42 U.S.C. § 603 : US Code - Section 603: Grants to States

Search 42 U.S.C. § 603 : US Code - Section 603: Grants to States

(a) Grants
(1) Family assistance grant
(A) In general
Each eligible State shall be entitled to receive from the
Secretary, for each of fiscal years 1996, 1997, 1998, 1999,
2000, 2001, 2002, and 2003, a grant in an amount equal to the
State family assistance grant.
(B) State family assistance grant
The State family assistance grant payable to a State for a
fiscal year shall be the amount that bears the same ratio to
the amount specified in subparagraph (C) of this paragraph as
the amount required to be paid to the State under this
paragraph for fiscal year 2002 (determined without regard to
any reduction pursuant to section 609 or 612(a)(1) of this
title) bears to the total amount required to be paid under this
paragraph for fiscal year 2002 (as so determined).
(C) Appropriation
Out of any money in the Treasury of the United States not
otherwise appropriated, there are appropriated for fiscal year
2003 $16,566,542,000 for grants under this paragraph.
(2) Bonus to reward decrease in illegitimacy ratio
(A) In general
Each eligible State shall be entitled to receive from the
Secretary a grant for each bonus year.
(B) Amount of grant
(i) In general
If, for a bonus year, none of the eligible States is Guam,
the Virgin Islands, or American Samoa, then the amount of the
grant shall be -
(I) $20,000,000 if there are 5 eligible States; or
(II) $25,000,000 if there are fewer than 5 eligible
States.
(ii) Amount if certain territories are eligible
If, for a bonus year, Guam, the Virgin Islands, or American
Samoa is an eligible State, then the amount of the grant
shall be -
(I) in the case of such a territory, 25 percent of the
mandatory ceiling amount (as defined in section 1308(c)(4)
of this title) with respect to the territory; and
(II) in the case of a State that is not such a territory -

(aa) if there are 5 eligible States other than such
territories, $20,000,000, minus 1/5 of the total amount
of the grants payable under this paragraph to such
territories for the bonus year; or
(bb) if there are fewer than 5 such eligible States,
$25,000,000, or such lesser amount as may be necessary to
ensure that the total amount of grants payable under this
paragraph for the bonus year does not exceed
$100,000,000.
(C) Definitions
As used in this paragraph:
(i) Eligible State
(I) In general
The term "eligible State" means a State that the
Secretary determines meets the following requirements:
(aa) The State demonstrates that the illegitimacy ratio
of the State for the most recent 2-year period for which
such information is available decreased as compared to
the illegitimacy ratio of the State for the previous 2-
year period, and the magnitude of the decrease for the
State for the period is not exceeded by the magnitude of
the corresponding decrease for 5 or more other States for
the period. In the case of a State that is not a
territory specified in subparagraph (B), the comparative
magnitude of the decrease for the State shall be
determined without regard to the magnitude of the
corresponding decrease for any such territory.
(bb) The rate of induced pregnancy terminations in the
State for the calendar year for which the most recent
data are available is less than the rate of induced
pregnancy terminations in the State for calendar year
1995.
(II) Disregard of changes in data due to changed reporting
methods
In making the determination required by subclause (I),
the Secretary shall disregard -
(aa) any difference between the illegitimacy ratio of a
State for a calendar year and the illegitimacy ratio of a
State for calendar year 1995 which is attributable to a
change in State methods of reporting data used to
calculate the illegitimacy ratio; and
(bb) any difference between the rate of induced
pregnancy terminations in a State for a calendar year and
such rate for calendar year 1995 which is attributable to
a change in State methods of reporting data used to
calculate such rate.
(ii) Bonus year
The term "bonus year" means calendar years 1999, 2000,
2001, 2002, and 2003.
(iii) Illegitimacy ratio
The term "illegitimacy ratio" means, with respect to a
State and a period -
(I) the number of out-of-wedlock births to mothers
residing in the State that occurred during the period;
divided by
(II) the number of births to mothers residing in the
State that occurred during the period.
(D) Appropriation
Out of any money in the Treasury of the United States not
otherwise appropriated, there are appropriated for fiscal years
1999 through 2003, such sums as are necessary for grants under
this paragraph.
(3) Supplemental grant for population increases in certain States
(A) In general
Each qualifying State shall, subject to subparagraph (F), be
entitled to receive from the Secretary -
(i) for fiscal year 1998 a grant in an amount equal to 2.5
percent of the total amount required to be paid to the State
under former section 603 of this title (as in effect during
fiscal year 1994) for fiscal year 1994; and
(ii) for each of fiscal years 1999, 2000, and 2001, a grant
in an amount equal to the sum of -
(I) the amount (if any) required to be paid to the State
under this paragraph for the immediately preceding fiscal
year; and
(II) 2.5 percent of the sum of -
(aa) the total amount required to be paid to the State
under former section 603 of this title (as in effect
during fiscal year 1994) for fiscal year 1994; and
(bb) the amount (if any) required to be paid to the
State under this paragraph for the fiscal year preceding
the fiscal year for which the grant is to be made.
(B) Preservation of grant without increases for States failing
to remain qualifying States
Each State that is not a qualifying State for a fiscal year
specified in subparagraph (A)(ii) but was a qualifying State
for a prior fiscal year shall, subject to subparagraph (F), be
entitled to receive from the Secretary for the specified fiscal
year, a grant in an amount equal to the amount required to be
paid to the State under this paragraph for the most recent
fiscal year for which the State was a qualifying State.
