H.R. 2824 — what changed

added Section 511(j)(1)(H) of the Social Security Act (42 U.S.C. 711(j)(1)(H)) is amended by striking “fiscal year 2017” and inserting “each of fiscal years 2017 through 2022”.

added “(D) Demonstration of improvements in subsequent years

added “(i) Continued measurement of improvement in applicable benchmark areas—The eligible entity, after demonstrating improvements for eligible families as specified in subparagraphs (A) and (B), shall continue to track and report not later than 30 days after the end of fiscal year 2020 and every three years thereafter, information demonstrating that the program results in improvements for the eligible families participating in the program in at least 4 of the areas specified in subparagraph (A) that the service delivery model or models, selected by the entity, intend to improve.

added “(ii) Corrective action plan—If the eligible entity fails to demonstrate improvement in at least 4 of the areas specified in subparagraph (A), the entity shall develop and implement a plan to improve outcomes in each of the areas specified in subparagraph (A) that the service delivery model or models, selected by the entity, intend to improve, subject to approval by the Secretary. The plan shall include provisions for the Secretary to monitor implementation of the plan and conduct continued oversight of the program, including through submission by the entity of regular reports to the Secretary.

added “(iii) Technical assistance—The Secretary shall provide an eligible entity required to develop and implement an improvement plan under clause (ii) with technical assistance to develop and implement the plan. The Secretary may provide the technical assistance directly or through grants, contracts, or cooperative agreements.

added “(iv) No improvement or failure to submit report—If the Secretary determines after a period of time specified by the Secretary that an eligible entity implementing an improvement plan under clause (ii) has failed to demonstrate any improvement in at least 4 of the areas specified in subparagraph (A) that the service delivery model or models intend to improve, or if the Secretary determines that an eligible entity has failed to submit the report required by clause (i), the Secretary shall terminate the grant made to the entity under this section and may include any unexpended grant funds in grants made to nonprofit organizations under subsection (h)(2)(B).”

added Section 511(b)(1) of the Social Security Act (42 U.S.C. 711(b)(1)) is amended by striking “Not later than” and all that follows through “statewide” the 2nd place it appears and inserting “Each State shall, as a condition of receiving payments from an allotment for the State under section 502, review and update the statewide needs assessment not later than October 1, 2020 (which may be separate from but in coordination with the statewide”.

added Section 511(d)(4)(A) of the Social Security Act (42 U.S.C. 711(d)(4)(A)) is amended by inserting “, taking into account the staffing, community resource, and other requirements of the service delivery model or models that the eligible entity may need to develop for the model to operate and demonstrate improvements for eligible families” before the period.

added Section 511(d)(1)(A)(v) of the Social Security Act (42 U.S.C. 711(d)(1)(A)(v)) is amended by inserting “(which shall include measures of employment and earnings)” before the period.

added “(3) Authority to use grant for a pay for outcomes initiative—An eligible entity to which a grant is made under paragraph (1) may use the grant to pay for the results of a pay for outcomes initiative that satisfies the requirements of subsection (d) and that will not result in a reduction of funding for services delivered under this section while an eligible entity develops or operates such an initiative.”

added “(4) Pay for outcomes initiative—The term pay for outcomes initiative means a performance-based grant, contract, cooperative agreement, or other agreement awarded by a public entity in which a commitment is made to pay for improved outcomes that result in social benefit and direct cost savings or cost avoidance to the public sector. Such an initiative shall include—

added “(A) a feasibility study that describes how the proposed intervention is based on evidence of effectiveness;

added “(B) a rigorous, third-party evaluation that uses experimental or quasi-experimental design or other research methodologies that allow for the strongest possible causal inferences to determine whether the initiative has met its proposed outcomes;

added “(C) an annual, publicly available report on the progress of the initiative; and

added “(D) a requirement that payments are made to the recipient of a grant, contract, or cooperative agreement only when agreed upon outcomes are achieved, except that this requirement shall not apply with respect to payments to a third party conducting the evaluation described in subparagraph (B).”

