For other versions of this document, see http://wikileaks.org/wiki/CRS-RL33157 ------------------------------------------------------------------------------ Order Code RL33157 CRS Report for Congress Received through the CRS Web Welfare Reauthorization: A Side-By-Side Comparison of Current Law and Pending Welfare Reauthorization Proposals Updated December 5, 2005 Gene Falk, Melinda Gish, Carmen Solomon-Fears, Emilie Stoltzfus Specialists in Social Legislation Domestic Social Policy Division Congressional Research Service ~ The Library of Congress Welfare Reauthorization: A Side-By-Side Comparison of Current Law and Pending Welfare Reauthorization Proposals Summary The 109th Congress is considering legislation to reauthorize and amend programs that were created or revised in the 1996 welfare reform law. Early in 2005, the Senate Committees on Finance and Health, Education, Labor, and Pensions (HELP) reported their welfare reauthorization legislation (respectively, S. 667 and S. 525). These bills have yet to see floor action and remain pending in the Senate. The House passed welfare reauthorization as part of its spending budget reconciliation bill (the House-passed version of S. 1932). The Senate-passed spending reconciliation bill does not include welfare reauthorization provisions. Both the Senate Finance Committee bill and the House reconciliation bill would reauthorize through FY2010 and revise the block grant of Temporary Assistance for Needy Families (TANF). They both revise TANF work participation standards aimed to require more families on the welfare rolls to work or participate in job preparation activities. The Senate committee bill would allow a broad range of activities engaged in by recipients to count toward meeting these standards, while the House bill would narrow the focus of activities to work or "workfare" outside of a four-month period. Both the Senate committee and House reconciliation bills also would establish $200 million per year in grants to promote "healthy" marriages. Both the Senate committee and House reconciliation bills would extend and increase funding for mandatory child care, though the size of the funding increase is a major difference between the two proposals -- $6 billion over five years in the Senate committee bill and $0.5 billion over five years in the House bill. Both would also reauthorize the Child Care and Development Block Grant (CCDBG), increasing its authorization to $3.1 billion by FY2010, and would revise CCDBG rules, including those related to making school-readiness a program goal and increasing the percentage of funds to improve the quality of child care. Both the Senate committee and House reconciliation bills would revise the Child Support Enforcement program to provide financing options for states to pay more collected child support to families on TANF or who have left the rolls. (Generally, federal and state governments keep child support collected for TANF families as reimbursement for their welfare costs.) The Senate committee bill would provide partial federal funding for child support passed through to families -- up to $400 per month for one child and $600 per month for two or more children. The House bill would provide partial federal funding to states that increase the amount of passed-through child support. The House reconciliation bill also would reduce federal funding to the states to operate their child support programs. Both Senate committee and House bills would also establish "responsible fatherhood" programs to fund activities to increase the participation of noncustodial parents in their children's lives. The Senate committee bill would provide $50 million per year in mandatory funding (and authorize another $26 million per year); the House reconciliation bill would authorize (but not provide funding) for up to $20 million per year. This report will be updated as needed. Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Summary of Similarities and Differences in the Bills . . . . . . . . . . . . . . . . . . . . . . 2 Temporary Assistance for Needy Families Block Grant . . . . . . . . . . . . . . . . 3 TANF Funding Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Uses of Grants and Program Requirements . . . . . . . . . . . . . . . . . . . . . . 5 Work Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Marriage Promotion Grants and Family Formation Issues . . . . . . . . . . 8 Child Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Discretionary Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Mandatory Appropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Authority to Transfer TANF Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Use of Funds for Direct Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Option to Use Excess Funds for Increasing Payment Rates . . . . . . . . 10 Quality Set-Aside . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Definition of "Quality Activities" . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 State Plan Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Data Collection and Reporting Requirements . . . . . . . . . . . . . . . . . . . 11 Waivers in Response to Gulf Hurricanes . . . . . . . . . . . . . . . . . . . . . . . 11 Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Responsible Fatherhood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Child Support Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Enforcement Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 S. 667 and House Budget Reconciliation Bill: Major Provisions Related to Child Support Enforcement . . . . . . 15 Other Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Detailed Comparison of Senate Committee Bills and the House Budget Reconciliation Bill . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Temporary Assistance for Needy Families (TANF) Block Grant . . . . . . . . 21 Findings and Goals and Purposes of TANF . . . . . . . . . . . . . . . . . . . . . 21 TANF Financing Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Work Participation Requirements and Standards . . . . . . . . . . . . . . . . 33 Other Requirements with Respect to Families Receiving Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Marriage Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 State Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions . . . . . . . . . . . . . . . . . 60 Child Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Overview, Goals and Administration . . . . . . . . . . . . . . . . . . . . . . . . . 74 Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Application and plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Activities to improve the quality of child care . . . . . . . . . . . . . . . . . . . 82 Report by the HHS Secretary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Reports and audits from States to HHS . . . . . . . . . . . . . . . . . . . . . . . . 85 Other Child Care Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Responsible Fatherhood Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Responsible Fatherhood Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Summary of the Responsible Fatherhood Program . . . . . . . . . . . . . . . 88 Prohibitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 Child Support Enforcement (CSE) Program . . . . . . . . . . . . . . . . . . . . . . . . 94 Assignment and Distribution of Child Support for TANF and Former TANF Families . . . . . . . . . . . . . . . . . . . . . . . 94 Enforcement Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Financing Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Other Child Support Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 Child Welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Child welfare waivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Other Child Welfare Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Transitional Medical Assistance (TMA) . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Extension of Program Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Revision of TMA rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Supplemental Security Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Review of Disability Determinations . . . . . . . . . . . . . . . . . . . . . . . . . 121 SSI Eligibility for Asylees, Refugees, and Certain Other Noncitizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Payment of Lump-Sum Benefit Installments under SSI . . . . . . . . . . 121 Abstinence Education State Grant Program . . . . . . . . . . . . . . . . . . . . . . . . 121 Extension of Program Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Social Services Block Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 Program Integration Waivers ("Superwaiver") . . . . . . . . . . . . . . . . . . . . . 122 Authority for Program Integration Waivers . . . . . . . . . . . . . . . . . . . . 122 Covered Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 General Requirements that Cannot Be Waived . . . . . . . . . . . . . . . . . 124 Program-Specific Requirements that Cannot Be Waived . . . . . . . . . 125 Application and Approval Process . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Cost Neutrality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Evaluation Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 List of Tables Table 1. Welfare Reauthorization Provisions Included in Senate Committee Bills and House Budget Reconciliation Bill . . . . . . . . . . 2 Table 2. Comparison of Current Law with S. 667/525 and the House Budget Reconciliation Bill Welfare Provisions . . . . . . . . . . 21 Acknowledgments This report benefitted from the contribution of Scott Szymendera of the Domestic Social Policy Division. Welfare Reauthorization: A Side-By-Side Comparison of Current Law, and Pending Welfare Reauthorization Proposals Introduction The 109th Congress is considering legislation to reauthorize and amend programs that were created or revised in the 1996 welfare reform law.1 Early in the 109th Congress, the Senate Finance and Health, Education, Labor, and Pensions Committees approved and reported their welfare reauthorization legislation (respectively, S. 667 and S. 525). Neither bill has yet seen action in the full Senate. In the House, a welfare reauthorization proposal (H.R. 240), introduced by the House Republican Leadership, has also failed to reach the floor. On November 18, 2005, the House passed its budget reconciliation bill (S. 1932), which includes welfare reauthorization legislation similar to that which passed the House in 2002 and 2003. (The House-passed version of S. 1932 is H.R. 4241 as amended and approved by the House.) Welfare reauthorization legislation was not included in the Senate-passed reconciliation bill. This report compares the welfare reauthorization policies proposed in the Senate committee bills with those included in the House-passed budget reconciliation bill. It is not a comparison of welfare provisions in the House and Senate reconciliation bills. (Such a comparison, which displays House-passed welfare provisions with corresponding "No Provision" entries for the Senate-passed version of reconciliation, is available from the Congressional Research Service upon request.) The original funding authority for the block grant of Temporary Assistance for Needy Families (TANF), the Child Care and Development Block Grant (CCDBG), abstinence education, and transitional medical assistance (TMA) under Medicaid expired on September 30, 2002. Funding and program authority for TANF, mandatory child care, abstinence education, and TMA have been continued by special temporary extension legislation since then, with the latest extension set to expire on December 31, 2005. CCDBG discretionary funding has been provided, absent authorization, in annual appropriation bills. Also included in "welfare reauthorization" legislation have been initiatives to create a responsible fatherhood grant program, revise the Child Support Enforcement program, amend child welfare 1 For a discussion of issues in reauthorizing welfare programs, see CRS Issue Brief IB10140 Welfare Reauthorization, Overview of the Issues, by Gene Falk, et al. Updated regularly. CRS-2 programs, and make some changes to Supplemental Security Income, as well as create new "superwaiver" authority. Summary of Similarities and Differences in the Bills Most of the welfare reauthorization provisions approved early in 2005 have counterparts in the House budget reconciliation bill. There are notable exceptions. S. 667 (the Finance Committee bill) would extend the abstinence education state grant program and revise and extend TMA through FY2010, whereas the House budget reconciliation bill includes none of those provisions. Further, the House reconciliation bill, unlike the Senate committee bills or the earlier House Republican Leadership welfare reauthorization bill (H.R. 240), includes some additional provisions that would reduce spending, including proposals to reduce federal matching funds for state Child Support Enforcement programs and to revise foster care and adoption assistance eligibility rules to negate a court ruling that expanded eligibility for these programs in certain states. Table 1 summarizes what provisions are included in the Senate committee bills and the House reconciliation bill. Note that when provisions are included in both, they still may differ significantly in their details. These differences are the subject of the remainder of this report. Table 1. Welfare Reauthorization Provisions Included in Senate Committee Bills and House Budget Reconciliation Bill Senate-Committee House Budget Provision Approved Legislation Reconciliation Bill Extend TANF funding Yes -- S. 667. Yes. through FY2005 Revise TANF Work Yes -- S. 667. Yes. Requirements Establish "Marriage Yes -- S. 667. Yes. Promotion Grants" within TANF Increase Mandatory Child Yes -- S. 667 increases Yes -- $0.5 billion Care Funding mandatory child care increase over five years. funding by $6 billion over five years. Reauthorize and amend Yes -- S. 525. Yes. the Child Care and Development Block Grant Establish "Responsible Yes -- S. 667. Yes. Fatherhood" programs. CRS-3 Senate-Committee House Budget Provision Approved Legislation Reconciliation Bill Increase amount of child Yes -- S. 667. Yes. support passed-through to families receiving TANF. Reduce the federal share No. Yes. of funding for state child support programs. Extend and revise child Yes -- S. 667. Yes. welfare demonstration authority Revise eligibility rules for No. Yes. foster care and adoption assistance. Extend abstinence Yes -- S. 667. No. education state grants through FY2010. Extend transitional Yes -- S. 667. No. medical assistance (TMA) for families that leave welfare for work. Program integration Yes -- S. 667. Yes. waivers ("Superwaiver") Source: Congressional Research Service (CRS). Temporary Assistance for Needy Families Block Grant The Senate-committee and House welfare reauthorization proposals 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.2 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. TANF Funding Provisions. Both the Senate-committee and House bills have very similar funding provisions, although they do differ in some details. The 2 The House budget reconciliation bill is organized by Titles reflecting each House committee's legislative change. TANF changes are found both in Title II, from the Education and Workforce Committee, and Title VIII of the bill, from the Ways and Means Committee. The two committees share jurisdiction over the TANF work requirements. In most respects, the committees reported identical legislative language amending TANF work requirements. The difference in the two committee's proposals -- reflecting a new requirement that parents visit schools in the Education and Workforce provisions -- is noted in Table 2. CRS-4 major differences between the two proposals are in the contingency fund and bonuses. 