119-hr3131

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3131 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3131

 To amend and reauthorize the Community Services Block Grant Act.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 1, 2025

Mr. Thompson of Pennsylvania (for himself and Ms. Bonamici) introduced 
 the following bill; which was referred to the Committee on Education 
 and Workforce

_______________________________________________________________________

 A BILL

 To amend and reauthorize the Community Services Block Grant Act.

 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 ``Community Services Block Grant 
Improvement Act of 2025''.

SEC. 2. PURPOSES AND GOALS.

 

Section 672

    (1) of the Community Services Block Grant Act (42 U.S.C. 
9901

    (1) ) is amended to read as follows:
 ``

    (1) to reduce poverty in the United States by supporting 
 the activities of community action agencies and other community 
 services network organizations that improve the economic 
 security of low-income and working individuals and families, 
 empower them to become fully sufficient, and create new 
 economic opportunities in the communities where they live; 
 and''.

SEC. 3. DEFINITIONS.

 

Section 673 of the Community Services Block Grant Act (42 U.S.C. 
9902) is amended by striking paragraphs

    (1) through

    (5) , and inserting 
the following:
 ``

    (1) Agency-wide strategic plan.--The term `agency-wide 
 strategic plan' means a plan that has been adopted by an 
 eligible entity in the previous 5 years and establishes goals 
 that include meeting needs identified by the entity in 
 consultation with residents of the community through a process 
 of comprehensive community needs assessment.
 ``

    (2) Poverty line.--
 ``
        (A) In general.--The term `poverty line' means 
 the official poverty guideline calculated by the 
 Secretary from the most recent data available from the 
 Bureau of the Census. The Secretary shall revise the 
 poverty line annually (or at any shorter interval the 
 Secretary determines to be feasible and desirable). The 
 required revision shall be accomplished by multiplying 
 the official poverty thresholds from the Bureau of the 
 Census by the percentage change in the Consumer Price 
 Index for All Urban Consumers during the annual or 
 other interval immediately preceding the time at which 
 the revision is made.''.
        (B) Eligibility criterion.--200 percent of the 
 poverty line shall be used as a criterion of 
 eligibility for services, assistance, or resources 
 provided directly to individuals or families through 
 the grant program established under this subtitle.
 ``

    (3) Community action agency.--The term `community action 
 agency' means an eligible entity (which meets the requirements 
 of paragraph

    (1) or

    (2) , as appropriate, of 

section 676B) that 
 delivers multiple programs, projects, and services to a variety 
 of low-income individuals and families.
 ``

    (4) Community action plan.--The term `community action 
 plan' means a detailed plan, including a budget, that is 
 adopted by an eligible entity, for expenditures of funds 
 appropriated for a fiscal year under this subtitle for the 
 activities supported directly or indirectly by such funds.
 ``

    (5) Community services network organization.--The term 
 `community services network organization' means any of the 
 following organizations funded under this subtitle:
 ``
        (A) A State.
 ``
        (B) An eligible entity.
 ``
            (C) An association with a membership composed 
 primarily of States, eligible entities, or associations 
 of States or eligible entities.
 ``

    (6) Eligible entity.--The Term `eligible entity' means an 
 entity that--
 ``
        (A) is an eligible entity described in 

section 673

    (1) (as in effect immediately before the date of the 
 enactment of the Community Services Block Grant 
 Improvement Act of 2025), or has been designated by the 
 process described in 

section 676A (including an 
 organization serving migrant or seasonal farm workers 
 that is so described or designated); and
 ``
        (B) has a tripartite board described in paragraph

    (1) or

    (2) , as appropriate, of 

section 686B.
 ``

    (7) Private, nonprofit organization.--The term `private, 
 nonprofit organization' includes a religious organization, to 
 which 

section 679 applies.
 ``

    (8) Secretary.--The term `Secretary' means the Secretary 
 of Health and Human Services.
 ``

