.''.
(b) SCHIP.--Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) as amended
by section 803 of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000, as enacted into law by section
1(a)(6) of Public Law 106-554, is amended by redesignating
subparagraphs (C) and (D) as subparagraph (D) and (E), respectively,
and by inserting after subparagraph (B) the following new subparagraph:
``(C) Section 1903(v)(4) (relating to optional
coverage of categories of permanent resident alien
children), but only if the State has elected to apply
such section to the category of children under title
XIX.''.
(c) Effective Date.--The amendments made by this section take
effect on October 1, 2005, and apply to medical assistance and child
health assistance furnished on or after such date.
SEC. 603. ELIGIBILITY OF DISABLED CHILDREN WHO ARE QUALIFIED ALIENS FOR
SSI.
(a) In General.--Section 402(a)(2) of the Personal Responsibility
and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2))
is amended by inserting after subparagraph (K) the following new
subparagraph:
``(L) SSI exception for disabled children.--With
respect to eligibility for benefits for the specified
Federal program described in paragraph (3)(A),
paragraph (1) shall not apply to a child who is
considered disabled for purposes of the supplemental
security income program under title XVI of the Social
Security Act.''.
(b) Effective Date.--The amendment made by this section shall take
effect on October 1, 2005, and apply to benefits furnished on or after
such date.
SEC. 604. SSI EXTENSION FOR HUMANITARIAN IMMIGRANTS.
Section 402(a)(2) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) is amended
by adding at the end the following:
``(M) Two-year ssi extension through fiscal year
2008.--
``(i) In general.--With respect to
eligibility for benefits for the specified
Federal program described in paragraph (3)(A),
the 7-year period described in subparagraph (A)
shall be deemed to be a 9-year period during
fiscal years 2005 through 2008.
``(ii) Aliens whose benefits ceased in
prior fiscal years.--
``(I) In general.--Beginning on the
date of the enactment of the Work,
Family, and Opportunity Promotion Act,
any qualified alien rendered ineligible
for the specified Federal program
described in paragraph (3)(A) during
fiscal years prior to fiscal year 2005
solely by reason of the termination of
the 7-year period described in
subparagraph (A) shall be eligible for
such program for an additional 2-year
period in accordance with this
subparagraph, if such alien meets all
other eligibility factors under title
XVI of the Social Security Act.
``(II) Payment of benefits.--
Benefits paid under subparagraph (I)
shall be paid prospectively over the
duration of the qualified alien's
renewed eligibility.''.
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.
Section 404(e) (42 U.S.C. 604(e)) is amended--
(1) in the subsection heading, by striking ``Assistance''
and inserting ``Benefits or Services''; and
(2) after the heading, by striking ``assistance'' and
inserting ``any benefit or service that may be provided''.
SEC. 702. DEFINITION OF ASSISTANCE.
(a) In General.--Section 419 (42 U.S.C. 619) is amended by adding
at the end the following:
``(6) Assistance.--
``(A) In general.--The term `assistance' means
payment, by cash, voucher, or other means, to or for an
individual or family for the purpose of meeting a
subsistence need of the individual or family (including
food, clothing, shelter, and related items, but not
including costs of transportation or child care).
``(B) Exception.--The term `assistance' does not
include a payment described in subparagraph (A) to or
for an individual or family on a short-term,
nonrecurring basis (as defined by the State).''.
(b) Conforming Amendments.--
(1) Section 404(a)(1) (42 U.S.C. 604(a)(1)) is amended by
striking ``assistance'' and inserting ``aid''.
(2) Section 404(f) (42 U.S.C. 604(f)) is amended by
striking ``assistance'' and inserting ``benefits or services''.
(3) Section 408(a)(5)(B)(i) (42 U.S.C. 608(a)(5)(B)(i)) is
amended in the heading by striking ``assistance'' and inserting
``aid''.
SEC. 703. CONTINUATION OF PRE-WELFARE REFORM WAIVERS.
Section 415 (42 U.S.C. 615) is amended by adding at the end the
following:
``(c) Continuation of Waivers Approved or Submitted Before Date of
Enactment of Welfare Reform.--Notwithstanding subsection (a), with
respect to any State that is operating under a waiver described in
subsection (a) which would otherwise expire on a date that occurs in
the period that begins on September 30, 2002, and ends on September 30,
2008, the State may elect to continue to operate under the waiver, on
the same terms and conditions as applied to the waiver on the day
before such date, through September 30, 2010.''.
SEC. 704. MAINTENANCE OF EFFORT.
(a) Inclusion of Child Support Arrearages Distributed to Families
No Longer Receiving Assistance.--Section 409(a)(7)(B)(i) (42 U.S.C.
609(a)(7)(B)(i)) is amended--
(1) in subclause (I)(aa), by striking ``457(a)(1)(B)'' and
inserting ``457(a)(1)''; and
(2) by adding at the end the following:
``(V) 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 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.''.
(b) Reauthorization.--Section 409(a)(7) (42 U.S.C. 609(a)(7)) is
amended--
(1) in subparagraph (A) by striking ``1998'' and all that
follows through ``2006'' and inserting ``2006, 2007, 2008,
2009, or 2010''; and
(2) in subparagraph (B)(ii)--
(A) by striking ``for fiscal years 1997 through
2005,''; and
(B) by inserting ``preceding'' before ``fiscal
year''.
SEC. 705. FUNDING FOR TRIBAL TANF PROGRAMS.
Section 412(a)(1)(A) (42 U.S.C. 612(a)(1)(A)) is amended by
striking ``1997'' and all that follows through ``2003'' and inserting
``2005 through 2010''.
SEC. 706. FUNDING FOR FAMILIES ASSISTED BY A TERRITORY PROGRAM.