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 has been adjusted for inflation. Both the Senate-committee and House proposals 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 the Senate and House proposals 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 proposed revisions to the TANF contingency fund. The House budget reconciliation bill would continue the fund under existing rules, with some relatively minor modifications: allowing some additional state spending to count toward meeting the FY1994 funding level threshold and modifications to increase grants for states that qualify for funds for only part of the year. The Senate Finance Committee proposal 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 would eliminate the matching CRS-5 requirements. Instead, it requires that unspent TANF balances be below a certain threshold to qualify for contingency funds. The Senate committee proposal 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. Bonus Funds. Current TANF law provides "bonus funds" to states that rank high on a set of outcomes that seek to measure whether they are achieving the block grant's goals. It has a "High Performance Bonus" of $200 million per year for states that rank high in achieving employment and certain other outcomes, as well as a second $100 million per year bonus paid to the five states with the greatest reduction in out-of-wedlock birth ratios that also have a decline in abortions. The Senate Finance Committee bill scales back bonuses, by eliminating the $100 million per year bonus for reductions in out-of-wedlock births, and reducing and refocusing the "High Performance Bonus" on employment outcomes. Funding reductions are used to "pay for" grants to promote healthy marriages and responsible fatherhood initiatives (see a discussion of these initiatives, below). The House budget reconciliation bill eliminates both TANF bonuses, in part to pay for grants to promote healthy marriage and in part achieving budget reductions. 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%. The House budget reconciliation bill would raise the overall transfer limit to 50%; the Senate Finance Committee proposal would retain the current 30% transfer limit. Both bills include provisions to ease some rules regarding use of TANF funds. Both House and Senate committee bills 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. 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 CRS-6 "assistance," freeing from these requirements nonworking families that receive only child care or transportation aid. Work Requirements. Both the Senate Finance Committee bill and the House budget reconciliation bill 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. The House budget reconciliation bill also requires states to end benefits ("full family sanction") for families that fail to comply with work participation rules. Both the Senate Finance Committee bill and House budget reconciliation bill 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 since 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 the Senate Finance Committee bill and the House budget reconciliation bill would raise the work participation standard for all families to 70% by FY2010, and eliminate the separate standard for two-parent families. Both bills would 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. The House bill would retain, but revise, the current law caseload reduction credit so that caseload change would be 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. The Senate Finance Committee bill 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 the House bill. 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 CRS-7 month. Under current law, 20 hours are required for single parents with a pre-school child (under the age of 6), and 30 hours are required for other families. Higher hours are set for the purposes of the two-parent work participation rate. Both the Senate Finance Committee bill and the House budget reconciliation bill raise the hours standards. The House bill 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. The Senate Finance Committee bill also raises the hours standard for full credit, but to a lesser extent than proposed in the House 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. The House budget reconciliation bill and the Senate Finance Committee bill differ significantly on the types of activities that are countable as core activities toward the participation standards. The House bill 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 "core" 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, the Senate Finance Committee bill 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 the House budget reconciliation bill and the Senate Finance Committee bill would give states additional discretion in defining activities countable once a family CRS-8 has met the "core" work requirement (generally, 24 hours per week in core activities). The House bill would allow states to define activities for families with at least 24 hours in core activities; the Senate Finance Committee bill would allow states to count an expanded set of activities for single-parent families with at least 24 hours per week in core activities. The Senate Finance Committee proposal 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 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, the Senate Finance Committee bill 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 the Senate Finance Committee and House budget reconciliation bills 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. The House budget reconciliation bill would require that these funds be used "primarily" for marriage promotion; the Senate Finance Committee bill 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. CRS-9 Both bills have requirements that grantees of marriage promotion grants consider domestic violence issues and that participation in marriage promotion activities be voluntary. The Senate committee bill also includes a prohibition (not in the House bill) against states sanctioning families receiving TANF assistance for not participating in marriage promotion activities. Child Care While the House budget reconciliation legislation consolidates a package of provisions embodying "child care reauthorization" in a single bill3, at this point, on the Senate side, reauthorization provisions remain divided between the two bills, S. 667 and S. 525 (The Caring for Children Act of 2005). The Finance Committee- passed bill (S. 667) contains the proposed mandatory funding appropriation for Child Care and Development Block Grant (CCDBG) programs, while the HELP Committee-passed bill (S. 525) includes proposed discretionary funding authorization, and all provisions relating to the reauthorization of the CCDBG Act. Therefore, in the child care section of Table 2, most provisions in the Senate column are drawn from S. 525, with the notable exception of the mandatory (or "entitlement") funding provision, which falls under the Finance Committee's jurisdiction, and is therefore included in S. 667. A summary of provisions included in both the House bill and Senate committee legislation follows, with more detail found in Table 2. Discretionary Authorization. The discretionary portion of child care funding is authorized by the Child Care and Development Block Grant Act (as amended in 1996). Under current law, discretionary CCDBG funding is authorized at $1 billion annually. However, actual appropriation levels, determined during the annual appropriations process, have exceeded the authorized level (e.g., FY2005 = $2.1 billion). Both the House budget reconciliation bill and S. 525 propose to authorize discretionary funding at $2.3 billion in FY2006, rising by $200 million each year, up to $3.1 billion in FY2010. Mandatory Appropriation. Mandatory funding for the CCDBG was preappropriated in Section 418 of the Social Security Act for FY1997-2002, as part of the welfare law of 1996 (P.L. 104-193). A series of temporary extensions have continued that funding at the FY2002 rate of $2.717 billion since the close of FY2002. (The most recent extension runs through December 31, 2005.) The House budget reconciliation bill proposes to increase mandatory child care funding by $500 million over five years (FY2006- FY2010), appropriating $2.917 billion for FY2006, $2.767 billion for FY2007, $2.817 billion for FY2008, $2.867 billion for FY2009, and $2.917 billion for FY2010. (This reflects half of the $1 billion increase that had earlier been proposed in H.R. 240.) The Senate committee bill, S. 667, proposes to increase mandatory funding by $6 billion over five years 3 Child care provisions submitted to the House Budget Committee by the Committee on Ways and Means (i.e. the mandatory child care funding provisions) are found in title VIII of the budget reconciliation bill whereas provisions recommended by the Committee on Education and the Workforce (i.e. amendments to the CCDBG Act) are found in Title II. CRS-10 (FY2006-FY2010), appropriating $3.617 billion for FY2006; $3.717 billion for FY2007; $3.917 billion for FY2008; $4.017 billion for FY2009; and $4.317 billion for FY2010. Puerto Rico would receive $75 million of the $6 billion, whereas under current law (as well as the House bill), Puerto Rico receives no mandatory child care funding. Authority to Transfer TANF Funds. Under current law, states have the authority to transfer up to 30% of their annual TANF block grant to the CCDBG (only 20% if they choose to transfer 10% to the Social Services Block Grant). S. 667 would maintain current law, whereas the House bill would allow states to transfer up to 50% of their annual TANF grants to the CCDBG. Use of Funds for Direct Services. Current law includes no provision requiring a given percentage of funds appropriated under the CCDBG Act to be spent on direct services. S. 525 would require that after the reservation of set-asides, at least 70% of the funds remaining be used to fund direct services (as defined by the state). The House bill has no comparable provision. Option to Use Excess Funds for Increasing Payment Rates. S. 525 would allow states that receive funding above their FY2005 levels to use a portion of the excess to support payment rate increases for providers and to establish tiered payment rates. On a related note, the bill (S. 525) would also add to the statute stricter requirements to set payment rates in accordance with biennial market rate surveys. Quality Set-Aside. Current law requires that at least 4% of each state's total CCDBG expenditures (from all sources -- e.g., mandatory, discretionary, matching funds) be used for quality activities, described as providing comprehensive consumer education to parents and the public, activities that increase parental choice, and activities designed to improve the quality and availability of child care in the state. Both the House budget reconciliation bill and the HELP Committee's S. 525 would raise the percentage of CCDBG funds that must be spent for quality activities to a minimum of 6%. Definition of "Quality Activities". Both bills provide greater detail than current law in terms of defining what is classified as a "quality activity." In each, categories of activities are outlined to include school readiness activities (including activities to enhance early literacy); training and professional development for staff; and initiatives or programs to promote or increase retention of qualified staff. The categories reflect a new emphasis on school readiness as a goal of the CCDBG. The Senate committee bill (S. 525) also specifies that quality funds could be spent on evaluating and assessing the quality of programs, and their effectiveness in improving overall school preparedness. While S. 525 clearly states that quality funds must be spent for any of the six listed purposes, the House bill provides three broad categories, similar in topic to those in S. 525, with a fourth, more general category of "other activities as approved by the state." Eligibility. Federal law currently requires that children eligible for services under the CCDBG must have family income that does not exceed 85% of the state CRS-11 median (for a family of that size). However, states have the discretion to adopt income eligibility limits below this federal maximum. Both the House budget reconciliation bill and S. 525 propose to eliminate the federal maximum of 85% of state median income (SMI) from the CCDBG law, replacing it with a provision allowing states to set income eligibility levels (with no federal ceiling), with priorities based on need. State Plan Requirements. Under current CCDBG law, states are required to submit plans every two years, certifying that their CCDBG programs include specified elements addressing areas such as parental choice, parental access, consumer education, licensing, and health and safety requirements. Both the House budget reconciliation bill and the HELP Committee's S. 525 would amend current law to require that additional elements be certified in their state plans. Areas that would be modified or added relate to providing consumer education information; describing or demonstrating state coordination of child care services with other early childhood education programs; certifying compliance with the quality set-aside percentage requirement; and addressing special needs child