    (9) State.--The term `State' means each of the several 
 States, the District of Columbia, the Commonwealth of Puerto 
 Rico, Guam, the United States Virgin Islands, American Samoa, 
 and the Commonwealth of the Northern Mariana Islands.''.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

 

Section 674 of the Community Services Block Grant Act (42 U.S.C. 
9903) is amended--

    (1) in subsection

    (a) --
        (A) by striking ``such sums as may be necessary for 
 each of fiscal years 1999 through 2003'' and inserting 
 ``$1,000,000,000 for each of fiscal years 2026 through 
 2032'', and
        (B) by striking ``sections 681 and 682'' and 
 inserting ``

section 680'',

    (2) in subsection

    (b) --
        (A) in paragraph

    (2) --
            (i) by striking ``1\1/2\ percent'' and 
 inserting ``1 percent'',
            (ii) in subparagraph
        (A) --
            (I) by striking ``entities,'' and 
 inserting ``entities and other 
 community services network 
 organizations'', and
            (II) by striking ``organizations or 
 associations'', and
            (iii) in subparagraph
        (B) by striking 
 ``and'' at the end and inserting a period, and
        (B) by striking paragraph

    (3) , and

    (3) by adding at the end the following:
 ``
            (c) Discretionary Programs.--There are authorized to be 
appropriated $40,000,000 to carry out 

section 680

    (a)

    (2) and 680

    (a)

    (3) for each of the fiscal years 2026 through 2032.''.

SEC. 5. ESTABLISHMENT OF BLOCK GRANT PROGRAM.

 

Section 675 of Community Services Block Grant Act (42 U.S.C. 9904) 
is amended by striking ``through'' and all that follows through the 
period at the end, and inserting ``for the purposes described in 

section 672.''.

SEC. 6. ALLOTMENTS AND PAYMENTS TO STATES.

 

Section 675B of the Community Services Block Grant Act (42 U.S.C. 
9906) is amended--

    (1) in subsection

    (a) --
        (A) by striking ``except--'' and inserting ``except 
 as provided in subsection

    (b) .'', and
        (B) by striking paragraphs

    (1) and

    (2) ,

    (2) by amending subsection

    (b) to read as follows:
 ``

    (b) Minimum Allotments.--
 ``

    (1) In general.--No State shall receive less than \1/2\ 
 of 1 percent of the amount appropriated under 

section 674

    (a) for a fiscal year that remains after the Secretary makes the 
 reservations required by 

section 674

    (b) .
 ``

    (2) Years with greater available funds.--Notwithstanding 
 paragraph

    (1) , if the amount appropriated under 

section 674

    (a) for a fiscal year that remains after the Secretary makes the 
 reservations required in 

section 674

    (b) exceeds $900,000,000, 
 no State shall receive under this section less than \3/4\ of 1 
 percent of the remaining amount.'', and

    (3) by amending subsection
            (c) to read as follows::
 ``
            (c) Grants and Payments.--Subject to 

section 677, the Secretary 
shall make grants to eligible States for the allotments described in 
subsections

    (a) and

    (b) . The Secretary shall make payments for the 
grants in accordance with 

section 6503

    (a) of title 31, United States 
Code. The Secretary shall allocate the amounts allotted under 
subsections

    (a) and

    (b) on a quarterly basis at a minimum, notify the 
States of their respective allocations, and make each State's first 
allocation amount in a fiscal year available for expenditure by the 
State no later than 30 days after receipt of an approved apportionment 
from the Office of Management and Budget and, for subsequent allocation 
amounts in the fiscal year, not later than 30 days after the start of 
the period for which the Secretary is allocating the funds.''.

SEC. 7. USES OF FUNDS.

