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Title II — Temporary Assistance for Needy Families

H.R. 3507 · 116th Congress · Jun 26, 2019 · Lineage

II Temporary Assistance for Needy Families

Sec. 201 TANF work participation improvements

(a)
Elimination of Separate Work Requirements for 2-Parent Families—
(1)
Work participation rate— Section 407 of the Social Security Act (42 U.S.C. 607) is amended—
(A)
in subsection (a)—
(i)
beginning in the heading, by striking “Participation Rate Requirements” and all that follows through “A State” in paragraph (1) and inserting “Participation Rate Requirements.—A State”; and
(ii)
by striking paragraph (2); and
(B)
in subsection (b)—
(i)
in paragraph (1)(A), by striking “subsection (a)(1)” and inserting “subsection (a)”;
(ii)
by striking paragraph (2) and redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively;
(iii)
in paragraph (3) (as so redesignated), by striking “paragraphs (1)(B) and (2)(B)” and inserting “determining monthly participation rates under paragraph (1)(B)”; and
(iv)
in paragraph (4) (as so redesignated), by striking “rates” and inserting “rate”.
(2)
Minimum weekly hours requirement— Section 407(c)(1) of the Social Security Act (42 U.S.C. 607(c)(1)) is amended—
(A)
by striking “General rules” and all that follows through “For purposes of” in subparagraph (A) and inserting “General Rules.—For purposes of”; and
(B)
by striking subparagraph (B).
(3)
Limitation on penalty imposition— In applying section 409(a)(3) of the Social Security Act for each fiscal year beginning with fiscal year 2007 and ending with the fiscal year in which occurs the date of the enactment of this section, the Secretary of Health and Human Services shall disregard the requirement imposed by section 407(a)(2) of the Social Security Act.
(b)
Elimination of distinction between core and other work activities— Section 407(c)(1) of such Act (42 U.S.C. 607(c)(1)), as amended by subsection (a)(2) of this section, is further amended by striking “not fewer than” and all that follows through “subsection (d),”.
(c)
Elimination of special work participation rule for teens attending secondary school— Section 407(c)(2) of such Act (42 U.S.C. 607(c)(2)) is amended by striking subparagraph (C).
(d)
Elimination of cap on treating vocational educational training as work participation— Section 407(c)(2) of such Act (42 U.S.C. 607(c)(2)), as amended by subsection (c) of this section, is further amended by striking subparagraph (D).
(e)
Increase in months of educational vocational training that may be counted as work participation— Section 407(d)(8) of such Act (42 U.S.C. 607(d)(8)) is amended by striking “12 months” and inserting “24 months”.
(f)
Effective date— The amendments made by this section shall take effect on October 1 of the first fiscal year beginning after the date of the enactment of this Act and shall apply to the determination of minimum participation rates for months beginning on or after that date.

Sec. 202 TANF Employment Fund

(a)
In general— Section 403(b) of the Social Security Act (42 U.S.C. 603(b)) is amended to read as follows:

“(b) Employment Fund

“(1) Establishment—There is hereby established in the Treasury of the United States a fund which shall be known as the Employment Fund for Needy Families (in this subsection 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 each of fiscal years 2017 through 2023, $608,000,000 for payment to the Fund, which shall remain available until expended.

“(3) Grants

“(A) In general—For each of fiscal years 2017 through 2023, the Secretary shall make grants, on a competitive basis, to qualifying entities as provided in this paragraph.

“(B) Qualifying entity—For purposes of this paragraph, a qualifying entity for a fiscal year is a State, territory, Indian tribe, or tribal organization, operating a State program funded under this part (or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i))), that submits to the Secretary an application for a grant under this paragraph for the fiscal year, in such manner and at such time as the Secretary may require.

“(C) Allotment of funds

“(i) Technical assistance—The Secretary shall reserve $10,000,000 out of the amounts made available under paragraph (2) for each fiscal year to provide technical assistance to qualifying entities receiving a grant under this paragraph for the fiscal year.

“(ii) Territories and Indian tribes—The Secretary shall reserve, from the amount made available under paragraph (2) for a fiscal year that remains after applying clause (i), 3 percent for grants under this paragraph for the fiscal year to qualifying entities that are territories and 1 percent for grants under this paragraph for the fiscal year to qualifying entities that are Indian tribes or tribal organizations, to be allotted in a manner the Secretary determines to be appropriate.

“(iii) States

“(I) In general—The amount of a grant under this paragraph payable for a fiscal year to a qualifying entity that is a State shall be the amount that bears the same ratio to the aggregate amount as the number of individuals residing in the State who have attained 18 years of age but have not attained 67 years of age who are not employed or underemployed (such as involuntarily working part-time), as determined by the Secretary, bears to the total number of such individuals residing in all qualifying entities that are States.

“(II) Aggregate amount—For purposes of this clause, the term aggregate amount means the amount made available for a fiscal year under paragraph (2) that remains after applying clauses (i) and (ii).

“(iv) Unused funds

“(I) Reasonable limits on carrying over funds—The Secretary shall set reasonable limits on the amount of funds a State receiving a grant under this paragraph may carry over for expenditure in fiscal years after the fiscal year for which the grant is awarded.