care. Unlike the House bill, S. 525 includes provisions requiring that in their state plans, states demonstrate that the process for redetermining eligibility occur no more frequently than every six months (with limited exceptions), and also that the state plan describe any training requirements in effect for child care providers. The Senate committee bill would also put into statute the requirement that the provider payment rates, described in the state plan, be set in accordance with a statistically valid and reliable biennial survey of market rates (without reducing the number of families served). State plans would also be required to include the results of those surveys and to contain a description of how the state will provide for timely payment to providers. Results of the survey would also be required to be made available to the public no later than 30 days after the survey's completion. Data Collection and Reporting Requirements. Current law specifies a set of data reporting requirements for states to collect in the administration of their CCDBG programs. States collect data on a monthly basis and submit to the Department of Health and Human Services (HHS) disaggregated data on a quarterly basis. An aggregate report is required to be submitted to HHS on an annual basis. S. 525 would retain the quarterly reporting in current law, but would amend the list of data elements that states would be required to collect on a monthly basis. (See Table 2 for details.) It would also eliminate the separate annual report, instead requiring that the fourth quarterly report include information on the annual number and type of child care providers and the method of payment they receive. S. 667 would also extend CCDBG reporting to TANF-funded child care. The House bill would retain current law, containing none of these provisions. Waivers in Response to Gulf Hurricanes. The House budget reconciliation bill would provide the Secretary of HHS with the authority to waive or modify certain CCDBG provisions for states affected by Hurricanes Katrina and Rita. Provisions that could be waived include those relating to the federal income eligibility limits, the work requirements, states' use of quality funds, and any CRS-12 provision that prevents children designated as evacuees from receiving priority services over any children not already receiving CCDBG services. No similar provisions are included in S. 525. Other Provisions. Titles II and III of S. 525 propose provisions that stand apart from CCDBG law or Section 418 of the Social Security Act. Title II of the bill contains provisions to enhance security at child care centers in federal facilities, and Title III would establish a small business child care grant program, through which competitive grants would be awarded to states for establishment and operation of employer-operated child care programs. The House budget reconciliation bill includes no similar provisions. Responsible Fatherhood To improve the long-term outlook for children in single-parent families, federal, state, and local governments, along with public and private organizations, are supporting programs and activities that promote the financial and personal responsibility of noncustodial fathers to their children and increase the participation of fathers in the lives of their children. These programs have come to be known as "responsible fatherhood" programs. Most fatherhood programs include media campaigns that emphasize the importance of emotional, physical, psychological, and financial connections of fathers to their children. Most fatherhood programs also include parenting education; responsible decision-making; mediation services for both parents; providing an understanding of the CSE program; conflict resolution, coping with stress, and problem-solving skills; peer support; and job-training opportunities (skills development, interviewing skills, job search, job-retention skills, job-advancement skills, etc.). Sources of federal funding for fatherhood programs include TANF block grant funds, TANF state Maintenance-of-Effort (MOE) funding, welfare-to-work funds, Child Support Enforcement (CSE) funds, and Social Services Block Grant (Title XX) funds. Even so, the federal government does not currently earmark a specific amount of funding exclusively for responsible fatherhood programs. Beginning with the 106th Congress, both the House and Senate have introduced a number of bills that contain responsible fatherhood provisions, but so far none of the bills have been passed by both Houses of Congress. In the 109th Congress, both S. 667 and the House budget reconciliation bill would include funding for responsible fatherhood grant programs. S. 667 as approved by the Senate Finance Committee would establish five components for the responsible fatherhood program for FY2006 through FY2010. It would (1) appropriate $20 million for a grant program for up to 10 programs; (2) appropriate $30 million for grants for eligible entities (local government, local public agency, community-based or nonprofit organization, or private entity, including any charitable or faith-based organizations, or Indian tribe or tribal organization) to conduct demonstration programs; (3) authorize $5 million for a nationally recognized nonprofit fatherhood promotion organization to develop and promote a responsible fatherhood media campaign and establish a national clearinghouse to help states and communities in their efforts to promote both marriage and responsible fatherhood; CRS-13 (4) authorize a $20 million block grant for states to conduct responsible fatherhood media campaigns (authorize $1 million of the $20 million for an evaluation); and (5) authorize $1 million for a nationally recognized nonprofit research and education fatherhood organization to establish a national resource center for responsible fatherhood. The House Budget Reconciliation proposal as approved by the Committee on Ways and Means would establish four components for the responsible fatherhood program for FY2006 through FY2010. It would (1) authorize competitive grants for responsible fatherhood projects to public and nonprofit community entities, including religious organizations, and to Indian tribes and tribal organizations, for demonstration service projects and activities designed to test the effectiveness of various approaches to accomplish the four specified responsible fatherhood program objectives -- eligible entities would be allowed to apply for either full service grants or limited purpose grants of $25,000 or less per fiscal year; (2) authorize funding for two multicity, multistate fatherhood demonstration projects to be developed and conducted by a national nonprofit fatherhood promotion organization; (3) authorize funding for an evaluation of the competitive grant projects and the multicity, multistate demonstration projects; and (4) authorize the Secretary of HHS by grant, contract, or cooperative agreement to carry out projects and activities of national significance relating to fatherhood promotion -- such projects or activities could include collection and dissemination of information, media campaigns, technical assistance to public and private entities, and research. The bill would authorize $20 million for each of the years FY2006 through FY2010, and stipulates that no more 15% of the annual appropriations can be used for the multicity, multistate demonstrations, the evaluations, and the projects of national significance. The Committee on Education and the Workforce shared jurisdiction with the Committee on Ways and Means with respect to fatherhood programs. The Committee on Education and the Workforce's fatherhood program is identical to that of the Committee on Ways and Means except that it would include five components rather than four and stipulate that no more than 35% of the $20 million annual authorization could be used for the multicity, multistate demonstrations, the economic incentives demonstrations, the evaluations, and the projections of national significance. In addition to the four components in the Ways and Means Committee proposal, the Committee on Education and the Workforce's proposal would authorize the HHS Secretary to make grants available for FY2006 through FY2010 for two to five demonstration projects that test the use of economic incentives combined with a comprehensive approach to addressing employment barriers to encourage noncustodial parents to enter the workforce and to contribute financially and emotionally to their children. The fatherhood demonstration projects would be developed and conducted by a national nonprofit fatherhood promotion organization that meets the qualifications specified in the bill. The bill would stipulate that out of the set-aside monies, at least $5 million is to be allocated for the economic incentive demonstration project. (Note: All of the responsible fatherhood provisions in both House Committee bills are included in the House-passed budget reconciliation bill.) CRS-14 Child Support Enforcement The CSE program, Part D of Title IV of the Social Security Act, was enacted in January 1975 (P.L. 93-647). The CSE program is administered by the Office of Child Support Enforcement (OCSE) in the Department of HHS, and funded by general revenues. All 50 states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands operate CSE programs and are entitled to federal matching funds. The following families automatically qualify for CSE services (free of charge): families receiving TANF benefits (Title IV-A), foster care payments (Title IV-E), or Medicaid coverage (Title XIX). Collections on behalf of families receiving TANF benefits are used to reimburse state and federal governments for TANF payments made to the family. Other families must apply for CSE services, and states must charge an application fee that cannot exceed $25. Child support collected on behalf of nonwelfare families goes to the family (usually through the state disbursement unit). Services. The CSE program provides seven major services on behalf of children: (1) parent location, (2) paternity establishment, (3) establishment of child support orders, (4) review and modification of support orders, (5) collection of support payments, (6) distribution of support payments, and (7) establishment and enforcement of medical support. Enforcement Techniques. Collection methods used by CSE agencies include income withholding, intercept of federal and state income tax refunds, intercept of unemployment compensation, liens against property, security bonds, and reporting child support obligations to credit bureaus. All jurisdictions also have civil or criminal contempt-of-court procedures and criminal nonsupport laws. Building on legislation (P.L. 102-521) enacted in 1992, P.L. 105-187, the Deadbeat Parents Punishment Act of 1998, established two new federal criminal offenses (subject to a two-year maximum prison term) with respect to noncustodial parents who repeatedly fail to financially support children who reside with custodial parents in another state or who flee across state lines to avoid supporting them. P.L. 104-193 required states to implement expedited procedures that allow them to secure assets to satisfy an arrearage by intercepting or seizing periodic or lump sum payments (such as unemployment and workers' compensation), lottery winnings, awards, judgements, or settlements, and assets of the debtor parent held by public or private retirement funds, and financial institutions. It required states to implement procedures under which the state would have authority to withhold, suspend, or restrict use of driver's licenses, professional and occupational licenses, and recreational and sporting licenses of persons who owe past-due support or who fail to comply with subpoenas or warrants relating to paternity or child support proceedings. It also required states to conduct quarterly data matches with financial institutions in the state in order to identify and seize the financial resources of debtor noncustodial parents. P.L. 104-193 authorized the Secretary of State to deny, revoke, or restrict passports of debtor parents. P.L. 104-193 also required states to enact and implement the Uniform Interstate Family Support Act (UIFSA), and expand full faith and credit procedures. P.L. 104-193 also clarified which court has jurisdiction in cases involving multiple child support orders. CRS-15 Financing. The federal government currently reimburses each state 66% of the cost of administering its CSE program. It also refunds states 90% of the laboratory costs of establishing paternity. In addition, the federal government pays states an incentive payment to encourage them to operate effective programs. P.L. 104-193 required the HHS Secretary in consultation with the state CSE directors to develop a new cost-neutral system of incentive payments to states. P.L. 105-200, the Child Support Performance and Incentive Act of 1998, established a new cost-neutral incentive payment system. The statutory limit of CSE incentive payments for FY2005 is $446 million. S. 667 and House Budget Reconciliation Bill: Major Provisions Related to Child Support Enforcement. Over the years, the CSE program has evolved into a multifaceted program. While cost-recovery still remains an important function of the program, other aspects of the program include service delivery and promotion of self-sufficiency and parental responsibility. The CSE program has helped strengthen families by securing financial support for children from their noncustodial parent on a consistent and continuing basis and by helping some families to remain self-sufficient and off public assistance by providing the requisite CSE services. Child support payments now are generally recognized as a very important income source for single-parent families. On average child support constitutes 17% of family income for households that receive it (2001 data). Among poor families who receive it, child support constitutes about 30% of family income (2001 data). Both S. 667 and the House budget reconciliation bill would seek to improve the CSE program and raise collections so as to increase the economic independence of former welfare families and provide a stable source of income for all single-parent families with a noncustodial parent. Although both bills share identical objectives with respect to simplifying CSE assignment and distribution rules and strengthening the "family-first" policies started in the1996 welfare reform law, the approaches used differ. Both bills would revise some CSE enforcement tools and add others. This section of the report does not discuss all of the CSE