For other versions of this document, see http://wikileaks.org/wiki/CRS-RL32834
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                                                    Order Code RL32834




                   CRS Report for Congress
                                       Received through the CRS Web




TANF Reauthorization: Side-by-Side Comparison
           of Current Law, S. 667, and H.R. 240
                             (TANF Provisions)




                                     Updated September 26, 2005




                                                        Gene Falk
                                    Domestic Social Policy Division




 Congressional Research Service ~ The Library of Congress
 TANF Reauthorization: Side-by-Side Comparison of
 Current Law, S. 667, and H.R. 240 (TANF Provisions)

Summary
     The 109th Congress is considering legislation to reauthorize the block grant of
Temporary Assistance for Needy Families (TANF) for five years. Congress has
inconclusively debated long-term TANF authorizations since 2002, instead adopting
short-term extensions. The latest extension (P.L. 109-19) funds the program through
December 31, 2005. Thus far in the 109th Congress, the Senate Finance Committee
has reported S. 667 (S.Rept. 109-51). A bill introduced by House Republican
leaders, H.R. 240, has received approval from the House Ways and Means
Committee's Subcommittee on Human Resources.

      S. 667 and H.R. 240 are very similar in terms of how they would continue
funding under the TANF program. Both bills extend basic TANF funding at current
levels ($16.6 billion for the 50 states, the District of Columbia, and the territories)
through FY2010 and extend supplemental grants provided to 17 states through
FY2009. Both bills provide new, categorical grants for marriage promotion activities
totaling $200 million per year financed through a reduction in current TANF bonuses
to states. The major difference in the TANF funding provisions of the two bills is
how they provide extra contingency (recession-related) funding to the states. H.R.
240 essentially extends the current law fund that provides matching grants to states
experiencing high and increased unemployment rates and food stamp caseloads. S.
667 eliminates the requirement that states expend additional money to access
contingency funds, and instead bases extra funding on the cost of increased caseloads
for states that meet revised unemployment or food stamp caseload criteria.

      The two bills would substantially revise the TANF work participation standards
that states must meet. 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 S. 667 and H.R. 240 would
raise this standard to 70%, though under both bills the standard could be reduced
through credits (though the credits differ between the two bills). Both also eliminate
a separate 90% participation rate requirement for two-parent families. Both bills
would raise the minimum hours required of family members in order to be considered
full participants, though H.R. 240 would raise them by more than would S. 667. The
bills also differ in the activities countable toward the participation standards: H.R.
240 narrows 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 themselves define what counts as
"activities." S. 667 keeps all activities under current law as countable, and allows
states to count a wider range of activities for three months (more under some
circumstances).

      Both bills contain non-TANF provisions relating to child support enforcement,
responsible "fatherhood" programs, and transitional medical assistance (not
addressed herein). This report will be updated as S. 667 and H.R. 240 move through
the legislative process.
Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Summary of the Similarities and Differences Between the Two Bills . . . . . . . . . 1
   TANF Funding Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
        Basic Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
        Supplemental Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
        Contingency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
        Uses of Grants and Program Requirements . . . . . . . . . . . . . . . . . . . . . . 3
   Work Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
        Participation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
        Hours Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
        Creditable Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
   Marriage Promotion Grants and Family Formation Issues . . . . . . . . . . . . . . 6
   Other TANF Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Detailed Comparison of TANF Provisions of S. 667 and H.R. 240 . . . . . . . . . . . 7

Short Title, Findings, and Statement of TANF Goals and Purposes . . . . . . . . . . . 8

Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

TANF Goals and Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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
    Needy State Eligibility Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
    Financial Eligibility Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
    Contingency Fund Grant Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
    Tribal Eligibility for Contingency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Additional Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
    Social Service Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
    Car Ownership Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
    Transitional Jobs/business Links Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
    Domestic Violence Prevention Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Repeal of Federal Loan Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Maintenance of Effort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Funding for Child Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
    Puerto Rico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
    General Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
    Transfer of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Carryover of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
    Use of Funds for Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Direct Funding and Administration by Indian Tribes . . . . . . . . . . . . . . . . . . . . . 18
     Tribal Work Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
     Tribal Capacity Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Work Participation Requirements and Standards . . . . . . . . . . . . . . . . . . . . . . . . 19

Universal Engagement and Family Self-sufficiency Plan Requirements . . . . . . 19

Sanctions Against Individuals for Work Refusal . . . . . . . . . . . . . . . . . . . . . . . . 22

Work Participation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
   Caseload Reduction Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
   Employment Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
   Study of the Employment Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
   Calculation of Participation Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
   Infant Exemption from the Work Participation Rate . . . . . . . . . . . . . . . . . . 27
   Excluding Families in Their First Month of Assistance from
         the Work Participation Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
   Treatment of Sanctioned Families in the Work Participation Rate . . . . . . . 27
   Penalty for Failing Participation Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Countable Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
    "Core" Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
    Qualified Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
    Supplemental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
    Postsecondary Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
    Special Rules for Rehabilitative Activities . . . . . . . . . . . . . . . . . . . . . . . . . 31
    Caring for a Disabled Family Member . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
    Work Activities in Indian Areas of High Joblessness . . . . . . . . . . . . . . . . . 31
    Numerical Limits on Vocational Education and Teen Parents . . . . . . . . . . 32

Required Hours of Work Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
    Special Rule for Teen Parents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
    Partial Work Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
    Extra Work Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Other Requirements with Respect to Families Receiving Assistance . . . . . . . . . 34

Drug Testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Eligibility for Teen Parents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Displacement of Regular Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Marriage Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

TANF Goals and Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Funding for Marriage Promotion Matching Grants . . . . . . . . . . . . . . . . . . . . . . . 37
    Allowable Activities for Marriage Promotion Grants . . . . . . . . . . . . . . . . . 37
    Domestic Violence Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
    Requirements for Voluntary Participation . . . . . . . . . . . . . . . . . . . . . . . . . . 38
    Performance Goals/reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . 39

Research and Demonstrations on Marriage Promotion . . . . . . . . . . . . . . . . . . . . 40
    Provisions to Address Domestic Violence and Voluntary Participation
         Issues for Research Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

State Plans, Data Reporting, Research (Other than Marriage Promotion)
     and Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
     State Plan Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
     Participation of Faith-based Organizations in Provision of Services . . . . . 42
     State Plan Requirement for Community Service after Two Months . . . . . . 42
     Measurable Performance Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
     Program Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
     Description of State Assistance Programs . . . . . . . . . . . . . . . . . . . . . . . . . . 43
     Indian and Tribal Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
     Two-parent Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
     Description of Additional State Options for the Work Requirements . . . . . 44
     Standard Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
     Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
     Rankings of States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Data Collection and Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
    Data Reporting on Work Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
    Data Reporting on Indians . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
    Reporting on Families Leaving TANF . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
    Reports for Families Receiving TANF-funded Child Care . . . . . . . . . . . . . 49
    Monthly State Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
    Annual State Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

HHS Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
   Information on Indians in the TANF Annual Report . . . . . . . . . . . . . . . . . . 51

Single Audit Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Research, Evaluations, and National Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
    Research on State Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
    Indicators of Child Well-being . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
    Research on Tribal Social Services Issues . . . . . . . . . . . . . . . . . . . . . . . . . . 52
    Census Bureau Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Teen Pregnancy Resource Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Best Practices for Dealing with Domestic Violence . . . . . . . . . . . . . . . . . . . . . . 54

Waivers and Program Coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

State Option to Make TANF Programs Mandatory Partners with
     One-stop WIA Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Sense of the Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Enforcing Support of Immigrants by Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . 57


List of Tables
Table 1. Comparison of Current Law with S. 667 and H.R. 240
    (TANF Provisions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
     TANF Reauthorization: Side-by-Side
    Comparison of Current Law, S. 667, and
        H.R. 240 (TANF Provisions)

                                Introduction
     The 109th Congress is considering legislation to reauthorize the block grant of
Temporary Assistance for Needy Families (TANF) for five years. The 108th
Congress and its predecessor, the 107th Congress, both inconclusively debated a long-
term authorization for TANF and related programs. The program has received 11
short-term extensions since the original funding authority for TANF expired on
September 30, 2002. The latest extension ( P.L. 109-68) funds the program through
December 31, 2005.

     The Senate Finance Committee has reported an original bill, S. 667 (S.Rept.
109-51). H.R. 240, introduced by House Republican leaders and making its way
through House committees of jurisdiction, is similar to bills that passed the House
in 2002 and 2003. That bill was approved by the House Ways and Means
Committee's Subcommittee on Human Resources on March 15, and awaits full
committee action, as well as consideration by other committees that have
jurisdictions over parts of the bill.1


      Summary of the Similarities and Differences
               Between the Two Bills
     S. 667 and H.R. 240 have many similarities, with both extending basic TANF
funding at current levels through FY2010 and incorporating President Bush's
proposal to provide categorical "marriage promotion" grants. Both bills also raise
TANF work participation standards, though the two differ 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 S. 667 and
H.R. 240. It does not address non-TANF provisions of both bills, such as revisions
to the Child Care and Development Fund, Child Support Enforcement, Abstinence
Education, and transitional Medicaid. One of the key differences between S. 667 and
H.R. 240 is the level of funding for child care. S. 667 would add $6 billion over five


1
 In addition to the House Ways and Means Committee, H.R. 240 was referred to the House
Committees on Energy and Commerce, Education and the Workforce, Agriculture, and
Financial Services.
                                       CRS-2

years to current levels of mandatory child care funding. H.R. 240 would add $1
billion over five years above current levels of mandatory child care funding.

TANF Funding Provisions
     S. 667 and H.R. 240 have very similar funding provisions, although they do
differ in some details. The major difference in the funding provision between the
two bills is that S. 667 would completely revamp the TANF contingency (recession)
funds, while H.R. 240 would make relatively minor revisions to the fund.

      Basic Funding. The 1996 welfare reform law (P.L. 104-193) 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. Cash welfare caseloads were at their peak in the mid-1990s; 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 S. 667 and H.R. 240 would continue both the basic block grant and the
MOE at their current funding levels (without inflation or caseload adjustment)
through FY2010.

     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) those 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.

     Currently, supplemental grants total $319 million per year. Both S. 667 and
H.R. 240 would continue supplemental grants for the same 17 states at the current
funding level through FY2009 (unlike other grants, which expire in FY2010).

      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 differ substantially in their revisions to the TANF contingency
fund. H.R. 240 would continue the fund on existing rules, with some relatively
minor modifications: allowing some additional state spending to count toward
                                       CRS-3

meeting the FY1994 funding level threshold and modifications to increase grants for
states that qualify for funds for only part of the year.

      S. 667 fully revamps the contingency fund. It would eliminate the requirement
that states increase expenditures from their own funds above the regular TANF MOE
level and eliminate the matching requirements. Instead, it requires that unspent
TANF balances be below a certain threshold to qualify for contingency funds. S. 667
would base contingency grants on a portion of the estimated cost of increased cash
assistance caseloads. It also would revise 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. The limit on transfers to SSBG alone is set at 4.25% (though annual
appropriations have restored the SSBG transfer limit to its original limit of 10% set
in the 1996 welfare law). 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 set the SSBG transfer limit permanently at 10%. H.R. 240
would raise the overall transfer limit to 50%; S. 667 would retain the current 30%
transfer limit.

    Both bills include provisions to ease some rules regarding use of TANF funds.
Both S. 667 and H.R. 240 would:

     !   Allow 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."

     !   Narrow the definition of "assistance" to exclude all child care and
         transportation aid. TANF funds spent on assistance trigger certain
         program requirements, such as work requirements, 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 eliminate such aid
         from the definition of "assistance," freeing from these requirements
         nonworking families that receive only child care or transportation
         aid.

Work Requirements
    Both S. 667 and H.R. 240 incorporate the Bush Administration's "universal
engagement" proposal, which requires states to develop a self-sufficiency plan for all
TANF adult recipients to monitor progress toward that plan. H.R. 240 also requires
                                         CRS-4

states to end benefits ("full family sanction") for families that fail to comply with
work participation rules.

     Both S. 667 and H.R. 240 would substantially revise TANF work participation
standards. Both bills would raise work participation standards that states must meet
from the current law's standard of 50% to 70%, raise the required hours of working
to receive full credit and provide partial credit for participating families that do not
meet the full credit standard, and revise the list of activities that recipients may
participate in for states to receive credit toward TANF standards. However, the bills
differ in how they do these three things.

     Participation 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
reductions (not attributable to policy changes) that occurred 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 FY2003, the standard was reduced to 0% for 20 states.

      Both S. 667 and H.R. 240 raise the work participation standard for all families
to 70% by FY2010, and eliminate the separate standard for two-parent families. Both
bills also change the credits that reduce these standards from their statutory rate (i.e.,
reduce the 70% standard to a lower rate), but they do so in different ways. H.R. 240
retains, but revises, the current law 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 be measured based on the most
recent four years. The House bill also includes a provision to give an additional
credit to states that achieved a caseload reduction of 60% or more from FY1995 to
FY2001.

     S. 667 retains the current caseload reduction credit for FY2006 and FY2007, but
beginning in FY2008 would replace the caseload reduction credit with a credit for
employed welfare leavers. The bill would also cap all credits against the
participation standard, so that the minimum effective standard would be 10% in
FY2006, 20% in FY2007, 30% in FY2008, 40% in FY2009, and 50% in FY2010.
There is no such minimum effective standard in H.R. 240.

     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
child (under the age of 6), and 30 hours is required for other families. Higher hours
are set for the purposes of the two-parent work participation rate.

