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Title III — Aggregate cap for means-tested welfare spending

S. 2015 · 113th Congress · Feb 11, 2014 · Lineage

III Aggregate cap for means-tested welfare spending

Sec. 301 Definition of means-tested welfare spending

Section 3 of the Congressional Budget Act of 1974 (2 U.S.C. 622) is amended by adding at the end the following new paragraph:

“(12)

“(A) The term means-tested welfare spending—

“(i) means spending for any Federal program that is designed to specifically provide assistance or benefits exclusively to low-income Americans;

“(ii) does not include such a program if the program—

“(I) is based on earned eligibility;

“(II) is not need-based;

“(III) is a program designed exclusively or primarily for veterans of military service; or

“(IV) offers universal or near universal eligibility to the working population and their dependents; and

“(iii) includes community and economic development programs targeted to low-income communities or populations.

“(B) For purposes of subparagraph (A), the spending on following Federal programs shall be means-tested welfare spending:

“(i) Cash and general programs

“(I) Supplemental Security Income.

“(II) Earned Income Tax Credit (Refundable Portion).

“(III) Refundable Child Credit.

“(IV) Temporary Assistance to Needy Families.

“(V) Title IV–E Foster Care.

“(VI) Title IV–E Adoption Assistance.

“(VII) General Assistance to Indians.

“(VIII) Assets for Independence.

“(ii) Medical

“(I) Medicaid.

“(II) State Children’s Health Insurance Program.

“(III) Indian Health Services.

“(IV) Consolidated Health Centers/Community Health Centers.

“(V) Maternal and Child Health.

“(VI) Healthy Start.

“(VII) Refundable Premiums and Out of Pocket Subsidies under the Patient Protection and Affordable Health Care Act (PPACA).

“(iii) Food

“(I) Food Stamps Program.

“(II) School Lunch Program.

“(III) Women, Infant and Children (WIC) Food Program.

“(IV) School Breakfast.

“(V) Child Care Food Program.

“(VI) Nutrition Program for the Elderly, Nutrition Service Incentives.

“(VII) Summer Food Service Program.

“(VIII) Commodity Supplemental Food Program.

“(IX) Temporary Emergency Food Program.

“(X) Needy Families.

“(XI) Farmer’s Market Nutrition Program.

“(XII) Special Milk Program.

“(iv) Housing

“(I) Section 8 Housing (HUD).

“(II) Public Housing (HUD).

“(III) State Housing Expenditures.

“(IV) Home Investment Partnership Program (HUD).

“(V) Homeless Assistance Grants (HUD).

“(VI) Rural Housing Insurance Fund (Agriculture).

“(VII) Rural Housing Service (Agriculture).

“(VIII) Housing for the Elderly (HUD).

“(IX) Native American Housing Block Grants (HUD).

“(X) Other Assisted Housing Programs (HUD).

“(XI) Housing for Persons with Disabilities (HUD).

“(v) Energy and Utilities

“(I) Low-Income Home Energy Assistance.

“(II) Universal Service Fund—Subsidized Phone Service for Low-Income Persons.

“(III) Weatherization.

“(vi) Education

“(I) Pell Grants.

“(II) Title I Grants to Local Education Authorities.

“(III) Special Programs for Disadvantaged (TRIO).

“(IV) Supplemental Education Opportunity Grants.

“(V) Migrant Education.

“(VI) Gear-Up.

“(VII) Education for Homeless Children and Youth.

“(VIII) Leveraging Educational Assistance Partnership (LEAP) Program.

“(IX) Even Start.

“(vii) Training

“(I) Job Corps.

“(II) Youth Opportunity Grants (under the Workforce Investment Act).

“(III) Adult Employment and Training (under the Workforce Investment Act).

“(IV) Senior Community Service Employment.

“(V) Food Stamp Employment and Training Program.

“(VI) Migrant Training.

“(VII) YouthBuild.

“(VIII) Native American Training.

“(viii) Services

“(I) Title XX Social Services Block Grant.