 

Section 675C of the Community Services Block Grant Act (42 U.S.C.. 
9907) is amended--

    (1) in subsection

    (a) --
        (A) in paragraph

    (1) by striking ``for the purposes 
 described in 

section 672 to eligible entities'' and 
 inserting ``to eligible entities that enable the 
 entities to implement programs, projects, and services 
 for the purposes described in 

section 672'',
        (B) by amending paragraph

    (2) to read as follows:
 ``

    (2) Obligational requirements.--
 ``
        (A) Date of obligation.--The State shall obligate 
 the funds for grants described in paragraph

    (1) and 
 make such grants available for expenditure by eligible 
 entities not later than the later of--
 ``
            (i) the 30th day after the date on which 
 the State receives from the Secretary a notice 
 of funding availability for the State's 
 application under 

section 676

    (b) for a first or 
 subsequent allocation for a fiscal year; or
 ``
            (ii) the first day of the State program 
 year for which funds are to be expended under 
 the State application.
 ``
        (B) Exception.--If funds are appropriated to 
 carry out this subtitle for less than a full fiscal 
 year, a State may request an exception from the 
 Secretary from the requirement to make grants available 
 for expenditure by eligible entities in accordance with 
 subparagraph
        (A) , except that a State may not 
 accumulate more than one fiscal quarter's worth of 
 funding without making such funds available for 
 expenditure by eligible entities.
 ``
            (C) Availability.--Funds distributed to eligible 
 entities through grants made in accordance with 
 paragraph

    (1) for a fiscal year shall be available for 
 obligation by the eligible entity during that fiscal 
 year and the following fiscal year.'', and
            (C) by striking paragraph

    (3) ,

    (2) in subsection

    (b) --
        (A) in paragraph

    (1) --
            (i) by striking ``(subject to paragraph

    (2) ) for activities that may include--'' and 
 inserting ``for activities described in the 
 State's application and plan under 

section 676

    (b) , as described in paragraph

    (2) , and for 
 administrative expenses subject to the 
 limitations in paragraph

    (3) .'', and
            (ii) by striking subparagraphs
        (A) through
        (H) , and
        (B) in paragraph

    (2) --
            (i) by striking ``the greater of $55,000, 
 or 5 percent,'' and inserting ``5 percent'',
            (ii) in the 2d sentence by inserting 
 ``under 

section 675B'' after ``allotment'',
            (iii) in the 3d sentence by striking 
 ``paragraph

    (1)
        (A) '' and inserting ``paragraph

    (2) , other than monitoring,'',
            (iv) by striking the last sentence,
            (v) by redesignating paragraph

    (2) as 
 paragraph

    (3) , and
            (vi) by inserting after paragraph

    (1) the 
 following:
 ``

    (2) Training and technical assistance.--After the 
 application of subsection

    (a) , the State may use the remaining 
 grant funds for the purposes of--
 ``
        (A) providing training and technical assistance 
 and resources to eligible entities, including to--
 ``
            (i) assist eligible entities to respond 
 to statewide or regional conditions that create 
 economic insecurity, including emergency 
 conditions; and
 ``
            (ii) support innovative programs and 
 activities conducted by eligible entities for a 
 purpose described in 

section 672, including 
 assistance to eligible entities in building and 
 using evidence of effectiveness in achieving 
 such purpose;
 ``
        (B) supporting information and communication 
 resources for the comprehensive community needs 
 assessments described in 

section 676

    (b)

    (3)
        (B) ;
 ``
            (C) supporting performance measurement systems 
 consistent with the requirements of 

section 678E;
 ``
            (D) coordinating State-operated programs and 
 services, and at the option of the State, locally-
 operated programs and services, targeted to low-income 
 children and families with services provided by 
 eligible entities and other organizations funded under 
 this subtitle, to ensure increased access to services 
 provided by such State or local agencies;
 ``
        (E) supporting statewide coordination and 
 communication among eligible entities in the State, 
 including supporting activities of a statewide 
 association of community services network 
 organizations; and
 ``
        (F) analyzing the distribution of funds made 
 available under this subtitle within the State to 
 determine if such funds have been targeted to the areas 
 of greatest need.'', and

    (3) by striking subsection
            (c) .

SEC. 8. APPLICATION AND PLAN.

