For other versions of this document, see http://wikileaks.org/wiki/CRS-RL32210 ------------------------------------------------------------------------------ Order Code RL32210 CRS Report for Congress Received through the CRS Web TANF Reauthorization: Side-by-Side Comparison of Current Law and Two Versions of H.R. 4 (108th Congress) Updated March 1, 2005 Vee Burke and Gene Falk Domestic Social Policy Division Congressional Research Service ~ The Library of Congress TANF Reauthorization: Side-by-Side Comparison of Current Law and Two Versions of H.R. 4 (108th Congress) Summary The 108th Congress did not complete action on legislation to reauthorize the block grant of Temporary Assistance for Needy Families (TANF), instead adopting short-term extensions. The latest extension funds the program through March 31, 2005. Though welfare reauthorization failed to receive final action, a bill (H.R. 4) did pass the House and a substitute measure was reported from the Senate Finance Committee. The differences in the two bills highlight some of the contentious issues in the reauthorization debate. The House-passed and Senate Finance Committee bills were very similar in terms of how they would continue funding under the TANF program. Both bills would have extended basic TANF funding at current levels ($16.6 billion for the 50 states, the District of Columbia, and the territories) through FY2008 and extended supplemental grants provided to 17 states through FY2007. Both bills also would have provided new, categorical grants for marriage promotion activities. The major difference in the funding provisions of the two bills was how they provided extra contingency (recession-related) funding to the states. The House bill essentially extended the current law fund that provides matching grants to states that experience high and increased unemployment rates and food stamp caseloads. The Senate Finance Committee bill eliminated the requirements that states expend additional money to access contingency funds, and instead based extra funding on the cost of increased caseloads for states that meet revised unemployment or food stamp caseload criteria. The two bills would have substantially revised TANF work participation standards that states must meet or be subject to a financial penalty. Under current law, 50% of TANF families with an adult or minor household head must participate, though the 50% rate is reduced by caseload reductions that have occurred since welfare reform. Both versions of H.R. 4 would have raised this standard to 70%, though under both bills the standard could have been reduced through credits (though the credits differ between the two bills). They also both eliminated a separate 90% participation rate requirement for two-parent families. Both bills would have raised the minimum hours required of family members to be considered full participants, though the House raised them more than did the Senate Finance Committee bill. The bills also differed in the activities countable toward the participation standards: the House narrowed the list of activities countable, requiring recipients to spend at least 24 hours in work, community service, or work experience programs except for a short (usually three month) period when states may define what counts as activities themselves. The Senate Finance Committee bill kept all activities on the current law list, and also allowed states to count activities on an expanded list for three months (six months in some circumstances). Both bills included non-TANF provisions relating to child support enforcement, responsible "fatherhood" programs, and transitional medical assistance (not addressed herein). This report will not be updated. Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Summary of the Similarities and Differences between the Two Bills . . . . . . . . . . 1 Funding Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Basic Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Supplemental Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Contingency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Uses of Grants and Program Requirements . . . . . . . . . . . . . . . . . . . . . . 3 Work Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Participation Rate Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Hours Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Creditable Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Marriage Promotion Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Detailed Comparison of TANF Provisions of the House and Senate Finance Committee Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Short Title, Findings and Statement of TANF Goals and Purposes . . . . . . . . . . . 8 Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 TANF Financing Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 State family assistance grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Supplemental grant for population increases in certain states . . . . . . . . . . . . . . . . 9 Bonus to reward employment achievement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Bonus to reward reductions in out-of-wedlock births . . . . . . . . . . . . . . . . . . . . . 11 Contingency fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Additional grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Social service capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Repeal of federal loan fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Maintenance of effort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Funding for child care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Use of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 General rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Transfer of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Carryover of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Use of funds for education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Direct funding and administration by Indian tribes . . . . . . . . . . . . . . . . . . . . . . . 17 Work Participation Requirements and Standards . . . . . . . . . . . . . . . . . . . . . . . . 17 Universal engagement and family self-sufficiency plan requirements . . . . . . . . 17 Sanctions against individuals for work refusal . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Work participation requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Caseload reduction credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Employment credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Calculation of participation rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Penalty for failing participation rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Countable activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Listed in law or bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 State options for activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Time limits on activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Numerical limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Parents as scholars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Required hours of work activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Partial work credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Extra work credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Marriage Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 TANF goals and purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Funding for marriage promotion matching grants . . . . . . . . . . . . . . . . . . . . . . . . 32 Allowable activities for marriage promotion grants . . . . . . . . . . . . . . . . . . . . . . 34 Research and demonstrations on marriage promotion . . . . . . . . . . . . . . . . . . . . . 35 State Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 State plan requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Performance measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Rankings of states . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Data collection and reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Use of sample data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Monthly state reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Annual state reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Data elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 HHS reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Single audit reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Research, evaluations, and national studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Research on state programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Census Bureau study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 General Accounting Office study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Waivers and program coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Definition of assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Technical corrections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 State option to make TANF programs mandatory partners with one-stop WIA centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Sense of the Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Enforcing support of immigrants by sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Extension through FY2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 List of Tables Table 1. Comparison of Current Law with H.R. 4, as Passed by the House and as Reported by the Senate Finance Committee (TANF Provisions) . . . . . . . . . 8 TANF Reauthorization: Side-by-Side Comparison of Current Law and Two Versions of H.R. 4 (108th Congress) Introduction The 108th Congress did not complete action on legislation to reauthorize the block grant of Temporary Assistance for Needy Families (TANF). Instead it and its predecessor, the 107th Congress, adopted short-term funding extensions since the original funding authority for TANF expired on September 30, 2002. The latest short-term extension funds the program through March 31, 2005. The House of Representatives did pass a bill in February 2003 (H.R. 4), and the Senate Finance Committee reported an amended version of the legislation in October 2003. Though the full Senate took up the bill in late March 2004, the measure was set-aside in that chamber after a motion to limit debate on the bill failed to receive the required 60 votes on April 1. The lack of final action in the 108th Congress means that welfare reauthorization is likely to again be a topic in the 109th Congress. This report describes both the House-passed and Senate Finance Committee-approved versions of welfare reauthorization legislation in the 108th Congress. The differences in the two bills highlight some of the contentious issues in the reauthorization debate. Before the bill was pulled from the Senate floor, the Senate did approve one amendment to the bill which would have added $6 billion over five years for child care funding (to a total of $7 billion in child care funds above current law levels for the five years). There were no approved amendments to the Senate Finance Committee bill's TANF provisions. Summary of the Similarities and Differences between the Two Bills The bills had many similarities, with both extending basic funding at current levels through FY2008 and incorporating President Bush's proposal to provide categorical "marriage promotion" grants. They both also raised TANF work participation standards, though the two bills differed in terms of how much more work would be required and what activities count toward the participation standards. This report provides a comparison of the TANF provisions of H.R. 4 as it passed the House and was reported from the Senate Finance Committee. It does not address non-TANF provisions of both bills, such as revisions to the Child Care and CRS-2 Development Fund, Child Support Enforcement, Abstinence Education, and transitional Medicaid. Funding Provisions The House-passed and Senate Finance Committee bills had very similar funding provisions. The major difference in the funding provision between the two bills was that the Senate Finance Committee bill would have completely revamped the TANF contingency (recession) funds, while the House-passed bill would have made relatively minor revisions to the fund. Basic Funding. The 1996 welfare reform law entitled states to a basic TANF block grant equal to peak expenditures in the pre-1996 welfare programs during the FY1992 to FY1995 period. It also established a maintenance of effort (MOE) requirement that states continue to spend at least 75% (80% if a state failed TANF work participation requirements) of what they spent in these programs in FY1994. The mid-1990s were the period when cash welfare caseloads were at their peak. Both the basic TANF grant and the MOE are legislatively fixed: they did not change when cash welfare caseloads declined in the mid- and late-1990s, nor did they increase when caseloads in some states increased during the recent economic slump. Neither the basic TANF block grant nor the MOE have been adjusted for inflation. Both the House-passed and Senate Finance Committee versions of H.R. 4 would have continued both the basic block grant and the MOE at their current funding levels (without inflation or caseload adjustment) through FY2008. Supplemental Grants. During the consideration of legislation that led to the 1996 welfare law, fixed funding based on historical expenditures was thought to disadvantage two groups of states: (1) those that experience relatively high population growth; and (2) states that had historically low grant levels relative to poverty in the state. Therefore, additional funding in the form of supplemental grants was provided to states that met criteria of high population growth and/or low historic grants per poor person. Supplemental grants have been provided to 17 states: Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Louisiana, Mississippi, Montana, New