(C) Qualifying State
(i) In general
For purposes of this paragraph, a State is a qualifying
State for a fiscal year if -
(I) the level of welfare spending per poor person by the
State for the immediately preceding fiscal year is less
than the national average level of State welfare spending
per poor person for such preceding fiscal year; and
(II) the population growth rate of the State (as
determined by the Bureau of the Census) for the most recent
fiscal year for which information is available exceeds the
average population growth rate for all States (as so
determined) for such most recent fiscal year.
(ii) State must qualify in fiscal year 1998
Notwithstanding clause (i), a State shall not be a
qualifying State for any fiscal year after 1998 by reason of
clause (i) if the State is not a qualifying State for fiscal
year 1998 by reason of clause (i).
(iii) Certain States deemed qualifying States
For purposes of this paragraph, a State is deemed to be a
qualifying State for fiscal years 1998, 1999, 2000, and 2001
if -
(I) the level of welfare spending per poor person by the
State for fiscal year 1994 is less than 35 percent of the
national average level of State welfare spending per poor
person for fiscal year 1994; or
(II) the population of the State increased by more than
10 percent from April 1, 1990 to July 1, 1994, according to
the population estimates in publication CB94-204 of the
Bureau of the Census.
(D) Definitions
As used in this paragraph:
(i) Level of welfare spending per poor person
The term "level of State welfare spending per poor person"
means, with respect to a State and a fiscal year -
(I) the sum of -
(aa) the total amount required to be paid to the State
under former section 603 of this title (as in effect
during fiscal year 1994) for fiscal year 1994; and
(bb) the amount (if any) paid to the State under this
paragraph for the immediately preceding fiscal year;
divided by
(II) the number of individuals, according to the 1990
decennial census, who were residents of the State and whose
income was below the poverty line.
(ii) National average level of State welfare spending per
poor person
The term "national average level of State welfare spending
per poor person" means, with respect to a fiscal year, an
amount equal to -
(I) the total amount required to be paid to the States
under former section 603 of this title (as in effect during
fiscal year 1994) for fiscal year 1994; divided by
(II) the number of individuals, according to the 1990
decennial census, who were residents of any State and whose
income was below the poverty line.
(iii) State
The term "State" means each of the 50 States of the United
States and the District of Columbia.
(E) Appropriation
Out of any money in the Treasury of the United States not
otherwise appropriated, there are appropriated for fiscal years
1998, 1999, 2000, and 2001 such sums as are necessary for
grants under this paragraph, in a total amount not to exceed
$800,000,000.
(F) Grants reduced pro rata if insufficient appropriations
If the amount appropriated pursuant to this paragraph for a
fiscal year is less than the total amount of payments otherwise
required to be made under this paragraph for the fiscal year,
then the amount otherwise payable to any State for the fiscal
year under this paragraph shall be reduced by a percentage
equal to the amount so appropriated divided by such total
amount.
(G) Budget scoring
Notwithstanding section 907(b)(2) of title 2, the baseline
shall assume that no grant shall be made under this paragraph
after fiscal year 2001.
(H) Reauthorization
Notwithstanding any other provision of this paragraph -
(i) any State that was a qualifying State under this
paragraph for fiscal year 2001 or any prior fiscal year shall
be entitled to receive from the Secretary for each of fiscal
years 2002 and 2003 a grant in an amount equal to the amount
required to be paid to the State under this paragraph for the
most recent fiscal year in which the State was a qualifying
State;
(ii) subparagraph (G) shall be applied as if "March 31,
2006" were substituted for "fiscal year 2001"; and
(iii) out of any money in the Treasury of the United States
not otherwise appropriated, there are appropriated for each
of fiscal years 2002 and 2003 such sums as are necessary for
grants under this subparagraph.
(4) Bonus to reward high performance States
(A) In general
The Secretary shall make a grant pursuant to this paragraph
to each State for each bonus year for which the State is a high
performing State.
(B) Amount of grant
(i) In general
Subject to clause (ii) of this subparagraph, the Secretary
shall determine the amount of the grant payable under this
paragraph to a high performing State for a bonus year, which
shall be based on the score assigned to the State under
subparagraph (D)(i) for the fiscal year that immediately
precedes the bonus year.
(ii) Limitation
The amount payable to a State under this paragraph for a
bonus year shall not exceed 5 percent of the State family
assistance grant.
(C) Formula for measuring State performance
Not later than 1 year after August 22, 1996, the Secretary,
in consultation with the National Governors' Association and
the American Public Welfare Association, shall develop a
formula for measuring State performance in operating the State
program funded under this part so as to achieve the goals set
forth in section 601(a) of this title.
(D) Scoring of State performance; setting of performance
thresholds
For each bonus year, the Secretary shall -
(i) use the formula developed under subparagraph (C) to
assign a score to each eligible State for the fiscal year
that immediately precedes the bonus year; and
(ii) prescribe a performance threshold in such a manner so
as to ensure that -
(I) the average annual total amount of grants to be made
under this paragraph for each bonus year equals
$200,000,000; and
(II) the total amount of grants to be made under this
paragraph for all bonus years equals $1,000,000,000.
(E) Definitions
As used in this paragraph:
(i) Bonus year
The term "bonus year" means fiscal years 1999, 2000, 2001,
2002, and 2003.
(ii) High performing State
The term "high performing State" means, with respect to a
bonus year, an eligible State whose score assigned pursuant
to subparagraph (D)(i) for the fiscal year immediately
preceding the bonus year equals or exceeds the performance
threshold prescribed under subparagraph (D)(ii) for such
preceding fiscal year.