 

Section 676 of the Community Services Block Grant Act (42 U.S.C. 
9908) is amended--

    (1) in subsection

    (a) by amending paragraph

    (2) to read as 
 follows:
 ``

    (2) Duties.--The lead agency--
 ``
        (A) shall be authorized by the chief executive 
 officer to convene State agencies and coordinate 
 information and activities funded under this subtitle;
 ``
        (B) shall develop the State plan to be submitted 
 to the Secretary under subsection

    (b) , which shall be 
 based primarily on the community action plans of 
 eligible entities submitted to the State as a condition 
 of receiving funding under this subtitle;
 ``
            (C) may revise an existing State plan for 
 submission to the Secretary, subject to the notice and 
 distribution requirements in subparagraph
            (D) 
            (iii) ;
 ``
            (D) in conjunction with the development of the 
 State plan as required under subsection

    (b) --
 ``
            (i) shall hold at least one hearing in 
 the State on the proposed plan, to provide to 
 the public an opportunity to comment on the 
 public record on the proposed use and 
 distribution of funds under the plan;
 ``
            (ii) not less than 15 days before the 
 hearing, shall distribute notice of the hearing 
 and a copy of the proposed plan statewide to 
 the public and directly to the chief executive 
 officer and board chairperson of each eligible 
 entity and other community services network 
 organization in the State; and
 ``
            (iii) in the case of any proposed plan 
 revision, shall notify and distribute a copy of 
 the proposed revision directly to the chief 
 executive officer and board chairperson of each 
 eligible entity and other community services 
 network organization in the State, before 
 submission of such proposed revision to the 
 Secretary; and
 ``
        (E) shall conduct reviews of eligible entities 
 under 

section 678B.'',

    (2) in subsection

    (b) --
        (A) in the matter preceding paragraph

    (1) --
            (i) by striking ``2000'' and inserting 
 ``2026'', and
            (ii) by striking ``30'' and inserting 
 ``60'',
        (B) in paragraph

    (1) --
            (i) by striking ``made available through 
 the grant or allotment will be used'' and 
 inserting ``provided to an eligible entity 
 under 

section 675C

    (a) shall be used by such 
 entity for'',
            (ii) by striking ``to support activities 
 that are designed'' and all that follows 
 through ``will enable the families and 
 individuals'', and inserting ``programs, 
 projects, and services that will enable low-
 income and working individuals and families'',
            (iii) in subparagraph
        (B) by striking 
 ``and'' at the end,
            (iv) in subparagraph
            (C) by adding ``and'' 
 at the end, and
            (v) by adding at the end the following:
 ``
            (D) to address the educational and economic needs 
 of low-income individuals, families, and communities by 
 providing assistance through trained navigators to help 
 facilitate access to affordable high-speed broadband 
 service, internet-enabled devices, digital literacy 
 training, technical support, and other services to meet 
 the broadband and digital needs of such individuals, 
 families, and communities.'',
            (C) in paragraph

    (2) by striking ``related to'' and 
 inserting ``and the building and use of evidence of 
 effectiveness in achieving'',
            (D) in paragraph

    (3) --
            (i) by inserting ``a description 
 summarizing the community action plans and'' 
 after ``

    (3) '', and
            (ii) in subparagraph
            (D) by striking 
 ``fatherhood initiatives'' and inserting 
 ``whole family approaches'',
        (E) by amending paragraph

    (11) to read as follows:
 ``

    (11) an assurance that the State will secure from each 
 eligible entity in the State, as a condition of receipt of 
 funding by the entity under 

section 675C

    (a) , a community action 
 plan that--
 ``
        (A) contains information on the intended 
 implementation of the entity's activities;
 ``
        (B) demonstrates how such activities will meet 
 needs identified in the most recent comprehensive 
 community needs assessment conducted by the entity in 
 the previous three years, which may be coordinated with 
 community needs assessments conducted for other 
 programs; and
 ``
            (C) demonstrates how such activities will achieve 
 the purposes of this subtitle;''.
        (F) in paragraph