(a) Increase in Mandatory Ceiling Amount.--Section 1108(c)(4) (42
U.S.C. 1308(c)(4)) is amended--
(1) in subparagraph (A), by striking ``$107,255,000'' and
inserting ``$109,936,375'';
(2) in subparagraph (B), by striking ``$4,686,000'' and
inserting ``$4,803,150'';
(3) in subparagraph (C), by striking ``$3,554,000'' and
inserting ``$3,642,850''; and
(4) in subparagraph (D), by striking ``$1,000,000'' and
inserting ``$1,250,000''.
(b) Reauthorization of Matching Grants.--Section 1108(b)(2) (42
U.S.C. 1308(b)(2)) is amended by striking ``fiscal years 1997 through
2003'' and inserting ``each of fiscal years 2006 through 2010''.
SEC. 707. REPEAL OF FEDERAL LOAN FUND FOR STATE WELFARE PROGRAMS.
(a) Repeal.--Section 406 (42 U.S.C. 606) is repealed.
(b) Conforming Amendments.--
(1) Section 409(a) (42 U.S.C. 609(a)) is amended by
striking paragraph (6).
(2) Section 412 (42 U.S.C. 612) is amended by striking
subsection (f) and redesignating subsections (g) through (i) as
subsections (f) through (h), respectively.
(3) Section 1108(a)(2) (42 U.S.C. 1308(a)(2)) is amended by
striking ``406,''.
SEC. 708. BAN ON USING FEDERAL TANF FUNDS TO REPLACE STATE AND LOCAL
SPENDING THAT DOES NOT MEET THE DEFINITION OF QUALIFIED
STATE EXPENDITURES.
(a) Prohibition.--Section 408(a) (42 U.S.C. 608(a)), as amended by
section 502(a)(1) of this Act, is further amended by adding at the end
the following:
``(13) Ban on using federal tanf funds to replace state or
local spending that does not meet the definition of qualified
state expenditures.--A State to which a grant is made under
section 403 and a sub-State entity that receives funds from
such a grant shall not expend any part of the grant funds to
supplant State or local spending for benefits or services which
are not qualified State expenditures (within the meaning of
section 409(a)(7)(B)(i)).''.
(b) Penalty.--Section 409(a) (42 U.S.C. 609(a)), as amended by
section 208(d) of this Act, is further amended by adding at the end the
following:
``(14) Penalty for using federal tanf funds to replace
state or local spending that does not meet the definition of
qualified state expenditures.--
``(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)(13) 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 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.''.
SEC. 709. EXTENSION OF FUNDING OF STUDIES AND DEMONSTRATIONS.
Section 413(h)(1) (42 U.S.C. 613(h)(1)) is amended by striking
``2002'' and inserting ``2010''.
SEC. 710. LONGITUDINAL STUDIES OF EMPLOYMENT AND EARNINGS OF TANF
LEAVERS.
Section 413 (42 U.S.C. 613) is amended--
(1) in subsection (h)(1)--
(A) by striking ``and'' at the end of subparagraph
(C);
(B) by striking the period and inserting ``; and'';
and
(C) by adding at the end the following:
``(E) the cost of conducting the studies described
in subsection (k).''; and
(2) by adding at the end the following:
``(k) Longitudinal Studies of Employment and Earnings of TANF
Leavers.--
``(1) In general.--The Secretary, directly or through
grants, contracts, or interagency agreements shall conduct a
study in each eligible State of a statistically relevant cohort
of individuals who leave the State program funded under this
part during fiscal year 2006 and individuals who leave the
program during fiscal year 2008, which uses State unemployment
insurance data to track the employment and earnings status of
the individuals during the 3-year period beginning at the time
the individuals leave the program.
``(2) Reports.--The Secretary shall annually publish the
findings of the studies conducted pursuant to paragraph (1) of
this subsection, and shall annually publish the earnings data
used in making determinations under section 407(b).''.
SEC. 711. STUDY BY THE CENSUS BUREAU.
(a) In General.--Section 414(a) (42 U.S.C. 614(a)) is amended to
read as follows:
``(a) In General.--The Bureau of the Census shall implement a new
longitudinal survey of program dynamics, 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.''.
(b) Appropriation.--Section 414(b) (42 U.S.C. 614(b)) is amended by
striking ``1996,'' and all that follows through ``2003'' and inserting
``2006 through 2010''.
TITLE VIII--EXTENSION OF TANF PROGRAM THROUGH FISCAL YEAR 2005
SEC. 801. EXTENSION OF TANF PROGRAM AND RELATED AUTHORITIES THROUGH
FISCAL YEAR 2005.
(a) In General.--Activities authorized by part A of title IV of the
Social Security Act, and by sections 429A, 510, 1108(b), 1130(a) and
1925 of such Act, shall continue through September 30, 2005, in the
manner authorized for fiscal year 2004, notwithstanding section
1902(e)(1)(A) of such Act, and out of any money in the Treasury of the
United States not otherwise appropriated, there are hereby appropriated
such sums as may be necessary for such purpose. Grants and payments may
be made pursuant to this authority through the fourth quarter of fiscal
year 2005 at the level provided for such activities through the fourth
quarter of fiscal year 2004.
(b) Conforming Amendment.--
(1) In general.--Section 403(a)(3)(H)(ii) (42 U.S.C.
603(a)(3)(H)(ii)) is amended by striking ``March 31'' and
inserting ``September 30''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date of the enactment of this Act.
TITLE IX--EFFECTIVE DATE
SEC. 901. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in this Act, this Act
and the amendments made by this Act shall take effect on October 1,
2005.
<all>
Introduced in House
Introduced in House
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.
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.
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.
Referred to the Subcommittee on Health, for a period to be subsequently determined by the Chairman.
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