(F) Appropriation
Out of any money in the Treasury of the United States not
otherwise appropriated, there are appropriated for fiscal years
1999 through 2003 $1,000,000,000 for grants under this
paragraph.
(5) Welfare-to-work grants
(A) Formula grants
(i) Entitlement
A State shall be entitled to receive from the Secretary of
Labor a grant for each fiscal year specified in subparagraph
(H) of this paragraph for which the State is a welfare-to-
work State, in an amount that does not exceed the lesser of -

(I) 2 times the total of the expenditures by the State
(excluding qualified State expenditures (as defined in
section 609(a)(7)(B)(i) of this title) and any expenditure
described in subclause (I), (II), or (IV) of section
609(a)(7)(B)(iv) of this title) during the period permitted
under subparagraph (C)(vii) of this paragraph for the
expenditure of funds under the grant for activities
described in subparagraph (C)(i) of this paragraph; or
(II) the allotment of the State under clause (iii) of
this subparagraph for the fiscal year.
(ii) Welfare-to-work State
A State shall be considered a welfare-to-work State for a
fiscal year for purposes of this paragraph if the Secretary
of Labor determines that the State meets the following
requirements:
(I) The State has submitted to the Secretary of Labor and
the Secretary of Health and Human Services (in the form of
an addendum to the State plan submitted under section 602
of this title) a plan which -
(aa) describes how, consistent with this subparagraph,
the State will use any funds provided under this
subparagraph during the fiscal year;
(bb) specifies the formula to be used pursuant to
clause (vi) to distribute funds in the State, and
describes the process by which the formula was developed;
(cc) contains evidence that the plan was developed in
consultation and coordination with appropriate entitites
(!1) in sub-State areas;
(dd) contains assurances by the Governor of the State
that the private industry council (and any alternate
agency designated by the Governor under item (ee)) for a
service delivery area in the State will coordinate the
expenditure of any funds provided under this subparagraph
for the benefit of the service delivery area with the
expenditure of the funds provided to the State under
paragraph (1);
(ee) if the Governor of the State desires to have an
agency other than a private industry council administer
the funds provided under this subparagraph for the
benefit of 1 or more service delivery areas in the State,
contains an application to the Secretary of Labor for a
waiver of clause (vii)(I) with respect to the area or
areas in order to permit an alternate agency designated
by the Governor to so administer the funds; and
(ff) describes how the State will ensure that a private
industry council to which information is disclosed
pursuant to section 603(a)(5)(K) (!2) or 654A(f)(5) of
this title has procedures for safeguarding the
information and for ensuring that the information is used
solely for the purpose described in that section.
(II) The State has provided to the Secretary of Labor an
estimate of the amount that the State intends to expend
during the period permitted under subparagraph (C)(vii) of
this paragraph for the expenditure of funds under the grant
(excluding expenditures described in section
609(a)(7)(B)(iv) of this title (other than subclause (III)
thereof)) pursuant to this paragraph.
(III) The State has agreed to negotiate in good faith
with the Secretary of Health and Human Services with
respect to the substance and funding of any evaluation
under section 613(j) of this title, and to cooperate with
the conduct of any such evaluation.
(IV) The State is an eligible State for the fiscal year.
(V) The State certifies that qualified State expenditures
(within the meaning of section 609(a)(7) of this title) for
the fiscal year will be not less than the applicable
percentage of historic State expenditures (within the
meaning of section 609(a)(7) of this title) with respect to
the fiscal year.
(iii) Allotments to welfare-to-work States
(I) In general
Subject to this clause, the allotment of a welfare-to-
work State for a fiscal year shall be the available amount
for the fiscal year, multiplied by the State percentage for
the fiscal year.
(II) Minimum allotment
The allotment of a welfare-to-work State (other than
Guam, the Virgin Islands, or American Samoa) for a fiscal
year shall not be less than 0.25 percent of the available
amount for the fiscal year.
(III) Pro rata reduction
Subject to subclause (II), the Secretary of Labor shall
make pro rata reductions in the allotments to States under
this clause for a fiscal year as necessary to ensure that
the total of the allotments does not exceed the available
amount for the fiscal year.
(iv) Available amount
As used in this subparagraph, the term "available amount"
means, for a fiscal year, the sum of -
(I) 75 percent of the sum of -
(aa) the amount specified in subparagraph (H) for the
fiscal year, minus the total of the amounts reserved
pursuant to subparagraphs (E), (F), and (G) for the
fiscal year; and
(bb) any amount reserved pursuant to subparagraph (E)
for the immediately preceding fiscal year that has not
been obligated; and
(II) any available amount for the immediately preceding
fiscal year that has not been obligated by a State, other
than funds reserved by the State for distribution under
clause (vi)(III) and funds distributed pursuant to clause
(vi)(I) in any State in which the service delivery area is
the State.
(v) State percentage
As used in clause (iii), the term "State percentage" means,
with respect to a fiscal year, 1/2 of the sum of -
(I) the percentage represented by the number of
individuals in the State whose income is less than the
poverty line divided by the number of such individuals in
the United States; and
(II) the percentage represented by the number of adults
who are recipients of assistance under the State program
funded under this part divided by the number of adults in
the United States who are recipients of assistance under
any State program funded under this part.