    (12) --
            (i) by striking the comma and ``, not later 
 than fiscal year 2001,'',
            (ii) by striking ``promoting'' and 
 inserting ``achieving the goals of the State 
 plan and community action plans of eligible 
 entities, respectively, and the purposes of 
 this subtitle, including'', and
            (iii) by striking ``and'' at the end,
        (G) by amending paragraph

    (13) to read as follows:
 ``

    (13) an assurance that each eligible entity in the State 
 shall make available to the public on the entity's publicly 
 available website the entity's most recent agency-wide 
 strategic plan, comprehensive community needs assessment, and 
 community action plan;'', and
        (H) by adding the following at the end:
 ``

    (14) an assurance that State personnel who conduct 
 monitoring activities under 

section 678B will have expertise in 
 the programs, projects, and services carried out under this 
 subtitle and in the unique structure and role of eligible 
 entities in their local communities;
 ``

    (15) an assurance that the State will make payments to 
 eligible entities in accordance with 

section 675B

    (a) ;
 ``

    (16) an assurance that the State will develop a policy on 
 board vacancies in accordance with 

section 676B
            (d) and provide 
 guidance to assist eligible entities in filling board 
 vacancies; and
 ``

    (17) information describing how the State will carry out 
 the assurances described in this subsection.'',

    (3) by amending subsection

    (e) to read as follows:
 ``

    (e) Public Inspection.--Each State plan prepared under this 
section shall be made available on the lead agency's website and 
distributed for public inspection and comment. A hearing on such plan 
shall be held as required under subparagraphs
            (C) and
            (D) of subsection

    (a)

    (2) .'', and

    (4) in subsection

    (f) --
        (A) by striking ``2000'' and inserting ``2026'', 
 and
        (B) by striking ``Coats Human Services 
 Reauthorization Act of 1998'' and inserting ``Community 
 Services Block Grant Improvement Act of 2025''.

SEC. 9. DESIGNATION AND REDESIGNATION OF ELIGIBLE ENTITIES IN UNSERVED 
 AREAS.

 

Section 676A

    (a) of the Community Services Block Grant Act (42 
U.S.C. 9909

    (a) ) is amended to read as follows:
 ``

    (a) Qualified Organization in or Near Area.--
 ``

    (1) In general.--If any geographic area of a State is 
 not, or ceases to be, served by an eligible entity under this 
 subtitle, the State lead agency may, in consultation with local 
 officials and organizations representing the area, solicit one 
 or more applications and designate a new community action 
 agency to provide programs, projects, and services to the area, 
 that is--
 ``
        (A) a community action agency that is a private, 
 nonprofit organization and that is geographically 
 located in an area in reasonable proximity of, or 
 contiguous to, the unserved area and that is already 
 providing similar programs, projects, and services, and 
 that has demonstrated financial capacity to manage and 
 account for Federal funds; or
 ``
        (B) if no community action agency described in 
 subparagraph
        (A) is available, a private, nonprofit 
 organization (which may include an eligible entity) 
 that is geographically located in, or is in reasonable 
 proximity to, the unserved area and that is capable of 
 providing a broad range of programs, projects, and 
 services designed to achieve the purposes of this 
 subtitle as stated in 

section 672.
 ``

    (2) Requirement.--In order to serve as the eligible 
 entity for the area, an entity described in paragraph

    (1) shall 
 agree to ensure that the governing board of directors of the 
 entity will meet the requirements of 

section 676B.
 ``

    (3) Community.--A service area referred to in this 
 subsection or a portion thereof shall be treated as a community 
 for purposes of this subtitle.
 ``

    (4) Interim designation.--If no entity that meets the 
 requirements of subsection

    (a) is available for designation as 
 a permanent eligible entity, the State may designate a private, 
 nonprofit agency (or public agency if a private nonprofit is 
 not available) on an interim basis for no more than one year 
 while the State completes a selection process for a permanent 
 eligible entity that meets the requirements of subsection

    (a) . 
 An agency designated on an interim basis shall be capable of 
 providing programs, projects, and services designed to achieve 
 the purposes described in 

section 672 and have demonstrated 
 financial capacity to manage and account for Federal funds, and 
 may be designated as a permanent eligible entity only if, by 
 the time of permanent designation, it meets all the 
 requirements of paragraphs

    (1) and

    (2) .''.