provisions included in S. 667 and the House bill. For a description of all of the CSE provisions in S. 667 as reported by the Senate Finance Committee and the House budget reconciliation bill, see Table 2 in the last section of this report. The Congressional Budget Office (CBO) estimates that the Senate Finance Committee-reported bill would increase federal outlays in the CSE program by $628 million over the period FY2006-FY2010, whereas the House budget reconciliation bill would reduce federal outlays in the CSE program by $4.899 billion over the period FY2006-FY2010. The following two CSE provisions in the House bill comprise most of the budget reductions (i.e., savings): a phased-in reduction of the matching rate for administrative expenses from 66% to 50%, which saves $3.8 billion over the five-year period; and an elimination of the federal match when states spend CSE incentive payments (i.e., reinvest CSE incentive payments back into the program), saving $1.6 billion over the five-year period. Assignment of Child Support Rights. As a condition of receiving TANF benefits, a family must assign their child support rights to the state. Assignment rules CRS-16 determine who has legal claim on the child support payments owed by the noncustodial parent. The child support assignment covers any child support that accrues while the family receives TANF benefits as well as any child support that accrued before the family started receiving TANF benefits. Assigned child support collections are not paid to families, but rather this revenue is kept by states and the federal government as partial reimbursement for welfare benefits. Nonwelfare families who apply for CSE services do not assign their child support rights to the state and thereby receive all of the child support collected on their behalf. An extremely important feature of the assignment process is the date on which an assignment was entered. If the assignment was entered on or before September 30, 1997, then pre-assistance and during-assistance arrearages are "permanently assigned" to the state. If the assignment was entered on or after October 1, 1997, then only the arrearages which accumulate while the family receives assistance are "permanently assigned." The family's pre-assistance arrearages are "temporarily assigned" and the right to those arrearages goes back to the family when it leaves TANF (unless the arrearages are collected through the federal income tax refund offset program). Under S. 667 as reported by the Senate Finance Committee, the child support assignment would only cover any child support that accrues while the family receives TANF benefits. This would mean that any child support arrearages that accrued before the family started receiving TANF benefits would not have to be assigned to the state (even temporarily) and thereby any child support collected on behalf of the former-TANF family for pre-assistance arrearages would go to the family. The House bill includes a similar provision. Distribution of Child Support. Distribution rules determine the order in which child support collections are paid in accordance with the assignment rules. In other words, the distribution rules determine which claim is paid first when a child support collection occurs. The order of payment of the child support collection is of tremendous importance because in many cases past-due child support (i.e., arrearages) are never fully paid. TANF Families. While the family receives TANF benefits, the state is permitted to retain any current support and any assigned arrearages it collects up to the cumulative amount of TANF benefits which has been paid to the family. The 1996 welfare law (P.L. 104-193) repealed the $50 required pass through and gave states the choice to decide how much, if any, of the state share (some, all, none) of child support payments collected on behalf of TANF families to send the family. States also decide whether to treat child support payments as income to the family. While states have discretion over their share of child support collections, P.L. 104-193 required states to pay the federal government the federal government's share of child support collections collected on behalf of TANF families. This means that the state, and not the federal government, bears the entire cost of any child support passed through to (and disregarded by) families. As of August 2004, 18 states were continuing the $50 (or higher in one state) pass-through and disregard policy that had been in effect pre-1996. CRS-17 Both bills would provide incentives (in the form of federal cost sharing) to states to direct more of the child support collected on behalf of TANF families to the families themselves (often referred to as a "family-first" policy), as opposed to using such collections to reimburse state and federal coffers for welfare benefits paid to the families. However, the approaches of the bills differ with respect to the amount of federal cost-sharing provided and whether to help states pay for the current cost of their CSE pass-through and disregard policies or to encourage states to establish such policies or increase the pass-through and disregard already in place. Under S. 667 as reported by the Senate Finance Committee, the federal government would share in the costs of the entire amount of pass-through and disregard policies used by states. S. 667 would allow states to pay up to $400 per month in child support collected on behalf of a TANF (or foster care) family ($600 per month to a family with two or more children) to the family and would not require the state to pay the federal government the federal share of those payments. In order for the federal government to share in the cost of the child support pass-through, the state would be required to disregard (i.e., not count) the child support collection paid to the family in determining the family's TANF benefit. Unlike S. 667, the House bill is intended to provide states with an incentive to increase their pass-through and disregard policies. The House budget reconciliation bill would allow states to increase the amount of collected child support they pay to families receiving TANF benefits and would not require the state to pay the federal government the federal share of the increased payments. The subsidized child support pass-through payments would be the amount above any payments the state was making on December 31, 2001. The House bill would limit the federal government's cost-sharing of the new pass-through payments to the greater of $100 per month or $50 per month more than the state previously was sharing with the family. In order for the federal government to share in the cost of an increase in the child support pass-through, the state would be required to disregard (i.e., not count) the child support collection paid to the family in determining the family's TANF benefit. Former TANF Families. Pursuant to the 1996 welfare reform law (P.L. 104-193), beginning on October 1, 2000, states must distribute to former TANF families the following child support collections first before the state and the federal government are reimbursed (the "family-first" policy): (1) all current child support, (2) any child support arrearages that accrue after the family leaves TANF (these arrearages are called never-assigned arrearages), plus (3) any arrearages that accrued before the family began receiving TANF benefits. (Any child support arrearages that accrue during the time the family is on TANF belong to the state and federal government.) One of the goals of the 1996 welfare reform law with regard to CSE distribution provisions was to create a distribution priority that favored families once they leave the TANF rolls. Thus, generally speaking, under current law, child support that accrues before and after a family receives TANF goes to the family, whereas child support that accrues while the family is receiving TANF goes to the state. This additional family income is expected to reduce dependence on public assistance by both promoting exit from TANF and preventing entry and re-entry to TANF. CRS-18 S. 667 as reported by the Senate Finance Committee would give states the option of distributing to former TANF families the full amount of child support collected on their behalf (i.e., both current support and all child support arrearages -- including arrearages collected through the federal income tax refund offset program). S. 667 would simplify the CSE distribution process and eliminate the special treatment of child support arrearages collected through the federal income tax refund offset program. Under S. 667 the federal government would share with the states the costs of paying child support arrearages to the family first. Similarly, the House bill would give states the option of distributing to former TANF families the full amount of child support collected on their behalf. Under the House bill, the federal government would share with the states the costs of paying child support arrearages accrued while the family received TANF as well as costs associated with passing through to the family child support collected through the federal income tax refund offset program, if the state chose the "family-first" option. Expansion of Collection/Enforcement Tools. Both bills would include identical or similar provisions with respect to (1) lowering the threshold amount for denial of a passport to a noncustodial parent who owes past-due child support; (2) easing the collection of child support from veterans' benefits; (3) allowing states to use the federal income tax refund offset program to collect past-due child support for persons not on TANF who are no longer minors; (4) authorizing the HHS Secretary to compare information of noncustodial parents who owe past-due child support with information maintained by insurers concerning insurance payments and to furnish any information resulting from a match to CSE agencies so they can pursue child support arrearages; and (5) allowing an assisting state to establish a child support interstate case based on another state's request for assistance (thereby enabling an assisting state to use the CSE statewide automated data processing and information retrieval system for interstate cases). Additional provisions that would expand and/or enhance the ability of states to collect child support payments are contained in S. 667 as reported by the Senate Finance Committee. They include (1) authorizing the HHS Secretary to act on behalf of states to seize financial assets (held by a multi-state financial institution) of noncustodial parents who owe child support; (2) facilitating the collection of child support from Social Security benefits; (3) requiring that medical support for a child be provided by either or both parents; and (4) requiring the CSE agency to notify health care plan administrators under certain circumstances when a child loses health care coverage. Other Provisions. Both bills include provisions that would (1) require states to review and if appropriate adjust child support orders of TANF families every three years; (2) require the HHS Secretary to submit a report to Congress on the procedures states use to locate custodial parents for whom child support has been collected but not yet distributed; (3) establish a minimum funding level for technical assistance; (4) establish a minimum funding level for the Federal Parent Locator Service; and (5) designate Indian tribes and tribal organizations as persons authorized to have access to information in the Federal Parent Locator Service. CRS-19 S. 667 includes provisions that would (1) increase funding for the CSE access and visitation program; (2) require states to adopt a later version of the Uniform Interstate Family Support Act (UIFSA) so as to facilitate the collection of child support payments in interstate cases; and (3) allow the state of Texas to continue to operate its CSE program for automatic monitoring and enforcement of court orders on behalf of nonwelfare families without applying for a federal waiver. The House budget reconciliation bill includes provision that would (1) establish a $25 annual fee for individuals who have never been on TANF but receive CSE services and who received at least $500 in any given year; (2) gradually reduce the general CSE federal rate of 66% to 50% (over the period FY2007-FY2010); and (3) eliminate the federal match on CSE incentive payments that states, in compliance with federal law, reinvest back into the CSE program. Other Programs In addition to reauthorizing and modifying the programs discussed above, the Senate welfare reauthorization bill (S. 667) and the House budget reconciliation bill would modify some other programs: ! Transitional Medical Assistance (TMA), which is a program that extends at least six and up to 12 additional months of Medicaid coverage for families leaving welfare for work. Authority for the TMA program is scheduled to expire on December 31, 2005 at which time, absent congressional action, four months of Medicaid coverage to such families would be provided. S. 667 would extend 12-month TMA through the end of FY2010 and provide state options to reduce required beneficiary reporting of income to continue to receive TMA after six months and allow for up to 24 months of TMA. The House reconciliation bill would not extend TMA beyond December 31, 2005.4 ! State abstinence education grants. The program providing grants to states for abstinence-only education is scheduled to expire on December 31, 2005. S. 667 would extend this program through FY2010. The House budget reconciliation bill would not include an extension of this program. ! Child welfare programs. Both S. 667 and the House budget reconciliation bills would extend the authority for states to operate child welfare "waiver" programs through FY2010. The House bill would add additional instructions to HHS regarding waiver approval policies and availability of waiver reports. The Senate committee bill would allow Indian tribes to receive direct federal funding to operate foster care and adoption assistance programs and would also permit Puerto Rico to receive limited additional federal foster care funds. 