(vi) Procedure for distribution of funds within States
(I) Allocation formula
A State to which a grant is made under this subparagraph
shall devise a formula for allocating not less than 85
percent of the amount of the grant among the service
delivery areas in the State, which -
(aa) determines the amount to be allocated for the
benefit of a service delivery area in proportion to the
number (if any) by which the population of the area with
an income that is less than the poverty line exceeds 7.5
percent of the total population of the area, relative to
such number for all such areas in the State with such an
excess, and accords a weight of not less than 50 percent
to this factor;
(bb) may determine the amount to be allocated for the
benefit of such an area in proportion to the number of
adults residing in the area who have been recipients of
assistance under the State program funded under this part
(whether in effect before or after the amendments made by
section 103(a) of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 first applied to
the State) for at least 30 months (whether or not
consecutive) relative to the number of such adults
residing in the State; and
(cc) may determine the amount to be allocated for the
benefit of such an area in proportion to the number of
unemployed individuals residing in the area relative to
the number of such individuals residing in the State.
(II) Distribution of funds
(aa) In general
If the amount allocated by the formula to a service
delivery area is at least $100,000, the State shall
distribute the amount to the entity administering the
grant in the area.
(bb) Special rule
If the amount allocated by the formula to a service
delivery area is less than $100,000, the sum shall be
available for distribution in the State under subclause
(III) during the fiscal year.
(III) Projects to help long-term recipients of assistance
enter unsubsidized jobs
The Governor of a State to which a grant is made under
this subparagraph may distribute not more than 15 percent
of the grant funds (plus any amount required to be
distributed under this subclause by reason of subclause
(II)(bb)) to projects that appear likely to help long-term
recipients of assistance under the State program funded
under this part (whether in effect before or after the
amendments made by section 103(a) of the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996 first applied to the State) enter unsubsidized
employment.
(vii) Administration
(I) Private industry councils
The private industry council for a service delivery area
in a State shall have sole authority, in coordination with
the chief elected official (as defined in section 101 of
the Workforce Investment Act of 1998 [29 U.S.C. 2801]) of
the area, to expend the amounts distributed under clause
(vi)(II)(aa) for the benefit of the service delivery area,
in accordance with the assurances described in clause
(ii)(I)(dd) provided by the Governor of the State.
(II) Enforcement of coordination of expenditures with other
expenditures under this part
Notwithstanding subclause (I) of this clause, on a
determination by the Governor of a State that a private
industry council (or an alternate agency described in
clause (ii)(I)(dd)) has used funds provided under this
subparagraph in a manner inconsistent with the assurances
described in clause (ii)(I)(dd) -
(aa) the private industry council (or such alternate
agency) shall remit the funds to the Governor; and
(bb) the Governor shall apply to the Secretary of Labor
for a waiver of subclause (I) of this clause with respect
to the service delivery area or areas involved in order
to permit an alternate agency designated by the Governor
to administer the funds in accordance with the
assurances.
(III) Authority to permit use of alternate administering
agency
The Secretary of Labor shall approve an application
submitted under clause (ii)(I)(ee) or subclause (II)(bb) of
this clause to waive subclause (I) of this clause with
respect to 1 or more service delivery areas if the
Secretary determines that the alternate agency designated
in the application would improve the effectiveness or
efficiency of the administration of amounts distributed
under clause (vi)(II)(aa) for the benefit of the area or
areas.
(viii) Data to be used in determining the number of adult
TANF recipients
For purposes of this subparagraph, the number of adult
recipients of assistance under a State program funded under
this part for a fiscal year shall be determined using data
for the most recent 12-month period for which such data is
available before the beginning of the fiscal year.
(ix) Reversion of unallotted formula funds
If at the end of any fiscal year any funds available under
this subparagraph have not been allotted due to a
determination by the Secretary that any State has not met the
requirements of clause (ii), such funds shall be transferred
to the General Fund of the Treasury of the United States.
(B) Competitive grants
(i) In general
The Secretary of Labor shall award grants in accordance
with this subparagraph, in fiscal years 1998 and 1999, for
projects proposed by eligible applicants, based on the
following:
(I) The effectiveness of the proposal in -
(aa) expanding the base of knowledge about programs
aimed at moving recipients of assistance under State
programs funded under this part who are least job ready
into unsubsidized employment.
(bb) moving recipients of assistance under State
programs funded under this part who are least job ready
into unsubsidized employment; and
(cc) moving recipients of assistance under State
programs funded under this part who are least job ready
into unsubsidized employment, even in labor markets that
have a shortage of low-skill jobs.
(II) At the discretion of the Secretary of Labor, any of
the following:
(aa) The history of success of the applicant in moving
individuals with multiple barriers into work.
(bb) Evidence of the applicant's ability to leverage
private, State, and local resources.
(cc) Use by the applicant of State and local resources
beyond those required by subparagraph (A).
(dd) Plans of the applicant to coordinate with other
organizations at the local and State level.
(ee) Use by the applicant of current or former
recipients of assistance under a State program funded
under this part as mentors, case managers, or service
providers.
(ii) Eligible applicants
As used in clause (i), the term "eligible applicant" means
a private industry council for a service delivery area in a
State, a political subdivision of a State, or a private
entity applying in conjunction with the private industry
council for such a service delivery area or with such a
political subdivision, that submits a proposal developed in
consultation with the Governor of the State.