Mexico, Nevada, North Carolina, Tennessee, Texas, and Utah. In FY2003, supplemental grants totaled $319 million. Both the House-passed and Senate Finance Committee bills would have continued supplemental grants for the same 17 states at the FY2003 funding level through FY2007 (unlike other grants, which expire in FY2008). Contingency Funds. The fixed basic grant under TANF also led to concerns of inadequate funding during economic downturns. TANF includes a contingency fund, which is designed to provide extra matching grants to states that meet criteria of economic need (based on unemployment rates and food stamp caseloads) and have state expenditures in excess of their FY1994 level. The two bills differed substantially in their revisions to the TANF contingency fund. The House-passed version of H.R. 4 essentially would have continued the fund CRS-3 on existing rules, with some relatively minor modifications: allowing some additional state spending to count toward meeting the FY1994 funding level threshold and modifications to increase grants for states that qualify for funds for only part of the year. The Senate Finance Committee bill fully revamped the contingency fund. It would have eliminated the requirement that states increase expenditures from their own funds above the regular TANF MOE level and eliminated the matching requirements. It added a new financial requirement that unspent TANF balances be below a certain threshold to qualify for contingency funds. The Finance Committee proposal would have based contingency grants on a portion of the estimated cost of increased cash assistance caseloads. The Senate Finance Committee bill would have also revised the criteria of economic need for a state. Uses of Grants and Program Requirements. Federal TANF grants and MOE funds can be used for a wide range of benefits, services, and activities to assist low income families with children and to further TANF goals of reducing out-of- wedlock births and promoting two-parent families. TANF grants can also be transferred to other block grant programs: up to 30% of the grant can be transferred to the Child Care and Development Fund (CCDF) and to the Social Services Block Grant, though the limit on transfers to SSBG is set at 4.25% (though annual appropriations have restored the SSBG transfer limit to its original limit set in the 1996 welfare law of 10%). Within the overall 30% limit, federal TANF funds may also be used as the state match for federal reverse commuter grants if the program benefits welfare families. Both bills would have set the SSBG transfer limit permanently at 10%. However, the House bill would have raised the overall transfer limit to 50%. The Senate Finance Committee bill would have retained the current law 30% transfer limit. Both bills included provisions to ease some rules regarding use of TANF funds. Both the House-passed and Senate Finance Committee versions of H.R. 4 would have: ! Allowed states to use carryover TANF funds for any TANF benefit and service. Current law restricts the use of carryover funds for the provision of "assistance." ! Narrowed the definition of "assistance" to exclude all child care and transportation aid. TANF funds spent on assistance trigger certain program requirements, such as work requirement, time limits, assignment of child support payments, and data reporting requirements. Under current regulations, child care and transportation aid for nonworking families is counted as assistance and triggers these requirements. The bills would have eliminated such aid from the definition of assistance, freeing nonworking families who receiving only child care or transportation aid from these requirements. CRS-4 Work Requirements Both the House-passed and Senate Finance Committee bills substantially revised TANF work participation requirements that apply to both the states and to individuals. They both raised work participation rates that states must meet from the current law's standard of 50% to 70%, raised the required hours of working to receive full credit and provided partial credit for participating families that do not meet the full credit standard, and revised the list of activities. However, the bills differed in how they did these three things. Both bills also incorporated the Bush Administration's "universal engagement" proposal, which requires states to develop a self-sufficiency plan for all TANF adult recipient to monitor progress toward that plan. The House -passed bill also required states to end benefits ("full family sanction") for families that fail to comply with work participation rules. Participation Rate Standards. Current law requires states to have a specified percentage of their families with an adult recipient (or minor head of household) participating in creditable work activities. The current participation standard is 50%. States are subject to an additional participation rate standard for two-parent families, currently 90%. The participation rate standards may be reduced for caseload reduction (not attributable to policy changes) that have occurred since before enactment of welfare reform (FY1995). This "caseload reduction credit" has had a large effect on participation standards, reducing the standard considerably from its statutory rate. In FY2002, the standard was reduced to 0% for 21 states. Both the House-passed and Senate Finance Committee bills raised the work participation standard for all families to 70% by FY2008 and eliminated the separate standard for two-parent families. Both bills also would have revised the credits that reduce these standards from their statutory rate (i.e., reduce the 70% standard to a lower rate), but they did so in different ways. The House-passed bill revised the current caseload reduction credit so that caseload change is measured from a more recent year (rather than the pre-welfare reform caseload level of 1995). Ultimately, caseload reduction would have been measured based on the most recent four years. The House bill also included a provision to give an additional credit to states that achieved a caseload reduction of 60% of more from FY1995 to FY2001. The Senate Finance Committee bill retained the current caseload reduction credit for FY2004 and FY2005, but beginning in FY2006 would have replaced the caseload reduction credit with a credit for employed welfare leavers. The bill would have also capped all credits against the participation standard, so that the minimum effective rate standard would have been 10% in FY2004, 20% in FY2005, 30% in FY2006, 40% in FY2007, and 50% in FY2008. Hours Standards. Current law requires that a family be considered participating only if it participates for a minimum number of hours per week in a month. Under current law, 20 hours is required for single parents with a pre-school CRS-5 child (under the age of six), and 30 hours is required for other families. Higher hours are set for the purposes of the two-parent work participation rate. Both the House-passed and Senate Finance Committee bills raised the hours standards. The House-passed bill incorporated a 40-hour workweek standard for full credit, but would also have provided "partial" credit for families with at least 24 hours of participation. No special lower hour standard would have been provided for single parents with preschoolers. The Senate Finance Committee bill also raised the hours standard for full credit, but by less than proposed in the House-passed bill. Single parents with a pre-school child would have been given full credit for participation at 24 hours per week, and other single parent families would have been given full credit at 34 hours per week. Partial credit for single parent families would have been provided at 20 hours per week. Higher hours requirements would apply to two-parent families. Creditable Activities. Current law lists 12 activities that may be counted toward TANF work participation standards. The bulk of countable participation is in a subset of "core" activities focused on work, time-limited job search (countable for six weeks in a fiscal year, 12 weeks if criteria of economic need is met), time- limited vocational educational training (12 months in a lifetime), and community service and work experience. In meeting the general 30-hour-per-week standard, hours in educational activities are countable only for families who are also participating in at least 20 hours per week of "core" activities. Post-secondary education, other than that considered "vocational educational training," does not count toward current law federal TANF work participation standards. Both bills would have revised the list of countable activities, but in very different ways. The House-passed bill would have narrowed what counts as "core" activity by removing job search and vocational educational training from that list. Except for a limited period of time (see below), the House bill would have required that families participate for at least 24 hours per week in work, community service, or work experience programs to be counted toward the state's standard. For three months in a 24-month period (four months in the case of an educational program), states would have been allowed to define activities that count toward the standards. These activities would have included job search and vocational educational training or other types of activities (e.g., English for Speakers of Other Languages classes, substance abuse treatment or treatment for victims of domestic violence). States would also have been allowed to determine the activities for which hours would count above the 24-hour-per-week standard. The Senate Finance Committee bill retained the current law list of activities, including keeping time-limited job search and vocational educational training as "core" activities. However, it provided states with options to allow recipients to participate in an additional set of activities for three months in a 24-month period. In the case where that participation is in a rehabilitative activity, another three months of rehabilitation would have been allowable if combined with a core work activity. The Senate Finance Committee bill would also have allowed these additional activities (and job search and vocational educational training to count without regard CRS-6 to their usual time limits) to count for hours above 24 hours per week spent in core activities. The Senate Finance Committee bill also allowed states to have up to 10% of their caseload enrolled in a special program of two- or four-year undergraduate education or vocational educational training. This program is modeled after the "Parents as Scholars" program that has operated in Maine using TANF MOE funds. Marriage Promotion Grants Current law allows states to use TANF funds for any activity "reasonably calculated" to achieve a TANF purpose. One of the statutory purposes of TANF is to end dependency of needy parents on government benefits, and one of the stated means to end such dependency is "marriage." Another of the statutory purposes of TANF is to promote the formation and maintenance of two-parent families. "Promoting marriage" is a currently allowable use of TANF funds. Both the House-passed and Senate Finance Committee versions of H.R. 4 would have carved out special "marriage promotion grants" from existing TANF funding. Both bills included $100 million in competitively awarded matching funds for states, territories, and tribes for marriage promotion activities. The bills would have allowed states to use other federal TANF funds or state funds as the match for these new marriage promotion grants. Both bills also would have provided an additional $100 million for research and demonstrations. The House-passed bill required that these funds be used "primarily" for marriage promotion; the Senate Finance Committee bill required that 80% of these funds be used for marriage promotion. Marriage promotion activities listed in both bills were: public advertising campaigns on the value of marriage and skills needed to increase marital stability and health; education in high schools on the value of marriage; marriage education and marriage and relationship skills programs for nonmarried parents or expectant parents; pre-marital education on marriage for engaged couples; marriage enhancement and marriage skills training for married couples; divorce education programs; and marriage mentoring programs. Programs to reduce the disincentives to marriage in need-based programs could only have been funded from these grants if offered in conjunction with other marriage activities. The language of the two bills was similar, though the Finance Committee bill had additional language requiring that organizations familiar with domestic violence issues be consulted in developing marriage promotion projects and language to clarify that marriage promotion activities are to be voluntary. Other Provisions Both the House-passed bill and Senate Finance Committee bill would have made additional amendments to TANF provisions regarding state plans, data reporting, tribal TANF programs, and other provisions of TANF law. These provisions are included in the detailed bill comparison table shown below. The CRS-7 House-passed and Senate Finance Committee versions of H.R. 4 also included amendments to the Child Care and Development Fund, child support enforcement, the abstinence education program, and transitional Medicaid. These provisions are not addressed in this report. Detailed Comparison of TANF Provisions of the House and Senate Finance Committee Bill Table 1 provides a detailed comparison of the TANF programs of the House- passed and Senate Finance Committee reported versions of H.R. 4. The table provides references to where current law provisions are found in the Social Security Act (SSA). It also denotes the section number in each of the bills in which the provision is found. CRS-8 Table 1. Comparison of Current Law with H.R. 4, as Passed by the House and as Reported by the Senate Finance Committee (TANF Provisions) Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Short Title, Findings, and Statement of TANF Goals and Purposes Short Title The Personal Responsibility and Work The Personal Responsibility, Work, and Family The Personal Responsibility and Individual Opportunity Reconciliation Act of 1996 (P.L. Promotion Act of 2003. Development for Everyone Act (PRIDE). 