“(II) Redistribution of unused funds—Any portion of the amount of a grant made to a State under clause (iii) that the Secretary determines will not be used by the State shall be redistributed among the States that the Secretary determines will not have such an unused amount, using the rules specified in clause (iii). Any amount so redistributed to a State is deemed part of the grant made to the State under the preceding provisions of this paragraph.

“(D) Use of funds

“(i) Employment programs

“(I) Subsidized employment—A qualifying entity awarded a grant under this paragraph shall use the grant funds to conduct a subsidized employment program to assist recipients of TANF cash assistance and TANF-eligible individuals who are not recipients of cash assistance in obtaining paid employment.

“(II) Sectoral skills training—A qualifying entity may use not more than 15 percent of funds awarded to the entity under this paragraph for a fiscal year to conduct a sectoral skills training program to provide sectoral skills training to recipients of TANF cash assistance and TANF-eligible individuals who are not recipients of cash assistance.

“(ii) Allowable expenses—A qualifying entity may use funds awarded under this paragraph to carry out clause (i), including the following activities:

“(I) Administrative expenses.

“(II) Supportive services, including transportation and childcare, to enable individuals to participate in a program described in clause (i).

“(III) Wages and associated payroll costs for individuals participating in the subsidized employment program described in clause (i)(I).

“(iii) Eligibility for assistance

“(I) Requirement to use 75 percent of funds to assist recipients of TANF cash assistance—A qualifying entity shall use not less than 75 percent of funds awarded to the entity under this paragraph to assist under the program described in clause (i)(I) (and, if the entity so elects, the program described in clause (i)(II)) recipients of TANF cash assistance and may use the remainder of the funds to assist TANF-eligible individuals who are not recipients of cash assistance.

“(II) Recipient of TANF cash assistance—In this subparagraph, the term recipient of TANF cash assistance means an individual who—

“(aa) has attained 18 years of age and has not attained 67 years of age; and

“(bb) is not employed and is determined by the qualifying entity to have been unsuccessful at obtaining paid employment after participating in a job search program; and—

“(AA) is a member of a family that receives cash assistance under the State program funded under this part or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i)); or

“(BB) is a noncustodial parent of a minor child residing with a family described in subitem (AA), in a case in which the parent is not considered by the State to be a member of the family.

“(III) TANF-eligible individual who is not a recipient of cash assistance—In this subparagraph, the term TANF-eligible individual who is not a recipient of cash assistance means an individual who—

“(aa) has attained 18 years of age and has not attained 67 years of age;

“(bb) is not employed and is determined by the qualifying entity to have been unsuccessful at obtaining paid employment after participating in a job search program;

“(cc) is not an individual described in subitems (AA) or (BB) of subclause (II)(bb); and

“(dd) is a member of a family that includes a minor child residing with the family (including a noncustodial parent of the child) if the family has an income that is less than the poverty line (as defined in section 673(2) of the Omnibus Budget Reconciliation Act of 1981, including any revision required by such section, applicable to a family of the size involved).

“(E) Annual report

“(i) Subsidized employment—For each fiscal year for which a qualifying entity receives a grant under this paragraph, the entity shall submit to the Secretary, within 6 months after the end of the fiscal year, a report on the subsidized employment program described in subparagraph (D)(i)(I), which shall—

“(I) describe the structure of the activities of the entity to use the grant funds to subsidize employment for individuals participating in the program (in this clause referred to as subsidized employees), including the amount and duration of the subsidies provided;

“(II) for each month of the fiscal year, specify the number of individuals whose employment is subsidized with these funds and the percentage of such individuals whose employment is in an area that matches their previous training and work experience;

“(III) describe the qualifying entity’s policies in effect during the fiscal year—

“(aa) to ensure nondisplacement as required under paragraph (4)(A); and

“(bb) to implement grievance procedures as required in (4)(B), including information on the number of grievance claims filed in the preceding fiscal year and the aggregate results of those claims;

“(IV) describe requirements imposed on employers by the State as a condition of participating in the program;

“(V) describe the types of jobs in which subsidized employees are placed;

“(VI) provide demographic information for subsidized employees and for the target population the entity seeks to assist under the program;

“(VII) specify the average number of hours worked per week by a subsidized employee;

“(VIII) specify the average length of time for which a subsidized employee participates in the program;

“(IX) describe the employment outcomes for subsidized employees after participating in the program, including the number of individuals hired by an employer with which the individual was placed during the program and the number of individuals hired by other employers;

“(X) specify the percentage of subsidized employees who are in unsubsidized employment during the second quarter after the subsidy ended;

“(XI) specify the percentage of subsidized employees who are in unsubsidized employment during the fourth quarter after the subsidy ended;

“(XII) specify the median earnings of subsidized employees who are in unsubsidized employment during the second quarter after the subsidy ended; and

“(XIII) specify the number of subsidized employees who concurrently received other Federal or State means-tested benefits during their subsidized employment.