(iii) Determination of grant amount
In determining the amount of a grant to be made under this
subparagraph for a project proposed by an applicant, the
Secretary of Labor shall provide the applicant with an amount
sufficient to ensure that the project has a reasonable
opportunity to be successful, taking into account the number
of long-term recipients of assistance under a State program
funded under this part, the level of unemployment, the job
opportunities and job growth, the poverty rate, and such
other factors as the Secretary of Labor deems appropriate, in
the area to be served by the project.
(iv) Consideration of needs of rural areas and cities with
large concentrations of poverty
In making grants under this subparagraph, the Secretary of
Labor shall consider the needs of rural areas and cities with
large concentrations of residents with an income that is less
than the poverty line.
(v) Funding
For grants under this subparagraph for each fiscal year
specified in subparagraph (H), there shall be available to
the Secretary of Labor an amount equal to the sum of -
(I) 25 percent of the sum of -
(aa) the amount specified in subparagraph (H) for the
fiscal year, minus the total of the amounts reserved
pursuant to subparagraphs (E), (F), and (G) for the
fiscal year; and
(bb) any amount reserved pursuant to subparagraph (E)
for the immediately preceding fiscal year that has not
been obligated; and
(II) any amount available for grants under this
subparagraph for the immediately preceding fiscal year that
has not been obligated.
(C) Limitations on use of funds
(i) Allowable activities
An entity to which funds are provided under this paragraph
shall use the funds to move individuals into and keep
individuals in lasting unsubsidized employment by means of
any of the following:
(I) The conduct and administration of community service
or work experience programs.
(II) Job creation through public or private sector
employment wage subsidies.
(III) On-the-job training.
(IV) Contracts with public or private providers of
readiness, placement, and post-employment services, or if
the entity is not a private industry council or workforce
investment board, the direct provision of such services.
(V) Job vouchers for placement, readiness, and
postemployment services.
(VI) Job retention or support services if such services
are not otherwise available.
(VII) Not more than 6 months of vocational educational or
job training.
Contracts or vouchers for job placement services supported by
such funds must require that at least 1/2 of the payment
occur after an eligible individual placed into the workforce
has been in the workforce for 6 months.
(ii) General eligibility
An entity that operates a project with funds provided under
this paragraph may expend funds provided to the project for
the benefit of recipients of assistance under the program
funded under this part of the State in which the entity is
located who -
(I) has received assistance under the State program
funded under this part (whether in effect before or after
the amendments made by section 103 of the Personal
Responsibility and Work Opportunity Reconciliation Act of
1996 first apply to the State) for at least 30 months
(whether or not consecutive); or
(II) within 12 months, will become ineligible for
assistance under the State program funded under this part
by reason of a durational limit on such assistance, without
regard to any exemption provided pursuant to section
608(a)(7)(C) of this title that may apply to the
individual.
(iii) Noncustodial parents
An entity that operates a project with funds provided under
this paragraph may use the funds to provide services in a
form described in clause (i) to noncustodial parents with
respect to whom the requirements of the following subclauses
are met:
(I) The noncustodial parent is unemployed, underemployed,
or having difficulty in paying child support obligations.
(II) At least 1 of the following applies to a minor child
of the noncustodial parent (with preference in the
determination of the noncustodial parents to be provided
services under this paragraph to be provided by the entity
to those noncustodial parents with minor children who meet,
or who have custodial parents who meet, the requirements of
item (aa)):
(aa) The minor child or the custodial parent of the
minor child meets the requirements of subclause (I) or
(II) of clause (ii).
(bb) The minor child is eligible for, or is receiving,
benefits under the program funded under this part.
(cc) The minor child received benefits under the
program funded under this part in the 12-month period
preceding the date of the determination but no longer
receives such benefits.
(dd) The minor child is eligible for, or is receiving,
assistance under the Food Stamp Act of 1977 [7 U.S.C.
2011 et seq.], benefits under the supplemental security
income program under subchapter XVI of this chapter,
medical assistance under subchapter XIX of this chapter,
or child health assistance under subchapter XXI of this
chapter.
(III) In the case of a noncustodial parent who becomes
enrolled in the project on or after November 29, 1999, the
noncustodial parent is in compliance with the terms of an
oral or written personal responsibility contract entered
into among the noncustodial parent, the entity, and (unless
the entity demonstrates to the Secretary that the entity is
not capable of coordinating with such agency) the agency
responsible for administering the State plan under part D
of this subchapter, which was developed taking into account
the employment and child support status of the noncustodial
parent, which was entered into not later than 30 (or, at
the option of the entity, not later than 90) days after the
noncustodial parent was enrolled in the project, and which,
at a minimum, includes the following:
(aa) A commitment by the noncustodial parent to
cooperate, at the earliest opportunity, in the
establishment of the paternity of the minor child,
through voluntary acknowledgement or other procedures,
and in the establishment of a child support order.
(bb) A commitment by the noncustodial parent to
cooperate in the payment of child support for the minor
child, which may include a modification of an existing
support order to take into account the ability of the
noncustodial parent to pay such support and the
participation of such parent in the project.
(cc) A commitment by the noncustodial parent to
participate in employment or related activities that will
enable the noncustodial parent to make regular child
support payments, and if the noncustodial parent has not
attained 20 years of age, such related activities may
include completion of high school, a general equivalency
degree, or other education directly related to
employment.
(dd) A description of the services to be provided under
this paragraph, and a commitment by the noncustodial
parent to participate in such services, that are designed
to assist the noncustodial parent obtain and retain
employment, increase earnings, and enhance the financial
and emotional contributions to the well-being of the
minor child.