     Both S. 667 and H.R. 240 raise the hours standards. H.R. 240 incorporates a 40-
hour workweek standard for full credit, but would also provide "partial" credit for
families with at least 24 hours of participation. No special lower-hour standard
would be provided for single parents with preschoolers.
                                        CRS-5

     S. 667 also raises the hours standard for full credit, but to a lesser extent than
proposed in the House-passed bill. Single parents with a pre-school child would be
given full credit for participation at 24 hours per week, and other single-parent
families would be given full credit at 34 hours per week. Partial credit for single
parent families would be 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 are 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.

     H.R. 240 and S. 667 differ significantly on the types of activities countable as
core activities toward the participation standards. H.R. 240 narrows the list of core
activities by eliminating job search and vocational education. Instead, the bill would
give states almost total discretion to define activities that would be countable for
three months in a 24-month period (four months to complete training), but once those
months are exhausted, the only activities that would count toward the work
participation standards are work, on-the-job training, community service, or work
experience. Moreover, since job search and vocational education would be countable
as sole or primary activities only during the three (or four) months that the state
would have discretion, any weeks of participation in job search reduce the number
of weeks that vocational education counts toward the participation standards.

     On the other hand, S. 667 retains the current law list of core activities. It too
provides states additional discretion by permitting states to count an expanded list of
activities for three months in a 24-month period (longer for rehabilitative activities).
However, this additional discretion is provided in addition to, rather than instead of,
six weeks of job search and 12 months of vocational educational training, which are
retained as "core" activities.

     Both H.R. 240 and S. 667 would give states additional discretion in defining
activities countable once a family has met the "core" work requirement (generally,
24 hours per week in core activities). H.R. 240 would allow states to define activities
for families with at least 24 hours in core activities; S. 667 would allow states to
count an expanded set of activities for single-parent families with at least 24 hours
per week in core activities.

     S. 667 includes some additional options for counting participation in activities
toward TANF work standards. It would allow 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. It also
allows for participation in rehabilitative activities for disabled persons (including
                                         CRS-6

treatment of drug and alcohol abuse) if they combine rehabilitation with at least 10
hours of "core" activities and if the state develops a collaborative relationship
between agencies and entities providing rehabilitative services and the state TANF
agency. Additionally, S. 667 allows caring for a disabled family member to count as
a work activity under certain circumstances.

Marriage Promotion Grants and Family Formation Issues
     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 S. 667 and H.R. 240 would carve out special "marriage promotion grants"
from existing TANF funding. Both bills include $100 million in competitively
awarded matching funds for states, territories, and tribes for marriage promotion
activities. The bills would allow states to use other federal TANF funds or state
funds as the match for these new marriage promotion grants.

    Both bills also would provide an additional $100 million for research and
demonstrations. H.R. 240 would require that these funds be used "primarily" for
marriage promotion; S. 667 would require that 80% of these funds be used for
marriage promotion.

     Marriage promotion activities listed in both bills are: 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 be funded from these grants only if offered
in conjunction with other marriage activities.

     Although the two bills provide similar funding for "marriage promotion"
activities, they differ significantly in the details of their provisions authorizing these
grants. S. 667 has 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. S. 667 also
prohibits states from sanctioning recipients who do not participate in marriage
promotion activities.

Other TANF Provisions
     Both S. 667 and H.R. 240 would make 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
                                        CRS-7

comparison table shown below. Among the other TANF provisions addressed in the
reauthorization bills:

     !   H.R. 240 (as amended by the House Ways and Means Subcommittee
         on Human Resources) would require states to conduct drug tests on
         applicants and recipients of TANF assistance if the state believes the
         individual has recently used drugs. Positive drug tests would lead
         to a required sanction of the family's benefit, potentially ending
         benefits to the family for up to three years.

     !   S. 667 includes authorizations for additional special-purpose
         (categorical) grants other than marriage promotion grants that would
         be added to the TANF block grant. These grants include those to
         allow states to operate programs to purchase cars; transitional
         jobs/business link grants for model employment and training
         programs for TANF recipients with barriers; grants for organizations
         that create "self-sustaining" social services (e.g., Goodwill
         Industries); and domestic violence grants.

     !   S. 667 allows states to provide assistance for teen parents not living
         with an adult for up to 60 days, to provide a period for the teen to
         come into compliance with the current law requirement to live at
         home or in an adult-supervised setting.

     !   S. 667 includes several provisions relating to tribal welfare
         programs, including a $5 million per year increase in funding for
         tribal work programs, an $80 million (over five years) grant for
         tribes for activities that aim to increase their capacity to operate
         TANF programs, and tribal eligibility for TANF contingency and
         bonus funds. H.R. 240 funds tribal TANF programs and work
         program at current levels through FY2010 and makes tribal
         organizations eligible for TANF bonuses.


         Detailed Comparison of TANF Provisions
                   of S. 667 and H.R. 240
     Table 1 provides a detailed comparison of the TANF provisions of S. 667 and
H.R. 240. The table provides references to current law provisions 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 S. 667 and H.R. 240 (TANF Provisions)

                                                                                                                                   H.R. 240 (as approved by the House Ways
                                                                                  S. 667 (as reported by the Senate Finance          and Means Subcommittee on Human
                                             Current law                                         Committee)                                       Resources)

Short Title, Findings, and Statement of TANF Goals and Purposes

Short Title                 The Personal Responsibility and Work                 The Personal Responsibility and Individual        The Personal Responsibility, Work, and Family
                            Opportunity Reconciliation Act of 1996 (P.L.         Development for Everyone Act (PRIDE).             Promotion Act of 2005.
                            104-193).

Findings                    P.L. 104-193, the Personal Responsibility and        No provision.                                     Makes a series of findings related to: (1) the
                            Work Opportunity Reconciliation Act of 1996,                                                           success of the 1996 law in moving families
                            made a series of findings related to marriage,                                                         from welfare to work and reducing child
                            responsible parenthood, trends in welfare                                                              poverty; (2) progress made by the nation in
                            receipt and the relationship between welfare                                                           reducing teen pregnancy and births, slowing
                            receipt and nonmarital parenthood, and trends                                                          increases in nonmarital births, and improving
                            in and negative consequences of nonmarital and                                                         child support collections and paternity
                            teen births. [Section 101 of PRWORA]                                                                   establishment; (3) the flexibility provided by
                                                                                                                                   the 1996 law for states to develop innovative
                                                                                                                                   programs; (4) further progress to be made in
                                                                                                                                   promoting work, strengthening families, and
                                                                                                                                   enhancing state flexibility to build on the
                                                                                                                                   success of welfare reform; and (5) 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 Purposes     The purpose of TANF is to increase state             Revises goal no. 4 to "encourage the formation    The overall purpose of TANF is to improve
                            flexibility in operating a program designed to:      and maintenance of healthy two-parent married     child well-being by increasing state flexibility
                            (1) assist needy families so that children may       families, and encourage responsible               in operating a program designed to: (1) provide
                            live in their homes or those of relatives; (2) end   fatherhood." [New language in italics] [Section   assistance and services to needy families so that
                            dependence of needy parents on government            103(d)]                                           children may live in their homes or those of
                                                                                   CRS-9

                                                                                                                                     H.R. 240 (as approved by the House Ways
                                                                                 S. 667 (as reported by the Senate Finance             and Means Subcommittee on Human
                                             Current law                                        Committee)                                          Resources)

                            benefits; (3) reduce out-of-wedlock                                                                      relatives, (2) end dependence of needy families
                            pregnancies; and (4) encourage the formation                                                             on government benefits and reduce poverty; (3)
                            and maintenance 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
                                                                                                                                     healthy, two-parent married families, and
                                                                                                                                     encourage responsible fatherhood. [New
                                                                                                                                     language in italics] [Section 101]

TANF Financing Provisions

State Family Assistance     Provides capped grants (entitlements to states      Retains basic block grants, and extends them         Same as S. 667. [Section 102(b)]
Grants                      and territories). Nationally, annual family         through 2010 at current funding levels.
                            assistance grants total $16.567 billion for the     Appropriates $16.567 billion annually for
                            states, the District of Columbia (D.C.), and the    family assistance grants to the states, D.C., and
                            territories. Each jurisdiction's annual grant       the territories. Provides that the annual grant of
                            equals the same share of the national total as in   each jurisdiction shall equal its FY2002
                            FY2002. [(Section 403(a)(1) of the SSA]             proportion of the national grant total. [Section
                                                                                102(a)]

                            Also provides matching grants for the territories   Extends funding for matching grants to the           Same as S. 667. [Section 102(c)]
                            (Section 1108(b) of the SSA).                       territories through FY2010. [Section 102(b)]

Supplemental Grant for      Supplemental grants for (17) states with low        Extends supplemental grants for FY2006               Same as S. 667. [Section 104]
Population Increases in     historic federal grants per poor person and/or      through FY2009, at current funding levels
Certain States              high population growth. Grants grew each            ($319 million). [Section 104]
                            year, from $79 million in FY1998 to $319
                            million in FY2001. Grants frozen at $319
                            million since FY2001. [Section 403(a)(3) of
                            SSA]
                                                                             CRS-10

                                                                                                                          H.R. 240 (as approved by the House Ways
                                                                            S. 667 (as reported by the Senate Finance       and Means Subcommittee on Human
                                         Current law                                       Committee)                                    Resources)

Bonus to Reward          High-performance bonus of $200 million per        Replaces the high-performance bonus with a     Replaces the high-performance bonus with a
Employment Achievement   year on average. [Section 403(a)(4) of the        bonus to reward employment achievement.        bonus to reward employment achievement.
                         SSA]                                              Employment achievement bonuses would total     Average total bonuses would be $100 million
                                                                           $50 million for each of FY2006 through         for each of FY2006 through FY2011. [Section
                                                                           FY2008, and $100 for each of FY2009 through    105]
                                                                           FY2011. [Section 105]
                         Maximum bonus for a state equals 5% of its        Maximum bonus for a state equals 5% of its     Same as S. 667. [Section 105]
                         family assistance grant.                          family assistance grant. [Section 105]
                         Bonus based on achievement of TANF goals,         Bonus to be based on absolute and relative     Bonus to be based on absolute and relative
                         with formula developed by the Department of       progress toward the goal of workforce          progress toward goals of job entry, job
                         Health and Human Services (HHS) in                attachment and advancement. [Section 105]      retention, and increased earnings. Formula to
                         consultation with the National Governors                                                         be developed by HHS, in consultation with the
                         Association and the American Public Human                                                        states. [Section 105]
                         Services Association. For FY1999-FY2001
                         performance, formula consisted of three work-
                         related measures (job entry, job retention, and
                         earnings gain). For FY2002 and later years,
                         formula adds family formation outcomes, child
                         care affordability, and coverage by food stamps
                         and Medicaid/SCHIP. [Section 403(a)(4) of the
                         SSA]
                                                                           Makes tribes eligible for the bonus, setting   Makes tribal organizations eligible for the
                                                                           aside 2% of total employment achievement       bonus and directs the Secretary to consult with
                                                                           bonus dollars for them, and directs the        tribal organizations regarding criteria for their
                                                                           Secretary to consult with them regarding       awards. [Section 105]
                                                                           criteria for their awards. [Section 105]
                                                                           Reduces FY2005 high-performance bonus          Reduces the FY2005 high-performance bonus
                                                                           amount to $0. [Section 702]                    amount to $100 million. [Section 122]
                                                                           No provision.                                  Provides that appropriated amounts unspent (as
                                                                                                                          of the date of enactment) for high-performance
                                                                                                                          bonuses will be available through FY2005 for
                                                                                                                          payment of high-performance bonuses for
                                                                                                                          bonus year 2005 -- on terms in effect before
                                                                                                                          repeal of that bonus. [Section 105]
                                                                              CRS-11

                                                                                                                                H.R. 240 (as approved by the House Ways
                                                                             S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                          Current law                                       Committee)                                         Resources)

                                                                            For FY2006 and FY2007, employment                   For FY2006, employment achievement bonus
                                                                            achievement bonus may be based on three             may be based on three components of the
                                                                            components of the repealed high-performance         repealed high-performance bonus -- job entry
                                                                            bonus -- job entry rate, job retention rate, and    rate, job retention rate, and earnings gain rate.
                                                                            earnings gain rate. [Section 105]                   [Section 105]

Bonus to Reward           Appropriated $100 million yearly for bonuses      Repeals the bonus beginning in FY2006, and          Repeals the bonus beginning in FY2005, and
Reductions in Out-of-     to the five states with the largest percentage    uses the $100 million per year to fund grants       uses the $100 million per year to fund grants
wedlock Births            decline (over recent two years) in the out-of-    for marriage promotion activities (see Matching     for marriage promotion activities. [Section
                          wedlock birth ratio. To qualify, states had to    Grants for Marriage Promotion, below).              103(b)]
                          reduce their abortion rate to below that of       [Section 103(b)]
                          FY1995. [Section 403(a)(2) of the SSA]

Contingency Fund          Capped matching grants (maximum $2 billion)       Appropriates such sums as are needed for            Appropriates such sums as needed for
                          provided in case of recession. To qualify for     contingency fund grants, up to $2 billion over      contingency fund grants, up to $2 billion over
                          contingency dollars, states must be "needy" and   five years, FY2006-FY2010. To qualify for           five years, FY2006-FY2010. To qualify for
                          must spend under the TANF program a sum of        contingency grants, a state must be "needy,"        contingency grants, states must be "needy" and
                          their own dollars equal to their pre-TANF         have sufficiently low TANF balances, and have       must spend under the TANF program a sum of
                          spending. [Section 403(b) of the SSA]             an increase in its assistance caseload of over      their own dollars equal to their pre-TANF
                                                                            5%.                                                 spending.