SEC. 10. TRIPARTITE BOARDS.

 

Section 676B of the Community Services Block Grant Act (42 U.S.C. 
9910) is amended--

    (1) in subsection

    (a) --
        (A) by amending paragraph

    (1) to read as follows:
 ``

    (1) Board.--In order for a private, nonprofit 
 organization to be considered to be an eligible entity for 
 purposes of 673

    (6) , the entity shall be governed by a 
 tripartite board of directors described in subparagraph
            (C) that fully participated in the development, planning, 
 implementation, oversight, and evaluation of the programs, 
 projects, and services carried out or provided through the 
 subgrant made under 

section 675C

    (a) and all activities of the 
 entity.'',
        (B) in paragraph

    (2)
        (A) by striking ``except'' and 
 all that follows through ``requirement'', and inserting 
 ``(but if an elected official chooses not to serve, 
 such official may designate a representative to serve 
 as the voting board member); and'', and
            (C) by adding at the end the following:
 ``

    (3) Compliance with tax-exempt and other requirements.--
 The board of a private, nonprofit organization shall ensure 
 that the board operates and conducts activities under the 
 subgrant made under 

section 679

    (Ca) that complies with--
 ``
        (A) the requirements for maintaining tax-exempt 
 status under 

section 501

    (a) of the Internal Revenue 
 Code of 1986 (26 U.S.C. 501

    (a) ) regarding the 
 governance of charities under 

section 501
            (c) (3) of the 
 Internal Revenue Code of 1986 (26 U.S.C. 501
            (c) (3) ); 
 and
 ``
        (B) applicable requirements of State nonprofit 
 law.'', and

    (2) in subsection

    (b) --
        (A) in paragraph

    (1) --
            (i) by redesignating subparagraphs
        (A) ,
        (B) , and
            (C) as clauses
            (i) ,
            (ii) , and
            (iii) , 
 respectively, and
            (ii) in paragraph

    (2) by adding 
 ``References under this subtitle to the board 
 of an eligible entity shall apply to such other 
 mechanism.'' at the end,
        (B) by redesignating paragraphs

    (1) and

    (2) as 
 subparagraphs
        (A) and
        (B) ; respectively,
            (C) by striking ``Public Organizations.--'' and 
 inserting,``board or other mechanism.--

    (1) '', and
            (D) by adding at the end the following:
 ``

    (2) Compliance with state requirements and 
 

=== policy ===
-The board of a public entity shall ensure that 
 the board operates in a manner that complies with State 
 requirements for open meetings, financial transparency, 
 and State open records policy.'', and

    (3) by adding at the end the following:
 ``
            (c) Expertise.--Each eligible entity shall ensure that the 
members of the board are provided resources, which may include 
contracted services with individuals and organizations with expertise 
in financial management, accounting, and law, to support the work of 
the board.
 ``
            (d) Board Vacancies.--To fulfill the requirements under this 
section, an eligible entity shall fill a board vacancy not later than 6 
months after such vacancy arises. In the event that an eligible entity 
is unable to fill a board vacancy in the 6-month period, the entity 
shall certify to the State that it is making a good faith effort to 
fill the vacancy and shall receive one additional 6-month period to 
fill such vacancy.
 ``

    (e) Operations and Duties of the Board.--The duties of a board 
described in paragraph

    (1) or

    (2) of subsection

    (a) shall include--
 ``

    (1) in the case of a board for a private, nonprofit 
 organization that is an eligible entity, having legal and 
 financial responsibility for administering and overseeing the 
 eligible entity, including making proper use of Federal funds;
 ``

    (2) establishing terms for officers and adopting a code 
 of ethical conduct, including a conflict of interest policy for 
 board members;
 ``