In order to protect custodial parents and children who may
be at risk of domestic violence, the preceding provisions
of this subclause shall not be construed to affect any
other provision of law requiring a custodial parent to
cooperate in establishing the paternity of a child or
establishing or enforcing a support order with respect to a
child, or entitling a custodial parent to refuse, for good
cause, to provide such cooperation as a condition of
assistance or benefit under any program, shall not be
construed to require such cooperation by the custodial
parent as a condition of participation of either parent in
the program authorized under this paragraph, and shall not
be construed to require a custodial parent to cooperate
with or participate in any activity under this clause. The
entity operating a project under this clause with funds
provided under this paragraph shall consult with domestic
violence prevention and intervention organizations in the
development of the project.
(iv) Targeting of hard to employ individuals with
characteristics associated with long-term welfare
dependence
An entity that operates a project with funds provided under
this paragraph may expend not more than 30 percent of all
funds provided to the project for programs that provide
assistance in a form described in clause (i) -
(I) to recipients of assistance under the program funded
under this part of the State in which the entity is located
who have characteristics associated with long-term welfare
dependence (such as school dropout, teen pregnancy, or poor
work history), including, at the option of the State, by
providing assistance in such form as a condition of
receiving assistance under the State program funded under
this part;
(II) to children -
(aa) who have attained 18 years of age but not 25 years
of age; and
(bb) who, before attaining 18 years of age, were
recipients of foster care maintenance payments (as
defined in section 675(4) of this title) under part E of
this subchapter or were in foster care under the
responsibility of a State;
(III) to recipients of assistance under the State program
funded under this part, determined to have significant
barriers to self-sufficiency, pursuant to criteria
established by the local private industry council; or
(IV) to custodial parents with incomes below 100 percent
of the poverty line (as defined in section 9902(2) of this
title, including any revision required by such section,
applicable to a family of the size involved).
To the extent that the entity does not expend such funds in
accordance with the preceding sentence, the entity shall
expend such funds in accordance with clauses (ii) and (iii)
and, as appropriate, clause (v).
(v) Authority to provide work-related services to individuals
who have reached the 5-year limit
An entity that operates a project with funds provided under
this paragraph may use the funds to provide assistance in a
form described in clause (i) of this subparagraph to, or for
the benefit of, individuals who (but for section 608(a)(7) of
this title) would be eligible for assistance under the
program funded under this part of the State in which the
entity is located.
(vi) Relationship to other provisions of this part
(I) Rules governing use of funds
The rules of section 604 of this title, other than
subsections (b), (f), and (h) of section 604 of this title,
shall not apply to a grant made under this paragraph.
(II) Rules governing payments to States
The Secretary of Labor shall carry out the functions
otherwise assigned by section 605 of this title to the
Secretary of Health and Human Services with respect to the
grants payable under this paragraph.
(III) Administration
Section 616 of this title shall not apply to the programs
under this paragraph.
(vii) Prohibition against use of grant funds for any other
fund matching requirement
An entity to which funds are provided under this paragraph
shall not use any part of the funds, nor any part of State
expenditures made to match the funds, to fulfill any
obligation of any State, political subdivision, or private
industry council to contribute funds under subsection (b) of
this section or section 618 of this title or any other
provision of this chapter or other Federal law.
(viii) Deadline for expenditure
An entity to which funds are provided under this paragraph
shall remit to the Secretary of Labor any part of the funds
that are not expended within 5 years after the date the funds
are so provided.
(ix) Regulations
Within 90 days after August 5, 1997, the Secretary of
Labor, after consultation with the Secretary of Health and
Human Services and the Secretary of Housing and Urban
Development, shall prescribe such regulations as may be
necessary to implement this paragraph.
(x) Reporting requirements
The Secretary of Labor, in consultation with the Secretary
of Health and Human Services, States, and organizations that
represent State or local governments, shall establish
requirements for the collection and maintenance of financial
and participant information and the reporting of such
information by entities carrying out activities under this
paragraph.
(D) Definitions
(i) Individuals with income less than the poverty line
For purposes of this paragraph, the number of individuals
with an income that is less than the poverty line shall be
determined for a fiscal year -
(I) based on the methodology used by the Bureau of the
Census to produce and publish intercensal poverty data for
States and counties (or, in the case of Puerto Rico, the
Virgin Islands, Guam, and American Samoa, other poverty
data selected by the Secretary of Labor); and
(II) using data for the most recent year for which such
data is available before the beginning of the fiscal year.
(ii) Private industry council
As used in this paragraph, the term "private industry
council" means, with respect to a service delivery area, the
private industry council or local workforce investment board
established for the service delivery area pursuant to title I
of the Workforce Investment Area (!3) of 1998 [29 U.S.C. 2801
et seq.], as appropriate.
(iii) Service delivery area
As used in this paragraph, the term "service delivery area"
shall have the meaning given such term for purposes of the
Job Training Partnership Act or.(!4)
(E) Funding for Indian tribes
1 percent of the amount specified in subparagraph (H) for
fiscal year 1998 and $15,000,000 of the amount so specified for
fiscal year 1999 shall be reserved for grants to Indian tribes
under section 612(a)(3) of this title.
(F) Funding for evaluations of welfare-to-work programs
0.6 percent of the amount specified in subparagraph (H) for
fiscal year 1998 and $9,000,000 of the amount so specified for
fiscal year 1999 shall be reserved for use by the Secretary to
carry out section 613(j) of this title.