4 For a discussion of the TMA program and issues, see CRS Report RL31698, Transitional Medical Assistance (TMA) Under Medicaid, by April Grady. CRS-20 The House budget reconciliation bill includes two provisions intended to reduce federal outlays for foster care and adoption assistance: 1) it seeks to nullify a court rule (known as the Rosales case) that expands eligibility for foster care in certain states; and 2) it limits the period of time partial federal reimbursement of foster care costs can be provided for children who are placed with relatives who are not licensed to provide foster care, and it requires states seeking this partial federal matching on behalf of children who are at "imminent risk" of removal from their homes to redetermine the status of these children as "candidates" for foster care every six months. ! Supplemental Security Income (SSI). Both S. 667 and the House budget reconciliation bill would require that a certain percentage of disability determinations by state disability agencies be reviewed by the federal government. S. 667 would also extend the period of SSI eligibility for refugees and asylees from seven to nine years. The House bill attempts to achieve budget reductions by requiring that certain back payments be paid in installments over time, rather than in one lump sum. Detailed Comparison of Senate Committee Bills and the House Budget Reconciliation Bill Table 2 provides a detailed comparison of welfare and related provisions in the two Senate committee bills (S. 667 and S. 525) and the House budget reconciliation bill. For the Senate proposals, the table notes both the bill and section numbers. The House budget reconciliation bill is organized by Titles reflecting each House committee's legislative changes. The welfare and related proposals are found both in Title II, from the Education and Workforce Committee, and Title VIII of the bill, from the Ways and Means Committee. In most respects, the committees reported identical legislative language. In those cases, Table 2 provides both section references for identical provisions. In cases where the two committees reported different provisions, the table separately indicates the Education and the Workforce and Ways and Means provisions. The House budget reconciliation bill is an omnibus bill that includes many provisions unrelated to welfare reform programs. Those provisions are not discussed in this report and not shown on the table. Further, S. 667 makes a number of changes to the earned income and child tax credits. The tax provisions of S. 667 are also not addressed in this report or shown on the table. CRS-21 Table 2. Comparison of Current Law with S. 667/525 and the House Budget Reconciliation Bill Welfare Provisions Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Temporary Assistance for Needy Families (TANF) Block Grant Findings and Goals and Purposes of TANF 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 (PRWORA), made a series of findings related from welfare to work and reducing child to marriage, responsible parenthood, trends in poverty; (2) progress made by the nation in welfare receipt and the relationship between reducing teen pregnancy and births, slowing welfare receipt and nonmarital parenthood, and increases in nonmarital births, and improving trends in and negative consequences of child support collections and paternity nonmarital and teen births. [Section 101 of establishment; (3) the flexibility provided by PRWORA] 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 8204] TANF Goals and The purpose of TANF is to increase state Revises goal no. 4 to "encourage the The overall purpose of TANF is to improve Purposes flexibility in operating a program designed to: formation and maintenance of healthy two- child well-being by increasing state flexibility (1) assist needy families so that children may parent married families, and encourage in operating a program designed to: (1) live in their homes or those of relatives; (2) end responsible fatherhood." [New language in provide assistance and services to needy dependence of needy parents on government italics] [Section 103(d) of S. 667] families so that children may live in their benefits; (3) reduce out-of-wedlock homes or those of relatives, (2) end pregnancies; and (4) encourage the formation dependence of needy families on government CRS-22 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill and maintenance of two-parent families. benefits and reduce poverty; (3) reduce out- [Section 401 of the Social Security Act (SSA)] of-wedlock pregnancies; and (4) encourage the formation and maintenance of healthy, two-parent married families, and encourage responsible fatherhood. [New language in italics] [Section 8101] TANF Financing Provisions State Family Provides capped grants (entitlements to states Retains basic block grants, and extends them Same as S. 667. [Section 8102(b)] Assistance and territories). Nationally, annual family through FY2010 at current funding levels. Grants 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., territories. Each jurisdiction's annual grant and the territories. Provides that the annual equals the same share of the national total as in grant of each jurisdiction shall equal its FY2002. [(Section 403(a)(1) of the SSA] FY2002 proportion of the national grant total. [Section 102(a) of S. 667] Also provides matching grants for the territories Extends funding for matching grants to the Same as S. 667. [Section 8102(c)] [Section 1108(b) of the SSA]. territories through FY2010. [Section 102(b) of S. 667] Supplemental Supplemental grants for (17) states with low Extends supplemental grants for FY2006 Same as S. 667. [Section 8104] Grant for historic federal grants per poor person and/or through FY2009, at current funding levels Population high population growth. Grants grew each ($319 million). [Section 104 of S. 667] Increases in year, from $79 million in FY1998 to $319 Certain States million in FY2001. Grants frozen at $319 million since FY2001. [Section 403(a)(3) of SSA] Bonus to Reward High-performance bonus of $200 million per Replaces the high-performance bonus with Eliminates the high-performance bonus. Employment year on average. [Section 403(a)(4) of the a bonus to reward employment achievement. [Section 8105] Achievement SSA] Employment achievement bonuses would total $50 million for each of FY2006 through FY2008, and $100 for each of FY2009 through FY2011. [Section 105 of S. 667] CRS-23 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Maximum bonus for a state equals 5% of its Maximum bonus for a state equals 5% of its family assistance grant. family assistance grant. [Section 105 of S. 667] Bonus based on achievement of TANF goals, Bonus to be based on absolute and relative with formula developed by the Department of progress toward the goal of workforce Health and Human Services (HHS) in attachment and advancement. [Section 105 consultation with the National Governors of S. 667]f Association and the American Public Human 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 aside 2% of total employment achievement bonus dollars for them, and directs the Secretary to consult with them regarding criteria for their awards. [Section 105 of S. 667] Reduces FY2005 high-performance bonus amount to $0. [Section 702 of S. 667] For FY2006 and FY2007, employment achievement bonus may be based on three components of the repealed high- performance bonus -- job entry rate, job retention rate, and earnings gain rate. [Section 105 of S. 667] CRS-24 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Bonus to Reward Appropriated $100 million yearly for bonuses Repeals the bonus and uses the $100 million Repeals the bonus beginning in FY2006, and Reductions in to the five states with the largest percentage per year to fund grants for marriage uses the $100 million per year to fund grants Out-of-wedlock decline (over recent two years) in the out-of- promotion activities (see Matching Grants for marriage promotion activities. [Section Births wedlock birth ratio. To qualify, states had to for Marriage Promotion, below). [Section 8103(b)] reduce their abortion rate to below that of 103(b) of S. 667] FY1995. [Section 403(a)(2) of the SSA] Contingency Capped matching grants (maximum $2 billion) Appropriates such sums as are needed for Appropriates such sums as needed for Fund provided in case of recession. To qualify for contingency fund grants, up to $2 billion contingency fund grants, up to $2 billion over contingency dollars, states must be "needy" and over five years, FY2006-FY2010. To five years, FY2006-FY2010. To qualify for must spend under the TANF program a sum of qualify for contingency grants, a state must contingency grants, states must be "needy" their own dollars equal to their pre-TANF be "needy," have sufficiently low TANF and must spend under the TANF program a spending. [Section 403(b) of the SSA] balances, and have an increase in its sum of their own dollars equal to their pre- assistance caseload of over 5%. TANF spending. Needy State The law provides two needy state triggers: ( 1) To trigger on as needy, a state must (1) have Retains current law needy state triggers, but Eligibility an unemployment rate for a three-month period an increase (due in large measure to revises the food stamp trigger, requiring that Criteria that is at least 6.5% and is 10% or more above economic conditions) of 5% in the monthly the FY1994-FY1995 caseload base be the rate for the corresponding period in either of average unduplicated number of families readjusted for policy changes made after the two preceding calendar years; or (2) a food receiving assistance under its TANF passage of 1996 welfare law. [Section stamp caseload increase of 10% over the program in the most recently concluded 8106(c)] FY1994-FY1995 level (adjusted for the impact three-month period with data, compared of immigrant and food stamp constraints in the with the corresponding period in either of 1996 welfare law). [Section 403(b)(5) of the the two most recent preceding fiscal years, SSA] and (2) meet one of three other 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 data, the average rate of insured unemployment must be at least one CRS-25 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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) of S. 667] Financial Before drawing contingency grants, a state must Eliminates the requirements that a state Retains current law requirements that states Eligibility expend within the TANF program 100% of spend 100% of what it spent in FY1994 and expend 100% of what they spent on TANF Requirements what it spent on TANF predecessor programs in provide matching funds. Instead, requires predecessor programs in FY1994 and provide FY1994. Both TANF spending and FY1994 that unspent balances be 30% or less of matching funds. Allows states to count base spending exclude child care expenditures. cumulative TANF grants to be eligible for spending in separate state maintenance of States then must provide matching funds to contingency funds. [Section 106(b) of S. effort programs toward these spending CRS-26 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill draw down contingency grants (see 667] requirements. State child care spending also Contingency Grant Amounts, below). [Section would count toward this requirement, but 403(b)(5) and Section 409(a)(10) of the SSA] would also be added to base FY1994 spending. [Section 8106(d) and 8106(e)] Contingency 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, Fund Grant TANF grant. A maximum advance grant of exceed 10% of its family assistance grant. advance grant, and annual grant based on the Amounts one-twelfth of its total maximum grant is The contingency fund grant equals the Medicaid matching rate times expenditures allowed in a given month. [Section 403(b)(3)] state's federal Medicaid matching rate times made in excess of 100% of the FY1994 level. the benefit cost of an increase in the TANF Eliminates the proration of the annual grant A state's annual contingency fund grant amount family caseload above 5% in the most for part-year eligibility for contingency funds. is the Medicaid matching rate times recently concluded three-month period with [Section 8106(d)] expenditures it made in excess of 100% of data, compared with the corresponding FY1994 expenditures. This annual amount is period in either of the two most recent prorated for the number of months the state is preceding fiscal years. (The remaining cost eligible for continency grants. If a state of the increased caseload would have to be received advance grants that are greater than the paid with state funds or other federal TANF annual amount for which it is entitled, the state funds.) [Section 106(a) of S. 667] must remit any excess back to the federal Treasury. [Section 403(b)(6)] Tribal Eligibility No provision. Tribes are not eligible for Sets aside $25 million of the contingency No provision (retains current law). for Contingency contingency fund. fund appropriation for grants to Indian tribes Funds 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) of S. 667] 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 CRS-27 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill applicants to describe their strategy for developing a program that generates its own source of on-going revenue while assisting TANF recipients. Administrative costs could not exceed 15% (except for computerization and information technology needed for tracking or monitoring required by TANF), but none of the other statutory rules regarding use of TANF funds would apply. Requires evaluation and report to Congress. [Section 119(a) of S. 667] Car Ownership No provision. Authorizes appropriation of $25 million for No provision. Grants 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) of S. 667] Transitional No provision. Authorizes appropriations of $200 million No provision. Jobs/business for each of FY2006-FY2010 for business Links Grants 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 CRS-28 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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. "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. CRS-29 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Requires a minimum of 40% of funds appropriated to be used for business linkages and also a minimum of 40% to 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) of S. 667] Domestic No provision. Authorizes $20 million per year for FY2006 No provision. Violence through FY2010 for competitive matching Prevention grants (at a 75% federal matching rate) to Grants 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 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) of S. 667] Repeal of Provides a $1.7 billion revolving and interest- Repeals the loan fund. [Section 108] Repeals the loan fund effective October 1, Federal Loan bearing federal loan fund for state welfare 2006. [Section 8108] Fund programs. [Section 406 of the SSA] Maintenance of Establishes a maintenance-of-effort (MOE) Continues MOE requirement through Same as S. 667. [Section 8111] Effort requirement that states spend at least 75% of FY2010, but raises the MOE percentage to CRS-30 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill what was spent from state funding in FY1994 80% if the state failed TANF work on programs replaced by TANF. Nationally, participation standards of the preceding this sum is $10.4 billion. (MOE rises to 80% if fiscal year. [Section 111(a) of S. 667] 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- wedlock births and promote marriage and of-wedlock births and promote marriage and responsible fatherhood (including spending responsible fatherhood (including spending on on behalf of non-needy families) as behalf of non-needy families) as countable countable toward required MOE state toward required MOE state spending. spending. Subjects this spending to two [Section 8103(c)] requirements applicable to 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) of S. 667] 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 not be treated as state spending toward MOE the MOE requirement. [Section 103(b) of S. requirements. [Section 8111(b)] 667]. 