Needy State Eligibility   The law provides two needy state triggers: ( 1)   To trigger on as needy, a state must (1) have an    Retains current law needy state triggers, but
Criteria                  an unemployment rate for a three-month period     increase (due in large measure to economic          revises the food stamp trigger, requiring that
                          that is at least 6.5% and is 10% or more above    conditions) of 5% in the monthly average            the FY1994-FY1995 caseload base be
                          the rate for the corresponding period in either   unduplicated number of families receiving           readjusted for policy changes made after
                          of the two preceding calendar years; or (2) a     assistance under its TANF program in the most       passage of 1996 welfare law. [Section 106(c)]
                          food stamp caseload increase of 10% over the      recently concluded three-month period with
                          FY1994-FY1995 level (adjusted for the impact      data, compared with the corresponding period
                           of immigrant and food stamp constraints in the   in either of the two most recent preceding fiscal
                          1996 welfare law). [Section 403(b)(5) of the      years, and (2) meet one of three other
                          SSA]                                              conditions. They are: (a) for the most recent
                                                                            three-month period with data, the average rate
                                                                            of seasonally adjusted total unemployment
                                                                            must be at least 1.5 percentage 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
                                                                        CRS-12

                                                                                                                           H.R. 240 (as approved by the House Ways
                                                                       S. 667 (as reported by the Senate Finance             and Means Subcommittee on Human
                                       Current law                                    Committee)                                          Resources)

                                                                      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, must exceed 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). [Section 106(b)]

Financial Eligibility   Before drawing contingency grants, a state    Eliminates the requirements that a state spend       Retains current law requirements that states
Requirements            must expend within the TANF program 100%      100% of what it spent in FY1994 and provide          expend 100% of what they spent on TANF
                        of what it spent on TANF predecessor          matching funds. Instead, requires that unspent       precessor programs in FY1994 and provide
                        programs in FY1994. Both TANF spending        balances be 30% or less of cumulative TANF           matching funds. Allows states to count
                        and FY1994 base spending exclude child care   grants to be eligible for contingency funds.         spending in separate state maintenance of effort
                        expenditures.     States then must provide    [Section 106(b)]                                     programs toward these spending requirements.
                        matching funds to draw down contingency                                                            State child care spending also would count
                        grants (see Contingency Grant Amounts,                                                             toward this requirement, but would also be
                        below).    [Section 403(b)(5) and Section                                                          added to base FY1994 spending. [Section
                        409(a)(10) of the SSA]                                                                             106(d) and 106(e)]
                                                                             CRS-13

                                                                                                                                 H.R. 240 (as approved by the House Ways
                                                                            S. 667 (as reported by the Senate Finance              and Means Subcommittee on Human
                                         Current law                                       Committee)                                           Resources)
Contingency Fund Grant   Payments are capped at 20% of a state's basic     A state's total contingency grant could not           Retains current law's 20% maximum grant,
Amounts                  TANF grant. A maximum advance grant of            exceed 10% of its family assistance grant. The        advance grant, and annual grant based on the
                         one-twelfth of its total maximum grant is         contingency fund grant equals the state's             Medicaid matching rate times expenditures
                         allowed in a given month. [Section 403(b)(3)]     federal Medicaid matching rate times the              made in excess of 100% of the FY1994 level.
                                                                           benefit cost of an increase in the TANF family        Eliminates the proration of the annual grant for
                         A state's annual contingency fund grant amount    caseload above 5% in the most recently                part-year eligibility for contingency funds.
                         is the Medicaid matching rate times               concluded three-month period with data,               [Section 106(d)]
                         expenditures it made in excess of 100% of         compared with the corresponding period in
                         FY1994 expenditures. This annual amount is        either of the two most recent preceding fiscal
                         prorated for the number of months the state is    years. (The remaining cost of the increased
                         eligible for continency grants. If a state        caseload would have to be paid with state funds
                         received advance grants that are greater than     or other federal TANF funds.) [Section 106(a)]
                         the annual amount for which it is entitled, the
                         state must remit any excess back to the federal
                         Treasury. [Section 403(b)(6)]
Tribal Eligibility for   No provision. Tribes are not eligible for         Sets aside $25 million of the contingency fund        No provision (retains current law).
Contingency Funds        contingency fund.                                 appropriation for grants to Indian tribes with
                                                                           approved tribal TANF plans. The Secretary of
                                                                           HHS, in consultation with tribes, shall
                                                                           determine the criteria for access to the fund.
                                                                           [Section 106(a)]
Additional Grants
Social Service           No provision.                                     Authorizes appropriation of $40 million for           No provision.
Capitalization                                                             each of FY2006-FY2010 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
                                                                           wh i l e a s s i s t i n g T AN F r ecip ie n t s .
                                                                           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
                                                             CRS-14

                                                                                                               H.R. 240 (as approved by the House Ways
                                                            S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                             Current law                   Committee)                                         Resources)
                                                           statutory rules regarding use of TANF funds
                                                           would apply. Requires evaluation and report to
                                                           Congress. [Section 119(a)]

Car Ownership Grants         No provision.                 Authorizes appropriation of $25 million for         No provision.
                                                           each of FY2006-FY2010 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)]

Transitional Jobs/business   No provision.                 Authorizes appropriations of $200 million for       No provision.
Links Grants                                               each of FY2006-FY2010 for business links and
                                                           transitional jobs programs. Grants are to be
                                                           awarded jointly by the Secretaries of HHS and
                                                           Labor to fund programs to promote "business
                                                           linkages" and the "transitional jobs." Business
                                                           linkages are programs designed to improve the
                                                           wages of eligible individuals by improving jobs
                                                           skills in partnership with employers and
                                                           providing supports and services at or near the
                                                           worksite.     Eligible grantees are private
                                                           organizations, local workforce investment
                                                           boards, states, localities, Indian tribes, and
                                                           employers. Individuals eligible to be served by
                                                           these programs are TANF recipients, former
                                                           recipients, individuals with a disability, or
                                                           noncustodial parents having difficulty in paying
                                                           child support obligations who also have limited
                                                           proficiency in the English language or other
                                                           barriers to employment.
                                                    CRS-15

                                                                                                        H.R. 240 (as approved by the House Ways
                                                   S. 667 (as reported by the Senate Finance              and Means Subcommittee on Human
                                    Current law                   Committee)                                           Resources)

                                                  "Transitional jobs" programs combine
                                                  subsidized, time-limited, wage-paying
                                                  supported work in the public or nonprofit
                                                  sectors with skill development and activities to
                                                  remove barriers to employment. Eligible
                                                  grantees are private organizations, local
                                                  workforce investment boards, states, localities,
                                                  and Indian tribes. Individuals eligible to be
                                                  served by these programs are TANF recipients,
                                                  former recipients, individuals with a disability,
                                                  or noncustodial parents having difficulty in
                                                  paying child support obligations who also have
                                                  limited proficiency in the English language or
                                                  other barriers to employment.

                                                  Requires a minimum of 40% of funds
                                                  appropriated be used for business linkages and
                                                  also a minimum of 40% be used for transitional
                                                  jobs. Benefits and services provided under
                                                  these programs are not considered assistance.
                                                  The bill also requires an evaluation, and sets
                                                  aside $3 million for the Secretaries to produce
                                                  assessments of these programs. [Section
                                                  119(c)]

Domestic Violence   No provision.                 Authorizes $20 million per year for FY2006            No provision.
Prevention Grants                                 through FY2010 for competitive matching
                                                  grants (at a 75% federal matching rate) to
                                                  states, Indian tribes, and tribal organizations for
                                                  the development and dissemination of best
                                                  practices for addressing domestic violence;
                                                  implementing voluntary skills programs,
                                                  including caseworker training, technical
                                                  assistance, and voluntary services for victims of
                                                  domestic violence; programs of relationship
                                                  and financial management skills; and broad-
                                                  based income support as a means to reduce
                                                                             CRS-16

                                                                                                                             H.R. 240 (as approved by the House Ways
                                                                            S. 667 (as reported by the Senate Finance          and Means Subcommittee on Human
                                         Current law                                       Committee)                                       Resources)

                                                                           domestic violence. Grantees must consult with
                                                                           organizations with demonstrated expertise in
                                                                           providing aid to victims of domestic violence.
                                                                           Requires the Secretary of HHS to evaluate
                                                                           activities under this grant. [Section 114(e)]

Repeal of Federal Loan   Provides a $1.7 billion revolving and interest-   Repeals the loan fund. [Section 108]              Same as S. 667. [Section 108]
Fund                     bearing federal loan fund for state welfare
                         programs. [Section 406 of the SSA]

Maintenance of Effort    Establishes a maintenance-of-effort (MOE)         Continues MOE requirement through FY2010,         Same as S. 667. [Section 111]
                         requirement that states spend at least 75% of     but raises the MOE percentage to 80% if the
                         what was spent from state funding in FY1994       state failed TANF work participation standards
                         on programs replaced by TANF. Nationally,         of the preceding fiscal year. [Section 111(a)]
                         this 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 state expenditures to reduce out-of-      Defines all state expenditures to reduce out-of-
                                                                           wedlock births and promote marriage and           wedlock births and promote marriage and
                                                                           responsible fatherhood (including spending on     responsible fatherhood (including spending on
                                                                           behalf of non-needy families) as countable        behalf of non-needy families) as countable
                                                                           toward required MOE state spending. Subjects      toward required MOE state spending. [Section
                                                                           this spending to two requirements applicable to   103(c)]
                                                                           MOE funds: (1) for activities not a part of the
                                                                           pre-1996 welfare program, expenditures must
                                                                           be above FY1995 levels to be countable toward
                                                                           the MOE; and (2) expenditures used to
                                                                           compensate for federal penalties are not
                                                                           countable toward the MOE. [Section 103(d)]

                                                                           TANF funds used as the state match for            Provides that spending (as the state match)
                                                                           marriage promotion grants shall not be            from federal marriage promotion grants shall
                                                                           considered state spending countable toward the    not be treated as state spending toward MOE
                                                                           MOE requirement. [Section 103(b)].                requirements. [Section 111(b)]
                                                                             CRS-17

                                                                                                                               H.R. 240 (as approved by the House Ways
                                                                            S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                         Current law                                       Committee)                                         Resources)

Funding for Child Care   PRWORA created a mandatory child care block For mandatory child care, increases funding by            For mandatory child care, increases funding by
                         grant and appropriated $13.9 billion for it over $6 billion over five years (FY2006-FY2010).          $1 billion over five years (FY2006-FY2010).
                         six years. [Section 418 of the SSA]              [Section 116(a)]                                     [Section 208]

Puerto Rico              Puerto Rico and the territories do not qualify    Sets aside 1.5% of supplemental mandatory           No provision.
                         for mandatory child care funds. (Funding for      funding for the Commonwealth of Puerto Rico
                         child care is available from TANF and Section     and 0.5% for the other territories. [Section
                         1108(b) funds).                                   116(b)]
Use of Funds
General Rules            States may use funds in any manner reasonably     No provision (maintains current law).               Same as S. 667. (No provision, retains current
                         calculated to accomplish the TANF purpose.                                                            law.)
                         [Section 404 of the SSA]
                         States may use funds in any manner that they      No provision (maintains current law).               States may use funds for any purposes or
                         were authorized to use pre-TANF funds.                                                                activities for which they were authorized to use
                         [Section 404 of the SSA]                                                                              pre-TANF funds. [Section 107(a)]
                         A state may treat a family that has resided in    Strikes provision permitting different treatment    Same as S. 667. [Section 107(b)]
                         the state for fewer than 12 months under the      of families migrating into the state -- found
                         welfare rules of the state where they formerly    unconstitutional. [Section 107(a)]
                         lived. [Section 404 of the SSA]
Transfer of funds        States may transfer up to 30% of TANF funds       Retains overall transfer limit at 30%. Sets limit   Increases the overall ceiling on transfers to
                         to the Child Care and Development Block           on SSBG transfers at 10% (original limit in         50%. [Section 107(c)] Sets limit on SSBG
                         Grant (CCDBG) and the Title XX Social             1996 law). [Section 107(b)]                         transfers at 10% for FY2006 and each year
                         Services Block Grant (SSBG). Specifies that a                                                         thereafter. [Section 107(d)]
                         maximum of 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]
                                                                                CRS-18