104-193). Findings P.L. 104-193, the Personal Responsibility and Makes a series of findings related to: (1) the No provision. Work Opportunity Reconciliation Act of 1996, success of the 1996 law in moving families from made a series of findings related to marriage, welfare to work and reducing child poverty; (2) responsible parenthood, trends in welfare receipt progress made by the Nation in reducing teen and the relationship between welfare receipt and pregnancy and births, slowing increases in nonmarital parenthood, and trends in and negative nonmarital births, and improving child support consequences of nonmarital and teen births. collections and paternity establishment; (3) the [Section 101 of PRWORA] flexibility provided by the 1996 law for states to develop innovative programs; and establishing the sense of Congress that increasing success in moving families from welfare to work and promoting healthy marriage and other means of improving child well-being are important government interests and the policies in federal TANF law (as amended by this bill) are intended to serve those ends. [Section 4] TANF goals and The purpose of TANF is to increase state The overall purpose of TANF is to improve child Retains current law except for goal no. 4, which purposes flexibility in operating a program designed to: well-being by increasing state flexibility in adopts language of House bill. [Section 103(d)] (1) assist needy families so that children may live operating a program designed to: (1) provide in their homes or those of relatives; (2) end assistance and services to needy families so that dependence of needy parents on government children may live in their homes or those of benefits; (3) reduce out-of-wedlock pregnancies; relatives, (2) end dependence of needy families on and (4) encourage the formation and maintenance government benefits and reduce poverty; (3) of two-parent families. reduce out-of-wedlock pregnancies; and (4) [Section 401 of the Social Security Act (SSA)] encourage the formation and maintenance of CRS-9 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) healthy, two-parent married families and encourage responsible fatherhood. [New language in italics] [Section 101] TANF Financing Provisions State family Provides capped grants (entitlements to states and Retains basic block grants, and extends them for Essentially the same as House bill, but language assistance grants territories) through March 31, 2005. Nationally, FY2004 through 2008. (Section 102(a) differs because of intervening passage of TANF annual family assistance grants total $16.567 Appropriates $16.567 billion annually for family extension law -- P.L. 108-40. [Section 102] billion for the states, the District of Columbia assistance grants to the states, D.C., and the (D.C.), and the territories. Each jurisdiction's territories. Provides that the annual grant of each annual grant equals the same share of the national jurisdiction shall equal its FY2002 proportion of total as in FY2002. (Section 403(a)(1) of the the national grant total. [Section 102(b)]. Extends SSA), as amended by P.L. 108-40 and extended funding for matching grants to the territories by P.L. 108-89 Also provides matching grants through FY2008. [Section 102(c)]. for the territories (Section 1108(b) of the SSA). (Original PRWORA formula based TANF grants on federal expenditures for TANF's predecessor programs in FY1992 through FY1995.) Supplemental grant Supplemental grants for (17) states with low Reestablishes annual supplemental grants for Same as House bill [Section 104] for population historic federal grants per poor person and/or high FY2004 through FY2007, freezing them at the increases in certain population growth for FY1998-FY2001 (extended FY2001 level ($319 million). [Section 104] states at FY2001 funding level for FY2002 by P.L. 107- 147 and thereafter -- through March 31, 2005-- by a series of laws. Grants grew each year, from $79 million in FY1998 to $319 million in FY2001. [Section 403(a)(3) of SSA] Requires the budget baseline to assume that no Requires the budget baseline to assume that no Same as House bill. [Section 104(2)] supplemental grants will be made after March 31, supplemental grants will be made after FY2007. 2005. [Section 101(b)(1) of P.L. 108-89] [Section 104(3)] CRS-10 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Bonus to reward High performance bonus ($200 million per year Replaces the high performance bonus with a bonus Same as House bill. [Section 105(a)] employment on average) for FY1999-FY2003. Caps a state's to reward employment achievement (annual achievement bonus at 5% of its TANF grant. [Section average of $100 million appropriated for six years, 403(a)(4) of the SSA] FY2004 through FY2009). Caps a state's bonus at 5% of its family assistance grant. [Section 105(b)] Bonus based on achievement of TANF goals, with Bonus to be based on absolute and relative Same as House bill, except that it adds two new formula developed by the Department of Health progress toward goals of job entry, job retention, performance measures: workforce attachment and Human Services (HHS) in consultation with and increased earnings. Formula to be developed and advancement. [Section 105(a)] the National Governors Association and the by HHS, in consultation with the states. [Section American Public Human Services Association. 105(b)] For FY1999-FY2001 performance, formula consisted of three work-related measures (job entry, job retention, and earnings gain). For FY2002 and FY2003 performance, formula adds family formation outcomes, child care affordability, and coverage by food stamps and Medicaid/SCHIP. [Section 403(a)(4) of the SSA] Makes tribal organizations eligible for the bonus Same as House bill. [Section 105(a)] and directs the Secretary to consult with tribal organizations regarding criteria for their awards. [Section 105(b)] Reduces FY2003 high performance bonus amount No provision. to $100 million. [Section 105(a)] Provides that appropriated amounts unspent (as of No provision. the date of enactment) for high performance bonuses will be available through FY2004 for payment of high performance bonuses for bonus year 2003 -- on terms in effect before repeal of that bonus. [Section 105(b)] CRS-11 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) For FY2004, employment achievement bonus may For FY2004 and FY2005, employment be based on three components of the repealed high achievement bonus may be based on three performance bonus -- job entry rate, job retention components of the repealed high performance rate, and earnings gain rate. [Section 105(b)] bonus -- job entry rate, job retention rate, and Note: Reduction in annual bonuses from $200 earnings gain rate. [Section 105(a)] million to $100 million per year helps finance grants for marriage promotion activities (see Matching Grants for Marriage Promotion, below). Bonus to reward Appropriated $100 million yearly for bonuses to Repeals the bonus, and uses the $100 million per Same as the House bill. [Section 103(b)] reductions in out- the five states with the largest percentage decline year to fund grants for marriage promotion of-wedlock births (over recent two years) in the out-of-wedlock activities (see Matching Grants for Marriage birth ratio. To qualify, states had to reduce their Promotion, below). [Section 103(b)] abortion rate to below that of FY1995. [Section 403(a)(2) of the SSA] Contingency fund Capped matching grants ($2 billion) provided in Reestablishes a $2 billion contingency fund for Appropriates such sums as are needed for case of recession for FY1997-FY2001 (extended FY2004 through FY2008. Eases access to the fund contingency fund grants, up to $2 billion over through September 30, 2002 by P.L. 107-147 and by permitting states to count child care spending five years, FY2004-FY2008. Reduces the level through March 31, 2005 by a series of laws). To and all spending in separate state programs toward of state spending required to qualify (from 100% qualify for contingency dollars, states must be MOE spending requirement. Eliminates the pro- of the state's historic level to 75-80%, the "needy" and must spend under the TANF rata reduction in the federal match rate for states standard TANF MOE) and eliminates the program a sum of their own dollars equal to their that qualify for funds only for part of the year. requirement for state matching funds. Entitles pre-TANF spending. The law provides two needy Adjusts food stamp "needy state" trigger for policy needy states to a contingency fund grant state triggers: 1) an unemployment rate for a changes made after passage of 1996 welfare law reflecting costs of TANF caseloads. Revises three-month period that is at least 6.5% and is Effective date: October 1, 2003. [Section 106] needy state definition. To trigger on as needy, a 10% or more above the rate for the state must (1) have an increase (due in large corresponding period in either of the two measure to economic conditions) of 5% in the preceding calendar years; or 2) a food stamp monthly average unduplicated number of caseload increase of 10% over the FY1994- families receiving assistance under its TANF FY1995 level (adjusted for the impact of program in the most recently concluded three- immigrant and food stamp constraints in the 1996 month period with data, compared with the welfare law). Payments are capped at 20% of a corresponding period in either of the two most state's basic TANF grant and a state can draw recent preceding fiscal years, and (2) meet one down no more than one-twelfth of its grant in a of three other conditions. They are: (a) for the given month. Under a reconciliation process, its most recent three-month period with data, the CRS-12 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) federal match rate is reduced if it received funds average rate of seasonally adjusted total for fewer than 12 months in any year. [Section unemployment must be at least 1.5 percentage 403(b) of SSA] points or 50% higher than in the corresponding period in either of the two most recent preceding fiscal years; (b) for the most recent 13 weeks with data, the average rate of insured unemployment must be at least one percentage point higher than in the corresponding period in either of the two most recent fiscal years; or, (c) for the most recently concluded three-months with national data, the monthly average number of food stamp recipient households, as of the last day of each month, exceeds by at least 15% the corresponding caseload number in the comparable period in either of the two most recent preceding fiscal years, provided the HHS Secretary and the Secretary of Agriculture agree that the increased caseload was due, in large measure, to economic conditions rather than to policy change. A state that initially qualifies as needy because of its TANF caseload plus its food stamp caseload would continue to be considered needy as long as the state met the original qualifying conditions. A state that initially qualified as needy because of its TANF caseload plus its total or insured unemployment rate would not trigger off until its unemployment rate fell below the original qualifying level (disregarding seasonal variations in the case of the insured unemployment rate). The contingency fund grant equals the state's federal Medicaid matching rate times the benefit cost of an increase in the TANF family caseload above 5% in the most recently concluded three- month period with data, compared with the CRS-13 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) corresponding period in either of the two most recent preceding fiscal years. (The remaining cost of the increased caseload would have to be paid with state funds or other federal TANF funds.) A state's total contingency grant could not exceed 10% of its family assistance grant. To receive a contingency fund grant, a state must have spent 70% of its TANF grants (excluding welfare-to-work funds from the Department of Labor). Unexpended balances are the total amount of TANF grants not yet spent by the state as of the end of the preceding fiscal year minus current year expenditures through the end of the most recent quarter that exceed the pro rata share of the current fiscal year TANF grant. [Section 106] Repeals the fiscal penalty for failure of a state that receives contingency funds to meet the "super-MOE" requirement (100% of its historic spending level). [Section 106] However, specifies that a state could not be considered needy unless it has met the lesser TANF MOE spending requirement (75%-80%). [Section 106]. Additional grants Social service No provision. No provision. Authorizes appropriation of $40 million for each capitalization of FY2004-FY2008 for grants to entities for the purpose of capitalizing and developing the role of sustainable social services needed for success in moving TANF recipients to work. Requires applicants to describe their strategy for developing a program that generates its own source of on-going revenue while assisting CRS-14 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) TANF recipients. Administrative costs could not exceed 15% (except for computerization and information technology needed for tracking or monitoring required by TANF), but none of the other statutory rules regarding use of TANF funds would apply. Requires evaluation and report to Congress. [Section 119(a)] Car ownership No provision. No provision. Authorizes appropriation of $25 million for each grants of FY2004-FY2009 for grants for low-income car ownership. Purposes: to improve employment opportunities of low-income families and provide incentives to states, Indian tribes, localities, and nonprofit groups to