(G) Funding for evaluation of abstinence education programs
(i) In general
0.2 percent of the amount specified in subparagraph (H) for
fiscal year 1998 and $3,000,000 of the amount so specified
for fiscal year 1999 shall be reserved for use by the
Secretary to evaluate programs under section 710 of this
title, directly or through grants, contracts, or interagency
agreements.
(ii) Authority to use funds for evaluations of welfare-to-
work programs
Any such amount not required for such evaluations shall be
available for use by the Secretary to carry out section
613(j) of this title.
(iii) Deadline for outlays
Outlays from funds used pursuant to clause (i) for
evaluation of programs under section 710 of this title shall
not be made after fiscal year 2005.
(iv) Interim report
Not later than January 1, 2002, the Secretary shall submit
to the Congress an interim report on the evaluations referred
to in clause (i).
(H) Appropriations
(i) In general
Out of any money in the Treasury of the United States not
otherwise appropriated, there are appropriated for grants
under this paragraph -
(I) $1,500,000,000 for fiscal year 1998; and
(II) $1,400,000,000 for fiscal year 1999.
(ii) Availability
The amounts made available pursuant to clause (i) shall
remain available for such period as is necessary to make the
grants provided for in this paragraph.
(I) Worker protections
(i) Nondisplacement in work activities
(I) General prohibition
Subject to this clause, an adult in a family receiving
assistance attributable to funds provided under this
paragraph may fill a vacant employment position in order to
engage in a work activity.
(II) Prohibition against violation of contracts
A work activity engaged in under a program operated with
funds provided under this paragraph shall not violate an
existing contract for services or a collective bargaining
agreement, and such a work activity that would violate a
collective bargaining agreement shall not be undertaken
without the written concurrence of the labor organization
and employer concerned.
(III) Other prohibitions
An adult participant in a work activity engaged in under
a program operated with funds provided under this paragraph
shall not be employed or assigned -
(aa) when any other individual is on layoff from the
same or any substantially equivalent job;
(bb) if the employer has terminated the employment of
any regular employee or otherwise caused an involuntary
reduction in its workforce with the intention of filling
the vacancy so created with the participant; or
(cc) if the employer has caused an involuntary
reduction to less than full time in hours of any employee
in the same or a substantially equivalent job.
(ii) Health and safety
Health and safety standards established under Federal and
State law otherwise applicable to working conditions of
employees shall be equally applicable to working conditions
of other participants engaged in a work activity under a
program operated with funds provided under this paragraph.
(iii) Nondiscrimination
In addition to the protections provided under the
provisions of law specified in section 608(c) of this title,
an individual may not be discriminated against by reason of
gender with respect to participation in work activities
engaged in under a program operated with funds provided under
this paragraph.
(iv) Grievance procedure
(I) In general
Each State to which a grant is made under this paragraph
shall establish and maintain a procedure for grievances or
complaints from employees alleging violations of clause (i)
and participants in work activities alleging violations of
clause (i), (ii), or (iii).
(II) Hearing
The procedure shall include an opportunity for a hearing.
(III) Remedies
The procedure shall include remedies for violation of
clause (i), (ii), or (iii), which may continue during the
pendency of the procedure, and which may include -
(aa) suspension or termination of payments from funds
provided under this paragraph;
(bb) prohibition of placement of a participant with an
employer that has violated clause (i), (ii), or (iii);
(cc) where applicable, reinstatement of an employee,
payment of lost wages and benefits, and reestablishment
of other relevant terms, conditions and privileges of
employment; and
(dd) where appropriate, other equitable relief.
(IV) Appeals
(aa) Filing
Not later than 30 days after a grievant or complainant
receives an adverse decision under the procedure
established pursuant to subclause (I), the grievant or
complainant may appeal the decision to a State agency
designated by the State which shall be independent of the
State or local agency that is administering the programs
operated with funds provided under this paragraph and the
State agency administering, or supervising the
administration of, the State program funded under this
part.
(bb) Final determination
Not later than 120 days after the State agency
designated under item (aa) receives a grievance or
complaint made under the procedure established by a State
pursuant to subclause (I), the State agency shall make a
final determination on the appeal.
(v) Rule of interpretation
This subparagraph shall not be construed to affect the
authority of a State to provide or require workers'
compensation.
(vi) Nonpreemption of State law
The provisions of this subparagraph shall not be construed
to preempt any provision of State law that affords greater
protections to employees or to other participants engaged in
work activities under a program funded under this part than
is afforded by such provisions of this subparagraph.
(J) Information disclosure
If a State to which a grant is made under this section
establishes safeguards against the use or disclosure of
information about applicants or recipients of assistance under
the State program funded under this part, the safeguards shall
not prevent the State agency administering the program from
furnishing to a private industry council the names, addresses,
telephone numbers, and identifying case number information in
the State program funded under this part, of noncustodial
parents residing in the service delivery area of the private
industry council, for the purpose of identifying and contacting
noncustodial parents regarding participation in the program
under this paragraph.
(b) Contingency Fund
(1) Establishment
There is hereby established in the Treasury of the United
States a fund which shall be known as the "Contingency Fund for
State Welfare Programs" (in this section referred to as the
"Fund").
(2) Deposits into Fund
Out of any money in the Treasury of the United States not
otherwise appropriated, there are appropriated for fiscal years
1997, 1998, 1999, 2000, 2001, 2002, and 2003 such sums as are
necessary for payment to the Fund in a total amount not to exceed
$2,000,000,000, reduced by the sum of the dollar amounts
specified in paragraph (6)(C)(ii).
