119-s1567

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1567 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1567

 To reauthorize and reform the Temporary Assistance for Needy Families 
 program under part A of title IV of the Social Security Act, and for 
 other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 May 1, 2025

 Mr. Daines introduced the following bill; which was read twice and 
 referred to the Committee on Finance

_______________________________________________________________________

 A BILL

 To reauthorize and reform the Temporary Assistance for Needy Families 
 program under part A of title IV of the Social Security Act, 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 ``Jobs and Opportunity with Benefits 
and Services

    (JOBS) for Success Act of 2025''.

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.

Sec. 4. Helping more Americans enter and remain in the workforce.

Sec. 5. Expecting universal engagement and case management.

Sec. 6. Promoting accountability by measuring work outcomes.

Sec. 7. Targeting funds to truly needy families.

Sec. 8. Targeting funds to core purposes.

Sec. 9. Strengthening program integrity by measuring improper payments.

Sec. 10. Prohibition on State diversion of Federal funds to replace 
 State spending.

Sec. 11. Inclusion of poverty reduction as a program purpose.

Sec. 12. Strengthening accountability through HHS approval of State 
 plans.

Sec. 13. Aligning and improving data reporting.

Sec. 14. Technical corrections to data exchange standards to improve 
 program coordination.

Sec. 15. Set-aside for economic downturns.

Sec. 16. Welfare for needs not weed.

Sec. 17. Definitions related to use of funds.

Sec. 18. Elimination of obsolete provisions.

Sec. 19. 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 reference shall be considered to 
be made to a section or other provision of the Social Security Act.

SEC. 4. HELPING MORE AMERICANS ENTER AND REMAIN IN THE WORKFORCE.

    (a) Family Assistance Grants.--

Section 403

    (a)

    (1) (42 U.S.C. 
603

    (a)

    (1) ) is amended in each of subparagraphs
        (A) and
            (C) by striking 
``2017 and 2018'' and inserting ``2026 through 2030''.

    (b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--

Section 403

    (a)

    (2)
            (D) (42 U.S.C. 603

    (a)

    (2)
            (D) ) is amended--

    (1) by striking ``2017 and 2018'' and inserting ``2026 
 through 2030''; and

    (2) by striking ``for fiscal year 2017 or 2018''.
            (c) Tribal Grants.--

Section 412

    (a) (42 U.S.C. 612

    (a) ) is amended in 
each of paragraphs

    (1)
        (A) and

    (2)
        (A) by striking ``2017 and 2018'' and 
inserting ``2026 through 2030''.
            (d) Grants to the Territories.--

Section 1108

    (b)

    (2) (42 U.S.C. 
1308

    (b)

    (2) ) is amended by striking ``2017 and 2018'' and inserting 
``2026 through 2030''.

SEC. 5. EXPECTING UNIVERSAL ENGAGEMENT AND CASE MANAGEMENT.

 

Section 408

    (b) (42 U.S.C. 608

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

    (b) Individual Opportunity Plans.--
 ``

    (1) Assessment.--The State agency responsible for 
 administering the State program funded under this part shall 
 make an initial assessment of the following for each work-
 eligible individual (as defined in the regulations promulgated 
 pursuant to 

section 407
            (i) (1)
        (A)
            (i) ):
 ``
        (A) The education obtained, skills, prior work 
 experience, work readiness, and barriers to work of the 
 individual.
 ``
        (B) The well-being of the children in the family 
 of the individual and, where appropriate, activities or 
 services (such as services offered by a program funded 
 under 

section 511) to improve the well-being of the 
 children.
 ``

    (2) Contents of plans.--On the basis of the assessment 
 required by paragraph

    (1) of this subsection, the State agency, 
 in consultation with the individual, shall develop an 
 individual opportunity plan that--
 ``
        (A) includes a personal responsibility agreement 
 in which the individual acknowledges receipt of 
 publicly funded benefits and responsibility to comply 
 with program requirements in order to receive the 
 benefits;
 ``
        (B) sets forth the obligations of the individual 
 to participate in work activities (as defined in 
 

section 407
            (d) ), and the number of hours per month for 
 which the individual will so participate pursuant to 
 

section 407;
 ``
            (C) sets forth an employment goal and planned 
 short-, intermediate-, and long-term actions to achieve 
 the goal, and, in the case of an individual who has not 
 attained 24 years of age and is in secondary school or 
 the equivalent, the intermediate action may be 
 completion of secondary school or the equivalent;
 ``
            (D) describes the job counseling and other 
 services the State will provide to the individual to 
 enable the individual to obtain and keep unsubsidized 
 employment;
 ``
        (E) may include referral to appropriate substance 
 abuse or mental health treatment; and
 ``
        (F) is signed by the individual.
 ``

    (3) Timing.--The State agency shall comply with 
 paragraphs

    (1) and

    (2) with respect to a work-eligible 
 individual--
 ``
        (A) within 1 year after the effective date of 
 this subsection, in the case of an individual who, as 
 of such effective date, is a recipient of assistance 
 under the State program funded under this part (as in 
 effect immediately before such effective date); or
 ``
        (B) within 60 days after the individual is 
 determined to be eligible for the assistance, in the 
 case of any other individual.
 ``

    (4) Universal engagement.--Subject to paragraph

    (3) of 
 this subsection, each State shall require all work-eligible 
 recipients receiving funds under the State program funded under 
 this part to engage in work in accordance with the provisions 
 of sections 407
            (c) , 407
            (d) , and 407

    (e) .
 ``

    (5) Penalty for noncompliance by individual.--In addition 
 to any other penalties required under the State program funded 
 under this part, the State shall reduce, pursuant to 

section 407

    (e)

    (3) , the amount of assistance otherwise payable under the 
 State program to a family that includes an individual who fails 
 without good cause to comply with an individual opportunity 
 plan developed pursuant to this subsection, that is signed by 
 the individual.
 ``

    (6) Periodic review.--The State shall meet with each 
 work-eligible individual assessed by the State under paragraph

    (1) , not less frequently than every 90 days, to--
 ``
        (A) review the individual opportunity plan 
 developed for the individual, including the eligibility 
 of the individual for benefits;
 ``
        (B) discuss with the individual the progress made 
 by the individual in achieving the goals specified in 
 the plan; and
 ``
            (C) update the plan, as necessary, to reflect any 
 changes in the circumstances of the individual since 
 the plan was last reviewed.''.

SEC. 6. PROMOTING ACCOUNTABILITY BY MEASURING WORK OUTCOMES.