                                                                                                                                 H.R. 240 (as approved by the House Ways
                                                                               S. 667 (as reported by the Senate Finance           and Means Subcommittee on Human
                                            Current law                                       Committee)                                        Resources)
Carryover of Funds         Amounts may be spent without fiscal year limit     Allows use of carryover funds from TANF            Same as S. 667. [Section 107(e)]
                           for "assistance" (chiefly ongoing cash aid). For   grants for any benefit or service without fiscal
                           other benefits and services ("nonassistance")      year limitation. Permits a state or tribe to
                           amounts must be obligated in the year of award     designate some TANF funds as a contingency
                           and spent in the following year. [Section 404      reserve. [Section 107(c)]
                           of the SSA]
Use of Funds for           States may use funds for educational activities    Allows states to use TANF funds to establish an    No provision.
Education                  (to promote a TANF goal or because these           undergraduate two- or four-year degree
                           activities were allowed under pre-1996 law).       postsecondary program sometimes known as
                           However, only three educational activities may     Parents as Scholars (PAS) or a vocational
                           be counted toward state work participation         educational program. Following services could
                           rates: high school attendance, education           be provided in these undergraduate programs:
                           directly related to work (both for high school     child care, transportation, payment for books
                           dropouts only) and vocational educational          and supplies, other services provided under
                           training. Unless it is defined by the state as     policies determined by the state to ensure
                           vocational educational training, postsecondary     coordination and lack of duplication.
                           education is not a countable work activity.        Participants who are also TANF cash assistance
                           [Section 407(d) of the SSA]                        recipients in these educational programs could
                                                                              be counted toward state work participation
                                                                              standards. See Countable Activities. [Section
                                                                              107(d)]
Direct Funding and         Allows Indian tribes to administer their own       Continues the authority for tribes to operate      Same as S. 667. [Section 114(a)]
Administration by Indian   family assistance (TANF) programs. Earmarks        TANF programs through FY2010. [Section
Tribes                     some TANF funds -- amount equal to federal         113(a)]
                           pre-TANF payments received by state
                           attributable to Indians -- for administration by
                           tribes at their option. Sums used for tribal
                           family assistance programs are deducted from
                           state TANF grants. [Section 412(a) of the
                           SSA]
Tribal Work Programs       Appropriates $7.6 million annually for work        Provides $12.6 million annually for NEW            Extends the authority and funding for NEW
                           and training activities (now known as Native       programs through FY2010. [Section 113(a)]          programs at current levels ($7.6 million
                           Employment Works (NEW)) to tribes that                                                                annually) through FY2010. [Section 114(b)]
                           operated a pre-TANF work and training
                           program. [Section 412(b) of the SSA]
                                                                                CRS-19

                                                                                                                                  H.R. 240 (as approved by the House Ways
                                                                               S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                           Current law                                        Committee)                                         Resources)

                                                                              Tribes operating NEW programs may
                                                                              incorporate these services into a plan under the
                                                                              Indian Employment, Training and Related
                                                                              Services Demonstration Act of 1992. This
                                                                              permits the tribe to use a single plan, budget,
                                                                              and reporting format for services incorporated
                                                                              into the plan. [Section 113(c)]

Tribal Capacity Grants    No provision.                                       Appropriates $80 million for the period             No provision.
                                                                              FY2006-FY2010 for a tribal TANF
                                                                              improvement fund. The fund could be used to
                                                                              provide technical assistance to tribes, award
                                                                              competitive grants to tribes, and conduct
                                                                              research to improve knowledge about tribal
                                                                              family assistance plans. [Section 113(b)]

Work Participation Requirements and Standards

Universal Engagement      State plan must require that a parent or            Repeals the 24-month work trigger. Requires         Same as S. 667. [Section 109(a)]
and Family Self-          caretaker engage in work (as defined by the         state plans to outline how they intend to require
sufficiency Plan          state) after, at most, 24 months of assistance.     parents and caretakers to engage in work or
Requirements              [Section 402(a)(1)(ii) of the SSA]. Note: This      alternative sufficiency activities, as defined by
                          requirement is not enforced by a specific           the state -- while observing the ban on
                          penalty. (States may, but need not, establish an    penalizing work refusal by a single parent of a
                          individual responsibility plan for each family in   preschool child who is unable to obtain needed
                          consultation with the recipient.) [Section          child care for specified reasons -- and to
                          408(b)(2) of the SSA]                               require families to engage in activities in
                                                                              accordance with family self-sufficiency plans.
                                                                              [Section 110(a)]

                          States must make an initial assessment of the       Requires states to make an initial screening and    Requires states, in a manner they deem
                          skills, prior work experience, and employability    assessment, in a manner they deem appropriate,      appropriate, to assess the skills, work
                          of each recipient 18 or older or those who has      of the skills, work experience, education, work     experience, and employability of each work-
                          not completed high school within 30 days.           readiness, work barriers and employability of       eligible person (see definition below) and
                          [Section 408(b)(1) of the SSA]                      each adult or minor child head of household         requires states to develop a family self-
                                                                              recipient who has attained age 18 or who has        sufficiency plan for each family with such a
                                                                              not completed high school and to assess, in a       person. Plans must be established within 60
                CRS-20

                                                                  H.R. 240 (as approved by the House Ways
               S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
Current law                   Committee)                                         Resources)

              manner they deem appropriate, the work              days of opening a case (within 12 months for
              support and other assistance and family support     families enrolled at the time of enactment).
              services for which families are eligible and the    [Section 109(b)]
              well-being of the family's children and, where
              appropriate, 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 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
                CRS-21

                                                                   H.R. 240 (as approved by the House Ways
               S. 667 (as reported by the Senate Finance             and Means Subcommittee on Human
Current law                   Committee)                                          Resources)

              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 Government Accountability 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(a)]

              Imposes a penalty on states for failure to           Imposes a penalty on state for failure to
              establish self-sufficiency plans by revising the     establish self-sufficiency plan by revising the
              penalty provision for failure to meet TANF           penalty provision for failure to achieve work
              work participation standards. Provides failure       participation standard. Provides failure to
              to comply with self-sufficiency requirements         comply with self-sufficiency requirements
              and/or achieve work participation standards          and/or achieve work participation standards
              would result in a penalty of up to a 5%              would result in a penalty of up to a 5%
              reduction in the TANF grant for the first            reduction in the TANF grant for the first
              violation (more for subsequent violations),          violation (more for subsequent violations).
              based on the degree of substantial                   (The bill does not contain the "substantial
              noncompliance. The Secretary is directed to          noncompliance" language of S. 667.) [Section
              take various factors into account in setting the     109(b)] See Penalty for Failing Participation
              penalty. These factors include the number or         Rate, below.
              percentage of families for whom a self-
              sufficiency plan is not established in a timely
              fashion, duration of delays, whether the failures
              are isolated and nonrecurring, and the existence
              of systems to ensure establishment and
              monitoring of plans. Penalty may be reduced if
                                                                              CRS-22

                                                                                                                                H.R. 240 (as approved by the House Ways
                                                                             S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                        Current law                                         Committee)                                         Resources)

                                                                            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(a)]

Sanctions Against      If person in a family receiving TANF assistance      No provision (maintains current law).               If a person in a family receiving TANF
Individuals for Work   refuses to engage in required work, the state                                                            assistance fails to engage in required activities
Refusal                shall reduce aid to the family pro rata (or more,                                                        and the family does not otherwise engage in
                       at state option) with respect to the period of                                                           activities in accordance with its self-sufficiency
                       work refusal, or shall discontinue aid, subject to                                                       plan, the state must impose a penalty as
                       good cause and other exceptions that the state                                                           follows: (a) If the failure is partial and does not
                       may establish. [Section 407(e) of the SSA]                                                               last longer 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 has one year to
                                                                                                                                comply with this requirement. [Section 110(f)]
                                                                            CRS-23

                                                                                                                           H.R. 240 (as approved by the House Ways
                                                                          S. 667 (as reported by the Senate Finance          and Means Subcommittee on Human
                                      Current law                                        Committee)                                       Resources)

                     Exception: a state may not penalize a single        No provision (retains current law).               Same as S. 667.
                     parent caring for a child under age 6 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   A state must engage a specified percentage of       A state must engage a specified percentage of     A state must engage a specified percentage of
Standards            families containing adult or teen parent            families containing adult or minor heads of       families with a work-eligible person in direct
                     recipients in creditable work activities. Since     households in the assistance unit in creditable   work or alternative self-sufficiency activities
                     FY2002, the participation standard has been         activities. Participation standards are:          chosen by the state. Participation standards are
                     50% for all families (and since FY1999 it has                                                         same as S. 667. A work-eligible person is
                     been 90% for the two-parent component of the          50% in FY2006                                   defined as a household head who is in the
                     caseload). [Section 407(a) of the SSA]                55% in FY2007                                   assistance unit, or would be in the unit if not
                                                                           60% in FY2008                                   sanctioned. [Section 110(b)]
                                                                           65% in FY2009
                                                                           70% in FY2010.

                                                                         [Section 109(b)]

                     Required participation rates may be reduced by      Required participation rates may be reduced by    Required participation rates may be reduced by
                     a caseload reduction credit (see below).            caseload reduction or employment credits, but     caseload reduction and "superachiever" credits
                                                                         a cap is placed on these credits. Employment      (see below).
                                                                         credits (or caseload reduction credits or a
                                                                         combination of the two) may not reduce
                                                                         participation standards below:

                                                                            10% in FY2006
                                                                            20% in FY2007
                                                                            30% in FY2008
                                                                            40% in FY2009
                                                                            50% in FY2010.

                                                                         [Section 109(c)]
                                                                               CRS-24

                                                                                                                                 H.R. 240 (as approved by the House Ways
                                                                              S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                            Current law                                      Committee)                                         Resources)

                                                                             Effective October 1, 2002, eliminates the           Effective October 1, 2005, eliminates the
                                                                             separate standard for two-parent families. Also     separate standard for two-parent families.
                                                                             forgives states penalized for failing the two-      [Section 110(a)]
                                                                             parent standard in FY2002-FY2004. [Section
                                                                             109(a)]

Caseload Reduction Credit   Work participation standards are reduced by a    Retains current law caseload reduction credit       Measures caseload reduction from a moving
                            caseload reduction credit: for each percent      for FY2006 and FY2007 (subject to the limits        base year (rather than from FY1995) and
                            decline in the caseload from the FY1995 level    shown above). Effective October 1, 2007,            shortens the measuring interval. Also changes
                            (not attributable to policy changes), the work   replaces the caseload reduction credit with an      the eligibility criteria base year from FY1995 to
                            participation standard is reduced by one         employment credit (subject to limits shown          the new moving base. For FY2006, the credit
                            percentage point. [Section 407(3) of the SSA]    above). [Section 109(d)]                            is based on the percent decline in the caseload
                                                                                                                                 from FY1996 (not due to changes in eligibility
                                                                                                                                 criteria from FY1996); for FY2007, the base
                                                                                                                                 year is FY1998; for FY2008, FY2001. For
                                                                                                                                 FY2009 and every year thereafter, the
                                                                                                                                 measuring interval is three years. [Section
                                                                                                                                 110(c)]

                                                                             No provision.                                       Establishes a "superachiever" caseload
                                                                                                                                 reduction 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.                                    Establishes a percentage point "employment"         No provision.
                                                                             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 with an adult
                                                                             or minor head of household recipient who
                                                                             leaves welfare and was employed in the
                                                                             following quarter; by (b) the average monthly
                CRS-25

                                                                  H.R. 240 (as approved by the House Ways
               S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
Current law                   Committee)                                         Resources)

              number of families with an adult or minor head
              of household recipient who received assistance
              during a recent four-quarter period. At state
              option, calculations could include in the
              numerator: (1) twice the quarterly average
              number of families 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 and earned at
              least $1,000 in the quarter. 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
                                                          CRS-26

                                                                                                           H.R. 240 (as approved by the House Ways
                                                         S. 667 (as reported by the Senate Finance           and Means Subcommittee on Human
                                          Current law                   Committee)                                        Resources)

                                                        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
                                                        Secretary is to use other required data. By
                                                        August 31 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, 2007 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 FY2008 shall be determined by using both
                                                        the caseload reduction credit and the
                                                        employment credit (one-half credit for each).
                                                        [Section 109(d)]

Study of the Employment   No provision.                 Requires the Secretary of HHS to conduct a         No provision.
Credit                                                  study of the design of the employment credit
                                                        and report to the Senate Finance Committee
                                                        and House Ways and Means Committee by
                                                        September 30, 2009. [Section 109(d)]
                                                                                   CRS-27

                                                                                                                                     H.R. 240 (as approved by the House Ways
                                                                                  S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                             Current law                                         Committee)                                         Resources)

Calculation of              The monthly participation rate, expressed as a       Similar to current law, except that states are      Participation rates equal the share of hours
Participation Rates         percentage, equals (a) the number of all             given partial, full, or extra credit for families   spent in creditable activities out of a potential
                            recipient families in which an individual is         depending on the average number of hours per        total of 160 hours monthly per counted family.
                            engaged in work activities for the month,            week in which they engage in activities. (See       Monthly participation rate, expressed as a
                            divided by (b) the number of recipient families      Hours, below).                                      percentage, is (a) the total number of countable
                            with an adult recipient or minor head of                                                                 hours, divided by (b) 160 times the number of
                            household. The annual participation rate,                                                                counted families for the month. [Section
                            which is compared against the participation                                                              110(b)]
                            standard, is the average of the monthly
                            participation rates. [SSA, Section 407(b)(1)]

Infant Exemption from the   States may exempt the parent of a child under        Permits states to exclude all families with         Similar to S. 667, but does not include the 12-
Work Participation Rate     age 1 from work and exclude them from the            infants (not just single parent families) from      month in a lifetime limit on this exclusion.
                            calculation of work participation rates.             work participation calculations on a case-by-       [Section 110(b)]
                            Exclusion is limited to 12 months in a lifetime.     case basis. Limits this exclusion to 12 months
                            [SSA, Section 407(b)(5)]                             in a lifetime. [Section 109(e)]

Excluding Families in       No provision.                                        Permits states to exclude a new group from          Similar to S. 667, but does not specify that the
Their First Month of                                                             work participation calculations -- families in      exclusion is to be made on a case-by-case basis.
Assistance from the Work                                                         first month of assistance. Determination is         [Section 110(b)]
Participation Rate                                                               made on a case-by-case basis. [Section 109(e)]