develop and administer programs that promote car ownership by low-income families. No more than 5% of the funds could be used for administrative costs of the Secretary in carrying out this program. Requires evaluation. [Section 119(b)] Repeal of federal Provides a $1.7 billion revolving and interest- Repeals loan fund. [Section 108] Same as House bill. [Section 108] loan fund bearing federal loan fund for state welfare programs. [Section 406 of the SSA] Maintenance of Establishes a maintenance-of-effort (MOE) Continues MOE requirement through FY2009, but Same as House bill. [Section 111] effort requirement that states spend at least 75% of what raises the MOE percentage to 80% if the state was spent from state funding in FY1994 on failed TANF work participation standards of the programs replaced by TANF. Nationally, this preceding fiscal year. [Section 111(a)] sum is $10.4 billion. (MOE rises to 80% if state fails a work participation standard, see above.) [Section 409(a)(7) of the SSA] Defines all state expenditures to reduce out-of- Same as House bill, except that Senate bill wedlock births and promote marriage and specifies that two current law MOE limitations responsible fatherhood (including spending on would apply. These provisions exclude from CRS-15 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) behalf of non-TANF-eligible families) as countable MOE qualification spending in other state toward required "maintenance-of-effort" (MOE) programs unless the sum exceeds the FY1995 state spending. [Section 103(c)] amount spent in those programs and spending made to repay penalties imposed on the state. [Section 103(c)] Provides that spending (as the state match) from TANF funds used as the state match for marriage federal marriage promotion grants shall not be promotion grants shall not be considered State treated as state spending toward MOE spending countable toward the MOE requirements. [Section 111(b)] requirement. [Section 103(b)]. Funding for child PRWORA created a mandatory child care block Increases mandatory child care funding by $1 For mandatory child care, same as House bill. care grant and appropriated $13.9 billion for it over six billion over five years, providing $2.9 billion [Section 116 (a)] No provision for discretionary years. [Section 418 of the SSA] It also annually. [Section 208] Authorizes increased funding. (The Senate Health, Education, Labor authorized $1 billion annually through FY2002 in CCDBG funds for FY2004-FY2007. [Section and Pensions committee reported a separate bill, discretionary funding under an expanded Child 202(b)] S. 880, to reauthorize discretionary CCDBG Care and Development Block Grant (CCDBG). funding.) [Section 603(a) of PRWORA] FY2003 appropriations totaled $4.8 billion -- $2.7 billion in mandatory funds and $2.1 billion in discretionary funds. (In addition, the welfare law permits states to transfer some TANF funds to the CCDBG.) No provision. Sets aside $10 million in mandatory child care funds for the Commonwealth of Puerto Rico. [Section 116(b)] Use of funds General rules States may use funds in any manner reasonably No provision (maintains current law). No provision (maintains current law). calculated to accomplish the TANF purpose. [Section 404 of the SSA] CRS-16 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) States may use funds in any manner that they States may use funds for any purposes or activities No provision (maintains current law). were authorized to use pre-TANF funds. [Section for which they were authorized to use pre-TANF 404 of the SSA] funds. [Section 107(a)] A state may treat a family that has resided in the Strikes provision permitting different treatment of Same as House bill. [Section 107(a)] state for fewer than 12 months under the welfare families migrating into the state -- found rules of the state where they formerly lived. unconstitutional. [Section 107(b)] [Section 404 of the SSA] Transfer of funds States may transfer up to 30% of TANF funds to Increases the overall ceiling on transfers to 50%. Retains overall transfer limit at 30%. Sets limit the Child Care and Development Block Grant [Section 107(c)] Sets limit on SSBG transfers at on SSBG transfers at 10%. [Section 107(b)] (CCDBG) and the Title XX Social Services Block 10% (original limit in 1996 law) for FY2004 and Grant (SSBG). Specifies that a maximum of each year thereafter. [Section 107(d)] 4.25% of total transfers may go to SSBG, effective in FY2001 ( but year-by-year Congress has restored the original 10% limit.) Also allows states to use TANF funds, within the overall 30% transfer limit, as matching funds for the Job Access transportation program for TANF recipients, ex-recipients, and persons at risk of becoming income-eligible for TANF. [Section 404 of the SSA] Carryover of funds Amounts may be spent without fiscal year limit Allows use of carry-over funds from TANF grants Same as House bill. [Section 107(c)] for "assistance" (chiefly ongoing cash aid). For for any benefit or service without fiscal year other benefits and services ("nonassistance") limitation. Permits a state or tribe to designate amounts must be obligated in the year of award some TANF funds as a contingency reserve. and spent in the following year. [Section 404 of [Section 107(e)] the SSA] Use of funds for States may use funds for educational activities (to No provision. Allows states to use TANF funds to establish an education promote a TANF goal or because these activities undergraduate two- or four-year degree were allowed under pre-1996 law). However, postsecondary program sometimes known as only three educational activities may be counted Parents as Scholars (PAS) or a vocational toward state work participation rates: high school educational program. Following services could attendance, education directly related to work be provided in these undergraduate programs: CRS-17 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) (both for high school dropouts only) and child care, transportation, payment for books and vocational educational training. Unless it is supplies, other services provided under policies defined by the state as vocational educational determined by the state to ensure coordination training, postsecondary education is not a and lack of duplication. TANF funds could not countable work activity. [Section 407(d) of the be used for tuition. Participants in these SSA] educational programs could be counted toward state work participation standards. See Countable Activities. Direct funding and Earmarks some TANF funds -- amount equal to Continues Indian tribal assistance grants and NEW Same as House bill. [Section 113(a)] administration by federal pre-TANF payments received by state work/training grants through FY2008. [Section Indian tribes attributable to Indians -- for administration by 114] tribes. Deducts these sums from state TANF grants. Also appropriates $7.6 million annually for work and training activities (now known as Native Employment Works (NEW)) to tribes that operated a pre-TANF work and training program. [Section 412 of the SSA] No provision. for tribal improvement fund. Authorizes appropriation of $100 million for However, see below for $2 million annual setaside each of FY2004-FY2008 for a tribal TANF from research appropriation for demonstration improvement fund. The fund could be used to projects to coordinate child welfare and TANF provide technical assistance to tribes, award services to tribal families. competitive grants to tribes, and conduct research to improve knowledge about tribal family assistance plans. [Section 113(b)] Work Participation Requirements and Standards Universal State plan must require that a parent or caretaker Repeals the 24-month work trigger. Requires state Same as House bill. [Section 110] engagement and engage in work (as defined by the state) after, at plans to outline how they intend to require parents family self- most, 24 months of assistance. [Section and caretakers to engage in work or alternative sufficiency plan 402(a)(1)(ii) of the SSA]. Note: This sufficiency activities, as defined by the state -- requirements requirement is not enforced by a specific penalty. while observing the ban on penalizing work refusal (States may, but need not, establish an individual by a single parent of a preschool child who is responsibility plan for each family in consultation unable to obtain needed child care for specified CRS-18 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) with the recipient.) [Section 408(b)(2) of the reasons -- and to require families to engage in SSA] activities in accordance with family self- sufficiency plans. [Section 109(a)] States must make an initial assessment of the Requires states, in a manner they deem Requires states to make an initial screening and skills, prior work experience, and employability appropriate, to assess the skills, work experience, assessment, in a manner they deem appropriate, of each recipient 18 or older or those who have and employability of each work-eligible person (a of the skills, work experience, education, work not completed high school within 30 days. person who is married or a single household head readiness, work barriers and employability of [Section 408(b)(1) of the SSA] and whose needs -- except for sanction periods of each adult or minor child head of household more than three months -- are included in recipient who has attained age 18 or who has not determining the family's TANF cash benefit) and completed high school and to assess, in a manner to develop a family self-sufficiency plan for each they deem appropriate, the work support and family with such a person. Plans must be other assistance and family support services for established within 60 days of opening a case which families are eligible and the well-being of (within 12 months for families enrolled at the time the family's children and, where appropriate, of enactment). [Section 109(b)] activities or resources to improve their well being. Requires states, in a manner they deem appropriate, to establish a self-sufficiency plan for each family. Required plan contents: activities designed to assist the family achieve their maximum degree of self-sufficiency, requirement that the recipient participate in activities in accordance with the plan, supportive services that the state intends to provide, steps to promote child well-being and, when appropriate, adolescent well-being , information about work support assistance for which the family may be eligible (such as food stamps, medicaid, SCHIP, federal or state funded child care -- including that provided under the Child Care and Development Block Grant and the Social Services Block Grant, EITC, low-income home energy assistance, WIC, WIA program, and housing assistance). The state must monitor the participation of adults and minor child household heads in the self-sufficiency plans and regularly CRS-19 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) review the family's progress, using methods it deems appropriate, and revise the plan when appropriate. Before imposing a sanction against a recipient for failure to comply with a TANF rule or a requirement of the self-sufficiency plan, the state must, to the extent that it deems appropriate, review the plan and make a good faith effort (defined by the state) to consult with the family. States must comply with self- sufficiency plan requirements within one year after enactment (for families then receiving TANF). For families not enrolled on the date of enactment, the deadline for self-sufficiency plans is the later of: 60 days after the family first receives assistance on the basis of its most recent application, or one year after enactment. Provides that nothing in the self-sufficiency plan provisions shall be construed to establish a private right or cause of action against a state for failure to comply with the provisions or to limit claims that might be available under other federal or state laws. Requires the General Accounting Office to submit a report to the Ways and Means and Finance Committees evaluating the implementation of the universal engagement provisions of the bill. [Section 110] Imposes a penalty on state for failure to establish Same as House bill, except that penalty must be self-sufficiency plan by revising the penalty based on the degree of substantial provision for failure to achieve work participation noncompliance and the Secretary is directed to rate. Provides that failure to comply with self- take various factors into account in setting the sufficiency requirements or to achieve work penalty. These factors include the number or participation standards will carry the same penalty percentage of families for whom a self- -- 5% reduction in TANF grant for first violation, sufficiency plan is not established in a timely reduced for the degree of noncompliance. [Section fashion, duration of delays, whether the failures 109(b)] See Penalty for failing participation rate. are isolated and nonrecurring, and the existence CRS-20 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) of systems to ensure establishment and monitoring of plans. Penalty may be reduced if the failure is due to circumstances that caused the state to meet the criteria for contingency funds or is due to extraordinary circumstances such as a natural disaster or regional recession. Requires Secretary, in a written report to Congress, to justify any waiver or penalty reduction due to extraordinary circumstances. [Section 110] Sanctions against If person in a family receiving TANF assistance If a person in a family receiving TANF assistance No provision (maintains current law) individuals for refuses to engage in required work, the state shall fails to engage in required activities and the family work refusal reduce aid to the family pro rata (or more, at state does not otherwise engage in activities in option) with respect to the period of work refusal, accordance with its self-sufficiency plan, the state or shall discontinue aid, subject to