(3) Grants
(A) Provisional payments
If an eligible State submits to the Secretary a request for
funds under this paragraph during an eligible month, the
Secretary shall, subject to this paragraph, pay to the State,
from amounts appropriated pursuant to paragraph (2), an amount
equal to the amount of funds so requested.
(B) Payment priority
The Secretary shall make payments under subparagraph (A) in
the order in which the Secretary receives requests for such
payments.
(C) Limitations
(i) Monthly payment to a State
The total amount paid to a single State under subparagraph
(A) during a month shall not exceed 1/12 of 20 percent of
the State family assistance grant.
(ii) Payments to all States
The total amount paid to all States under subparagraph (A)
during fiscal years 1997 through 2006 shall not exceed the
total amount appropriated pursuant to paragraph (2).
(4) "Eligible month" defined
As used in paragraph (3)(A), the term "eligible month" means,
with respect to a State, a month in the 2-month period that
begins with any month for which the State is a needy State.
(5) Needy State
For purposes of paragraph (4), a State is a needy State for a
month if -
(A) the average rate of -
(i) total unemployment in such State (seasonally adjusted)
for the period consisting of the most recent 3 months for
which data for all States are published equals or exceeds 6.5
percent; and
(ii) total unemployment in such State (seasonally adjusted)
for the 3-month period equals or exceeds 110 percent of such
average rate for either (or both) of the corresponding 3-
month periods ending in the 2 preceding calendar years; or
(B) as determined by the Secretary of Agriculture (in the
discretion of the Secretary of Agriculture), the monthly
average number of individuals (as of the last day of each
month) participating in the food stamp program in the State in
the then most recently concluded 3-month period for which data
are available exceeds by not less than 10 percent the lesser of
-
(i) the monthly average number of individuals (as of the
last day of each month) in the State that would have
participated in the food stamp program in the corresponding 3-
month period in fiscal year 1994 if the amendments made by
titles IV and VIII of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 had been in effect
throughout fiscal year 1994; or
(ii) the monthly average number of individuals (as of the
last day of each month) in the State that would have
participated in the food stamp program in the corresponding 3-
month period in fiscal year 1995 if the amendments made by
titles IV and VIII of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 had been in effect
throughout fiscal year 1995.
(6) Annual reconciliation
(A) In general
Notwithstanding paragraph (3), if the Secretary makes a
payment to a State under this subsection in a fiscal year, then
the State shall remit to the Secretary, within 1 year after the
end of the first subsequent period of 3 consecutive months for
which the State is not a needy State, an amount equal to the
amount (if any) by which -
(i) the total amount paid to the State under paragraph (3)
of this subsection in the fiscal year; exceeds
(ii) the product of -
(I) the Federal medical assistance percentage for the
State (as defined in section 1396d(b) of this title, as
such section was in effect on September 30, 1995);
(II) the State's reimbursable expenditures for the fiscal
year; and
(III) 1/12 times the number of months during the fiscal
year for which the Secretary made a payment to the State
under such paragraph (3).
(B) Definitions
As used in subparagraph (A):
(i) Reimbursable expenditures
The term "reimbursable expenditures" means, with respect to
a State and a fiscal year, the amount (if any) by which -
(I) countable State expenditures for the fiscal year;
exceeds
(II) historic State expenditures (as defined in section
609(a)(7)(B)(iii) of this title), excluding any amount
expended by the State for child care under subsection (g)
or (i) of section 602 of this title (as in effect during
fiscal year 1994) for fiscal year 1994.
(ii) Countable State expenditures
The term "countable expenditures" means, with respect to a
State and a fiscal year -
(I) the qualified State expenditures (as defined in
section 609(a)(7)(B)(i) of this title (other than the
expenditures described in subclause (I)(bb) of such
section)) under the State program funded under this part
for the fiscal year; plus
(II) any amount paid to the State under paragraph (3)
during the fiscal year that is expended by the State under
the State program funded under this part.
(C) Adjustment of State remittances
(i) In general
The amount otherwise required by subparagraph (A) to be
remitted by a State for a fiscal year shall be increased by
the lesser of -
(I) the total adjustment for the fiscal year, multiplied
by the adjustment percentage for the State for the fiscal
year; or
(II) the unadjusted net payment to the State for the
fiscal year.
(ii) Total adjustment
As used in clause (i), the term "total adjustment" means -
(I) in the case of fiscal year 1998, $2,000,000;
(II) in the case of fiscal year 1999, $9,000,000;
(III) in the case of fiscal year 2000, $16,000,000; and
(IV) in the case of fiscal year 2001, $13,000,000.
(iii) Adjustment percentage
As used in clause (i), the term "adjustment percentage"
means, with respect to a State and a fiscal year -
(I) the unadjusted net payment to the State for the
fiscal year; divided by
(II) the sum of the unadjusted net payments to all States
for the fiscal year.
(iv) Unadjusted net payment
As used in this subparagraph, the term, "unadjusted net
payment" means with respect to a State and a fiscal year -
(I) the total amount paid to the State under paragraph
(3) in the fiscal year; minus
(II) the amount that, in the absence of this
subparagraph, would be required by subparagraph (A) or by
section 609(a)(10) of this title to be remitted by the
State in respect of the payment.
(7) "State" defined
As used in this subsection, the term "State" means each of the
50 States and the District of Columbia.
(8) Annual reports
The Secretary shall annually report to the Congress on the
status of the Fund.