Treatment of Sanctioned     States may exclude from the work participation       No provision, retains current law.                  Same as S. 667. [Section 110(b)]
Families in the Work        rate calculation families subject to sanctions for
Participation Rate          refusal to comply with work requirements.
                            Exclusion is limited to three months in a 12-
                            month period. [Section 407(b)(1) of the SSA]

Penalty for Failing         Participation rates are enforced by a penalty on     Provides that penalty (beginning for FY2007)        No provision, retains current law.
Participation Rate          states: loss of 5% of the state's basic grant for    must be based on the degree of substantial
                            first year of violation (higher penalty for repeat   noncompliance. Directs the Secretary to take
                            violations). Penalty must be based on the            into account factors such as the degree to which
                            degree of noncompliance and may be reduced           the state missed the participation rate, the
                            if the noncompliance is due to circumstances         change in the number of persons engaged in
                            that made the state needy under the contingency      work since the prior year, and the number of
                            fund definition or due to extraordinary              consecutive years in which the state failed to
                            circumstances such as a natural disaster or          achieve the work rate. Penalty may be reduced
                                                                                   CRS-28

                                                                                                                                      H.R. 240 (as approved by the House Ways
                                                                                  S. 667 (as reported by the Senate Finance             and Means Subcommittee on Human
                                             Current law                                         Committee)                                          Resources)

                            regional recession. State must replace the           if the failure is due to circumstances that caused
                            amount of federal penalty funds with its own         the state to meet the criteria for contingency
                            funds. [Section 409(a)(3) of SSA] In addition,       funds or is due to extraordinary circumstances
                            the state's MOE spending requirement rises           such as a natural disaster or regional recession.
                            from 75% to 80% of its historic level.               Requires Secretary, in a written report to
                                                                                 Congress, to justify any waiver or penalty
                                                                                 reduction due to extraordinary circumstances.
                                                                                 [Section 110(a)]

                            States that fail to meet work participation          If the Secretary accepts a state's corrective        No provision.
                            standards may file a corrective compliance plan      compliance plan for failure to meet work
                            with the Secretary of HHS. The corrective            participation standards and the state has at least
                            compliance plan outlines what the states will do     a 5 percentage point improvement in its work
                            to correct or discontinue its failure to meet the    participation rate over the previous year, the
                            standards. The Secretary may not impose the          Secretary shall not impose a financial penalty
                            penalty if the state corrects the violation of the   on the state. [Section 111(b)]
                            work standards. [Section 409(c) of the SSA]

Countable Activities

"Core" Activities.          Federal law lists nine priority activities that      Retains current law list of nine priority            Lists six "direct" work activities:
Activities Countable as     must account for most weekly hours:                  activities as "direct work" activities.              - unsubsidized jobs;
Sole or Primary Work        - unsubsidized jobs;                                                                                      - subsidized private jobs;
Activities of Recipients.   - subsidized private jobs;                                                                                - subsidized public jobs;
                            - subsidized public jobs;                                                                                 - on-the-job training;
                            - work experience                                                                                         - supervised work experience, and
                            - on-the-job training;                                                                                    - supervised community service.
                            - job search (usual limit, six weeks per fiscal
                              year)                                                                                                   [Section 110(e)]
                            - community service;
                            - vocational educational training (limited to
                              12 months in a lifetime);
                            - providing child care for participants in
                              community service programs.

                            [Section 407(d) of the SSA]
                                                                                  CRS-29

                                                                                                                                     H.R. 240 (as approved by the House Ways
                                                                                 S. 667 (as reported by the Senate Finance             and Means Subcommittee on Human
                                              Current law                                       Committee)                                          Resources)

Qualified Activities.        No provision.                                      For three months in a 24-month period, seven         For three months within a 24-month period,
Activities that May                                                             additional activities may be substitute for, or be   persons participation in short-term "qualified"
Substitute for, or be in                                                        in conjunction with, direct work activities:         activities chosen by the state to promote self-
Conjunction with, Core                                                          - postsecondary education;                           sufficiency may substitute for or be in
Activities for a Limited                                                        - adult literacy programs or activities;             conjunction with direct work activities
Period of Time.                                                                 - substance abuse counseling or treatment            (examples listed in the bill are substance abuse
                                                                                   (including drug or alcohol abuse counseling       counseling or treatment; rehabilitation
                                                                                   or treatment);                                    treatment and services; work-related education
                                                                                - programs or activities designed to remove          or training directly enabling the family member
                                                                                   work barriers, as defined by the state;           for work; and job search or job readiness
                                                                                - work activities authorized under any waiver        assistance). [Section 110(e)]
                                                                                   for any state that was continued under
                                                                                   Section 415 before the date of enactment of
                                                                                   this bill;
                                                                                - money management classes; and
                                                                                - parenting skills classes.

                                                                                [Section 109(c)]

Supplemental Activities.     For most recipients, hours of participation in     Retain current law list of three supplemental        States may define any other activity as
Activities Countable         these activities are countable only in             activities, and adds: marriage education,            countable (generally for non-core hours) so
Generally Only in            conjunction with participation in priority         marriage skills training, conflict resolution, and   long as it leads to self-sufficiency and is
Conjunction with "Core"      activities (and with a minimum number of           programs to promote marriage. [Section               consistent with the purposes of TANF.
or "Qualified" Activities.   hours in priority activities). Federal law lists   109(g)] Also permits states to count all             [Section 110(e)]
                             three such activities:                             "qualified activities" (see above), as well as job
                                                                                search and vocational educational training
                             -- job skills training directly related to         (beyond the usual time limits) as supplemental
                                employment;                                     activities once a family has the minimum
                             -- education directly related to employment;       number of hours of "direct work" participation.
                                and                                             [Section 109(g)]
                             -- progress toward completion of secondary
                                school.

                             [Section 407(d) of the SSA] See Required
                             Hours of Work, below.
                                                                              CRS-30

                                                                                                                                 H.R. 240 (as approved by the House Ways
                                                                             S. 667 (as reported by the Senate Finance             and Means Subcommittee on Human
                                          Current law                                       Committee)                                          Resources)

Postsecondary Education   No provision. Postsecondary education not         Three months of postsecondary education is           No provision.       However, postsecondary
                          classified as "vocational educational training"   countable as a "qualified activity" (see above).     education may be a state-defined "qualified" or
                          is not countable toward TANF work                                                                      "supplemental" activity.
                          participation standards.                          Allows states to establish a program (under
                                                                            Section 107) of undergraduate postsecondary
                                                                            education (parents as scholars) or vocational
                                                                            educational training for TANF recipients,
                                                                            former recipients, and other low income
                                                                            parents. For TANF recipients, hours of
                                                                            participation in the program 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-31

                                                                                                               H.R. 240 (as approved by the House Ways
                                                            S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                             Current law                   Committee)                                         Resources)

                                                           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)]

Special Rules for           No provision.                  Recipients engaged in qualified activities          No provision.
Rehabilitative Activities                                  considered rehabilitative (adult basic education,
                                                           or substance abuse treatment) for three months,
                                                           may have an additional three months (known as
                                                           the 3+3 program) of participation in those
                                                           activities counted if combined with direct work
                                                           activities. [Section 109(f)]

                                                           Additionally, if a recipient has treatment of
                                                           disabilities or substance abuse in her family
                                                           self-sufficiency plan and the state has
                                                           developed collaborative relationships with
                                                           rehabilitation agencies, the recipient may
                                                           continue to have participation in such activities
                                                           countable without time limit if combined with
                                                           a minimum of 10 hours of participation in a
                                                           direct work activity. [Section 110(b)]

Caring for a Disabled       No provision.                  Permits a state to deem a single parent caring      No provision.
Family Member                                              for a dependent with a physical or mental
                                                           impairment to be meeting all or part of the
                                                           family's work requirement. [Section 109(f)]

Work Activities in Indian   No provisions.                 Permits a state to define countable work            No provision.
Areas of High Joblessness                                  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
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                                                                                                                                   H.R. 240 (as approved by the House Ways
                                                                                S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                            Current law                                        Committee)                                         Resources)

                                                                               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)]

Numerical Limits on        No more than 30% of persons credited with           Continues the 30% cap, but provides that it         No provision.
Vocational Education and   work may consist of persons participating in        does not apply to persons in a 3+3 program
Teen Parents               vocational educational training or may be teen      receiving qualified rehabilitative services or to
                           parents who are deemed to be working because        persons engaging in vocational educational
                           of satisfactory attendance at secondary school      training as a supplementary activity after
                           or because of spending 20 hours weekly in           meeting the 24-hour "direct work" requirement.
                           education directly related to employment.            [Section 109(f)]
                           [Section 407(c)(2)(D) of SSA]

Required Hours of Work     Generally, to count toward the all-family rate,     Establishes standard TANF work weeks as             Establishes a 160-hour-per-month           work
Activity                   average weekly participation of 30 hours (20        follows: 24 hours for a single parent with a        standard. [Section 110(b)]
                           hours in priority work activities) is required.     child under age 6; 34 hours for a single parent
                           However, in the case of single parents with a       with a child over 6 (with 24 hours in a priority    Generally, states must engage all families with
                           preschool age child (who constitute half of all     activity) 39 hours for a two-parent family (but     a "work- eligible" member in a direct work
                           TANF cases), the hours requirement is 20 per        55 hours if that family receives federally          activity or alternative self-sufficiency activity
                           week. For two-parent families the standard is       funded child care) -- with most hours in a          for an average of 40 hours weekly (the actual
                           35 hours (30 in priority work activity), but        priority activity. Families meeting the standard    standard is 160 hours per month, equal to a
                           increases to 55 hours (50 in priority activities)   are counted as one family in calculating the        weekly average of 37 hours) -- of which 24
                           if the family receives federally-subsidized child   state's work participating rate.           Those    hours must be in one of the direct work
                           care. [Section 407(c)(1) of the SSA] For a          exceeding the standard receive extra credit, and    activities listed in the law and up to 16 hours
                           single parent caring for a child under age 6, 20    some who fall short of the standard receive         may be in a TANF-purposeful activity chosen
                           hours of participation satisfies the standard.      partial credit (see below). Average weekly          by the state. [Section 110(e)]
                           [Section 407(c)(2)(B) of the SSA]                   hours are computed by dividing monthly hours
                                                                               of participation by 4. [Section 109(f)]
                                                                             CRS-33

                                                                                                                              H.R. 240 (as approved by the House Ways
                                                                            S. 667 (as reported by the Senate Finance           and Means Subcommittee on Human
                                         Current law                                       Committee)                                        Resources)

Special Rule for Teen   Teen parents are deemed to meet the weekly         Counted as one working family is a teen parent     Essentially the same as current law. Teen
Parents                 hour participation standard by maintaining         who maintains satisfactory school attendance or    parents are deemed to satisfy the (40-hour
                        satisfactory attendance in secondary school (or    participates in education directly related to      weekly) work rule by virtue of satisfactory
                        the equivalent in the month) or by participating   employment for an average of 20 hours weekly.      school attendance (or the equivalent in the
                        in education directly related to employment for    [Section 109(f)]                                   month) or by participating in education directly
                        an average of 20 hours weekly. [Section                                                               related to employment for an average of 20
                        407(c)(2)(C) of the SSA]                                                                              hours weekly [Section 110(e)].

Partial Work Credit     None.                                              Families who meet core work requirements but       Families who meet the 24-hour weekly direct
                                                                           fail the full standard receive partial credit as   work requirement but fail the 40-hour standard,
                                                                           follows: Credited as .675 of a family are single   receive pro-rata credit for all hours worked (but
                                                                           parent families (with or without a child under     zero credit unless meet the 24-hour direct work
                                                                           six) who have 20-23 hours of work and two-         rule). [Section 110(b)]
                                                                           parent families with 26-29 hours of work (40-
                                                                           44 hours if they receive federally subsidized
                                                                           child care). Counted as .75 of a family are
                                                                           single parent families without a preschool child
                                                                           who work 24-29 hours and two-parent families
                                                                           with 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)]

Extra Work Credit       None.                                              Families that exceed the standard hourly work      Counts all hours worked above the 40-hour full
                                                                           requirement receive extra credit, as follows.      weekly standard, provided 24 hours are spent in
                                                                           Credited as 1.05 of a family are single-parent     direct work (or, for a limited time, in certain
                                                                           families who work 35-37 hours and two-parent       other qualified activities) and no more than 16
                                                                           families who work 40-42 hours (56-58 hours if      hours are in non-priority activities. [Section
                                                                           they receive child care). Credited as 1.08 of a    110(c)]
                                                                           family are single-parent families who work 38
                                                                                CRS-34

                                                                                                                           H.R. 240 (as approved by the House Ways
                                                                               S. 667 (as reported by the Senate Finance     and Means Subcommittee on Human
                                            Current law                                       Committee)                                  Resources)

                                                                              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)]

Other Requirements with Respect to Families Receiving Assistance

Drug Testing                States are given the authority to test welfare    No provision (retains current law).          States are required to test applicants and
                            recipients for use of controlled substances and                                                recipients of TANF for use of drugs if the state
                            sanction recipients who test positive for                                                      has a reason to believe he or she has recently
                            controlled substances. [Section 902 of the                                                     used a controlled substance. If the applicant or
                            Personal Responsibility and Work Opportunity                                                   recipient tests positive for drug use, or if the
                            Reconciliation Act.]                                                                           state otherwise determines that he or she has
                                                                                                                           recently used drugs, the state must ensure that
                                                                                                                           the family self-sufficiency plan addresses the
                                                                                                                           use of the substance; suspend cash assistance to
                                                                                                                           the family until a subsequent test shows no drug
                                                                                                                           use; and require the applicant or recipient to
                                                                                                                           undergo periodic drug tests (every 90 or 60
                                                                                                                           days) as a condition of receiving cash
                                                                                                                           assistance.