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 (rather than any manner [Section 404 of the SSA] that) they were authorized to use pre-TANF CRS-31 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill funds. [Section 8107(a)] A state may treat a family that has resided in Strikes provision permitting different Same as S. 667. [Section 8107(b)] the state for fewer than 12 months under the treatment of families migrating into the state welfare rules of the state where they formerly -- found unconstitutional. [Section 107(a) lived. [Section 404 of the SSA] of S. 667] Transfer of States may transfer up to 30% of TANF funds Retains overall transfer limit at 30%. Sets Increases the overall ceiling on transfers to Funds to the Child Care and Development Block limit on SSBG transfers at 10% (original 50%. [Section 107(c)] Sets limit on SSBG Grant (CCDBG) and the Title XX Social limit in 1996 law). [Section 107(b) of S. transfers at 10% for FY2006 and each year Services Block Grant (SSBG). Specifies that a 667] thereafter. [Section 8107(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] Carryover of Amounts may be spent without fiscal year limit Allows use of carryover funds from TANF Same as S. 667. [Section 8107(e)] Funds for "assistance" (chiefly ongoing cash aid). For grants for any benefit or service without other benefits and services ("nonassistance") fiscal year limitation. Permits a state or amounts must be obligated in the year of award tribe to designate some TANF funds as a and spent in the following year. [Section 404 contingency reserve. [Section 107(c) of S. of the SSA] 667] Use of Funds for States may use funds for educational activities Allows states to use TANF funds to No provision. Education (to promote a TANF goal or because these establish an undergraduate two- or four-year activities were allowed under pre-1996 law). postsecondary degree program sometimes However, only three educational activities may known as Parents as Scholars (PAS) or a be counted toward state work participation vocational educational program. Following rates: high school attendance, education services could be provided in these directly related to work (both for high school undergraduate programs: child care, dropouts only) and vocational educational transportation, payment for books and CRS-32 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill training. Unless it is defined by the state as supplies, other services provided under vocational educational training, postsecondary policies determined by the state to ensure education is not a countable work activity. coordination and lack of duplication. [Section 407(d) of the SSA] Participants who are also TANF cash assistance recipients in these educational programs could be counted toward state work participation standards. See Countable Activities. [Section 107(d) of S. 667] Direct Funding Allows Indian tribes to administer their own Continues the authority for tribes to operate Same as S. 667. [Section 8114(a)] and family assistance (TANF) programs. Earmarks TANF programs through FY2010. [Section Administration some TANF funds -- amount equal to federal 113(a) of S. 667] by Indian Tribes 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 Appropriates $7.6 million annually for work Provides $12.6 million annually for NEW Extends the authority and funding for NEW Programs 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 of S. 667] annually) through FY2010. [Section 8114(b)] operated a pre-TANF work and training program. [Section 412(b) of the SSA] 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) of S. 667] CRS-33 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Tribal Capacity No provision. Appropriates $80 million for the period No provision. Grants 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) of S. 667] Work Participation Requirements and Standards Universal State plan must require that a parent or Repeals the 24-month work trigger. Same as S. 667. [Section 2011; Section Engagement and caretaker engage in work (as defined by the Requires state plans to outline how they 8109(a)] Family Self- state) after, at most, 24 months of assistance. intend to require parents and caretakers to sufficiency Plan [Section 402(a)(1)(ii) of the SSA]. Note: This engage in work or alternative sufficiency Requirements requirement is not enforced by a specific activities, as defined by the state -- while penalty. (States may, but need not, establish an observing the ban on penalizing work refusal individual responsibility plan for each family in by a single parent of a preschool child who consultation with the recipient.) [Section is unable to obtain needed child care for 408(b)(2) of the SSA] specified reasons -- and to require families to engage in activities in accordance with family self-sufficiency plans. [Section 110(a) of S. 667] States must make an initial assessment of the Requires states to make an initial screening Requires states, in a manner they deem skills, prior work experience, and employability and assessment, in a manner they deem appropriate, to assess the skills, work of each recipient 18 or older or those who have appropriate, of the skills, work experience, experience, and employability of each work- not completed high school within 30 days. education, work readiness, work barriers and eligible person (see definition below) and [Section 408(b)(1) of the SSA] employability of each adult or minor child requires states to develop a family self- head of household recipient who has attained sufficiency plan for each family with such a age 18 or who has not completed high person. Plans must be established within 60 school and to assess, in a manner they deem days of opening a case (within 12 months for appropriate, the work support and other families enrolled on October 1, 2005). assistance and family support services for [Sections 2011(b) and 8109(b)] which families are eligible and the well- CRS-34 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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 to 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 CRS-35 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill that it deems appropriate, review the plan and make a good-faith effort (defined by the state) to consult with the family. States must comply with self-sufficiency plan requirements within one year after enactment (for families then receiving TANF). For families not enrolled on the date of enactment, the deadline for self- sufficiency plans is the later of 60 days after the family first receives assistance on the basis of its most recent application, or one year after enactment. Provides that nothing in the self-sufficiency plan provisions shall be construed to establish a private right or cause of action against a state for failure to comply with the provisions or to limit claims that might be available under other federal or state laws. Requires the 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) of S. 667] Imposes a penalty on states for failure to Imposes a penalty on state for failure to establish self-sufficiency plans by revising establish self-sufficiency plan by revising the the penalty provision for failure to meet penalty provision for failure to achieve work TANF work participation standards. participation standard. Provides failure to Provides failure to comply with self- comply with self-sufficiency requirements sufficiency requirements and/or achieve and/or achieve work participation standards work participation standards would result in would result in a penalty of up to a 5% a penalty of up to a 5% reduction in the reduction in the TANF grant for the first TANF grant for the first violation (more for violation (more for subsequent violations). subsequent violations), based on the degree (The bill does not contain the "substantial CRS-36 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill of substantial noncompliance. The noncompliance" language of S. 667.) Secretary is directed to take various factors [Sections 2011(b) 8109(b)] See Penalty for into account in setting the penalty. These Failing Participation Rate, below. factors include the number or 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 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) of S. 667] Sanctions If person in a family receiving TANF assistance No provision (maintains current law). If a person in a family receiving TANF Against refuses to engage in required work, the state assistance fails to engage in required activities Individuals for shall reduce aid to the family pro rata (or more, and the family does not otherwise engage in Work Refusal at state option) with respect to the period of activities in accordance with its self- work refusal, or shall discontinue aid, subject to sufficiency plan, the state must impose a good cause and other exceptions that the state penalty as follows: (a) If the failure is partial may establish. [Section 407(e) of the SSA] or does not 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 CRS-37 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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. [Sections 2012(f) and 8110(e)] 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 A state must engage a specified percentage of A state must engage a specified percentage A state must engage a specified percentage of Participation families containing adult or teen parent of families containing adult or minor heads families with a work-eligible person in direct Standards recipients in creditable work activities. Since of households in the assistance unit in work or alternative self-sufficiency activities FY2002, the participation standard has been creditable activities. Participation standards chosen by the state. Participation standards 50% for all families (and since FY1999 it has are are 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. [Sections 2012(b) and 8110(a)] 65% in FY2009 70% in FY2010. [Section 109(b) of S. 667] CRS-38 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Required participation rates may be reduced by Required participation rates may be reduced Required participation rates may be reduced a caseload reduction credit (see below). by caseload reduction or employment by caseload reduction and "superachiever" credits, but a cap is placed on these credits. credits (see below). Employment 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) of S. 667] Effective October 1, 2002, eliminates the Effective October 1, 2005, eliminates the separate standard for two-parent families. separate standard for two-parent families. Also forgives states penalized for failing the [Sections 2012(a) and 8110(a)] two-parent standard in FY2002-FY2004. [Section 109(a) of S. 667] Caseload Work participation standards are reduced by a Retains current law caseload reduction credit Measures caseload reduction from a moving Reduction Credit caseload reduction credit: for each percent for FY2006 and FY2007 (subject to the base year (rather than from FY1995) and decline in the caseload from the FY1995 level limits shown above). Effective October 1, shortens the measuring interval. Also changes (not attributable to policy changes), the work 2007, replaces the caseload reduction credit the eligibility criteria base year from FY1995 participation standard is reduced by one with an employment credit (subject to limits to the new moving base. For FY2006, the percentage point. [Section 407(3) of the SSA] shown above). [Section 109(d) of S. 667] credit 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. [Sections 2012(c) and 8110(b)] No provision. Establishes a "superachiever" caseload reduction credit for a state with a reduction in CRS-39 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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). [Sections 2012(d) and 8110(c)] Employment No provision. E s t a b l i s h e s a p e r c e n t a g e p o i n t No provision. Credit "employment" credit against the work participation standard (subject to limits described above). Essentially, the credit equals a multiple of the percentage of TANF families in a month who leave ongoing cash assistance with a job. It is calculated by dividing (a) twice the quarterly average unduplicated number of families with an adult or minor head of household recipient who leaves welfare and was employed in the following quarter; by (b) the average monthly 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 CRS-40 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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) of S. 667] 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) of S. 667] Authorizes and requires the HHS Secretary to use information in the National Directory of New Hires to calculate state employment credits. If the TANF leaver's employer is not required to report new hires, the Secretary must use quarterly wage information submitted by the state. To calculate employment credits for families who received non-recurring short term benefits and for those who received substantial child care and transportation assistance, the Secretary is to use other required data. By August 31 of each year, the HHS Secretary must notify each state of CRS-41 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill the amount of the employment credit that will be used in calculating participation rates for the immediately succeeding fiscal year. [Section 109(d) of S. 667] 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) of S. 667] CRS-42 