“(II) Community Service Block Grant.

“(III) Social Services for Refugees, Asylees, and Humanitarian Cases.

“(IV) Title III Aging Americans Act.

“(V) Legal Services Block Grant.

“(VI) Family Planning.

“(VII) Emergency Food and Shelter.

“(VIII) Healthy Marriage and Responsible Fatherhood Grants.

“(IX) Americorps VISTA.

“(ix) Child Care and Child Development

“(I) Headstart.

“(II) Childcare and Child Development Block Grant.

“(III) Child Care Block Grant (under Temporary Assistance to Needy Families Program).

“(x) Community Development

“(I) Community Development Block Grant.

“(II) Economic Development Administration.

“(III) Appalachian Regional Development.

“(IV) Empowerment Zones, Enterprise Communities, Renewal Communities.

“(V) Urban Development Block Grant.

“(C) For purposes of subparagraph (A), spending on following Federal programs shall not be means-tested welfare spending:

“(i) The Social Security Disability Insurance program.

“(ii) Medicare.

“(iii) Retirement insurance benefits and survivor benefits under the Social Security program.

“(iv) Any program designed exclusively or primarily for veterans of military service.

“(v) Unemployment insurance benefits.

“(vi) Programs designed specifically to provide benefits to workers to compensate for job-related injuries or illnesses.

“(D) The term means-tested welfare spending includes the full cost of benefits and services provided under a program and the administrative costs for operating the program, subject to the limitations under subparagraph (E).

“(E)

“(i)

“(I) For purposes of this paragraph, only the refundable portion of the following tax credits shall be means-tested welfare spending:

“(aa) The earned income tax credit.

“(bb) The child tax credit.

“(cc) The making work pay tax credit.

“(II) For purposes of this paragraph, only the refundable portion of the premium and out of pocket health care subsidies to be paid under the Patient Protection and Affordable Health Care Act shall be means-tested welfare spending.

“(III) For purposes of this clause, the term refundable portion means the portion of the credit which is paid to an individual in excess of the amount of Federal income tax owed by the individual.

“(ii) For purposes of this paragraph, only the costs of the free and reduced price segments of the school lunch and school breakfast programs shall be means-tested welfare spending.

“(F) For purposes of this paragraph expenditures by State and local governments of funds that are—

“(i) obtained by the State and local government from taxes, fees, or other sources of revenue established by the State or local government; and

“(ii) are not received as any form of grant from the Federal Government,”

Sec. 302 Reports to budget committees

Section 202(e)(1) of the Congressional Budget Act of 1974 (2 U.S.C. 602(e)(1)) is amended—
(1)
by inserting “(A)” after “(1)”; and
(2)
by adding at the end the following:

“(B)

“(i) The Director shall include in each report submitted to the Committees on the Budget of the House of Representatives and the Senate under subparagraph (A) the information described in clause (ii) beginning on the earlier of—

“(I) the first fiscal year that begins after the date of enactment of this subparagraph and after any monthly rate of unemployment during the immediately preceding fiscal year is below 6 percent; or

“(II) fiscal year 2016.

“(ii) The Director shall include the following information for the fiscal year commencing on October 1 of the year in which the report is submitted and for each of the ensuing 4 fiscal years:

“(I) The Congressional Budget Office baseline level of means-tested welfare spending.

“(II) The aggregate level of means-tested welfare spending computed by taking the aggregate level of means-tested welfare spending for fiscal year 2007 and adjusting that for inflation according to the procedures specified in clause (iii).

“(iii) In preparing the information required to be included under this subparagraph—

“(I) means-tested welfare spending relating to medical assistance programs shall be adjusted for inflation according to the price index for personal consumption expenditures for health products and services as calculated by the Bureau of Economic Analysis; and

“(II) all other means-tested welfare spending shall be adjusted for inflation according to the weighted price index for personal consumption expenditures excluding health products and services as calculated by the Bureau of Economic Analysis.”