                                                                                                                           Requires states to end benefits to the family for
                                                                                                                           three years if the recipient fails the drug test at
                                                                                                                           least three consecutive times (states may set a
                                                                                                                           laxer requirement, allowing failure of the drug
                                                                                                                           test for up to six consecutive times).

                                                                                                                           The Secretary of HHS is required to penalize a
                                                                                                                           state that does not comply with this
                                                                                                                           requirement. The penalty is a minimum of 5%
                                                                                                                           of the state's block grant, and a maximum of
                                                                                                                           10% of the state's block grant, with the
                                                                               CRS-35

                                                                                                                                H.R. 240 (as approved by the House Ways
                                                                              S. 667 (as reported by the Senate Finance           and Means Subcommittee on Human
                                           Current law                                       Committee)                                        Resources)

                                                                                                                                Secretary determining the exact penalty
                                                                                                                                amount. [Section 123]

Eligibility for Teen      Federal TANF funds cannot be used to assist an     Permits states to use federal TANF funds to        No provision (retains current law).
Parents                   unmarried teen parent (under the age of 18)        assist an unmarried teen parent for up to 60
                          who does not reside in the home of her parents     days. Adds transitional living youth projects to
                          or in another adult supervised setting. The        the accepted living situations for a teen parent
                          State must assist such a teen parent in locating   receiving TANF assistance. [Section 110(b)]
                          a second chance home, maternity home, or
                          other appropriate adult-supervised supportive
                          living arrangement unless the state determines
                          that the individual's living arrangement is
                          appropriate.

Displacement of Regular   A recipient may fill a vacant employment           Provides that an adult recipient cannot displace   No provision (retains current law).
Workers                   position. However, no adult in a work activity     any employee or position (including partial
                          that is funded in whole or in part by federal      displacement), fill any unfilled vacancy, or
                          funds may be employed or assigned when             perform work when any individual is on layoff
                          another person is on layoff from the same or       from the same job or substantially equivalent
                          any substantially equivalent job, or if the        job. TANF work activities cannot impair
                          employer has ended the employment of any           existing contracts or services; be inconsistent
                          regular employee or otherwise caused an            with any law, regulation, collective bargaining
                          involuntary reduction in its workforce in order    agreement; or infringe on the recall rights or
                          to fill a vacancy with a TANF recipient. These     promotional opportunities of any worker.
                          provisions do not preempt any provision of         TANF work activities must be in addition to
                          state or local law that provides greater           any activity that would otherwise be available
                          protection against displacement. States are        and not supplant the hiring of a non-TANF
                          required to have a grievance procedure to          worker.
                          resolve complaints of displacement of
                          permanent employees.                               Requires states to have a grievance procedure
                                                                             for resolving complaints, including the
                                                                             opportunity for a hearing, and sets time
                                                                              CRS-36

                                                                                                                               H.R. 240 (as approved by the House Ways
                                                                             S. 667 (as reported by the Senate Finance           and Means Subcommittee on Human
                                          Current law                                       Committee)                                        Resources)

                                                                            standards for the process. It provides remedies
                                                                            for a violation of the non-displacement
                                                                            provisions, including termination and
                                                                            suspension of payments, prohibition on
                                                                            placement of the participant, reinstatement of
                                                                            the employee, or other relief to make the
                                                                            aggrieved employee whole. These provisions
                                                                            do not preempt or supersede any state or local
                                                                            law that provides greater protection. [Section
                                                                            119(c)]

Disregard of Months       Federal TANF grants may not be used to aid a      Modifies this exclusion, providing that months     No provision (retains current law).
Toward the TANF Time      family with an adult who has received 60          in which an adult lives in Indian Country with
Limit for Months Living   months of assistance. Months in which an adult    a jobless rate among adult recipients of 40% or
in Indian Country Areas   lives in Indian Country with a jobless rate of    more are not countable toward the time limit.
with Joblessness          50% or more are not counted toward the 60         The 40% threshold is dropped down to 35% if
                          month time limit.                                 the state meets any of the needy state criteria
                                                                            under the contingency fund or if the tribe meets
                                                                            criteria for contingency funds. Modifications
                                                                            do not apply to Alaska. [Section 110(c)]

Marriage Promotion

TANF Goals and Purposes   Two purposes relate to marriage. One goal is to   The stated purpose of promoting the formation      The stated purpose of promoting the formation
                          end dependency of needy parents on                and maintenance of two-parent families is          and maintenance of two-parent families is
                          government benefits, with one of the stated       modified to read: encourage the formation and      modified to read: encourage the formation and
                          means of accomplishing the goal specified as      maintenance of healthy two-parent married          maintenance of healthy, two-parent married
                          marriage. A second purpose is to encourage the    families, and encourage responsible                families, and encourage responsible
                          formation and maintenance of two-parent           fatherhood. [New language in italics] [Section     fatherhood. [Section 101]
                          families.                                         103(e)]
                                                                               CRS-37

                                                                                                                                 H.R. 240 (as approved by the House Ways
                                                                              S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                           Current law                                       Committee)                                         Resources)

Funding for Marriage       No provision for special grants. States may use   Appropriates $100 million annually for FY2006       Appropriates $100 million annually for FY2005
Promotion Matching         TANF block grants to promote formation and        through FY2010 for 50% competitive matching         through FY2010 for 50% competitive matching
Grants                     maintenance of two-parent families (program       grants to states, Indian tribes, and tribal         grants to states, territories, and tribal
                           goal no. 4) and to promote marriage as a means    organizations for programs to promote and           organizations for programs to promote and
                           of ending dependence on government benefits       support healthy married two-parent families.        support healthy, married two-parent families
                           (goal no. 2).                                     [Section 103(b)]                                    Similar to S. 667, but does not include "Indian
                                                                                                                                 tribes" as a potential grant recipient. [Section
                                                                                                                                 103(b)]

                                                                             Makes funds appropriated for each of FY2006         Makes funds appropriated for FY2005 available
                                                                             through FY2010 available to the Secretary until     to the Secretary through FY2006. [Section
                                                                             expended. Also, permits grantees to use funds       103(b)]
                                                                             without fiscal year deadline. [Section 103(b)]

                                                                             Provides that federal TANF funds used for           Provides that federal TANF funds used for
                                                                             marriage promotion may be treated as state          marriage promotion must be treated as state
                                                                             matching funds for marriage promotion grants        matching funds for marriage promotion grants.
                                                                             [Section 103(b)]                                    [(Section 111(b)(1)]    See Maintenance of
                                                                                                                                 Effort for treatment of TANF spending on
                                                                                                                                 behalf of marriage promotion. [Section 103(c)]

                                                                             Provides that general rules governing uses of       No provision.
                                                                             TANF block grant funds (other than
                                                                             administrative limit) shall not apply to marriage
                                                                             promotion grants. [Section 103(b)]

Allowable Activities for   No provision. (TANF and MOE funds may be          Grants may be used for:              advertising    Grants may be used for:             advertising
Marriage Promotion         used for marriage promotion activities.)          campaigns; education in high schools;               campaigns; education in high schools; marriage
Grants                                                                       voluntary marriage education, marriage skills       education, marriage skills and relationship
                                                                             and relationship skills programs that may           skills programs that may include parenting
                                                                             include parenting skills, financial management,     skills, financial management, conflict
                                                                             conflict resolution, and job and career             resolution, and job and career advancement for
                                                                             advancement for non-married pregnant women          non-married pregnant women and expectant
                                                          CRS-38

                                                                                                            H.R. 240 (as approved by the House Ways
                                                         S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                          Current law                   Committee)                                         Resources)

                                                        and expectant fathers; voluntary pre-marital        fathers; pre-marital education and marriage
                                                        education and marriage skills training for          skills training for engaged couples and
                                                        engaged couples and individuals and couples         individuals and couples interested in marriage;
                                                        interested in marriage; voluntary marriage          marriage enhancement and marriage skills
                                                        enhancement and marriage skills training            training programs for married couples; divorce
                                                        programs for married couples; voluntary             reduction programs; marriage mentoring
                                                        divorce reduction programs; voluntary marriage      programs; programs to reduce marriage
                                                        mentoring programs; programs to reduce              disincentives in means-tested programs, if
                                                        marriage disincentives in means-tested              offered in conjunction with any other listed
                                                        programs, if offered in conjunction with any        activity. [Section 103(b)]
                                                        other listed activity. [Section 103(b)]

Domestic Violence         No provision.                 Forbids award of a grant unless the applicant       No provision.
Provisions                                              has consulted with organizations that have
                                                        demonstrated expertise in working with
                                                        survivors of domestic violence; the application
                                                        describes how the program/activities will deal
                                                        with issues of domestic violence; establishes
                                                        written protocols that provide for the
                                                        identification of instances and risks of domestic
                                                        violence; specifies procedures for making
                                                        service referrals and providing protections.
                                                        [Section 103(b)]

Requirements for          No provision.                 Requires that participation in marriage             No provision.
Voluntary Participation                                 promotion activities (other than media
                                                        campaigns and high school education) is
                                                        voluntary. Requires that the application for the
                                                        grant describe what the grantee will do to
                                                        ensure that participation in programs and
                                                        activities is voluntary.
                                                  CRS-39

                                                                                                      H.R. 240 (as approved by the House Ways
                                                 S. 667 (as reported by the Senate Finance              and Means Subcommittee on Human
                                  Current law                   Committee)                                           Resources)

                                                States, Indian tribes, or tribal organizations that
                                                carry out marriage promotion activities are
                                                required to assure the Secretary of HHS that
                                                recipients who elect to participate in marriage
                                                promotion activities are informed that
                                                participation is voluntary, that they may choose
                                                to disenroll from the program at any time, and
                                                they may be reassigned to other activities.

                                                Recipients of cash assistance may not be
                                                sanctioned for withdrawing from, or failing to
                                                participate in marriage promotion activities.
                                                [Section 103(b)]

Performance       No provision.                 Requires grantees to establish performance            No provision.
Goals/reporting                                 goals that clarify the primary objective of
Requirements                                    funded programs is to increase the incidence
                                                and quality of healthy marriages and not solely
                                                to expand the number or percentage of married
                                                couples.

                                                Requires grantees to submit annual reports to
                                                the Secretary of HHS that describe the written
                                                protocols established to identify domestic
                                                violence, identify who was consulted in the
                                                development of the protocols, describe who
                                                provided training for grantees on domestic
                                                violence, and describe implementation issues
                                                with respect to domestic violence.

                                                The Secretary of HHS is required to submit a
                                                report to Congress every six months providing:
                                                                               CRS-40

                                                                                                                                 H.R. 240 (as approved by the House Ways
                                                                              S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                            Current law                                      Committee)                                         Resources)

                                                                             the name of each program or activity funded
                                                                             with marriage promotion grants; description of
                                                                             types of services offered under the program;
                                                                             criteria for the selection of programs or
                                                                             activities funded with the grant; total number of
                                                                             individuals served by the programs; total
                                                                             number of individuals who completed the
                                                                             program; and total number of individuals who
                                                                             did not complete the program; and summaries
                                                                             of written domestic violence protocols, who the
                                                                             grantees consulted with regard to domestic
                                                                             violence, and training provided to grantees on
                                                                             domestic violence. [Section 103(b)]
Research and                No special provision to fund research or         Appropriates $100 million each for FY2005           Appropriates $102 million each for FY2005
Demonstrations on           demonstrations. However, available TANF          through FY2010 for research and                     through FY2010 for research and
Marriage Promotion          research funds (see Research and                 demonstration projects and for technical            demonstration projects and for technical
                            Demonstrations, below) and other research        assistance to states, tribal organizations, and     assistance to states, tribal organizations, and
                            funds provided to the Department of Health and   other entities chosen by the Secretary.             other entities chosen by the Secretary.
                            Human Service may be used to evaluate            Specifies that 80% of these funds must be spent     Specifies that these funds must be spent
                            marriage promotion initiatives.                  on research and demonstration projects, or for      primarily on activities allowed under marriage
                                                                             providing technical assistance, in connection       promotion grants (see above). (Sets aside $2
                                                                             with activities allowed under marriage              million yearly for demonstration projects for
                                                                             promotion grants (see above). Provides that all     coordination of child welfare and TANF
                                                                             appropriated funds shall remain available until     services to tribal families at risk of child abuse
                                                                             expended. [Section 114(a)]                          or neglect.) Provides that funds appropriated
                                                                                                                                 for FY2005 shall remain available through
                                                                                                                                 FY2006. [Section 115(a)]
Provisions to Address       No provision.                                    Forbids Secretary to pay these research funds to    No provision.
Domestic Violence and                                                        an entity that has not consulted with
Voluntary Participation                                                      organizations that have demonstrated expertise
Issues for Research Funds                                                    in working with survivors of domestic violence;
                                                                             describe in the application for a grant how the
                                                                                  CRS-41

                                                                                                                                     H.R. 240 (as approved by the House Ways
                                                                                 S. 667 (as reported by the Senate Finance             and Means Subcommittee on Human
                                             Current law                                        Committee)                                          Resources)
                                                                                programs or activities will appropriately
                                                                                address domestic violence; establish written
                                                                                protocols to help identify instances or risks of
                                                                                domestic violence; specify procedures for
                                                                                making service referrals; establish performance
                                                                                goals for the program; and submit reports
                                                                                annually to the Secretary of HHS (see marriage
                                                                                promotion grants, above).