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Study of the No provision. Requires the Secretary of HHS to conduct a No provision. Employment study of the design of the employment credit Credit and report to the Senate Finance Committee and House Ways and Means Committee by September 30, 2009. [Section 109(d)] 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 percentage, equals (a) the number of all given partial, full, or extra credit for families spent in creditable activities out of a potential Rates recipient families in which an individual is depending on the average number of hours total of 160 hours monthly per counted family. engaged in work activities for the month, per week in which they engage in activities. Monthly participation rate, expressed as a divided by (b) the number of recipient families (See Hours, below). percentage, is (a) the total number of with an adult recipient or minor head of countable hours, divided by (b) 160 times the household. The annual participation rate, number of counted families for the month. which is compared against the participation [Sections 2012(b) and 8110(a)] standard, is the average of the monthly participation rates. [SSA, Section 407(b)(1)] Infant Exemption 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- from the Work age 1 from work and exclude them from the infants (not just single parent families) from month in a lifetime limit on this exclusion. Participation calculation of work participation rates. work participation calculations on a case-by- [Sections 2012(b) and 8110(a)] Rate Exclusion is limited to 12 months in a lifetime. case basis. Limits this exclusion to 12 [SSA, Section 407(b)(5)] months in a lifetime. [Section 109(e) of S. 667] Excluding No provision. Permits states to exclude a new group from Similar to S. 667, but does not specify that the Families in Their work participation calculations -- families exclusion is to be made on a case-by-case First Month of in first month of assistance. Determination basis. [Sections 2012(b) and 8110(a)] Assistance from is made on a case-by-case basis. [Section the Work 109(e) of S. 667] Participation Rate CRS-43 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Treatment of States may exclude from the work participation No provision, retains current law. Same as S. 667. [Sections 2012(b) and Sanctioned rate calculation families subject to sanctions for 8110(a)] Families in the refusal to comply with work requirements. Work Exclusion is limited to three months in a 12- Participation month period. [Section 407(b)(1) of the SSA] Rate Penalty for Participation rates are enforced by a penalty on Provides that penalty (beginning for No provision, retains current law. Failing states: loss of 5% of the state's basic grant for FY2007) must be based on the degree of Participation first year of violation (higher penalty for repeat substantial noncompliance. Directs the Rate violations). Penalty must be based on the Secretary to take into account factors such as degree of noncompliance and may be reduced the degree to which the state missed the if the noncompliance is due to circumstances participation rate, the change in the number that made the state needy under the contingency of persons engaged in work since the prior fund definition or due to extraordinary year, and the number of consecutive years in circumstances such as a natural disaster or which the state failed to achieve the work regional recession. State must replace the rate. Penalty may be reduced if the failure is amount of federal penalty funds with its own due to circumstances that caused the state to funds. [Section 409(a)(3) of SSA] In addition, meet the criteria for contingency funds or is the state's MOE spending requirement rises due to extraordinary circumstances such as from 75% to 80% of its historic level. a natural disaster or regional recession. Requires Secretary, in a written report to Congress, to justify any waiver or penalty r e d u c tion due to ex t r a o r d i n a r y circumstances. [Section 110(a) of S. 667] CRS-44 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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 compliance plan outlines what the states will do least a 5 percentage point improvement in its to correct or discontinue its failure to meet the work participation rate over the previous standards. The Secretary may not impose the year, the Secretary shall not impose a penalty if the state corrects the violation of the financial penalty on the state. [Section work standards. [Section 409(c) of the SSA] 111(b) of S. 667] Countable Activities "Core" Activities. Federal law lists nine priority activities that Retains current law list of nine priority Lists six "direct" work activities: Activities must account for most weekly hours: activities as "direct work" activities. -- unsubsidized jobs; Countable as Sole -- unsubsidized jobs; -- subsidized private jobs; or Primary Work -- subsidized private jobs; -- subsidized public jobs; Activities of -- subsidized public jobs; -- on-the-job training; Recipients. -- work experience -- supervised work experience, and -- on-the-job training; -- supervised community service. -- job search (usual limit, six weeks per fiscal year) [Sections 2012(e) and 8110(d)] -- 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-45 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Qualified No provision. For three months in a 24-month period, For three months within a 24-month period, Activities. seven additional activities may substitute persons participating in short-term "qualified" Activities that for, or be in conjunction with, direct work activities chosen by the state to promote self- May Substitute activities: sufficiency may substitute for or be in for, or be in -- postsecondary education; conjunction with direct work activities Conjunction with, -- adult literacy programs or activities; (examples listed in the bill are substance Core Activities -- substance abuse counseling or treatment abuse counseling or treatment; rehabilitation for a Limited (including drug or alcohol abuse counseling treatment and services; work-related education Period of Time. or treatment); or training directly enabling the family -- programs or activities designed to member for work; and job search or job remove work barriers, as defined by the readiness assistance). A fourth month in the state; 24-month period is allowed if needed to -- work activities authorized under any complete an education or training program. waiver for any state that was continued [Sections 2012(e) and 8110(d)] under Section 415 before the date of enactment of this bill; -- money management classes; and -- parenting skills classes. [Section 109(c) of S. 667] Supplemental For most recipients, hours of participation inRetains current law list of three House Ways and Means Committee Provision: Activities. these activities are countable only in supplemental activities, and adds: marriage Activities conjunction with participation in priority education, marriage skills training, conflict States may define any other activity as Countable activities (and with a minimum number of resolution, and programs to promote countable (generally for non-core hours) so Generally Only in marriage. [Section 109(g)] Also permits hours in priority activities). Federal law lists long as it leads to self-sufficiency and is Conjunction with three such activities: states to count all "qualified activities" (see consistent with the purposes of TANF. States "Core" or above), as well as job search and vocational may only count up to 16 hours per week of "Qualified" -- job skills training directly related to educational training (beyond the usual time these activities toward a family's total hours. Activities. employment; limits) as supplemental activities once a [Section 8110(d)] -- education directly related to employment; family has the minimum number of hours of and "direct work" participation. House Education and Workforce Provision: -- progress toward completion of secondary [Section 109(g) of S. 667] Same as above (Ways and Means provision), school. except it also requires work-eligible persons CRS-46 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill [Section 407(d) of the SSA] See Required with minor children in school to make at least Hours of Work, below. two verified visits to the school per school year, and have those hours counted as part of the 16 hours per week allowed for supplemental activities. [Section 2012(e)] Postsecondary No provision. Postsecondary education not Three months of postsecondary education is No provision. However, postsecondary Education classified as "vocational educational training" countable as a "qualified activity" (see education may be a state-defined "qualified" is not countable toward TANF work above). or "supplemental" activity. participation standards. Allows states to establish a program (under S e c t i o n 1 0 7 ) o f u n der gr a d u a t e 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 CRS-47 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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 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) of S. 667] Special Rules for No provision. Recipients engaged in qualified activities No provision. Rehabilitative considered rehabilitative (adult basic Activities 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) of S. 667] CRS-48 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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) of S. 667] CRS-49 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Caring for a No provision. Permits a state to deem a single parent No provision. Disabled Family caring for a dependent with a physical or Member mental impairment to be meeting all or part of the family's work requirement. [Section 109(f) of S. 667] Work Activities in No provisions. Permits a state to define countable work No provision. Indian Areas of activities for persons complying with a High Joblessness family self sufficiency plan and living in areas of Indian country or an Alaskan native village with high "joblessness." To qualify for this option, the state must include in its TANF plan a description of its policies for these areas. Also, as noted above, allows states to define work-barrier removal activities and to adopt activities authorized under any waiver for any state that was continuing before the date of enactment. [Section 109(f) of S. 667] Numerical Limits No more than 30% of persons credited with Continues the 30% cap, but provides that it No numerical cap on educational activities. on Vocational work may consist of persons participating in does not apply to persons in a 3+3 program Education and vocational educational training or may be teen receiving qualified rehabilitative services or Teen Parents parents who are deemed to be working because to persons engaging in vocational of satisfactory attendance at secondary school educational training as a supplementary or because of spending 20 hours weekly in activity after meeting the 24-hour "direct education directly related to employment. work" requirement. [Section 109(f) of S. [Section 407(c)(2)(D) of SSA] 667] Required Hours Generally, to count toward the all-family rate, Establishes standard TANF work weeks as Establishes a 160-hour-per-month work of Work Activity average weekly participation of 30 hours (20 follows: 24 hours for a single parent with a standard. [Sections 2012(b) and 8110(a)] hours in priority work activities) is required. child under age 6; 34 hours for a single However, in the case of single parents with a parent with a child over 6 (with 24 hours in Generally, states must engage all families with preschool age child (who constitute half of all a priority activity) 39 hours for a two-parent a "work- eligible" member in a direct work CRS-50 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill TANF cases), the hours requirement is 20 per family (but 55 hours if that family receives activity or alternative self-sufficiency activity week. For two-parent families the standard is federally funded child care) -- with most for an average of 40 hours weekly (the actual 35 hours (30 in priority work activity), but hours in a priority activity. Families standard is 160 hours per month, equal to a increases to 55 hours (50 in priority activities) meeting the standard are counted as one weekly average of 37 hours) -- of which 24 if the family receives federally-subsidized child family in calculating the state's work hours must be in one of the direct work care. [Section 407(c)(1) of the SSA] For a participation rate. Those exceeding the activities listed in the law and up to 16 hours single parent caring for a child under age 6, 20 standard receive extra credit, and some who may be in a TANF-purposeful activity chosen hours of participation satisfies the standard. fall short of the standard receive partial by the state. [Section 407(c)(2)(B) of the SSA] credit (see below). Average weekly hours are computed by dividing monthly hours of participation by 4. [Section 109(f) of S. 667] Special Rule for Teen parents are deemed to meet the weekly Essentially the same as current law. Essentially the same as current law. Teen Teen Parents hour participation standard by maintaining Families with a teen parent who maintains parents are deemed to satisfy the (40-hour satisfactory attendance in secondary school (or satisfactory school attendance or participates weekly) work rule by virtue of satisfactory the equivalent in the month) or by participating in education directly related to employment school attendance (or the equivalent in the in education directly related to employment for for an average of 20 hours weekly are month) or by participating in education an average of 20 hours weekly. [Section counted as one working family toward the directly related to employment for an average 407(c)(2)(C) of the SSA] participation standards. [Section 109(f) of S. of 20 hours weekly [Sections 2012(e) and 667] 8110(d)]. Partial Work None. Families who meet core work requirements Families who meet the 24-hour weekly direct Credit but fail the full standard receive partial work requirement but fail the 40-hour credit as follows: Credited as .675 of a standard, receive pro-rata credit for all hours family are single parent families (with or worked (but zero credit unless they meet the without a child under six) who have 20-23 24-hour direct work rule). [Sections 2012(b) hours of work and two-parent families with and 8110(a)] 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 CRS-51 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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) of