good cause and must impose a penalty as follows: other exceptions that the state may establish. (a) If the failure is partial and does not last longer [Section 407(e) of the SSA] than one month, the state must reduce assistance to the family pro rata (or more, at state option) with respect to any period of failure during the month, or shall end all assistance to the family, subject to good cause exceptions that the state may establish. (b) If the failure is total and persists for at least two consecutive months, the state must end all cash payments to the family, including state-funded MOE payments, for at least one month and thereafter until the person participates, subject to good cause exceptions that the state may establish. (Exception: If a state constitution or a state statute enacted before 1966 obligated local government to provide assistance to needy parents and children, the state requirement is to control, but only for one year that begins with the date of enactment of this paragraph.) [Section 110(f)] CRS-21 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Exception: a state may not penalize a single Continues this provision. Same as House bill. parent caring for a child under age six for refusal to work if the parent has a demonstrated inability to obtain needed child care that is appropriate, suitable, and affordable. [Section 407(e) of the SSA] Work participation For a minimum number of hours, a state must For a minimum number of hours, a state must For a minimum number of hours, a state must requirements engage a specified percentage of families engage a specified percentage of families engage a specified percentage of families containing adult or teen parent recipients in containing adult or teen parent recipients in direct containing adult or teen parent recipients in a creditable work activities. Since FY2002 the work or alternative self-sufficiency activities creditable activity. Participation rates are the participation standard has been 50% for all chosen by the state. In FY2004 the standard is same as in the House bill. [Section 109(b)] families (and since FY1999 it has been 90% for 50%, and it rises by five percentage points yearly the two-parent component of the caseload). (55% for 2005, 60% for 2006, 65% for 2007) to [Section 407(a) of the SSA] reach a peak of 70% for FY2008 and thereafter. [Section 110(b)] Required participation rates may be reduced by a Required participation rates may be reduced by Required participation rates may be reduced by caseload reduction credit (see below). caseload reduction and "superachiever" credits (see caseload reduction or employment credits, but a below). cap is placed on these credits. Employment credits (or caseload reduction credits or a combination of the two) may not reduce participation standards below 10% for FY2004, 20% for FY2005; 30% for FY2006, 40% for FY2007, and 50% for FY2008 and thereafter. [Section 109(c)] (see below). Effective October 1, 2002, eliminates the separate Same as House bill. [Section 109(a)] standard for two-parent families. [Section 110(a)] Caseload reduction Work participation standards are reduced by a Measures caseload reduction from a moving base Retains current law caseload reduction credit for credit caseload reduction credit: for each percent year (rather than from FY1995) and shortens the FY2004 and FY2005. Effective October 1, decline in the caseload from the FY1995 level measuring interval. Also changes the eligibility 2005, replaces the caseload reduction credit with (not attributable to policy changes), the work criteria base year from FY1995 to the new moving an employment credit (subject to limits shown participation standard is reduced by one base. For FY2004, the credit is based on the above). [Section 109(d)] percentage point. [Section 407(3) of the SSA] percent decline in the caseload from FY1996 (not CRS-22 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) due to changes in eligibility criteria from FY1996); for FY2005, the base year is FY1998; for FY2006, FY2001. For FY2007 and every year thereafter, the measuring interval is three years. [Section 110(c)] Establishes a "superachiever" caseload reduction No provision. credit for a state with a reduction in FY2001 of at least 60% (for any reason) from FY1995 level. Places a cap on this credit (20 percentage points for FY2008, lesser amounts for earlier years). [Section 110(d)] Employment credit No provision. No provision. Establishes a percentage point "employment" credit against the work participation standard (subject to limits described above). Essentially, the credit equals a multiple of the percentage of TANF families in a month who leave ongoing cash assistance with a job. It is calculated by dividing (a) twice the quarterly average unduplicated number of families (excluding child-only families) that received TANF assistance during the preceding fiscal year but who ceased to receive TANF -- and did not receive cash assistance from a separate state- funded program -- for at least two consecutive months following case closure during the applicable period (most recent four quarters with data) and were employed during the calendar quarter immediately after leaving TANF by (b) the average monthly number of families (again excluding child-only families) who received cash payments under TANF during the preceding fiscal year. At state option, calculations could include in the numerator: (1) twice the quarterly average number of families CRS-23 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) that received non-recurring short term benefits rather than ongoing cash and who earned at least $1,000 in the quarter after receiving the benefit, and (2) twice the quarterly average number of families that included an adult who received substantial child care or transportation assistance. If both these options were taken, the denominator would be increased by twice the number of families that received non-recurring short-term benefits during the year and by twice the quarterly average number of families with an adult who received substantial child care or transportation assistance. In consultation with directors of state TANF programs, the Secretary is to define substantial child care or transportation assistance, specifying a threshold for each type of aid -- a dollar value or a time duration. The definition must take account of large one-time transition payments. [Section 109(d)] Gives extra credit -- as 1.5 families -- to a family whose earnings during the preceding fiscal year equaled at least 33% of the state's average wage. [Section 109(d)] Authorizes and requires the HHS Secretary to use information in the National Directory of New Hires to calculate state employment credits. If the TANF leaver's employer is not required to report new hires, the Secretary must use quarterly wage information submitted by the state. To calculate employment credits for families who received non-recurring short term benefits and for those who received substantial child care and transportation assistance, the CRS-24 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Secretary is to use other required data. By August 30 of each year, the HHS Secretary must notify each state of the amount of the employment credit that will be used in calculating participation rates for the immediately succeeding fiscal year. [Section 109(d)] Sets October 1, 2005 as the effective date for replacement of the caseload reduction credit by the employment credit, but permits states to have a one-year delay. If a state makes this choice, its adjusted work participation standard for FY2006 shall be determined by using both the caseload reduction credit and the employment credit (one-half credit for each). [Section 109(d)] Calculation of Participation rates equal the share of total families Participation rates equal the share of hours spent in Participation rates equal the share of total participation rates (with adult and teen parent recipients) who work creditable activities out of a potential total of 160 families (with adult and teen parent recipients) sufficient hours in counted activities to be hours monthly per counted family. (A counted who work in countable activities. The monthly credited as a participant. The monthly family is one whose household head receives participation rate, expressed as a percentage, participation rate, expressed as a percentage, TANF assistance.) Monthly participation rate, equals (a) the number of all recipient families in equals (a) the number of all recipient families in expressed as a percentage, is (a) the total number which an individual is engaged in work activities which an individual is engaged in work activities of countable hours, divided by (b) 160 times the for the month, divided by (b) the number of for the month, divided by (b) the number of number of counted families for the month. This recipient families with an adult or teen parent recipient families with an adult or teen parent means that a family would receive full work credit recipient (but excluding families subject that recipient (but excluding families subject that by working 160 hours a month, equivalent to a month to a penalty for work refusal, provided month to a penalty for work refusal, provided weekly average of 37 hours -- 160/4.33. (The they have not been penalized for more than three they have not been penalized for more than three average month contains 4.33 weeks, not 4.) The months). States also may exclude from work months). States also may exclude from work bill specifies that if a family does not engage in a participation calculations families with children participation calculations single-parent families direct work activity for a weekly average of 24 under one, if they are not required to work, and with children under one, if they are not required hours, its countable hours for the month shall be all families during their first month of TANF to work. States have the option to include in work zero. However, under some circumstances, allows assistance. States have the option to include in CRS-25 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) participation calculations families in a tribal credit for hours below 24. Allows credit for some work participation calculations families in a TANF program or NEW job training program. hours above 40. See Partial credit and Extra tribal TANF program or NEW job training [Section 407(b) of SSA] [Note: except for teen credit below. [Section 110(e)] program. Calculates weekly hours of work parents, single parents with a child under six, and activity by dividing monthly hours by 4. Allows participants in a tribal program with different hour some credit for hours below or above the requirements, families must work an average of at standard. See Partial credit and Extra credit least 30 hours weekly to be counted as working.] below. [Section 109] Permits states to exclude a new group from work Same as House bill, except that the exclusion is participation calculations -- families in first month determined on a case-by-case basis. [Section of assistance. [Section 110(b)] 109(e)] Permits states to exclude all families with infants Same as House bill, except that it allows (not just single-parent families) from work exclusion of families of infants only for 12 participation calculations, but requires case-by-case months. [Section 109(e)] determination of all work exclusions for parents of infants. [Section 110(b)] Penalty for failing Participation rates are enforced by a penalty on Retains penalty rate of current law (including Provides that penalty (beginning for FY2005) participation rate states: loss of 5% of the state's basic grant for increase in MOE requirement) for state failure to must be based on the degree of substantial first year of violation (higher penalty for repeat meet participation standards. noncompliance. Directs the Secretary to take violations). Penalty must be based on the degree into account factors such as the degree to which of noncompliance and may be reduced if the the state missed the participation rate, the change noncompliance is due to circumstances that made in the number of persons engaged in work since the state needy under the contingency fund the prior year, and the number of consecutive definition or due to extraordinary circumstances years in which the state failed to achieve the such as a natural disaster or regional recession. work rate. Penalty may be reduced if the failure State must replace the amount of federal penalty is due to circumstances that caused the state to funds with its own funds. [Section 409(a)(3) of meet the criteria for contingency funds or is due SSA] In addition, the state's MOE spending to extraordinary circumstances such as a natural requirement rises from 75% to 80% of its historic disaster or regional recession. Requires level. Secretary, in a written report to Congress, to CRS-26 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) justify any waiver or penalty reduction due to extraordinary circumstances. [Section 110] Countable activities Listed in law or bill Federal law lists 12 activities that count toward Lists six "direct" work activities. Generally these Lists 17 countable activities. Continues current meeting the participation standards. Nine six activities must account for most weekly hours: law list of 12 activities (treating the nine priority activities have priority status and must account for unsubsidized jobs, subsidized private jobs, activities in current law as direct work [core] most weekly hours: unsubsidized jobs, subsidized subsidized public jobs, on-the-job training, activities). Adds five "qualified" activities: private jobs, subsidized public jobs, work supervised work experience, and supervised postsecondary education (including a parents as experience, on-the-job training; job search, community service. [Section 110(e)] scholars program, described below), adult community service; vocational educational literacy programs or activities, substance abuse training providing child