    (3) participating in a comprehensive community needs 
 assessment conducted at least once every three years, 
 developing and adopting for the corresponding eligible entity 
 an agency-wide strategic plan, and preparing the community 
 action plan for the use of funds under this subtitle;
 ``

    (4) approving the eligible entity's operating budget;
 ``

    (5) reviewing all major policies such that--
 ``
        (A) for private, nonprofit organizations that are 
 eligible entities, a review includes conducting annual 
 performance reviews of the eligible entity's chief 
 executive officer (or individual holding an equivalent 
 position); and
 ``
        (B) for local public entities that are eligible 
 entities, a review includes participating in annual 
 performance reviews of the eligible entity's chief 
 executive officer (or individual holding an equivalent 
 position);
 ``

    (6) performing oversight of the eligible entity to 
 include--
 ``
        (A) conducting assessments of the eligible 
 entity's progress in carrying out programmatic and 
 financial provisions in the community action plan; and
 ``
        (B) in the case of any required corrective 
 action, reviewing the eligible entity's plans and 
 progress in remedying identified deficiencies; and
 ``

    (7) concerning personnel policies and procedures--
 ``
        (A) in the case of private, nonprofit 
 organizations that are eligible entities, adopting 
 personnel policies and procedures, including for 
 hiring, annual evaluation, compensation, and 
 termination, of the eligible entity's chief executive 
 officer (or individual holding a similar position); and
 ``
        (B) in the case of local public entities that are 
 eligible entities, reviewing personnel policies and 
 procedures, including for hiring, annual evaluation, 
 compensation, and termination, of the eligible entity's 
 chief executive officer (or individual holding a 
 similar position).
 ``

    (f) Conflict of Interest.--In establishing the conflict of 
interest policy described in subsection

    (e)

    (2) , a board shall ensure 
that such 

=== policy ===
-
 ``

    (1) requires a board member to recuse themself from any 
 discussion, deliberations, and votes relating to any contract 
 or transaction from which the following would receive a direct 
 financial benefit from the eligible entity:
 ``
        (A) such board member;
 ``
        (B) the immediate family member of such board 
 member; or
 ``
            (C) an organization or a business from which such 
 board member, or an immediate family of such board 
 member, receives a direct financial benefit;
 ``

    (2) prohibits a board member from receiving compensation 
 for serving on the board from the eligible entity other than 
 for reasonable expenses, except that a board member's receipt 
 of an economic benefit from the eligible entity because such 
 member is eligible to receive benefits and services under this 
 subtitle shall not be considered to be compensation for 
 purposes of this subsection; and
 ``

    (3) ensures all activities funded under this subtitle are 
 conducted free of personal or family favoritism.''.

SEC. 11. OFFICE OF COMMUNITY SERVICES.

 

Section 678

    (b) of the Community Services Block Grant Act (42 U.S.C. 
9912

    (b) ) is amended by inserting ``, acting through the Director,'' 
after ``The Secretary''.

SEC. 12. TRAINING, TECHNICAL ASSISTANCE, AND OTHER ACTIVITIES.

 

Section 678A
            (c) of the Community Services Block Grant Act (42 
U.S.C. 9913
            (c) ) is amended to read as follows:
 ``
            (c) Distribution Requirement.--
 ``

    (1) In general.--The amounts reserved under 

section 674

    (b)

    (2)
        (A) for activities to be carried out under this 
 subsection shall be distributed directly to eligible entities 
 and other community services network organizations for--
 ``
        (A) professional development for key community 
 services network organization personnel;
 ``
        (B) activities to improve community services 
 network organization program quality, financial 
 management, compliance, and governance practices 
 (including practices related to performance management 
 information systems);
 ``
            (C) activities that train community services 
 network organizations in building and using evidence of 
 effectiveness in achieving the purposes of this 
 subtitle; and
 ``
            (D) activities to ensure responsiveness to 
 identified local needs.
 ``

    (2) Eligible entities or organizations.--Eligible 
 entities and other community services network organizations 
 described in this subsection shall include such entities and 
 organizations (and their partners, including institutions of 
 higher education), with demonstrated expertise in providing 
 training to individuals and organizations on methods of 
 effectively addressing the needs of low-income and working 
 families and communities.''.