added “(3) Availability

added “(A) In general—Except as provided in subparagraph (B), funds”

added “(B) Funds for pay for outcomes initiatives—Funds made available to an eligible entity under this section for a fiscal year (or portion of a fiscal year) for a pay for outcomes initiative shall remain available for expenditure by the eligible entity for not more than 10 years after the funds are so made available.”

added “(l) Matching requirement

added “(1) Program home visiting share

added “(A) In general—An eligible entity to which a grant is made under this section for fiscal year 2020 or any succeeding fiscal year shall not use the grant to cover more than the applicable percentage of the costs of providing services or conducting activities under this section during the fiscal year.

added “(B) Applicable percentage—In subparagraph (A), the term applicable percentage means, with respect to a fiscal year—

added “(i) in the case of an eligible entity that is a State or nonprofit organization—

added “(I) 70 percent, in the case of fiscal year 2020;

added “(II) 60 percent, in the case of fiscal year 2021; or

added “(III) 50 percent, in the case of fiscal year 2022 or any succeeding fiscal year; or

added “(ii) in the case of an eligible entity that is an Indian Tribe (or a consortium of Indian Tribes), a Tribal Organization, or an Urban Indian Organization—

added “(I) 100 percent, in the case of fiscal year 2020 or 2021; or

added “(II) 70 percent, in the case of fiscal year 2022 or any succeeding fiscal year.

added “(2) Non-program home visiting share—The share of the costs of providing services or conducting activities under this section not covered by grant funds may include—

added “(A) State expenditures of Federal funds made available other than under this section expended for activities under this section;

added “(B) State expenditures of State funds expended for activities under this section as a condition of receiving Federal funds other than under this section; and

added “(C) contributions made for activities under this section from any other source, paid in cash or in kind, valued at the fair market value of such contribution.”

added “(5) Data exchange standards for improved interoperability

added “(A) Designation and use of data exchange standards

added “(i) Designation—The head of the department or agency responsible for administering a program funded under this section shall, in consultation with an interagency work group established by the Office of Management and Budget and considering State government perspectives, designate data exchange standards for necessary categories of information that a State agency operating the program is required to electronically exchange with another State agency under applicable Federal law.

added “(ii) Data exchange standards must be nonproprietary and interoperable—The data exchange standards designated under clause (i) shall, to the extent practicable, be nonproprietary and interoperable.

added “(iii) Other requirements—In designating data exchange standards under this paragraph, the Secretary shall, to the extent practicable, incorporate—

added “(I) interoperable standards developed and maintained by an international voluntary consensus standards body, as defined by the Office of Management and Budget;

added “(II) interoperable standards developed and maintained by intergovernmental partnerships, such as the National Information Exchange Model; and

added “(III) interoperable standards developed and maintained by Federal entities with authority over contracting and financial assistance.

added “(B) Data exchange standards for federal reporting

added “(i) Designation—The head of the department or agency responsible for administering a program referred to in this section shall, in consultation with an interagency work group established by the Office of Management and Budget, and considering State government perspectives, designate data exchange standards to govern Federal reporting and exchange requirements under applicable Federal law.

added “(ii) Requirements—The data exchange reporting standards required by clause (i) shall, to the extent practicable—

added “(I) incorporate a widely accepted, nonproprietary, searchable, computer-readable format;

added “(II) be consistent with and implement applicable accounting principles;

added “(III) be implemented in a manner that is cost-effective and improves program efficiency and effectiveness; and

added “(IV) be capable of being continually upgraded as necessary.

added “(iii) Incorporation of nonproprietary standards—In designating data exchange standards under this paragraph, the Secretary shall, to the extent practicable, incorporate existing nonproprietary standards, such as the eXtensible Mark up Language.

added “(iv) Rule of construction—Nothing in this paragraph shall be construed to require a change to existing data exchange standards for Federal reporting about a program referred to in this section, if the head of the department or agency responsible for administering the program finds the standards to be effective and efficient.”