    (a) In General.--

Section 407

    (a) (42 U.S.C. 607

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

    (a) Performance Accountability and Work Outcomes.--
 ``

    (1) Work outcomes.--
 ``
        (A) In general.--A State to which a grant is made 
 under 

section 403 shall achieve the requisite minimum 
 level of performance for a fiscal year described in 
 this paragraph with respect to the percentage of 
 employment exits for families receiving assistance 
 under the State program funded under this part, or be 
 subject to penalty as described in 

section 409

    (a)

    (3) .
 ``
        (B) Calculation of percentage of employment 
 exits.--For purposes of this paragraph, the percentage 
 of employment exits with respect to a State equals the 
 ratio of the number of work-eligible individuals who 
 are in unsubsidized employment 6 months after their 
 exit to the average monthly number of families 
 receiving assistance under the State program funded 
 under this part.
 ``
            (C) Agreement on requisite level of 
 performance.--The Secretary and the State shall 
 negotiate the requisite level of performance for the 
 State with respect to employment exits for each fiscal 
 year beginning with fiscal year 2028.
 ``

    (2) Performance accountability.--
 ``
        (A) === Purpose ===
-The purpose of this paragraph is to 
 provide for the establishment of performance 
 accountability measures to assess the effectiveness of 
 States in increasing employment, retention, and 
 advancement among families receiving assistance under 
 the State program funded under this part.
 ``
        (B) In general.--A State to which a grant is made 
 under 

section 403 for a fiscal year shall achieve the 
 requisite level of performance on an indicator 
 described in subparagraph
            (D) of this paragraph for the 
 fiscal year.
 ``
            (C) Measuring state performance.--Each State, in 
 consultation with the Secretary, shall collect and 
 submit to the Secretary the information necessary to 
 measure the level of performance of the State for each 
 indicator described in subparagraph
            (D) , for fiscal 
 year 2027 and each fiscal year thereafter, and the 
 Secretary shall use the information collected for 
 fiscal year 2027 to establish the baseline level of 
 performance for each State for each such indicator.
 ``
            (D) Indicators of performance.--The indicators 
 described in this subparagraph, for a fiscal year, are 
 the following:
 ``
            (i) The percentage of individuals who 
 were work-eligible individuals as of the time 
 of exit from the program, who are in 
 unsubsidized employment during the 2nd quarter 
 after the exit.
 ``
            (ii) The percentage of individuals who 
 were work-eligible individuals who were in 
 unsubsidized employment in the 2nd quarter 
 after the exit, who are also in unsubsidized 
 employment during the 4th quarter after the 
 exit.
 ``
            (iii) The median earnings of individuals 
 who were work-eligible individuals as of the 
 time of exit from the program, who are in 
 unsubsidized employment during the 2nd quarter 
 after the exit.
 ``
            (iv) The percentage of individuals who 
 have not attained 24 years of age, are 
 attending high school or enrolled in an 
 equivalency program, and are work-eligible 
 individuals or were work-eligible individuals 
 as of the time of exit from the program, who 
 obtain a high school degree or its recognized 
 equivalent while receiving assistance under the 
 State program funded under this part or within 
 1 year after the exit.
 ``
        (E) Levels of performance.--
 ``
            (i) In general.--For each State 
 submitting a State plan pursuant to 

section 402

    (a) , there shall be established, in 
 accordance with this subparagraph, levels of 
 performance for each of the indicators 
 described in subparagraph
            (D) .
 ``
            (ii) Weight.--The weight assigned to such 
 an indicator shall be the following:
 ``
            (I) Forty percent, in the case of 
 the indicator described in subparagraph
            (D) 
            (i) .
 ``
            (II) Twenty-five percent, in the 
 case of the indicator described in 
 subparagraph
            (D) 
            (ii) .
 ``
            (III) Twenty-five percent, in the 
 case of the indicator described in 
 subparagraph
            (D) 
            (iii) .
 ``
            (IV) Ten percent, in the case of 
 the indicator described in subparagraph
            (D) 
            (iv) .
 ``
            (iii) Agreement on requisite performance 
 level for each indicator.--
 ``
            (I) In general.--The Secretary 
 and the State shall negotiate the 
 requisite level of performance for the 
 State with respect to each indicator 
 described in clause
            (ii) , for each 
 fiscal year beginning with fiscal year 
 2028, and shall do so before the 
 beginning of the fiscal year involved.
 ``
            (II) Requirements in establishing 
 performance levels.--In establishing 
 the requisite levels of performance, 
 the State and the Secretary shall--
 ``

    (aa) take into account 
 how the levels involved compare 
 with the levels established for 
 other States; and
 ``

    (bb) ensure the levels 
 involved are adjusted, using 
 the objective statistical model 
 referred to in clause
            (v) , 
 based on--

 ``

    (AA) the 
 differences among 
 States in economic 
 conditions, including 
 differences in 
 unemployment rates or 
 employment losses or 
 gains in particular 
 industries;

 ``

    (BB) the 
 characteristics of 
 participants on entry 
 into the program, 
 including indicators of 
 prior work history, 
 lack of educational or 
 occupational skills 
 attainment, or other 
 factors that may affect 
 employment and 
 earnings; and

 ``
            (CC) take into 
 account the extent to 
 which the levels 
 involved promote 
 continuous improvement 
 in performance by each 
 State.

 ``
            (iv) Revisions based on economic 
 conditions and individuals receiving assistance 
 during the fiscal year.--The Secretary shall, 
 in accordance with the objective statistical 
 model referred to in clause
            (v) , revise the 
 requisite levels of performance for a State and 
 a fiscal year to reflect the economic 
 conditions and characteristics of the relevant 
 individuals in the State during the fiscal 
 year.
 ``
            (v) Statistical adjustment model.--The 
 Secretary shall use an objective statistical 
 model to make adjustments to the requisite 
 levels of performance for the economic 
 conditions and characteristics of the relevant 
 individuals, and shall consult with the 
 Secretary of Labor to develop a model that is 
 the same as or similar to the model described 
 in 

section 116

    (b)

    (3)
        (A)
            (viii) of the Workforce 
 Innovation and Opportunity Act (29 U.S.C. 
 3141

    (b)

    (3)
        (A)
            (viii) ).
 ``
            (vi) Definition of exit.--In this 
 paragraph, the term `exit' means, with respect 
 to a State program funded under this part, 
 ceases to a receive a benefit under the 
 program.
 ``
        (F) State option to establish common exit 
 measures.--Notwithstanding subparagraph
        (E)
            (vi) of this 
 paragraph, a State that has not provided the 
 notification under 

section 121

    (b)

    (1)
            (C) 
            (ii) of the 
 Workforce Innovation and Opportunity Act to exclude the 
 State program funded under this part as a mandatory 
 one-stop partner may adopt an alternative definition of 
 `exit' for the purpose of creating common exit measures 
 to improve alignment with workforce programs operated 
 under title I of such Act.
 ``
        (G) Regulations.--In order to ensure nationwide 
 comparability of data, the Secretary, after 
 consultation with the Secretary of Labor and with 
 States, shall issue regulations governing the 
 establishment of the performance accountability system 
 under this paragraph and a template for performance 
 reports to be used by all States consistent with 
 subsection

    (b) .''.