Sec. 303 Content of concurrent resolutions on the budget

Section 301 of the Congressional Budget Act of 1974 (2 U.S.C. 632) is amended by adding at the end the following:

“(j) Means-Tested welfare spending

“(1) In general—The concurrent resolution on the budget for a fiscal year shall set forth the appropriate level for aggregate means-tested welfare spending for the first fiscal year of that concurrent resolution and for at least each of the 4 ensuing fiscal years beginning on the earlier of—

“(A) the first fiscal year that begins after the date of enactment of this subsection and after any monthly rate of unemployment during the immediately preceding fiscal year is below 6 percent; or

“(B) fiscal year 2016.

“(2) Setting level—The level described in paragraph (1) shall not exceed—

“(A) in fiscal year 2016, $825,000,000,000;

“(B) in fiscal year 2017, $750,000,000,000; and

“(C) in fiscal year 2018 and subsequent fiscal years, the aggregate level of Federal means-tested welfare spending for fiscal year 2007, adjusted for inflation as follows:

“(i) Means-tested welfare spending relating to medical assistance programs shall be adjusted for inflation according to the price index for personal consumption expenditures for health products and services as calculated by the Bureau of Economic Analysis.

“(ii) All other means-tested welfare spending shall be adjusted for inflation according to the weighted price index for personal consumption expenditures excluding health products and services as calculated by the Bureau of Economic Analysis.”

Sec. 304 Allocations of means-tested welfare spending

(a)
In general— Section 302 of the Congressional Budget Act of 1974 (2 U.S.C. 633) is amended by adding at the end the following:

“(h) Means-Tested welfare spending limit

“(1) Further division of amounts—For any concurrent resolution on the budget in which levels for aggregate means-tested welfare spending are set forth under section 301(j), in the House of Representatives and the Senate, the amounts allocated under subsection (a) shall be further divided to establish an allocation of—

“(A) total new budget authority and total outlays for discretionary means-tested welfare spending in appropriation measures for the first fiscal year of that concurrent resolution; and

“(B) total new budget authority and total outlays for mandatory means-tested welfare spending for the first fiscal year of that concurrent resolution and at least each of the ensuing 4 fiscal years to all other committees of the House of Representatives and the Senate that have jurisdiction over legislation providing mandatory means-tested welfare spending.

“(2) Point of order

“(A) In general—Except as provided in subparagraph (B), it shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, or amendment between the Houses if—

“(i) the enactment of such bill or resolution as reported;

“(ii) the adoption and enactment of such amendment;

“(iii) the enactment of such bill or resolution in the form recommended in such conference report; or

“(iv) the enactment of such amendment between the Houses,

“(B) Exception—The limits on the allocation of new budget authority or outlays made under subparagraph (A) or (B) of paragraph (1) shall not be in effect for a fiscal year if the average monthly unemployment rate in the preceding fiscal year exceeded 7.5 percent.”

(b)
Conforming amendment— Section 302(b) of the Congressional Budget Act of 1974 is amended by striking “under subsection (a)” and inserting “under subsections (a) and (h)”.

Sec. 305 Reconciliation

Section 310(a) of the Congressional Budget Act of 1974 (2 U.S.C. 641(a)) is amended—
(1)
in paragraph (3), by striking “or” at the end;
(2)
by redesignating paragraph (4) as paragraph (5);
(3)
by inserting after paragraph (3) the following:

“(4) specify the total amount by which new budget authority for such fiscal year for mandatory means-tested welfare spending contained in laws, bills, and resolutions within the jurisdiction of a committee is to be changed and direct that committee to determine and recommend changes to accomplish a change of such total amount, which amount shall be the amount by which the Congressional Budget Office baseline level of spending for aggregate mandatory means-tested welfare programs exceeds the allocation made pursuant to section 302(h)(1)(B) for such fiscal year; and”

(4)
in paragraph (5), as so redesignated, by striking “and (3)” and inserting “(3), and (4)”.