care for certain TANF counseling or treatment, programs or activities recipients. Three other activities can receive work designed to remove work barriers, as defined by credit: job skills training directly related to the state, and work activities authorized under employment; education directly related to work any waiver for any state that was continued (high-school dropouts only), and secondary under Section 415 before the date of enactment school attendance (high school dropouts). On one of this bill. Under some conditions, treats some occasion per person, a state may treat three or of the qualified activities as "rehabilitative" ones four days weekly of job search as a full week's (see below). participation. [Section 407(d) of the SSA] See Required Hours of Work. CRS-27 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) State options for None States may define any other activity as countable Permits a state to deem a single parent caring for activities (generally for non-core hours) so long as it leads to a dependent with a physical or mental self-sufficiency and is consistent with the purposes impairment to be meeting all or part of the of TANF. [Section 110(e)] family's work requirement. Permits a state to define countable work activities for persons complying with a family self sufficiency plan and living in areas of Indian country or an Alaskan native village with high "joblessness." To qualify for this option, the state must include in its TANF plan a description of its policies for these areas. Also, as noted above, allows states to define work-barrier removal activities and to adopt activities authorized under any waiver for any state that was continuing before the date of enactment. [Section 109(f)] Time limits on Job search -- six weeks usual maximum (with no No provision (maintains current law). Removes time limits on job search and activities more than four consecutive weeks). Period vocational educational training for persons allowed for job search doubles to 12 weeks if the receiving qualified rehabilitative services. state meets the unemployment or increased food Deletes requirement that only four consecutive stamp caseload criteria for a needy state under the weeks of job search can be counted within the contingency fund or its unemployment rate is normal six week limit. Doubles the permissible more than 50% of the national average. length of job search if the state meets the Vocational educational training, 12 month limit. unemployment rate or increased food stamp [Section 407(d) of the SSA] caseload criteria for a "needy state" under the contingency fund definition. [Section 109(f)] For three consecutive months within 24 months, For three months in any 24-month period, a state persons may be deemed to meet the 24-hour may give work credit for any hours spent in one weekly direct work requirement by engaging in of the five "qualified" activities above -- even if short-term "qualified" activities chosen by the state the person has not engaged for 24 hours weekly to promote self-sufficiency (examples listed in the in direct work. To receive credit, the person CRS-28 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) bill are substance abuse counseling or treatment; must engage for an average of at least 24 hours rehabilitation treatment and services; work-related in a qualified activity, and the activity must be in education or training directly enabling the family her self-sufficiency plan. [Section 109(f)] member for work; and job search or job readiness assistance). [Section 110(e)] On a case-by-case basis, and in order to permit a In some cases a state may give work credit for a person to complete a certificate program or other second three-month period (within the 24-month work-related education or training program, a state limit) -- sometimes called the 3+3 plan -- to may give direct work credit for engaging in a persons engaged in a combination of qualified qualified program for a total of four months within rehabiliitative activities and priority work a 24-month period. [Section 110(e)] activities. Eligible for this period of extended time are persons whose family self-sufficiency plan requires engagement in one of three qualified rehabilitative services, namely, adult literacy programs or activities, participation in a program designed to increase proficiency in the English language, and substance abuse or mental health treatment. Total hours of their activity must average 24 hours weekly. {Section 109(f)] Numerical limits No more than 30% of persons credited with work Omits this provision from amended section on Continues the 30% cap, but provides that it does may consist of persons participating in vocational counting participation. not apply to persons in a 3+3 program receiving educational training or may be teen parents who qualified rehabilitative services or to persons are deemed to be working because of satisfactory engaging in vocational educational training as a attendance at secondary school or because of supplementary activity after meeting the 24 hour spending 20 hours weekly in education directly "core" requirement. [Section 109(f)] related to employment. [Section 407(c)(2)(D) of SSA] CRS-29 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Parents as scholars States may use TANF funds and MOE state funds No provision. Allows states to establish a program (under for postsecondary education. However, unless it Section 107) of undergraduate postsecondary is defined by the state as "vocational educational education (parents as scholars) or vocational training," postsecondary education is not educational training for up to 10% of TANF creditable toward TANF work participation families. Hours of participation in the program requirements. would be countable toward meeting state work requirements. Students could also receive credit for hours spent in one of the nine "direct" work activities of current law or in work study, practicums, internships, clinical placements, laboratory or field work, or other activities that would enhance their employability, as determined by the state, or in study time (at the rate of not less than one hour for every hour of class time and not more than two hours for every hour of class time. Students' total time in education, core work, work study, laboratory or field work, study time, etc., would be countable against hours requirements. Also, students could be credited as one working family if, in addition to complying with the full-time educational participation requirements of their educational program, they engaged in one of the countable work activities above for at least the following number of hours: six hours weekly in the first year, eight hours in the second year, 10 hours in the third year, and 12 hours in the fourth and any later year. For good cause, states could modify these hour requirements. To be eligible for these programs, recipients would be required to maintain satisfactory academic progress (as CRS-30 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) defined by the institution operating the program). With good cause exceptions, participants would be required to complete requirements of a degree or vocational educational training program within the normal time frame for full time students. [Section 107(d)] Required hours of Generally, to count toward the all-family rate, Generally, states must engage all families with a Establishes standard TANF work weeks as work activity average weekly participation of 30 hours (20 "work- eligible" member (married or single follows: 24 hours for a single parent with a child hours in priority work activities) is required. household head who receives TANF assistance) in under age six; 34 hours for a single parent with However, in the case of single parents with a a direct work activity or alternative self-sufficiency a child over six (with 24 hours in a priority preschool age child (who constitute half of all activity for an average of 40 hours weekly (the activity) 39 hours for a two-parent family (but TANF cases), the hours requirement is 20 per actual standard is 160 hours per month, equal to a 55 hours if that family receives federally funded week. For two-parent families the standard is 35 weekly average of 37 hours) -- of which 24 hours child care) -- with most hours in a priority hours (30 in priority work activity), but increases must be in one of the direct work activities listed in activity. Families meeting the standard are to 55 hours (50 in priority activities) if the family the law and up to 16 hours may be in a TANF- counted as one family in calculating the state's receives federally-subsidized child care. [Section purposeful activity chosen by the state. [Section work participating rate. Those exceeding the 407(c)(1) of the SSA] For a single parent caring 110(e)] standard receive extra credit, and some who fall for a child under age six, 20 hours of participation short of the standard receive partial credit (see satisfies the standard. [Section 407(c)(2)(B) of below). [Section 109(f)] the SSA] Teen parents are deemed to meet the weekly hour Essentially the same as current law. Teen parents Counted as one working family is a teen parent participation standard by maintaining satisfactory are deemed to satisfy the (40-hour weekly) work who maintains satisfactory school attendance or attendance in secondary school (or the equivalent rule by virtue of satisfactory school attendance (or participates in education directly related to in the month) or by participating in education the equivalent in the month) or by participating in employment for an average of 20 hours weekly. directly related to employment for an average of education directly related to employment for an [Section 109(f)] 20 hours weekly. [Section 407(c)(2)(C) of the average of 20 hours weekly [Section 110(e)]. SSA] CRS-31 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Partial work credit None Families who meet the 24-hour weekly direct work Families who meet core work requirements but requirement but fail the 40-hour standard, receive fail the full standard receive partial credit as credit for all hours worked (but zero credit unless follows: Credited as .675 of a family are single meet the 24-hour direct work rule). Note: parent families (with or without a child under Generally, to receive any credit for hours below the six) who have 20-23 hours of work and two- standard, families must engage for all counted parent families with 26-29 hours of work (40-44 hours in one of the six direct work (core) activities. hours if they receive federally subsidized child Exception, as noted above (time-limited activities) care). Counted as .75 of a family are single a state may give direct work credit for hours spent parent families without a preschool child who on education or training (as qualified activities) for work 24-29 hours and two-parent families with up to four months in a 24-month period. 30-34 hours (45-50 if they receive child care). Counted as .875 of a family are single parent families without a preschool child who work 30- 33 hours and two-parent families who work 35- 38 hours (51-54 hours if they receive child care). [Section 109(f)] Note: generally, to receive any credit for hours below the 24 hour standard, a single parent family must engage for all these hours in one of the nine direct work activities and a two-parent family must spend all hours at or below 34 weekly in one of these activities (50 hours if the family receives federally funded child care and has no disabled member). However, as noted above (time-limited activities -- a state may give work credit for any hours spent in one of the five qualified activities for up to six months in a 24-month period). CRS-32 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Extra work credit None Counts all hours worked above the 40 -- hour full Families who exceed the standard hourly work weekly standard, provided 24 hours are spent in requirement receive extra credit, as follows. direct work (or, for a limited time, in certain other Credited as 1.05 of a family are single-parent qualified activities) and no more than 16 hours are families who work 35-37 hours and two-parent in non-priority activities. [Section 110(c)] families who work 40-42 hours (56-58 hours if they receive child care). Credited as 1.08 of a family are single parent families who work 38 or more hours and two-parent families who work 43 or more hours (59 or more hours if they receive child care). [Section 109(f)] Marriage Promotion TANF goals and Two purposes relate to marriage. One goal is to The stated purpose of promoting the formation and Same as House bill. [Section 103(d)] purposes end dependency of needy parents on government maintenance of two-parent families is modified to benefits, with one of the stated means of read: encourage the formation and maintenance of accomplishing the goal specified as marriage. A healthy, two-parent married families and second purpose is to encourage the formation and encourage responsible fatherhood. [New language maintenance of two-parent families. in italics] [Section 101] Funding for No provision for special grants states may use Appropriates $100 million annually for FY2003 Appropriates $100 million annually for FY2004 marriage promotion TANF block grants to promote formation and through FY2008 for 50% competitive matching through FY2008 for 50% competitive matching matching grants maintenance of two-parent families (program goal grants to states, territories and tribal organizations grants to states, territories, Indian tribes, and no. 4) and to promote marriage as a means of for programs to promote and support healthy, tribal organizations for programs to promote and ending dependence on government benefits (goal married two-parent families. Note: Grants are support healthy, married two-parent families. no. 2). funded by repeal of out-of-wedlock birth bonus in Note: Grants are funded by repeal of out-of- current law. [Section 103(b)] wedlock birth bonus in current