    (b) Reports on State Performance on HHS Online Dashboard.--

Section 407

    (b) (42 U.S.C. 607

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

    (b) Publication of State Performance.--The Secretary shall, 
directly or through the use of grants or contracts, and in 
collaboration with each State, establish and operate an internet 
website that is accessible to the public, with a dashboard that is 
regularly updated and provides easy-to-understand information on the 
performance of each State program funded under this part, including a 
profile for each such program, expressed by use of a template, which 
shall include--
 ``

    (1) information on the indicators and requisite 
 performance levels established for the State under subsection

    (a) , including, with respect to each such level, whether the 
 State achieves, exceeds, or fails to achieve the level on an 
 ongoing basis, including--
 ``
        (A) information on any adjustments made to the 
 requisite levels using the statistical adjustment model 
 described in subsection

    (a)

    (2)
        (E)
            (v) ; and
 ``
        (B) a grade based on the overall performance of 
 the State, as determined by the Secretary and in 
 consultation with the State, and the overall 
 performance shall be graded based on the performance 
 indicators and weights for each such indicator as 
 described in subsection

    (a) ;
 ``

    (2) information reported under 

section 411 on the 
 characteristics and demographics of individuals receiving 
 assistance under the State program, including--
 ``
        (A) the number and percentage of child-only cases 
 and reason why the cases are child-only; and
 ``
        (B) the average weekly number of hours that each 
 work-eligible individual in the State program 
 participates in work activities, including a separate 
 section showing the number and percentage of the work-
 eligible individuals with zero hours of the 
 participation and the reason for non-participation;
 ``

    (3) information on the results of improper payments 
 reviews;
 ``

    (4) a link to the State plan approved under 

section 402; 
 and
 ``

    (5) information regarding any penalty imposed, or other 
 corrective action taken, by the Secretary against a State for 
 failing to achieve a requisite performance level or any other 
 requirement imposed by or under this part.''.
            (c) Modification of Rules for Determining Whether an Individual Is 
Engaged in Work.--

Section 407
            (c) (42 U.S.C. 607
            (c) ) is amended--

    (1) in paragraph

    (1) --
        (A) in subparagraph
        (A) --
            (i) by striking ``For purposes of 
 subsection

    (b)

    (1)
        (B)
            (i) , a'' and inserting 
 ``A''; and
            (ii) by striking ``, not fewer than'' and 
 all that follows through ``this subsection''; 
 and
        (B) in subparagraph
        (B) --
            (i) in the matter preceding clause
            (i) , by 
 striking ``For purposes of subsection

    (b)

    (2)
        (B) , an'' and inserting ``An'';
            (ii) in clause
            (i) , by striking ``, not 
 fewer than'' and all that follows through 
 ``this subsection''; and
            (iii) in clause
            (ii) , by striking ``, not 
 fewer than'' and all that follows through 
 ``subsection
            (d) ''; and

    (2) in paragraph

    (2) --
        (A) by striking subparagraphs
        (A) and
            (D) ;
        (B) in each of subparagraphs
        (B) and
            (C) , by 
 striking ``For purposes of determining monthly 
 participation rates under subsection

    (b)

    (1)
        (B)
            (i) , a'' 
 and inserting ``A'';
            (C) by redesignating subparagraphs
        (B) and
            (C) as 
 subparagraphs
        (A) and
        (B) , respectively; and
            (D) by adding at the end the following:
 ``
            (C) State option for participation requirement 
 exemptions.--For any fiscal year, a State may, at its 
 option, not require an individual who is a single 
 custodial parent caring for a child who has not 
 attained 12 months of age to engage in work, for not 
 more than 12 months.''.
            (d) Modifications to Allowable Work Activities.--

Section 407
            (d) (42 
U.S.C. 607
            (d) ) is amended--

    (1) in paragraph

    (5) , by inserting ``, including 
 apprenticeships'' before the semicolon;

    (2) in paragraph

    (6) , by inserting ``supervised'' before 
 ``job search''; and

    (3) in paragraph

    (8) , by striking ``(not to exceed 12 
 months with respect to any individual)'' and inserting ``, 
 including career technical education''.

    (e) Penalty Against States.--

    (1) In general.--

Section 409

    (a)

    (3) (42 U.S.C. 609

    (a)

    (3) ) is 
 amended by striking all that precedes subparagraph
        (B) and 
 inserting the following:
 ``

    (3) Failure to satisfy work outcomes and work 
 engagement.--
 ``
        (A) In general.--If the Secretary determines that 
 a State to which a grant is made under 

section 403 for 
 a fiscal year has failed to comply with any of 

section 407

    (a)

    (1) , 

section 408

    (b)

    (3) , or 

section 408

    (b)

    (4) for 
 the fiscal year, the Secretary shall reduce the grant 
 payable to the State under 

section 403

    (a)

    (1) for the 
 immediately succeeding fiscal year by an amount equal 
 to the applicable percentage of the State family 
 assistance grant.''.

    (2) Transition rule.--The Secretary of Health and Human 
 Services may not impose a penalty under 

section 409

    (a)

    (3) of 
 the Social Security Act by reason of the failure of a State to 
 comply with 

section 407

    (a) of such Act for any fiscal year 
 before fiscal year 2027.