                                                                                   Requires applications for the grant to
                                                                                describe what the grantee will do to assure that
                                                                                participation in marriage promotion activities is
                                                                                voluntary, and inform potential recipients that
                                                                                their participation is voluntary. [Section 114(a)]
State Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions
State Plan Requirements     Each state must outline (generally in a plan                                                             Adds requirement that each state must describe
                            effective for three fiscal years), how it intends                                                        what it will do to end dependence of needy
                            to:     conduct a program providing cash                                                                 families on government benefits and reduce
                            assistance to needy families with children and                                                           poverty by promoting job preparation and work
                            providing parents with work and support                                                                  and; encourage formation and maintenance of
                            services; require caretaker recipients to engage                                                         healthy, two-parent married families, encourage
                            in work (at state definition) after 24 months of                                                         responsible fatherhood, and prevent and reduce
                            aid or sooner, if then judged work-ready;                                                                the incidence of out-of-wedlock pregnancies.
                            ensure that caretakers engage in work in                                                                 [Section 112].
                            accordance with the law; take steps deemed
                            necessary by the state to restrict use and
                            disclosure of information about recipients; and
                            conduct a program providing education and
                            training on the problem of statutory rape. In
                            addition, the plan must indicate whether the
                            state intends to treat families moving into the
                            state differently from others; indicate whether
                                                                                   CRS-42

                                                                                                                                   H.R. 240 (as approved by the House Ways
                                                                                  S. 667 (as reported by the Senate Finance          and Means Subcommittee on Human
                                              Current law                                        Committee)                                       Resources)
                             the state intends to aid noncitizens; set forth
                             objective criteria for benefit delivery and for
                             fair and equitable treatment. In the plan the
                             state must certify that it will operate a child
                             support enforcement program and a foster care
                             and adoption assistance program and provide
                             equitable access to Indians ineligible for aid
                             under a tribal plan. It must certify that it has
                             established standards against program fraud and
                             abuse. It must specify which state agency or
                             agencies will administer and supervise TANF.
                             In addition, the state may opt to certify that it
                             has established and is enforcing procedures to
                             screen and identify recipients with a history of
                             domestic violence, to refer them to services,
                             and to waive program rules for some of them.
                             [Section 402(a) of the SSA]

Participation of Faith-      No state plan provision.                            If the state is undertaking strategies or         The state plan must describe strategies or
based Organizations in                                                           programs to engage faith-based organizations in   programs to engage faith-based organizations in
Provision of Services                                                            the delivery of TANF services, or that            the delivery of TANF services, or that
                                                                                 otherwise relate to the charitable choice         otherwise relate to the charitable choice
                                                                                 provisions of P.L. 104-193, the state plan must   provisions of P.L. 104-193. [Section 112(a)]
                                                                                 describe such strategies and programs. [Section
                                                                                 101(a)]

State Plan Requirement for   Unless the governor opts out by notice to HHS,      Eliminates this requirement. [Section 101(a)]     Same as S. 667. [Section 112(a)]
Community Service after      the state will require a parent who has received
Two Months                   TANF for two months and is not work-exempt
                             to participate in community service
                             employment.
                                                                              CRS-43

                                                                                                                                H.R. 240 (as approved by the House Ways
                                                                             S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                          Current law                                       Committee)                                         Resources)

Measurable Performance   State plans must establish goals and take action   States must establish measurable performance        State plans to include measurable performance
Goals                    to prevent/reduce the incidence of out-of-         objectives for pursuing all TANF purposes           objectives for accomplishing ending
                         wedlock pregnancies.                               (current law only specifies establishment of        dependence of needy families on government
                                                                            goals for reducing o ut-of-wedlock                  benefits and reducing poverty (including
                                                                            pregnancies).     These goals are to give           objectives consistent with the criteria for
                                                                            consideration to those developed by the             awarding Employment Achievement bonuses)
                                                                            Secretary of HHS in establishing performance        and for encouraging the formation and
                                                                            targets for the employment bonus (see above)        maintenance of two-parent married families,
                                                                            and additional criteria related to other TANF       encouraging responsible fatherhood, and
                                                                            purposes developed by the Secretary (in             reducing the incidence of out-of-wedlock
                                                                            consultation with state groups).                    pregnancies. [Section 112(a)]

Program Strategies                                                          States plan is to describe strategies and           Same as S. 667. [Section 112(a)]
                                                                            programs the state is using or plans to use to
                                                                            address emp lo yment retention and
                                                                            advancement for recipient of assistance; efforts
                                                                            to reduce teen pregnancy; services for
                                                                            struggling and noncompliant families; and
                                                                            program integration, including the extent to
                                                                            which employment and training services are
                                                                            provided through One-Stop Career Centers
                                                                            created under the Workforce Investment Act.
                                                                            State plan is to describe strategies to improve
                                                                            program management and performance.
                                                                            [Section 101(a)]

Description of State     No provision.                                      Requires the state plan to include, to the extent   No provision.
Assistance Programs                                                         applicable, for each program that provides
                                                                            assistance information on its: financial and
                                                                            nonfinancial eligibility rules; amount of
                                                                            assistance; and applicable time limits and time
                                                                            limit rules. [Section 101(a)]
                                                                                   CRS-44

                                                                                                                                      H.R. 240 (as approved by the House Ways
                                                                                  S. 667 (as reported by the Senate Finance             and Means Subcommittee on Human
                                              Current law                                        Committee)                                          Resources)

Indian and Tribal Issues     States must certify that they will provide          Requires that the state plan include a               Requires tribal family assistance plans to
                             equitable access to TANF to Indians who are         description of how the state will ensure             provide assurance that the state in which the
                             ineligible for tribal family assistance programs.   equitable access to TANF to Indians who are          tribe is located has been consulted regarding the
                             [Section 402(a) of the SSA]                         ineligible for tribal family assistance programs.    plan and its design. [Section 112(b)]
                                                                                 States must certify that they will consult with
                                                                                 each Indian tribe regarding the state plan to
                                                                                 ensure equitable access, and provide each
                                                                                 member of an Indian tribe in the state who is
                                                                                 ineligible for aid from a tribal family assistance
                                                                                 program with equitable access to TANF.
                                                                                 [Section 113(d)]           Requires that the
                                                                                 certifications include that tribal governments
                                                                                 have been consulted in the development of the
                                                                                 state plan. [Section 101(a)]

Two-parent Families          No provision.                                       Requires plan to describe how the state intends      Same as S. 667. [Section 101(c)]
                                                                                 to encourage equitable treatment of healthy,
                                                                                 married two-parent families under TANF.
                                                                                 [Section 101(c)]

Description of Additional    No provision.                                       If state provides TANF-funded transportation         No provision.
State Options for the Work                                                       aid, requires certification by the governor that
Requirements                                                                     state and local transportation officials and
                                                                                 planning bodies have been consulted in
                                                                                 development of the plan. [Section 101(a)]

                                                                                 If a state counts caring for a disabled family
                                                                                 member as a work activity, the state must
                                                                                 describe how it will do so.

                                                                                 States opting to fund a post-secondary
                                                                                 education program (Parents as Scholars) are
                                                                                 required to file an addendum to the state plan
                                                                          CRS-45

                                                                                                                            H.R. 240 (as approved by the House Ways
                                                                         S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                       Current law                                      Committee)                                         Resources)

                                                                        describing the program's eligibility criteria.

                                                                        States opting to provide continuing
                                                                        rehabilitative activities are required to file an
                                                                        addendum to the state plan describing the
                                                                        process for developing collaborative
                                                                        relationships between governmental and private
                                                                        entities and an assurance of regular contact
                                                                        between the provider and the state.

Standard Form                                                           Requires the HHS Secretary to develop a             No provision.
                                                                        proposed Standard State Plan Form for use by
                                                                        states not later than nine months after date of
                                                                        enactment of the bill. Requires states to use the
                                                                        standard state plan form beginning in FY2007.
                                                                        Allows states to delay submission of state plans
                                                                        until FY2007.

                                                                        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. 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 Measures   No provision. (However for the purpose of        Requires the Secretary, in consultation with the    Same as S. 667. [Section 112(c)]
                       awarding performance bonuses, the Secretary is   states, to develop uniform performance
                       to develop a formula in consultation with the    measures to judge the effectiveness and
                       National Governors Association and the           improvement of state programs in
                       American Public Welfare Association.)            accomplishing TANF purposes.           [Section
                                                                        101(d)]
                                                                          CRS-46

                                                                                                                            H.R. 240 (as approved by the House Ways
                                                                         S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                      Current law                                       Committee)                                         Resources)

Rankings of States   Directs HHS Secretary to rank states in order of   Revises the employment measure to be                Deletes "long-term" qualifier from private job
                     success in moving recipients into long-term        "unsubsidized employment."               Adds       measure. Adds employment retention and
                     private jobs and reducing the proportion of out-   employment retention and ability to increase        ability to increase wages to factors used for
                     of-wedlock births and in both cases to review      wages to factors used for rankings. Also, adds      rankings. Also, adds three new ranking factors:
                     programs of the three states with highest and      three new ranking factors: the degree to which      the degree to which recipients have workplace
                     lowest ratings. [Section 413(d) and(e) of the      recipients have workplace attachment and            attachment and advancement, reducing the
                     SSA]                                               advancement, reducing the overall welfare           overall welfare caseload, and, when a method
                                                                        caseload, and, when a practicable method of         of calculation becomes practicable, diverting
                                                                        calculation becomes practicable, diverting          persons from making formal applications to
                                                                        persons from making formal applications to          TANF. [Section 112(d)]
                                                                        TANF. [Section 101(e)]

                                                                        In ranking states, Secretary must take into         No provision.
                                                                        account the average number of minor children
                                                                        living at home in families with income below
                                                                        the poverty line, the child poverty rate, and the
                                                                        amount of TANF funding provided to each
                                                                        state for these families. [Section 101(e)]
                                                                            CRS-47

                                                                                                                               H.R. 240 (as approved by the House Ways
                                                                           S. 667 (as reported by the Senate Finance             and Means Subcommittee on Human
                                       Current law                                        Committee)                                          Resources)

Data Collection and   States are required to collect monthly, and         Requires quarterly reports to cover families in      Same as S. 667. [Section 113(a)]
Reporting             report quarterly, disaggregated case record         MOE-funded separate state programs, as well
                      information (but may use sample case record         as those in TANF state programs. Permits the
                      information for this purpose) about recipient       Secretary to limit use of sampling by
                      families in the TANF program. [Section 411(a)       designating core elements that must be reported
                      of the SSA]                                         for all families.

                      Required family information includes: county        In terms of data elements, adds race and             Same as S. 667.
                      of residence; whether a member received             educational level of each minor parent. Deletes
                      disability benefits; ages of members; size of       educational level of each child. Eliminates
                      family and the relation of each member to the       reporting of the amount of child care and food
                      family head; employment status and earnings of      stamp benefits. Eliminates the requirement to
                      the employed adult; marital status of adults;       report on different types of TANF assistance
                      amount of unearned income received by family        (conforms reporting with new, narrower
                      members; citizenship of family members;             definition of assistance). Requires information
                      number of families and persons receiving aid        on why a family is on the rolls in excess of 60
                      under TANF (including the number of two-            months. Requires reporting on the date the
                      parent and one-parent families); total dollar       family first received aid on the basis of its most
                      value of assistance given; total number of          recent application and the marital status of the
                      families and persons aided by welfare-to-work       parents of any child in the family at the birth of
                      grants (and the number whose participation          the child, and if the parents were not then
                      ended during a month); number of noncustodial       married, whether the paternity of the child has
                      parents who participated in work activities; for    been established. [Section 112(a)]
                      each teenager, whether he/she is the parent of a
                      child in the family; race and educational level
                      of each adult; race and educational level of
                      each child; whether the family received
                      subsidized housing medicaid, food stamps, or
                      subsidized child care (and if the latter two, the
                      amount); number of months that the family
                      received each type of aid under the program.
                                                                                  CRS-48

                                                                                                                                     H.R. 240 (as approved by the House Ways
                                                                                 S. 667 (as reported by the Senate Finance             and Means Subcommittee on Human
                                             Current law                                        Committee)                                          Resources)

                                                                                The HHS Secretary shall prescribe regulations
                                                                                needed to define data elements and to collect
                                                                                necessary data and shall consult with the
                                                                                National Governors Association, the American
                                                                                Public Human Services Association, the
                                                                                National Conference of State Legislatures, and
                                                                                others. [Section 112(e)]

Data Reporting on Work      Quarterly reports are to include information        Requires that states report hours of participation   Adds to reported activity list: training and
Participation               required to compute TANF work participation         in all activities that count toward meeting          other activities directed at TANF purposes.
                            rates. This includes number of hours per week,      TANF participation standards as well as other        Adds and (job) placement to job search. Omits
                            if any, that adults participated in specified       work and self-sufficiency activities. Also           job skills training and vocational education.
                            activities (education, subsidized private jobs,     requires reporting on whether the family has a       Specifies that work experience and community
                            unsubsidized jobs, public sector jobs, work         self-sufficiency plan established for it and         service are "supervised."        Also requires
                            experience, or community service, job search,       progress toward universal engagement. [Section       reporting on whether the family has a self-
                            job skills training or on-the job training,         112(a)]                                              sufficiency plan established for it and progress
                            vocational education). [Section 411(a) of the                                                            toward universal engagement. [Section 113(a)]
                            SSA]