“(ii) Sectoral skills training—If a qualifying entity elects to conduct a sectoral skills training program described in subparagraph (D)(i)(II), the report required under clause (i) of this subparagraph shall also include a description of—

“(I) the design of the program;

“(II) the industries in which individuals receiving assistance under the program (in this clause referred to as trainees) receive training;

“(III) demographic information for trainees and for the target population the entity seeks to assist under the program;

“(IV) the total number of trainees participating in the program during the fiscal year;

“(V) the average number of hours per week for which a trainee receives training;

“(VI) the average length of time for which a trainee participates in the program; and

“(VII) the employment outcomes for trainees after participating in the program.

“(F) Evaluation—The Secretary shall establish and implement a rigorous system for evaluating the success of subsidized employment programs and sectoral training programs conducted pursuant to this paragraph.

“(4) Limitations

“(A) Nondisplacement—A State to which a grant is made under this subsection shall ensure that no participant in a subsidized job program funded in whole or in part under this subsection is employed or assigned to a job under the program—

“(i) when any other individual is on layoff from the same or any substantially equivalent job; or

“(ii) if the employer has terminated the employment of any regular employee or otherwise caused an involuntary reduction of its workforce in order to fill the vacancy so created with a participant in such subsidized job program.

“(B) Grievance procedure—A State with a program funded under this subsection shall establish and maintain a grievance procedure for resolving complaints of alleged violations of subparagraph (A).

“(C) No preemption—Nothing in this paragraph shall preempt or supersede any provision of State or local law that provides greater protection for employees from displacement.

“(5) Definitions—In this subsection:

“(A) Indian tribe; tribal organization—The terms Indian tribe and tribal organization have the meaning given such terms in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

“(B) Sectoral skills training—The term sectoral skills training means training that implements a sectoral skills training strategy established by an industry or sector partnership (as defined in section 3(26) of the Workforce Innovation and Opportunity Act).

“(C) State—The term State means each of the 50 States of the United States and the District of Columbia.

“(D) Territories—The term territories means Puerto Rico, Guam, the United States Virgin Islands, the Northern Mariana Islands, and American Samoa.”

(b)
Program participants counted toward work participation rate— Section 407(b) of such Act (42 U.S.C. 607(b)), as amended by section 201(a)(1)(B) of this Act, is further amended by adding at the end the following:

“(5) State option To include subsidized employment and sectoral skills training participants—If an individual who is not a recipient of assistance under the State program funded under this part (or any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i))) participates in work activities for not less than the minimum average number of hours per week specified in the table in subsection (c)(1) of this section during a month as part of a State’s subsidized employment or sectoral skills training program funded under section 403(b), the State may count the individual as a family that includes an adult or a minor child head of household who is engaged in work for the month for purposes of paragraph (1)(B) of this subsection.”

(c)
State plan required To include description of employment programs— Section 402(a)(1)(B) of such Act (42 U.S.C. 602(a)(1)(B)) is amended by adding at the end the following:

“(vi) The document shall indicate whether the State intends to apply for a grant to conduct a subsidized employment program and, if the State so chooses, a sectoral skills training program, under section 403(b). If so, the document shall include a description of the program or programs the State intends to conduct using the grant funds and a description of how the program or programs will serve noncustodial parents of minor children.”

(d)
Grants exempted from territorial payment ceiling— Section 1108(a)(2) of such Act (42 U.S.C. 1308(a)(2)) is amended by inserting “403(b),” after “403(a)(5),”.
(e)
Conforming amendments To retain definition of needy State—
(1)
Number of weeks for which job search counts as work— Section 407(c)(2)(A) of such Act (42 U.S.C. 607(c)(2)(A)) is amended—
(A)
in clause (i), by striking “section 409(a)(7)(B)(i))” and inserting “clause (iii)”; and
(B)
by adding at the end the following:

“(iii) Needy State—For purposes of clause (i), a State is a needy State for a month if—

“(I) the average rate of—

“(aa) 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

“(bb) 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

“(II) 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 supplemental nutrition assistance 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—

“(aa) the monthly average number of individuals (as of the last day of each month) in the State that would have participated in the supplemental nutrition assistance 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

“(bb) the monthly average number of individuals (as of the last day of each month) in the State that would have participated in the supplemental nutrition assistance 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.”

(2)
Authority of Secretary To reduce work participation rate penalty due to circumstances that caused State To become needy State— Section 409(a)(3)(C) of such Act (42 U.S.C. 609(a)(3)(C)) is amended by striking “section 403(b)(5)” and inserting “section 407(c)(2)(A)(iii)”.
(f)
Effective date— The amendments made by this section shall apply with respect to fiscal years beginning after the date of the enactment of this Act.

Sec. 203 Sense of Congress

It is the sense of the Congress that a State to which a grant is made under section 403 of the Social Security Act should consider a noncustodial parent of a minor child, if the child is a recipient of assistance under a State program funded under part A of title IV of such Act (or under any other State program funded with qualified State expenditures (as defined in section 409(a)(7)(B)(i) of such Act)), to be a member of the family of the child for purposes of providing assistance to the family, the child, and the noncustodial parent under the program.