    (f) Pro Rata Reduction of Assistance for Individual 
Noncompliance.--

Section 407

    (e) (42 U.S.C. 607

    (e) ) is amended by adding 
at the end the following:
 ``

    (3) Pro rata reduction.--For purposes of paragraph

    (1)
        (A) , the amount of a pro rata reduction in assistance shall 
 be determined by multiplying the total amount of monthly 
 assistance that would, in the absence of the application of 
 this paragraph, be paid to the entire family, by the ratio of--
 ``
        (A) the number of hours of required work 
 activities as designated in subsection
            (d) actually 
 performed by the individual during the month; to
 ``
        (B) the number of hours of work activities that 
 the individual was required to perform during the month 
 in accordance with subsection
            (c) .
 ``

    (4) Penalties and engagement.--
 ``
        (A) In general.--Subject to the limitation in
        (B) , if in a given month an individual who received 
 assistance under this part was required to engage in 
 work under 

section 408

    (b)

    (4) , failed to fulfill those 
 obligations and was subsequently sanctioned in 
 accordance with 

section 407

    (e)

    (2) and

    (3) , that 
 individual shall be judged to be engaged in work for 
 that month for purposes of 

section 408

    (b)

    (4) .
 ``
        (B) Limitation.--If an individual receives no 
 benefits for two consecutive months due to sanctioning 
 under 

section 407

    (e)

    (2) and

    (3) , that individual shall 
 not be counted as engaged in work in subsequent months 
 for purposes of 

section 408

    (b)

    (4) unless actual work in 
 accordance with 

section 407
            (d) was resumed.''.

    (g) Conforming Amendment.--The heading of 

section 412
            (c) (42 U.S.C. 
612
            (c) ) is amended by striking ``Minimum Work Participation 
Requirements'' and inserting ``Requirements for Work Outcome 
Measures''.

SEC. 7. TARGETING FUNDS TO TRULY NEEDY FAMILIES.

    (a) Prohibition on Use of Funds for Families With Income Greater 
Than Twice the Poverty Line.--

Section 404

    (k) (42 U.S.C. 604

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

    (k) Prohibitions.--
 ``

    (1) Use of funds for persons with income greater than 
 twice the poverty line.--A State to which a grant is made under 
 this part shall not use the grant to provide any assistance or 
 services to a family whose monthly income exceeds twice the 
 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 (42 U.S.C. 
 9902

    (2) )).''.

    (b) Reduction of Limitation of Use Funds for Administrative 
Activities.--

    (1) Use of grants.--

Section 404

    (b) (42 U.S.C. 604

    (b) ) is 
 amended--
        (A) in paragraph

    (1) , by striking ``15'' and 
 inserting ``10''; and
        (B) by amending paragraph

    (2) to read as follows:
 ``

    (2) Exception.--Paragraph

    (1) shall not apply to the use 
 of a grant for--
 ``
        (A) information technology and computerization 
 needed for tracking or monitoring required by or under 
 this part; or
 ``
        (B) case management necessary to assist an 
 individual in developing an individual opportunity plan 
 under 

section 408

    (b) .''.

    (2) Penalties.--

Section 409

    (a) (42 U.S.C. 609

    (a) ) is 
 amended--
        (A) in paragraph

    (7)
        (B)
            (i) 
            (I) 
            (dd) , by striking 
 ``15'' and inserting ``10''; and
        (B) by adding at the end the following:
 ``

    (17) Penalty for failure to comply with administrative 
 limitation.--If the Secretary determines that a State to which 
 a grant is made under 

section 403 for a fiscal year has failed 
 to comply with 

section 404

    (b) for the fiscal year, the 
 Secretary shall reduce the grant payable to the State under 
 

section 403

    (a)

    (1) for the immediately succeeding fiscal year by 
 an amount equal to not more than 5 percent of the State family 
 assistance grant.''.
            (c) Prohibition on Use of Funds for Direct Spending on Child Care 
Services or Activities.--

Section 404

    (k) (42 U.S.C. 604

    (k) ), as amended 
by subsection

    (a) of this section, is amended by adding at the end the 
following:
 ``

    (2) Direct spending on child care services or 
 activities.--A State to which a grant is made under this part 
 shall not use the grant for direct spending on child care and 
 other early childhood education programs, services, or 
 activities.''.
            (d) Expansion of Authority To Transfer Funds.--

Section 404
            (d) (42 
U.S.C. 604
            (d) ) is amended by striking paragraphs

    (1) through

    (3) and 
inserting the following:
 ``

    (1) In general.--A State may transfer not more than 50 
 percent of the grant made to the State under 

section 403

    (a)

    (1) to a State program pursuant to any or all of the following 
 provisions of law:
 ``
        (A) The Child Care and Development Block Grant 
 Act of 1990.
 ``
        (B) Title I of the Workforce Innovation and 
 Opportunity Act.
 ``

    (2) Applicable rules.--
 ``
        (A) In general.--Except as provided in 
 subparagraph
        (B) of this paragraph, any amount paid to 
 a State under this part that is used to carry out a 
 State program pursuant to a provision of law specified 
 in paragraph

    (1) shall not be subject to the 
 requirements of this part, but shall be subject to the 
 requirements that apply to Federal funds provided 
 directly under the provision of law to carry out the 
 program, and the expenditure of any amount so used 
 shall not be considered to be an expenditure under this 
 part.
 ``
        (B) Funds transferred to the wioa.--In the case 
 of funds transferred under paragraph

    (1)
        (B) of this 
 subsection--
 ``
            (i) the State shall provide an assurance 
 that the funds will be used to support 
 individuals eligible for assistance or services 
 under this part pursuant to subsection

    (k)

    (1) ; 
 and
 ``
            (ii) not more than 15 percent of the 
 funds will be reserved for statewide workforce 
 investment activities referred to in 

section 128

    (a)

    (1) of the Workforce Innovation and 
 Opportunity Act.
 ``

    (3) WIOA transfer authority not available to states 
 excluding the state tanf program as a mandatory one-stop 
 partner under the wioa.--The authority provided by paragraph

    (1)
        (B) of this subsection may not be exercised by a State that 
 has provided the notification referred to in 

section 407

    (a)

    (2)
        (F) .''.

SEC. 8. TARGETING FUNDS TO CORE PURPOSES.

    (a) Requirement That States Reserve 25 Percent of Grant for 
Spending on Core Activities.--

Section 408

    (a) (42 U.S.C. 608

    (a) ) is 
amended by adding at the end the following:
 ``

    (13) Requirement that states reserve 25 percent of grant 
 for spending on core activities.--A State to which a grant is 
 made under 

section 403

    (a)

    (1) for a fiscal year shall expend not 
 less than 25 percent of the grant on work supports, education 
 and training, apprenticeships, non-recurring short-term 
 benefits, work activities (as defined in 

section 407
            (d) ), and 
 case management necessary to assist an individual in developing 
 an individual opportunity plan under 

section 408

    (b) .''.