law. [Section 103(b)] CRS-33 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Makes funds appropriated for FY2003 available to Makes funds appropriated for each of FY2004 the Secretary through FY2004 for grants for through FY2008 available to the Secretary until FY2003). [Section 103(b)] expanded. Also, permits grantees to use funds without fiscal year deadline. [Section 103(b)] Provides that federal TANF funds used for Provides that federal TANF funds used for marriage promotion must be treated as state marriage promotion may be treated as state matching funds for marriage promotion grants matching funds for marriage promotion grants (Section 111(b)(1) See Maintenance of Effort for (Section 103(b). See Maintenance of Effort for treatment of TANF spending on behalf of marriage treatment of TANF spending on behalf of promotion. marriage promotion. No provision. Provides that general rules governing uses of TANF block grant funds (other than administrative limit) shall not apply to marriage promotion grants. [Section 103(b)] CRS-34 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Allowable activities Grants may be used for many activities, including Lists same activities as House bill, but specifies for marriage advertising campaigns; education in high schools; that participation must be voluntary in marriage promotion grants marriage education, marriage skills and education, marriage skills and relationships skills relationship skills programs that may include programs, pre-marital education and married parenting skills, financial management, conflict skills training, marriage enhancement and resolution, and job and career advancement for divorce reduction programs, and marriage non-married pregnant women and expectant mentoring programs. Also, allows marriage fathers; pre-marital education and marriage skills education, marriage skills, and relationship skills training for engaged couples and individuals and programs for non-married recent parents. couples interested in marriage; marriage enhancement and marriage skills training programs for married couples; divorce reduction programs; marriage mentoring programs; and programs to reduce marriage disincentives in means -- tested programs, if offered in conjunction with any other listed activity. No provision. Forbids award of a grant unless the applicant has consulted with experts in domestic violence or with community domestic violence coalitions in developing [marriage promotion] programs or activities. Application must describe how the program/activities will deal with issues of domestic violence and how the grantee will ensure that participation in the marriage promotion program is voluntary. [Section 103(b)] CRS-35 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Research and No special provision to fund research or Appropriates $102 million each for FY2003 Appropriates $100 million each for FY2004 demonstrations on demonstrations. However, available TANF through FY2008 for research and demonstration through FY2008 for research and demonstration marriage promotion r e search fund s (see Res e a r c h a n d projects and for technical assistance to states, tribal projects and for technical assistance to states, Demonstrations, below) and other research funds organizations, and other entities chosen by the tribal organizations, and other entities chosen by provided to the Department of Health and Human Secretary. Specifies that these funds must be spent the Secretary. Specifies that 80% of these funds Service may be used to evaluate marriage primarily on activities allowed under marriage must be spent on research and demonstration promotion initiatives. promotion grants (see above). (Sets aside $2 projects, or for providing technical assistance, in million yearly for demonstration projects for connection with activities allowed under coordination of child welfare and TANF services marriage promotion grants (see above). [Section to tribal families at risk of child abuse or neglect.) 114(a)] Provides that funds appropriated for FY2003 shall remain available through FY2004. [Section 115(a)] Forbids Secretary to pay these research funds to an entity that has not consulted with domestic violence experts in developing marriage promotion programs (see above). [Section 114(a)] State Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions State plan Each state must outline (generally in a plan Adds requirement that each state describe what it Essentially the same as House bill. [Section requirements effective for three fiscal years), how it intends to: will do to end dependence of needy families on 101] conduct a program providing cash assistance to government benefits and reducing poverty by needy families with children and providing promoting job preparation and work and; parents with work and support services; require encourage formation and maintenance of healthy, caretaker recipients to engage in work (at state two-parent married families, encourage responsible definition) after 24 months of aid or sooner, if fatherhood, and prevent and reduce the incidence then judged work-ready; ensure that caretakers of out-of-wedlock pregnancies. Adds requirement engage in work in accordance with the law; take that each state describe any strategies that it is steps deemed necessary by the state to restrict use undertaking to deal with (a) employment retention CRS-36 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) and disclosure of information about recipients; and advancement for recipients; (b) efforts to establish goals and take action to prevent/reduce reduce teen pregnancy; (c) services for struggling the incidence of out-of-wedlock pregnancies; and and noncompliant families and for clients with conduct a program providing education and special problems; and (d) program integration, training on the problem of statutory rape. In including the extent to which employment and addition, the plan must indicate whether the state training services are provided through the One- intends to treat families moving into the state Stop Career Center System created under the differently from others; indicate whether the state Workforce Investment Act of 1998. Requires each intends to aid noncitizens; set forth objective state to describe strategies to improve program criteria for benefit delivery and for fair and management and performance. [Section 112]. equitable treatment; and provide that, unless the governor opts out by notice to HHS, the state will Strikes provision requiring goals to reduce out-of- require a parent who has received TANF for two wedlock pregnancies and replaces it with months and is not work-exempt to participate in requirement that states establish specific numerical community service employment. In the plan the performance goals, measures, measurement state must certify that it will operate a child methodology, and plans to improve outcomes support enforcement program and a foster care regarding each of TANF's four goals. and adoption assistance program and provide equitable access to Indians ineligible for aid under Specifies that performance measures must be a tribal plan. It must certify that it has established consistent with criteria used by the Secretary in standards against program fraud and abuse. It establishing targets for the performance must specify which state agency or agencies will achievement bonus. administer and supervise TANF. In addition, the state may opt to certify that it has established and Strikes provision requiring community service is enforcing procedures to screen and identify after two months of benefits unless state opts out. recipients with a history of domestic violence, to [Section 112]. refer them to services, and to waive program rules for some of them. [Section 402(a) of the SSA] CRS-37 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Authorizes states to administer and provide TANF Requires state plans to describe strategies and If state is undertaking efforts to engage faith- services through contracts with charitable, programs to engage religious organizations in the based organizations in providing TANF-funded religious, or private organizations and to pay provision of TANF-funded services. [Section 112] services or that otherwise relate to the charitable recipients by means of certificates, vouchers, or choice provision of PRWORA, requires state other disbursement forms redeemable with these plans to describe these strategies and programs. organizations. Stipulates that any religious [Section 101(a)] organization with a contract to provide welfare services shall retain independence from government and requires states to provide an alternative provider for a beneficiary who objects to the religious character of the designated organization. [Section 104 of PRWORA] States must certify that they will provide equitable Requires tribal family assistance plans to provide Same as House bill. [Section 101(c)] access to TANF to Indians who are ineligible for assurance that the state in which the tribe is located tribal family assistance programs. [Section 402(a) has been consulted regarding the plan and its of the SSA] design. [Section 112] Requires plan to describe how the state intends to Same as House bill. [Section 101(c)] encourage equitable treatment of healthy, married two-parent families under TANF. [Section 103(a)] No provision. Requires the plan to include a report detailing progress toward full engagement. [Section 101(a)] No provision. If state provides TANF-funded transportation aid, requires certification by the governor that state and local transportation officials and planning bodies have been consulted in development of the plan. [Section 101(a)] CRS-38 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) No provision. Requires the HHS Secretary to develop a proposed Standard State Plan Form for use by states not later than nine months after date of enactment of the bill. Requires states to make drafts of proposed plans (and plan amendments) available to the public through a state-maintained Internet website and through other means found appropriate by the state available to the public proposed plan states also must make TANF state plans in effect for any fiscal year available to the public, by the above means. [Section 101(b)]. Performance No provision. (However for the purpose of Requires the Secretary, in consultation with the Same provision. [Section 101(d)] measures awarding performance bonuses, the Secretary is to states, to develop uniform performance measures develop a formula in consultation with the to judge the effectiveness and improvement of state national Governors Association and the American programs in accomplishing TANF purposes. Public Welfare Association.) [Section 112(c)] Rankings of states Directs HHS Secretary to rank states in order of Deletes "long-term" qualifier from private job Same as House bill except that it adds three other success in moving recipients into long-term measure. Adds employment retention and ability new ranking factors: the degree to which private jobs and reducing the proportion of out- to increase wages to factors used for rankings. recipients have workplace attachment and of-wedlock births and in both cases to review [Section 112(d)] advancement, reducing the overall welfare programs of the three states with highest and caseload, and, when a practicable method of lowest ratings. [Section 413(d) and(e) of the SSA] calculation becomes practicable, diverting persons from making formal applications to TANF. [Section 101(e)] No provision. In ranking states, Secretary must take into account the average number of minor children living at home in families with income below the CRS-39 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) poverty line and the amount of TANF funding provided to each state for these families. [Section 101(e)] Data collection and States are required to collect monthly, and report Requires quarterly reports to cover families in Same as House bill. [Section 112(a)] reporting quarterly, disaggregated case record information MOE-funded separate state programs, as well as (but may use sample case record information for those in TANF state programs. Permits the this purpose) about recipient families in the Secretary to limit use of sampling by designating TANF program. [Section 411(a) of the SSA] core elements that must be reported for all families. Required family information includes: [Section 113(a)] -- county of residence, -- whether a member received disability benefits, -- ages of members, -- size of family and the relation of each member to the family head, -- employment status and earnings of the employed adult, -- marital status of adults; -- amount of unearned income received by family members; -- citizenship of family members; -- number of families and persons receiving aid under TANF (including the number of two-parent and one-parent families); -- total dollar value of assistance given; -- total number of families and persons aided by welfare-to-work grants (and the number whose participation ended during a month); -- number of noncustodial parents who participated in work activities; -- for each teenager, whether he/she is the parent of a child in the family. CRS-40 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) -- race and educational level of each adult; Adds race and educational level of each minor Same as House bill. -- race and educational level of each child; parent. Deletes educational level of each child. -- whether the family received subsidized Strikes "if the latter two, the amount." housing medicaid, food stamps, or subsidized child care (and if the latter two, the amount); -- number of months that the family received Strikes "each type" of aid and requires the reason; Same as House bill. each type of aid under the program; if applicable, for extending aid beyond 60 months. -- number of hours per week, if any, that adults Adds to reported activity list: training and other Same as House bill. participated in specified activities (education, activities directed at TANF purposes. Adds and subsidized private jobs; unsubsidized jobs, public (job) placement to job search. Omits job skills sector jobs, work experience, or community training and vocational education. Specifies that service, job search, job skills training or on-the work experience and community service are job training, vocational education); "supervised." From a sample of closed cases, the quarterly Deletes marriage. Same as House bill. report is to give the number of case closures because of employment, marriage, time limit, sanction, or state policy. -- information needed to calculate participation Adds information needed to calculate progress Same as House bill. rates; toward universal engagement. -- type and amount of assistance received under Deletes type of assistance. Same as House bill. the program; including the amount of and reason for any reduction of assistance; Requires new information on recipient families in Same as House bill. the quarterly report: -- the date the family first received aid on the basis of its most recent application; -- whether a self-sufficiency plan is established for the family; -- the marital status of the parents of any child in the family at the birth of the child, and if the CRS-41 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) parents were not then married, whether the paternity of the child has been established. Requires quarterly reports to include the number of Same as House bill. [Section 112(c)] families and persons who became ineligible to receive TANF during the month (broken down by the number that lost eligibility because of earnings, changes in family composition that result in higher earnings, sanctions, time limits, or other specified reasons). [Section 113(c)] Use of sample data For quarterly reports, permits states to submit Authorizes Secretary to designate core data Same as House bill. [Section 112(b)] disaggregated case record data information on a elements that must be reported for all families. sample of families. [Section 411(a) of the SSA] [Section 113(b)] Monthly state No provision. Requires states to submit monthly reports on the Same as House bill except that it also requires reports number of families and persons receiving monthly reports on the number of families and assistance. [Section 113(e)] persons receiving assistance under separate state programs funded with MOE dollars. [Section 112(e)]. Annual state reports Regulations require states to annually submit a Requires states to submit an annual report on Same as House bill. [Section 112(e)] program report (by December 31 of each year) characteristics of the state TANF program and providing financial eligibility rules for all other state programs funded with MOE funds. programs funded by TANF or state MOE funds. Required information: program name and purpose, For each MOE program, reports are to include the description of program activities, sources of name, purpose, and eligibility criteria. funding, number of beneficiaries, sanction policies, and any work requirements. [Section 113(e)] Beginning with FY2005, states must submit to Same as House bill. [Section 112(e)] HHS an annual report on achievement and improvement under numerical performance goals and measures. Data elements The HHS Secretary shall prescribe regulations to The HHS Secretary shall prescribe regulations Same as House bill. [Section 112(d)] define data elements for required state reports and needed to define data elements and to collect CRS-42 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) shall consult with the Secretary of Labor in necessary data and shall consult with the National defining data elements regarding programs Governors Association, the American Public operated with welfare-to-work funds. Human Services Association, the National Conference of State Legislatures, and others in defining the data elements. [Section 113(d)] HHS reports Requires the HHS Secretary to make annual Sets July 1 of each fiscal year as the deadline for Same as House bill. [Section 112(f)] reports to Congress that include state progress in the report. Deletes applicant families from the meeting TANF objectives (increasing report. Adds requirement to report on employment and earnings of needy families and characteristics of MOE-funded programs. [Section child support collections, and decreasing out-of- 113(f)] wedlock pregnancies and child poverty), demographic and financial characteristics of applicants, recipients, and ex-recipients; characteristics of each TANF program; and trends in employment and earnings of needy families with children. Requires the HHS Secretary to submit to four committees of Congress annual reports on specified matters about three groups: children whose families lost TANF eligibility because of a time limit, children born after enactment of TANF to teen parents, and persons who became teen parents after enactment. [Section 413(g) of the SSA] Single audit reports TANF payments to states are subject to the Single The Secretary, within three months of receiving an No provision. Audit Act. audit from a state, shall analyze it to identify the extent and nature of problems related to the state's oversight of contracts between nongovernmental entities and the state TANF program. [Section 113(g)] CRS-43 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Research, evaluations, and national studies Research on state Requires HHS Secretary to conduct research on Continues these provisions and appropriates $15 Same as House bill. [Section 114(b)] programs effects, costs, and benefits of state programs. million annually for them through FY2008. Provides that Secretary may help states develop [Section 115] innovative approaches to employing TANF recipients and shall evaluate them. For six years, appropriates $15 million yearly and directs how it shall be divided. [Section 413(h) of the SSA. (Note: In subsequent appropriation acts, Congress has rescinded these provisions and appropriated research funds on a less prescriptive basis under Section 1110 of the Social Security Act, which deals with cooperative research and demonstration projects.) Census Bureau Directs the Census Bureau to expand the Survey Appropriates $10 million annually for FY2004 Same as House bill. [Section 115(a) and (c)] study of Income and Program Participation (SIPP) to through FY2008 to the Census Bureau. Directs the provision. obtain data with which to evaluate TANF's Bureau to implement or enhance a longitudinal impact on random national sample of recipients. survey of program participation to permit Appropriates $10 million annually for seven assessment of outcomes of continued reform on the years. [Section 414 of the SSA] economic and child well-being of low-income families with children, including those who received TANF-funded aid or services. Survey content should include information needed to examine the issues of out-of-wedlock childbearing, marriage, welfare dependency, beginning and ending of spells of assistance, work, earnings, and employment stability. To the extent possible, survey is to provide state representative samples. Funds are to remain available through FY2008 for this survey. [Section 116(a)] CRS-44 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) No provision. Requires the secretary of Commerce to make reports to the Ways and Means and Finance Committees on the well-being of children and families, based on data collected in the above study. First report is due two years after enactment; the second one, five years after enactment. [Section 115(b) General Accounting Directs the General Accounting Office to study the No provision. Office study combined effect of the phase-out rates for federal programs that provide support to low-income persons and families moving from welfare to work, at all earning levels up to $35,000 per year, for at least five states, including Wisconsin and California. Study is to include any potential disincentives to marry or achieve independence that are created by the combined phase-out rates. Report is due to Congress not later than one year after enactment. [Section 116(b)] Waivers and Permits the HHS Secretary to waive compliance Creates "superwaiver" authority for states (or Creates "superwaiver" authority for up to 10 program with requirements for TANF state plans (and for portions of a state) to coordinate rules of specified states (including any portion of a state) to coordination child support plans), but not for any other part of programs for low-income families. Covers these coordinate rules of three specified programs for TANF law (including work standards, time limits, 10 programs and activities: TANF, Welfare-to- low-income families (all under jurisdiction of the funding rules, and penalties). [Section 1115 of Work grants, SSBG, Job Opportunities for Low- Finance Committee): TANF, SSBG, child care the SSA] Income Individuals (JOLI), Title I of WIA entitlement funds. Essentially the same as in the (excluding JOB Corps), Adult Education and House bill are most provisions, including: Family Literacy Act, CCDBG, U.S. Housing Act application procedures, rules for cost neutrality, (excepting Section 8 rental assistance and set- non-waivable provisions, program purposes, and asides for the elderly and disabled), Homeless project duration. Evaluation rules are more Assistance Act; and the food stamp program. detailed. Applicants must give assurances that Specified provisions (including non-financial food they will obtain an evaluation by an independent stamp rules and any funding restriction in an contractor and that random assignment of clients appropriations act) could not be waived. Also non- to services and control groups will be used to the waivable: Civil rights provisions, program maximum extent feasible. [Section 114(c)] CRS-45 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) purposes or goals, state spending requirements, health or safety rules, labor standards, and others Funds could not be transferred from one account to another, and projects could not increase federal costs. Waivers would be valid for up to five years. Purposes: supporting working persons and families, helping families escape welfare dependency, promoting child well-being, or helping build stronger families. Applications to waive specific provisions of two or more programs could be made by the head of a state entity or a sub-state entity administering the programs. Waiver approval would be required by each relevant Secretary. In general, an application would be deemed approved unless disapproved within 90 days. Requires annual reports to Congress. Applicants must give assurance that they will conduct ongoing and final evaluations. [Section 601] Authorizes five states to replace food stamps with No provision.. demonstrations of food assistance block grant projects. [Section 602] Not later than six months after enactment, requires No provision. the Secretaries of HHS and Labor to submit a joint report describing common or conflicting data elements, definitions, performance measures, and reporting requirements in the Workforce Investment Act and TANF law. [Section 115(d)] CRS-46 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Definition of Receipt of assistance by a parent or other Defines "assistance" to mean payment, by cash, Same as House bill. [Section 117] assistance caretaker relative triggers work and time limit voucher, or other means, to or for an individual or rules. Law does not define the term. By family to meet a subsistence need, but not regulation, assistance is defined as ongoing aid to including costs of transportation or child care. It meet basic needs, plus support services such as excludes non-recurrent short-term benefits. child care and transportation subsidies, for [Section 117] unemployed recipients. It excludes non-recurrent short term benefits. Federally-funded "assistance" to a family with an adult is limited to 60 months; states may impose shorter time limits. By regulation, assistance is defined as ongoing aid to meet basic needs, plus support services such as child care and transportation subsidies, for unemployed recipients. It excludes non-recurrent short term benefits. Technical Makes a number of technical corrections to current Same as House bill [Section 120] corrections law. [Section 118] State option to The Workforce Investment Act (WIA) makes Makes state TANF programs mandatory partners No provision. make TANF TANF an optional partner with one-stop with one-stop employment training centers programs employment training centers. established under the Workforce Investment Act mandatory partners unless the governor of a state decides otherwise with one-stop WIA and so notifies the Secretaries of Health and centers Human Services and Labor. [Section 120]. Sense of the Provides that it is the sense of Congress that a state No provision. Congress welfare-to-work program should include mentoring. [Section 121] CRS-47 Current law H.R. 4 (House-passed) H.R. 4 (Senate Finance Committee) Enforcing support Requires sponsors of immigrants to sign a legally Not later than March 31, 2004, requires the HHS No provision. of immigrants by enforceable affidavit of support. Deems all Secretary, in consultation with the Attorney sponsors income and resources of a sponsor (and the General, to submit a report on the enforcement of sponsor's spouse) as available to the sponsored affidavits of support and sponsor deeming required alien until he or she becomes naturalized or by P.L. 104-193. [Section 115(c)] meets a work test. [Sections 421 and 423 of the SSA] Extension through Except as otherwise provided in this Act and the No longer relevant. FY2003 amendments made by it, activities authorized by the TANF part of the Social Security Act (SSA) and by Section 1108(b) of the SSA (TANF and child welfare in the territories) shall continue through FY2003, in the manner authorized, and at the level provided, for FY2002. [Section 122]. ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL32210