SEC. 13. FISCAL CONTROLS, AUDITS, AND WITHHOLDING.

 

Section 678D of the Community Services Block Grant Act (42 U.S.C. 
9916) is amended--

    (1) in subsection

    (a) --
        (A) in paragraph

    (1) --
            (i) in paragraph
        (A) by inserting ``and, 
 notwithstanding the applicability of 
 subparagraph
        (B) , issue payment to 
 subrecipients on an advance basis.'' before the 
 semicolon at the end, and
            (ii) by amending subparagraph
        (B) to read 
 as follows:
 ``
        (B) Single audit requirements.--
 ``
            (i) In general.--Audits shall be 
 conducted under this paragraph in the manner 
 and to the extent provided in chapter 75 of 
 title 31, United States Code (commonly known as 
 the `Single Audit Act Amendments of 1984'), 
 except in the event a serious financial 
 deficiency is identified.
 ``
            (ii) Serious financial deficiency.--In 
 the event that such a deficiency is identified, 
 the Secretary shall order an audit conducted as 
 described in subparagraph

    (1) , or an audit of 
 each of the accounts involved, in accordance 
 with subparagraph

    (2) .'', and
        (B) by amending paragraph

    (3) to read as follows:
 ``

    (3) Repayments.--If the Secretary, after review of the 
 audit, finds that a State has not expended an amount of funds 
 in accordance with this subtitle, the Secretary is authorized 
 to withhold funds from the State under this subtitle until the 
 State remedies the improperly expended funds for the original 
 purpose for which the grant funds were intended.'', and

    (2) in subsection

    (b)

    (3) by inserting ``or a complaint of a 
 serious deficiency concerning any State'' after ``any fiscal 
 year''.

SEC. 14. ACCOUNTABILITY AND REPORTING REQUIREMENTS.

 

Section 678E

    (b) of the Community Services Block Grant Act (42 
U.S.C. 9917) is amended--

    (1) in paragraph

    (3) by striking ``Labor and Human 
 Resources'' and inserting ``Health, Education, Labor, and 
 Pensions'', and

    (2) by striking paragraph

    (4) .

SEC. 15. LIMITATIONS ON USE OF FUNDS.

 

Section 678F

    (a)

    (1) of the Community Services Block Grant Act (42 
U.S.C. 9918

    (a)

    (1) ) is amended by striking ``amounts reserved under 

section 674

    (b)

    (3) '' and inserting ``amounts appropriated under 

section 674
            (c) ''.

SEC. 16. DISCRETIONARY AUTHORITY OF THE SECRETARY.

 

Section 680 of the Community Services Block Grant Act (42 U.S.C. 
9921) is amended--

    (1) in subsection

    (a) --
        (A) in paragraph

    (1) --
            (i) by striking ``funds reserved under 
 

section 674

    (b)

    (3) '' and inserting ``amounts 
 made available to carry out this section'', and
            (ii) by striking ``through

    (4) '' and 
 inserting ``and

    (3) '', and
        (B) by striking subparagraph

    (4) , and

    (2) in subsection
            (c) by striking ``Labor and Human 
 Resources'' and inserting ``Health, Education, Labor, and 
 Pensions''.

SEC. 17. COMMUNITY FOOD AND NUTRITION PROGRAMS.

 The Community Services Block Grant Act (42 U.S.C. 9922) is amended 
by striking 

section 681.

SEC. 18. NATIONAL OR REGIONAL PROGRAMS DESIGNED TO PROVIDE 
 INSTRUCTIONAL ACTIVITIES FOR LOW-INCOME YOUTH.

 The Community Services Block Grant Act (42 U.S.C. 9923) is 
amended--

    (1) by striking 

section 682, and

    (2) by redesignating 

section 683 as 

section 681.
 <all>