    (b) Requirement That at Least 25 Percent of Qualified State 
Expenditures Be for Core Activities.--

Section 408

    (a) (42 U.S.C. 
608

    (a) ), as amended by subsection

    (a) of this section, is amended by 
adding at the end the following:
 ``

    (14) Requirement that at least 25 percent of qualified 
 state expenditures be for core activities.--Not less than 25 
 percent of the qualified State expenditures (as defined in 
 

section 409

    (a)

    (7)
        (B)
            (ii) ) of a State during the fiscal year 
 shall be for work supports, education and training, 
 apprenticeships, non-recurring short-term benefits, work 
 activities (as defined in 

section 407
            (d) ), and case management 
 necessary to assist an individual in developing an individual 
 opportunity plan under 

section 408

    (b) .''.

SEC. 9. STRENGTHENING PROGRAM INTEGRITY BY MEASURING IMPROPER PAYMENTS.

    (a) Applicability of Improper Payments Laws.--

Section 404 (42 
U.S.C. 604) is amended by adding at the end the following:
 ``
            (l) Applicability of Improper Payments Laws.--
 ``

    (1) In general.--The Improper Payments Information Act of 
 2002 and the Improper Payments Elimination and Recovery Act of 
 2010 shall apply to a State in respect of the State program 
 funded under this part in the same manner in which such Acts 
 apply to a Federal agency.
 ``

    (2) Regulations.--Within 2 years after the date of the 
 enactment of this subsection, the Secretary shall prescribe 
 regulations governing how a State reviews and reports improper 
 payments under the State program funded under this part.''.

    (b) Report to Congress.--Within 1 year after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
submit to the Congress a written report that contains a plan to reduce 
or eliminate improper payments made by States under part A of title IV 
of the Social Security Act within 10 years.

SEC. 10. PROHIBITION ON STATE DIVERSION OF FEDERAL FUNDS TO REPLACE 
 STATE SPENDING.

 

Section 408

    (a) (42 U.S.C. 608

    (a) ), as amended by 

section 8 of this 
Act, is amended by adding at the end the following:
 ``

    (15) Non-supplantation requirement.--Funds made available 
 to a State under this part shall be used to supplement, not 
 supplant, State general revenue spending on activities 
 described in 

section 404.''.

SEC. 11. INCLUSION OF POVERTY REDUCTION AS A PROGRAM PURPOSE.

 

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 child poverty by increasing employment entry, 
 retention, and advancement of needy parents.''.

SEC. 12. STRENGTHENING ACCOUNTABILITY THROUGH HHS APPROVAL OF STATE 
 PLANS.

    (a) In General.--

Section 402 (42 U.S.C. 602) is amended--

    (1) in subsection

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

    (1) --
            (i) by striking ``27-month'' and inserting 
 ``24-month''; and
            (ii) by striking ``found'' and inserting 
 ``approved that''; and
        (B) in paragraph

    (1) --
            (i) in subparagraph
        (A) --
            (I) by striking clauses
            (ii) and
            (iii) and inserting the following:
 ``
            (ii) Require work-eligible individuals 
 (as defined in the regulations promulgated 
 pursuant to 

section 407
            (i) (1)
        (A)
            (i) ) to engage 
 in work activities consistent with 

section 407
            (c) .'';
            (II) by redesignating clauses
            (iv) through
            (viii) as clauses
            (iii) through
            (vii) , respectively; and
            (III) by adding at the end the 
 following:
 ``
            (viii) Describe the case management 
 practices of the State with respect to the 
 requirements of 

section 408

    (b) , provide a copy 
 of the form or forms that will be used to 
 assess a work-eligible individual (as so 
 defined) and prepare an individual opportunity 
 plan for the individual, describe how the State 
 will ensure that such a plan is reviewed in 
 accordance with 

section 408

    (b)

    (6) , and describe 
 how the State will measure progress under the 
 plan.
 ``
            (ix) Propose the requisite levels of 
 performance for the State for purposes of 
 

section 407

    (a) for each year in the 2-year 
 period referred to in subsection
            (d) of this 
 section, and provide an explanation with 
 supporting data of why each such level is 
 appropriate.
 ``
            (x) Describe how the State will engage 
 low-income noncustodial parents who owe child 
 support and how such a parent will be provided 
 with access to work support and other services 
 under the program to which the parent is 
 referred to support their employment and 
 advancement.
 ``
            (xi) Describe how the State will comply 
 with improper payments provisions in 

section 404
            (l) .
 ``
            (xii) Describe coordination with other 
 programs, including whether the State intends 
 to exercise authority provided by 

section 404
            (d) of this Act to transfer any funds paid 
 to the State under this part, provide assurance 
 that, in the case of a transfer to carry out a 
 program under title I of the Workforce 
 Innovation and Opportunity Act, the State will 
 comply with 

section 404
            (d) (3)
        (B) of this Act 
 and coordinate with the one-stop delivery 
 system under the Workforce Innovation and 
 Opportunity Act, and describe how the State 
 will coordinate with the programs involved to 
 provide services to families receiving 
 assistance under the program referred to in 
 paragraph

    (1) of this subsection.
 ``
            (xiii) Describe how the State will 
 promote marriage, such as through temporary 
 disregard of the income of a new spouse when an 
 individual receiving assistance under the State 
 program marries so that the couple doesn't 
 automatically lose benefits due to marriage.
 ``
            (xiv) Describe how the State will allow 
 for a transitional period of benefits, such as 
 through temporary earned income disregards or a 
 gradual reduction in the monthly benefit 
 amount, for an individual receiving assistance 
 who obtains employment and becomes ineligible 
 due to an increase in income obtained through 
 employment or through an increase in wages.''; 
 and
            (ii) in subparagraph
        (B) , by striking 
 clauses
            (iv) and
            (v) ;

    (2) by striking subsection
            (c) and inserting the following:
 ``
            (c) Public Availability of State Plans.--The Secretary shall make 
available to the public, on the website described in 

section 407

    (b) , a 
link to any plan or plan amendment submitted by a State under this 
subsection.''; and

    (3) by adding at the end the following:
 ``
            (d) 2-Year Plan.--A plan submitted pursuant to this section shall 
be designed to be implemented during a 2-year period.
 ``

    (e) Combined Plan Allowed.--A State may submit to the Secretary 
and the Secretary of Labor a combined State plan that--
 ``

    (1) meets the requirements of subsections

    (a) and
            (d) ; 
 and
 ``

    (2) is for programs and activities under the Workforce 
 Innovation and Opportunity Act.
 ``

    (f) Approval of Plans.--The Secretary shall approve any plan 
submitted pursuant to this section that meets the requirements of 
subsections

    (a) through
            (d) .''.