Data Reporting on Indians   No provision.                                       Requires the quarterly report to include             No provision.
                                                                                information on the demographics and caseload
                                                                                characteristics of Indians in state TANF and
                                                                                MOE programs. [Section 113(e)]

Reporting on Families       From a sample of closed cases, the quarterly        Deletes reporting of families leaving TANF           Same as S. 667. [Section 113(a)]
Leaving TANF                report is to give the number of case closures       because of marriage. [Section 112(a)]
                            because of employment, marriage, time limit,
                            sanction, or state policy. [Section 411(a) of the
                            SSA]
                                                                            CRS-49

                                                                                                                             H.R. 240 (as approved by the House Ways
                                                                           S. 667 (as reported by the Senate Finance           and Means Subcommittee on Human
                                        Current law                                       Committee)                                        Resources)

                                                                          Requires quarterly reports to include the          Same as S. 667. [Section 113(c)]
                                                                          number of 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 112(c)]

Reports for Families    No provision. TANF data collection applies        Applies the reporting requirements of the Child    No provision.
Receiving TANF-funded   only to families receiving assistance.            Care and Development Block Grant (CCDBG)
Child Care                                                                to TANF-funded child care. Allows for a
                                                                          waiver process if the state is unable to comply
                                                                          with this requirement. [Section 112(d)]

Monthly State Reports   No provision.                                     Requires states to submit monthly reports on       Requires states to submit monthly reports on
                                                                          the number of families and persons receiving       the number of families and persons receiving
                                                                          assistance from TANF and separate state MOE        assistance from TANF. [Section 113(c)]
                                                                          programs. [Section 112(f)]

Annual State Reports    Regulations require states to annually submit a   Requires states to submit an annual report on      Same as S. 667. [Section 113(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              Required information: program name and
                        funds. For each MOE program, reports are to       purpose, description of program activities,
                        include the name, purpose, and eligibility        sources of funding, number of beneficiaries,
                        criteria.                                         sanction policies, and any work requirements.
                                                                          [Section 112(f)]
                                                                          CRS-50

                                                                                                                          H.R. 240 (as approved by the House Ways
                                                                         S. 667 (as reported by the Senate Finance          and Means Subcommittee on Human
                                      Current law                                       Committee)                                       Resources)

Annual Report on      No provision.                                     Beginning with FY2007, states must submit to      Same as S. 667. [Section 113(e)]
Program Performance                                                     HHS an annual report on achievement and
                                                                        improvement under numerical performance
                                                                        goals and measures.

                                                                        Requires an annual report on progress toward      No provision.
                                                                        full engagement.

HHS Reports           Requires the HHS Secretary to make annual         Sets July 1 of each fiscal year as the deadline   Same as S. 667. [Section 113(f)]
                      reports to Congress that include state progress   for the report. Deletes applicant families from
                      in meeting TANF objectives (increasing            the report. Adds requirement to report on
                      employment and earnings of needy families and     characteristics of MOE-funded programs.
                      child support collections, and decreasing out-    [Section 112(g)]
                      of-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]
                                                                                CRS-51

                                                                                                                              H.R. 240 (as approved by the House Ways
                                                                               S. 667 (as reported by the Senate Finance        and Means Subcommittee on Human
                                            Current law                                       Committee)                                     Resources)

Information on Indians in   No provision.                                     Requires the TANF annual report to include      No provision.
the TANF Annual Report                                                        state-specific information about the
                                                                              demographics and caseload characteristics of
                                                                              Indians in state TANF and MOE programs.
                                                                              [Section 113(e)]

Single Audit Reports        TANF payments to states are subject to the        No provision.                                   The Secretary, within three months of receiving
                            Single Audit Act. [Section 409(a)(1)]                                                             an 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)]

Research, Evaluations,
and National Studies

Research on State           Requires HHS Secretary to conduct research on     Continues these provisions and appropriates     Same as S. 667. [Section 115(b)]
Programs                    effects, costs, and benefits of state programs.   $15 million annually for them through FY2010.
                            Provides that Secretary may help states develop   [Section 114(b)]
                            innovative approaches to employing TANF
                            recipients and shall evaluate them.
                            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 funds 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.)
                                                                               CRS-52

                                                                                                                                H.R. 240 (as approved by the House Ways
                                                                              S. 667 (as reported by the Senate Finance           and Means Subcommittee on Human
                                            Current law                                      Committee)                                        Resources)

Indicators of Child Well-   No provision.                                    Appropriates $10 million per year for FY2006       No provision.
being                                                                        through FY2010 for the Secretary of HHS to,
                                                                             through grants, contracts, and interagency
                                                                             agreements, develop indicators of child well-
                                                                             being for each state.           Among other
                                                                             requirements, the indicators are required to be
                                                                             statistically representative at the state level,
                                                                             consistent across states, and oversampled with
                                                                             respect to low-income families with children.
                                                                             The Secretary is to establish an advisory panel
                                                                             to make recommendations regarding
                                                                             appropriate measures and statistical tools with
                                                                             respect to the indicators.

Research on Tribal Social   No provision.                                    Appropriates $2 million for FY2006 (available      Sets aside $2 million annually for FY2006
Services Issues                                                              until expended) to conduct research on tribal      through FY2010 to be awarded on a
                                                                             family assistance grants and efforts to reduce     competitive basis to fund demonstration
                                                                             poverty among Indians. [Section 114(f)]            projects designed to test the effectiveness of
                                                                                                                                tribal governments and consortia in
                                                                                                                                coordinating child welfare services to tribal
                                                                                                                                families at risk of child abuse or neglect.
                                                                                                                                [Section 115(a)]

Census Bureau Study         Directs the Census Bureau to expand the          Appropriates $10 million annually for FY2006       Same as S. 667. [Section 116]
                            Survey of Income and Program Participation       through FY2010 to the Census Bureau. Directs
                            (SIPP) to obtain data with which to evaluate     the Bureau to implement or enhance a
                            TANF's impact on random national sample of       longitudinal survey of program participation to
                            recipients. Appropriates $10 million annually.   permit assessment of outcomes of continued
                            [Section 414 of the SSA]                         reform on the economic and child well-being of
                                                                             low-income families with children, including
                                                                             those who received TANF-funded aid or
                                                                             services.    Survey content should include
                                                          CRS-53

                                                                                                            H.R. 240 (as approved by the House Ways
                                                         S. 667 (as reported by the Senate Finance            and Means Subcommittee on Human
                                          Current law                   Committee)                                         Resources)

                                                        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 FY2010 for this
                                                        survey. [Section 115(a)]

                                                        Requires the Secretary of Commerce to make          No provision.
                                                        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)]

Teen Pregnancy Resource   No provision.                 Appropriates $5 million for FY2006 (to be           No provision.
Center                                                  available through FY2010) for the Secretary of
                                                        HHS to award a grant to a nationally
                                                        recognized, nonpartisan, nonprofit organization
                                                        (that meets stipulated requirements) to establish
                                                        and operate a national teen pregnancy
                                                        prevention resource center. The purpose of the
                                                        resource center is to improve the well-being of
                                                        children and families and encourage young
                                                        people to delay pregnancy until marriage. The
                                                        resource center will provide information and
                                                        technical assistance to states, Indian tribes,
                                                        local communities, and other private or public
                                                        organizations seeking to reduce rates of teen
                                                        pregnancy; support parents in their role in
                                                                                  CRS-54

                                                                                                                                   H.R. 240 (as approved by the House Ways
                                                                                 S. 667 (as reported by the Senate Finance           and Means Subcommittee on Human
                                              Current law                                       Committee)                                        Resources)

                                                                                preventing teen pregnancy; and assist the
                                                                                entertainment media industry by encouraging
                                                                                them to develop content and messages for teens
                                                                                and adults that can help prevent teen
                                                                                pregnancy. [Section 119(d)]

Best Practices for Dealing   No provision.                                      Authorizes $10 million per year for FY2006         No provision.
with Domestic Violence                                                          through FY2010 to develop and implement
                                                                                program designed to address domestic violence.
                                                                                Programs shall include training for caseworkers
                                                                                administering TANF; technical assistance;
                                                                                provision of voluntary services for victims of
                                                                                domestic violence; and activities related to the
                                                                                prevention of domestic violence. [Section
                                                                                103(c)]

Waivers and Program          Permits the HHS Secretary to waive                 Creates "superwaiver" authority for up to 10       Similar rules as S. 667, except covers 10
Coordination                 compliance with requirements for TANF state        states (including any portion of a state) to       programs and activities: TANF, Welfare-to-
                             plans (and for child support plans), but not for   coordinate rules of three specified programs for   Work grants, SSBG, Job Opportunities for
                             any other part of TANF law (including work         low-income families (all under jurisdiction of     Low-Income Individuals (JOLI), Title I of WIA
                             standards, time limits, funding rules, and         the Finance Committee): TANF, SSBG, child          (excluding Job Corps), Adult Education and
                             penalties). [Section 1115 of the SSA]              care entitlement funds. Specified provisions       Family Literacy Act, CCDBG, U.S. Housing
                                                                                could not be waived including: civil rights        Act (excepting Section 8 rental assistance and
                                                                                provisions, program purposes or goals, state       set-asides for the elderly and disabled),
                                                                                spending requirements, health or safety rules,     Homeless Assistance Act; and the Food Stamp
                                                                                labor standards, and others. Cannot waive          program. Food stamp non-financial rules
                                                                                funding restrictions in an appropriation act and   cannot be waived. Requires an evaluation, but
                                                                                funds cannot not be transferred from one           not a random assignment evaluation. [Section
                                                                                account to another, and projects could not         601]
                                                                                increase federal costs. Waivers would be valid
                                                                                for up to five years. Applicants must give
                                                                                assurances that they will obtain an evaluation
                CRS-55

                                                                 H.R. 240 (as approved by the House Ways
               S. 667 (as reported by the Senate Finance           and Means Subcommittee on Human
Current law                   Committee)                                        Resources)

              by an independent contractor and that random
              assignment of clients to services and control
              groups will be used to the maximum extent
              feasible.


              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 114(c)]

              No provision.                                      Authorizes five states to replace food stamps
                                                                 with demonstrations of food assistance block
                                                                 grant projects. [Section 602]
                                                                                CRS-56

                                                                                                                                 H.R. 240 (as approved by the House Ways
                                                                               S. 667 (as reported by the Senate Finance           and Means Subcommittee on Human
                                            Current law                                       Committee)                                        Resources)

                                                                              No provision.                                      Not later than six months after enactment,
                                                                                                                                 requires 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)]

Definition of Assistance   Receipt of assistance by a parent or other         Defines "assistance" to mean payment, by cash,     Same policy as S. 667 (different wording of the
                           caretaker relative triggers work and time limit    voucher, or other means, to or for an individual   provision). [Section 117]
                           rules. Law does not define the term. By            or family to meet a subsistence need, but not
                           regulation, assistance is defined as ongoing aid   including costs of transportation or child care.
                           to meet basic needs, plus support services such    It excludes non-recurrent short-term benefits.
                           as 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.
                                                                              CRS-57

                                                                                                                             H.R. 240 (as approved by the House Ways
                                                                             S. 667 (as reported by the Senate Finance         and Means Subcommittee on Human
                                          Current law                                       Committee)                                      Resources)

State Option to Make      The Workforce Investment Act (WIA) makes          No provision.                                    Makes state TANF programs mandatory
TANF Programs             TANF an optional partner with one-stop                                                             partners with one-stop employment training
Mandatory Partners with   employment training centers.                                                                       centers established under the Workforce
One-stop WIA Centers                                                                                                         Investment Act unless the governor of a state
                                                                                                                             decides otherwise and so notifies the
                                                                                                                             Secretaries of Health and Human Services and
                                                                                                                             Labor. [Section 120].

Sense of the Congress                                                       No provision.                                    Provides that it is the sense of Congress that a
                                                                                                                             state welfare-to-work program should include
                                                                                                                             mentoring. [Section 121]

Enforcing Support of      Requires sponsors of immigrants to sign a         Not later than March 31, 2006, requires the      Same as S. 667. [Section 115(c)]
Immigrants by Sponsors    legally enforceable affidavit of support. Deems   HHS Secretary, in consultation with the
                          all income and resources of a sponsor (and the    Attorney General, to submit a report on the
                          sponsor's spouse) as available to the sponsored   enforcement of affidavits of support and
                          alien until he or she becomes naturalized or      sponsor deeming required by P.L. 104-193.
                          meets a work test. [Sections 421 and 423 of the   [Section 115(c)]
                          Personal Responsibility and Work Opportunity
                          Reconciliation Act of 1996]

Extension Through                                                           Except as otherwise provided in this Act and     Same as S. 667, except that the FY2005 high-
FY2005                                                                      the amendments made by it, activities            performance bonus is set at $100 million.
                                                                            authorized by the TANF part of the Social        [Section 122]
                                                                            Security Act (SSA) and by Section 1108(b) of
                                                                            the SSA (TANF and child welfare in the
                                                                            territories) shall continue through FY2005, in
                                                                            the manner authorized, and at the level
                                                                            provided, for FY2002. The FY2005 high-
                                                                            performance bonus is eliminated. [Section 702]

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