    (b) Duties of the Secretary.--

    (1) Coordination of activities; dissemination of 
 information.--

Section 416 (42 U.S.C. 616) is amended--
        (A) by inserting ``

    (a) In General.--'' before ``The 
 programs''; and
        (B) by adding at the end the following:
 ``

    (b) Coordination of Activities.--The Secretary shall coordinate 
all activities of the Department of Health and Human Services relating 
to work activities (as defined in 

section 407
            (d) ) and requirements and 
measurement of employment outcomes, and, to the maximum extent 
practicable, coordinate the activities of the Department in this regard 
with similar activities of other Federal entities.
 ``
            (c) Dissemination of Information.--The Secretary shall 
disseminate, for voluntary informational purposes, information on 
practices that scientifically valid research indicates are most 
successful in improving the quality of State and tribal programs funded 
under this part.''.
            (c) Technical Assistance.--

    (1) In general.--

Section 406 (42 U.S.C. 606) is amended to 
 read as follows:

``

SEC. 406. TECHNICAL ASSISTANCE.

 ``

    (a) In General.--The Secretary shall provide technical assistance 
to States and Indian tribes (which may include providing technical 
assistance on a reimbursable basis), which shall be provided by 
qualified experts on practices grounded in scientifically valid 
research, where appropriate, to support activities related to the 
publication of State performance under 

section 407

    (b) and to carry out 
State and tribal programs funded under this part.
 ``

    (b) Publication of State Performance.--The Secretary may use 
funds reserved under this section to carry out 

section 407

    (b) .
 ``
            (c) Reservation of Funds.--The Secretary shall reserve not more 
than $25,000,000 of the amount appropriated by 

section 403

    (a)

    (1)
            (C) for 
a fiscal year to carry out this section.''.

    (2) Conforming amendment.--

Section 403

    (a)

    (1)
        (B) (42 U.S.C. 
 603

    (a)

    (1)
        (B) ) is amended by inserting ``and the amount 
 specified in 

section 406

    (b) '' after ``

section 413

    (h)

    (1) ''.

SEC. 13. ALIGNING AND IMPROVING DATA REPORTING.

    (a) Requirement That States Report Full-Population Data.--

Section 411

    (a)

    (1) (42 U.S.C. 611

    (a)

    (1) ) is amended--

    (1) by striking subparagraph
        (B) ;

    (2) by striking ``

    (1) General reporting requirement.--''; 
 and

    (3) by--
        (A) redesignating--
            (i) subparagraph
        (A) as paragraph

    (1) ;
            (ii) clauses
            (i) through
            (xvii) of 
 subparagraph
        (A) as subparagraphs
        (A) through
        (Q) , respectively;
            (iii) subclauses
            (I) through
            (V) of clause
            (ii) as clauses
            (i) through
            (v) , respectively;
            (iv) subclauses
            (I) through
            (VII) of clause
            (xi) as clauses
            (i) through
            (vii) , 
 respectively; and
            (v) subclauses
            (I) through
            (V) of clause
            (xvi) as clauses
            (i) through
            (v) , respectively; 
 and
        (B) moving each such redesignated provision 2 ems 
 to the left.

    (b) Report on Participation in Work Activities.--

Section 411

    (a)

    (1) (42 U.S.C. 611

    (a)

    (1) ), as amended by subsection

    (a)

    (3) of this section, 
is amended by striking subparagraphs
        (K) and
            (L) and inserting the 
following:
 ``
        (K) The work eligibility status of each 
 individual in the family, and--
 ``
            (i) in the case of each work-eligible 
 individual (as defined in the regulations 
 promulgated pursuant to 

section 407
            (i) (1)
        (A)
            (i) ) in the family, the number of 
 hours (including zero hours) per month of 
 participation in work activities (as defined in 
 

section 407
            (d) ); and
 ``
            (ii) in the case of each individual in 
 the family who is not a work-eligible 
 individual (as so defined), the reason for that 
 status.
 ``
            (L) For each work-eligible individual (as so 
 defined) and each adult in the family who did not 
 participate in work activities (as so defined) during a 
 month, the reason for the lack of participation.''.
            (c) Reporting of Information on Employment and Earnings Outcomes.--

Section 411
            (c) (42 U.S.C. 611
            (c) ) is amended to read as follows:
 ``
            (c) Reporting of Information on Employment and Earnings 
Outcomes.--The Secretary, in consultation with the Secretary of Labor, 
shall determine the information that is necessary to compute the 
employment and earnings outcomes and the statistical adjustment model 
for the employment and earnings outcomes required under 

section 407, 
and each eligible State shall collect and report that information to 
the Secretary.''.

SEC. 14. TECHNICAL CORRECTIONS TO DATA EXCHANGE STANDARDS TO IMPROVE 
 PROGRAM COORDINATION.

    (a) In General.--

Section 411
            (d) (42 U.S.C. 611
            (d) ) is amended to 
read as follows:
 ``
            (d) Data Exchange Standards for Improved Interoperability.--
 ``

    (1) Designation.--The Secretary shall, in consultation 
 with an interagency work group established by the Office of 
 Management and Budget and considering State government 
 perspectives, by rule, designate data exchange standards to 
 govern, under this part--
 ``
        (A) necessary categories of information that 
 State agencies operating programs under State plans 
 approved under this part are required under applicable 
 Federal law to electronically exchange with another 
 State agency; and
 ``
        (B) Federal reporting and data exchange required 
 under applicable Federal law.
 ``

    (2) Requirements.--The data exchange standards required 
 by paragraph

    (1) shall, to the extent practicable--
 ``
        (A) incorporate a widely accepted, non-
 proprietary, searchable, computer-readable format, such 
 as the eXtensible Markup Language;
 ``
        (B) contain interoperable standards developed and 
 maintained by intergovernmental partnerships, such as 
 the National Information Exchange Model;
 ``
            (C) incorporate interoperable standards developed 
 and maintained by Federal entities with authority over 
 contracting and financial assistance;
 ``
            (D) be consistent with and implement applicable 
 accounting principles;
 ``
        (E) be implemented in a manner that is cost-
 effective and improves program efficiency and 
 effectiveness; and
 ``
        (F) be capable of being continually upgraded as 
 necessary.
 ``

    (3) Rule of construction.--Nothing in this subsection 
 shall be construed to require a change to existing data 
 exchange standards found to be effective and efficient.''.

    (b) Effective Date.--Not later than the date that is 24 months 
after the date of the enactment of this section, the Secretary of 
Health and Human Services shall issue a proposed rule that--

    (1) identifies federally required data exchanges, include 
 specification and timing of exchanges to be standardized, and 
 address the factors used in determining whether and when to 
 standardize data exchanges; and

    (2) specifies State implementation options and describes 
 future milestones.

SEC. 15. SET-ASIDE FOR ECONOMIC DOWNTURNS.

 

Section 404

    (e) (42 U.S.C. 604

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

    (e) Deadlines for Obligation and Expenditures of Funds by 
States.--
 ``

    (1) In general.--Except as provided in paragraph

    (2) , a 
 State to which a grant is made under 

section 403

    (a)

    (1) shall 
 obligate the funds within 2 years after the date the funds are 
 made available, and shall expend the funds within 3 years after 
 such date.
 ``

    (2) Exception for limited amount of funds set aside for 
 future use.--
 ``
        (A) In general.--A State to which funds are paid 
 under 

section 403

    (a)

    (1) may reserve not more than 15 
 percent of the funds for use in the State program 
 funded under this part without fiscal year limitation.
 ``
        (B) Notice of intent to reserve funds.--A State 
 that intends to reserve funds paid to the State under 
 

section 402

    (a)

    (1) shall notify the Secretary of the 
 intention not later than the end of the period in which 
 the funds are available for obligation without regard 
 to subparagraph
        (A) of this paragraph.''.

SEC. 16. WELFARE FOR NEEDS NOT WEED.

 

Section 408

    (a)

    (12)
        (A) (42 U.S.C. 608

    (a)

    (12)
        (A) ) is amended--

    (1) in clause
            (ii) , by striking ``; or'' and inserting a 
 semicolon;

    (2) in clause
            (iii) , by striking the period and inserting 
 ``; or''; and

    (3) by adding at the end the following:
 ``
            (iv) any establishment that offers 
 marihuana (as defined in 

section 102 of the 
 Controlled Substances Act) for sale.''.

SEC. 17. DEFINITIONS RELATED TO USE OF FUNDS.

 

Section 419 (42 U.S.C. 619) is amended by adding at the end the 
following:
 ``

    (6) Assistance.--The term `assistance' means cash, 
 payments, vouchers, and other forms of benefits designed to 
 meet a family's ongoing basic needs (such as for food, 
 clothing, shelter, utilities, household goods, personal care 
 items, and general incidental expenses).
 ``

    (7) Work supports.--The term `work supports' means 
 assistance and non-assistance transportation benefits (such as 
 the value of allowances, bus tokens, car payments, auto repair, 
 auto insurance reimbursement, and van services) provided in 
 order to help families obtain, retain, or advance in 
 employment, participate in work activities (as defined in 
 

section 407
            (d) ), or as a non-recurrent, short-term benefit, 
 including goods provided to individuals in order to help them 
 obtain or maintain employment (such as tools, uniforms, fees to 
 obtain special licenses, bonuses, incentives, and work support 
 allowances and expenditures for job access).
 ``

    (8) Supportive services.--The term `supportive services' 
 means services such as domestic violence services, and mental 
 health, substance abuse and disability services, housing 
 counseling services, and other family supports, except to the 
 extent that the provision of the service would violate 

section 408

    (a)

    (6) .
 ``

    (9) TANF benefit.--The term `TANF benefit' means--
 ``
        (A) assistance; or
 ``
        (B) wage subsidies that are paid, with funds 
 provided under 

section 403

    (a) or with qualified State 
 expenditures, with respect to a person who--
 ``
            (i) was a work-eligible individual (as 
 defined in the regulations promulgated pursuant 
 to 

section 407
            (i) (1)
        (A)
            (i) ) at the time of 
 entry into subsidized employment, such as on-
 the-job training or apprenticeship; and
 ``
            (ii) is not receiving assistance.''.

SEC. 18. ELIMINATION OF OBSOLETE PROVISIONS.

    (a) Elimination of Supplemental Grants to States.--

Section 403

    (a) (42 U.S.C. 603

    (a) ) is amended by striking paragraph

    (3) .

    (b) Elimination of Bonus To Reward High Performance States.--

    (1) In general.--

Section 403

    (a) (42 U.S.C. 603

    (a) ) is 
 amended by striking paragraph

    (4) .

    (2) Conforming amendment.--

Section 1108

    (a)

    (2) (42 U.S.C. 
 1308

    (a)

    (2) ) is amended by striking ``403

    (a)

    (4) ,''.
            (c) Elimination of Welfare-to-Work Grants.--

    (1) In general.--

Section 403

    (a) (42 U.S.C. 603

    (a) ) is 
 amended by striking paragraph

    (5) .

    (2) Conforming amendments.--
        (A) Elimination of exclusion from time limit.--
 

Section 408

    (a)

    (7) (42 U.S.C. 608

    (a)

    (7) ) is amended by 
 striking subparagraph
        (G) .
        (B) Elimination of penalty for misuse of 
 competitive welfare-to-work funds.--

Section 409

    (a)

    (1) (42 U.S.C. 609

    (a)

    (1) ) is amended by striking 
 subparagraph
            (C) .
            (C) Elimination of exclusion from qualified state 
 expenditures of state funds used to match welfare-to-
 work grant funds.--

Section 409

    (a)

    (7)
        (B)
            (iv) (42 U.S.C. 
 609

    (a)

    (7)
        (B)
            (iv) ) is amended in the 1st sentence--
            (i) by adding ``or'' at the end of 
 subclause
            (II) ; and
            (ii) by striking subclause
            (III) and 
 redesignating subclause
            (IV) as subclause
            (III) .
            (D) Elimination of penalty for failure of state to 
 maintain historic effort during year in which welfare-
 to-work grant is received.--

Section 409

    (a) (42 U.S.C. 
 609

    (a) ) is amended by striking paragraph

    (13) .
        (E) Elimination of requirements relating to 
 welfare-to-work grants in quarterly state reports.--
 

Section 411

    (a) (42 U.S.C. 611

    (a) ), as amended by 
 

section 13

    (a) of this Act, is amended--
            (i) in paragraph

    (1) , by striking ``(except 
 for information relating to activities carried 
 out under 

section 403

    (a)

    (5) )''; and
            (ii) in each of paragraphs

    (2) through

    (4) , 
 by striking the comma and all that follows and 
 inserting a period.
        (F) Indian tribal programs.--

Section 412

    (a) (42 
 U.S.C. 612

    (a) ) is amended by striking paragraph

    (3) .
        (G) Elimination of requirement to disclose certain 
 information to private industry council receiving 
 welfare-to-work funds.--

Section 454A

    (f) (42 U.S.C. 
 654a

    (f) ) is amended by striking paragraph

    (5) .
        (H) Grants to territories.--

Section 1108

    (a)

    (2) (42 
 U.S.C. 1308

    (a)

    (2) ) is amended by striking 
 ``403

    (a)

    (5) ,''.
            (d) Conforming Amendments Related to Elimination of Federal Loans 
for State Welfare Programs.--

    (1) Elimination of associated penalty provision.--
        (A) In general.--

Section 409

    (a) (42 U.S.C. 609

    (a) ) 
 is amended by striking paragraph

    (6) .
        (B) Conforming amendments.--

Section 412

    (g)

    (1) (42 
 U.S.C. 612

    (g)

    (1) ) is amended by striking ``

    (a)

    (6) ,''.

    (2) Elimination of provision providing for tribal 
 eligibility.--

Section 412 (42 U.S.C. 612) is amended by 
 striking subsection

    (f) .

    (3) Elimination of disregard of loan in applying limit on 
 payments to the territories.--

Section 1108

    (a)

    (2) (42 U.S.C. 
 1308

    (a)

    (2) ) is amended by striking ``406,''.

    (e) Elimination of Limitations on Other State Programs Funded With 
Qualified State Expenditures.--

    (1) The following provisions are each amended by striking 
 ``or any other State program funded with qualified State 
 expenditures (as defined in 

section 409

    (a)

    (7)
        (B)
            (i) )'':
        (A) Paragraphs

    (1) and

    (2) of 

section 407

    (e) (42 
 U.S.C. 607

    (e)

    (1) and

    (2) ).
        (B) Section 411

    (a)

    (1) (42 U.S.C. 611

    (a)

    (1) ), as 
 amended by 

section 13

    (a)

    (3)
        (A)
            (i) of this Act.
            (C) Subsections
            (d) and

    (e)

    (1) of 

section 413 (42 
 U.S.C. 613
            (d) and

    (e)

    (1) ).

    (2) Section 413

    (a) (42 U.S.C. 613

    (a) ) is amended by 
 striking ``and any other State program funded with qualified 
 State expenditures (as defined in 

section 409

    (a)

    (7)
        (B)
            (i) )''.

    (f) Conforming Amendments Related to Elimination of Report.--

    (1) In general.--

Section 409

    (a)

    (2) (42 U.S.C. 609

    (a)

    (2) ) is 
 amended--
        (A) in the paragraph heading, by inserting 
 ``quarterly'' before ``report'';
        (B) in subparagraph
        (A)
            (ii) , by striking ``clause
            (i) '' and inserting ``subparagraph
        (A) '';
            (C) by striking ``
        (A) Quarterly reports.--'';
            (D) by striking subparagraph
        (B) ; and
        (E) by redesignating clauses
            (i) and
            (ii) of 
 subparagraph
        (A) as subparagraphs
        (A) and
        (B) , 
 respectively (and adjusting the margins accordingly).

    (2) Conforming amendments.--
        (A) Section 409

    (b)

    (2) (42 U.S.C. 609

    (b)

    (2) ) is 
 amended by striking ``and,'' and all that follows and 
 inserting a period.
        (B) Section 409
            (c) (4) (42 U.S.C. 609
            (c) (4) ) is 
 amended by striking ``

    (2)
        (B) ,''.

    (g) Annual Reports to Congress.--

Section 411

    (b)

    (1)
        (A) (42 U.S.C. 
611

    (b)

    (1)
        (A) ) is amended by striking ``participation rates'' and 
inserting ``outcome measures''.

    (h) Reduction in Force Provisions.--

Section 416

    (a) (42 U.S.C. 
616

    (a) ), as so designated by 

section 12

    (b)

    (1)
        (A) of this Act, is 
amended by striking ``, and the Secretary'' and all that follows and 
inserting a period.
            (i) Conforming Cross-References.--

    (1) Section 409 (42 U.S.C. 609) is amended--
        (A) in subsection

    (a)

    (7)
        (B)
            (i) 
            (III) , by striking 
 ``

    (12) '' and inserting ``

    (10) '';
        (B) in subsection

    (a) (as amended by subsections
            (c) (2)
            (D) ,
            (d) (2)
        (B) , and

    (e)

    (1)
        (A) of this section), 
 by redesignating paragraphs

    (7) ,

    (8) ,

    (9) ,

    (11) ,

    (12) ,

    (14) ,

    (15) , and

    (16) as paragraphs

    (6) through

    (13) , 
 respectively;
            (C) in subsection

    (b)

    (2) , by striking ``

    (8) ,

    (10) ,

    (12) , or

    (13) '' and inserting ``or

    (10) ''; and
            (D) in subsection
            (c) (4) , by striking ``

    (8) ,

    (10) ,

    (12) ,

    (13) , or

    (16) '' and inserting ``

    (10) , or

    (13) ''.

    (2) Section 452 (42 U.S.C. 652) is amended in each of 
 subsections
            (d) (3)
        (A)
            (i) and

    (g)

    (1) by striking ``409

    (a)

    (8) '' 
 and inserting ``409

    (a)

    (7) ''.

    (j) Modifications to Maintenance-of-Effort Requirement.--

Section 409

    (a)

    (6)
        (B)
            (i) (42 U.S.C. 609

    (a)

    (6)
        (B)
            (i) ), as redesignated by 
subsection
            (i) (1)
        (B) of this section, is amended--

    (1) in subclause
            (I) --
        (A) in the matter preceding item

    (aa) , by striking 
 ``all State programs'' and inserting ``the State 
 program funded under this part'';
        (B) by redesignating items
            (dd) and

    (ee) as items

    (ee) and

    (ff) , respectively, and inserting after item
            (cc) the following:
 ``
            (dd) Expenditures for a 
 purpose described in paragraph

    (3) ,

    (4) , or

    (5) of 

section 401

    (a) .''; and
            (C) in item

    (ee) (as so redesignated), by striking 
 ``and

    (ee) '' and inserting ``
            (dd) , and

    (ff) '';

    (2) by striking subclause
            (V) ; and

    (3) in subclause
            (IV) , by inserting ``, except any of such 
 families whose monthly income exceeds twice the 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 (42 U.S.C. 9902

    (2) ))'' before 
 the period.

SEC. 19. EFFECTIVE DATE.

 The amendments made by this Act shall take effect on October 1, 
2026.
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