S. 667] Extra Work None. Families that exceed the standard hourly Counts all hours worked above the 40-hour Credit work requirement receive extra credit, as full weekly standard, provided 24 hours are follows. Credited as 1.05 of a family are spent in direct work (or, for a limited time, in single-parent families who work 35-37 hours certain other qualified activities) and no more and two-parent families who work 40-42 than 16 hours are in non-priority activities. hours (56-58 hours if they receive child [Sections 2012(e) and 8110(d)] care). Credited as 1.08 of a family are single-parent families who work 38 or more hours and two-parent families who work 43 or more hours (59 or more hours if they receive child care). [Section 109(f) of S. 667] 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 sanction recipients who test positive for state has a reason to believe he or she has controlled substances. [Section 902 of the recently used a controlled substance. If the Personal Responsibility and Work Opportunity applicant or recipient tests positive for drug Reconciliation Act.] use, or if the 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 CRS-52 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill require the applicant or recipient to undergo periodic drug tests (every 30 or 60 days) as a condition of receiving cash assistance. Requires states to terminate participation in the program of a family for three years if a recipient member 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 Secretary determining the exact penalty amount. [Section 8122] Eligibility for Federal TANF funds cannot be used to assist an Permits states to use federal TANF funds to No provision (retains current law). Teen 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 or in another adult supervised setting. The state to the accepted living situations for a teen must assist such a teen parent in locating a parent receiving TANF assistance. [Section second chance home, maternity home, or other 110(b) of S. 667] appropriate adult-supervised supportive living arrangement unless the state determines that the individual's living arrangement is appropriate. Displacement of A recipient may fill a vacant employment Provides that an adult recipient cannot No provision (retains current law). Regular position. However, no adult in a work activity displace any employee or position (including Workers that is funded in whole or in part by federal partial displacement), fill any unfilled funds may be employed or assigned when vacancy, or perform work when any CRS-53 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill another person is on layoff from the same or individual is on layoff from the same job or any substantially equivalent job, or if the substantially equivalent job. TANF work employer has ended the employment of any activities cannot impair existing contracts or regular employee or otherwise caused an services; be inconsistent with any law, involuntary reduction in its workforce in order regulation, collective bargaining agreement; to fill a vacancy with a TANF recipient. These or infringe on the recall rights or provisions do not preempt any provision of promotional opportunities of any worker. state or local law that provides greater TANF work activities must be in addition to protection against displacement. States are any activity that would otherwise be required to have a grievance procedure to available and not supplant the hiring of a resolve complaints of displacement of non-TANF worker. permanent employees. Requires states to have a grievance procedure for resolving complaints, including the opportunity for a hearing, and sets time 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) of S. 667] CRS-54 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Disregard of Federal TANF grants may not be used to aid a Modifies this exclusion, providing that No provision (retains current law). Months Toward family with an adult who has received 60 months in which an adult lives in Indian the TANF Time months of assistance. Months in which an adult Country with a jobless rate among adult Limit for Months lives in Indian Country with a jobless rate of recipients of 40% or more are not countable Living in Indian 50% or more are not counted toward the 60 toward the time limit. The 40% threshold is Country Areas month time limit. dropped down to 35% if the state meets any with Joblessness of the needy state criteria under the contingency fund or if the tribe meets c r i t e r i a f or contingency funds. Modifications do not apply to Alaska. [Section 110(c) of S. 667] Marriage Promotion TANF Goals and Two purposes relate to marriage. One goal is to The stated purpose of promoting the The stated purpose of promoting the formation Purposes end dependency of needy parents on formation and maintenance of two-parent and maintenance of two-parent families is government benefits, with one of the stated families is modified to read: encourage the modified to read: encourage the formation means of accomplishing the goal specified as formation and maintenance of healthy two- and maintenance of healthy, two-parent marriage. A second purpose is to encourage the parent married families, and encourage married families, and encourage responsible formation and maintenance of two-parent responsible fatherhood. [New language in fatherhood. [Section 8101] families. italics] [Section 103(e) of S. 667] Funding for No provision for special grants. States may use Appropriates $100 million annually for Appropriates $100 million annually for Marriage TANF block grants to promote formation and FY2005 through FY2010 for 50% FY2006 through FY2010 for 50% competitive Promotion maintenance of two-parent families (program competitive matching grants to states, Indian matching grants to states, territories, and tribal Matching Grants goal no. 4) and to promote marriage as a means tribes, and tribal organizations for programs organizations for programs to promote and of ending dependence on government benefits to promote and support healthy married two- support healthy, married two-parent families. (goal no. 2). parent families. [Section 103(b) of S. 667] Similar to S. 667, but does not include "Indian tribes" as a potential grant recipient. [Section 8103(b)] CRS-55 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Makes funds appropriated for each of FY2006 through FY2010 available to the Secretary until expended. Also, permits grantees to use funds without fiscal year deadline. [Section 103(b) of S. 667] 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 matching funds for marriage promotion grants [Section 103(b) of S. 667] grants. [(Section 8111(b)(1)] 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) of S. 667] Allowable No provision. (TANF and MOE funds may be Grants may be used for: advertising Grants may be used for: advertising Activities for used for marriage promotion activities.) campaigns; education in high schools; campaigns; education in high schools; Marriage voluntary marriage education, marriage marriage education, marriage skills and Promotion skills and relationship skills programs that relationship skills programs that may include Grants may include parenting skills, financial parenting skills, financial management, management, conflict resolution, and job conflict resolution, and job and career and career advancement for non-married advancement for non-married pregnant pregnant women and expectant fathers; women and expectant fathers; pre-marital voluntary pre-marital education and education and marriage skills training for marriage skills training for engaged couples engaged couples and individuals and couples and individuals and couples interested in interested in marriage; marriage enhancement marriage; voluntary marriage enhancement and marriage skills training programs for and marriage skills training programs for married couples; divorce reduction programs; married couples; voluntary divorce marriage mentoring programs; programs to reduction programs; voluntary marriage reduce marriage disincentives in means-tested mentoring programs; programs to reduce programs, if offered in conjunction with any marriage disincentives in means-tested other listed activity. [Section 8103(b)] CRS-56 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill programs, if offered in conjunction with any other listed activity. [Section 103(b) of S. 667] Domestic No provision. Forbids award of a healthy marriage Forbids the award of a healthy marriage Violence promotion grant unless the applicant promotion grant unless the applicant agrees to Provisions consults with organizations that have consult with experts in domestic violence or demonstrated expertise in working with relevant community domestic violence survivors of domestic violence; the coalitions and the application describes how application describes how the the program/activities will deal with issues of program/activities will deal with issues of domestic violence. [Section 8103(b)] 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) of S. 667] Requirements for No provision. Requires that participation in marriage Same as S. 667. [Section 8103(b)] Voluntary promotion activities (other than media Participation 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. Applications for healthy marriage promotion Same as S. 667. [Section 8103(b)] grants must state what will be done to ensure that potential participants are informed that participation is voluntary. CRS-57 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Voluntary Grantees must provide assurances that, with No provision. Participation and respect to recipients of TANF assistance, Recipients of they are informed that participation is TANF Assistance 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) of S. 667] 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. CRS-58 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill The Secretary of HHS is required to submit a report to Congress every six months providing: 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) of S. 667] CRS-59 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Research and No special provision to fund research or Appropriates $100 million each for FY2005 Appropriates $102 million each for FY2006 Demonstrations demonstrations. However, available TANF through FY2010 for research and through FY2010 for research and on Marriage research funds (see Research and demonstration projects and for technical demonstration projects and for technical Promotion 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 Services may be used to evaluate Specifies that 80% of these funds must be Specifies that these funds must be spent marriage promotion initiatives. spent on research and demonstration primarily on activities allowed under marriage projects, or for providing technical promotion grants (see above). (Sets aside $2 assistance, in connection with activities million yearly for demonstration projects for allowed under marriage promotion grants coordination of child welfare and TANF (see above). Provides that all appropriated services to tribal families at risk of child abuse funds shall remain available until expended. or neglect.) [Section 8115(a)] [Section 114(a) of S. 667] Provisions to No provision. Forbids Secretary to pay these research Requires that participation in marriage Address Domestic funds to an entity that has not consulted with promotion activities is voluntary and that Violence and organizations that have demonstrated grantees consult with experts in domestic Voluntary expertise in working with survivors of violence issues. Participation domestic violence; describe in the Issues for application for a grant how the programs or Research Funds 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). CRS-60 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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) of S. 667] State Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions State Plan Each state must outline (generally in a plan No provision (though additional state plan Adds requirement that each state must Requirements effective for three fiscal years), how it intends provisions are described below). describe what it will do to end dependence of to: conduct a program providing cash needy families on government benefits and assistance to needy families with children and reduce poverty by promoting job preparation providing parents with work and support and work and; encourage formation and services; take steps deemed necessary by the maintenance of healthy, two-parent married state to restrict use and disclosure of families, encourage responsible fatherhood, information about recipients; and conduct a and prevent and reduce the incidence of out- program providing education and training on of-wedlock pregnancies. [Sections 2013 and the problem of statutory rape. In addition, the 8112]. plan must indicate whether 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 CRS-61 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill domestic violence, to refer them to services, and to waive program rules for some of them. [Section 402(a) of the SSA] Participation of No state plan provision. If the state is undertaking strategies or The state plan must describe strategies or Faith-based pr ogr ams to engage faith-bas ed programs to engage faith-based organizations Organizations in organizations in the delivery of TANF in the delivery of TANF services, or that Provision of services, or that otherwise relate to the otherwise relate to the charitable choice Services charitable choice provisions of P.L. 104-193, provisions of P.L. 104-193. [Section 8112(a)] the state plan must describe such strategies and programs. [Section 101(a) of S. 667] State Plan Unless the governor opts out by notice to HHS, Eliminates this requirement. [Section 101(a) Same as S. 667. [Sections 2013 and 8112(a)] Requirement for the state will require a parent who has received of S. 667] Community TANF for two months and is not work-exempt Service after Two to participate in community service Months employment. Measurable State plans must establish goals and take action States must establish measurable State plans must include measurable Performance to prevent/reduce the incidence of out-of- performance objectives for pursuing all performance objectives for accomplishing Goals wedlock pregnancies. TANF purposes (current law only specifies ending dependence of needy families on establishment of goals for reducing out-of- government benefits and reducing poverty and wedlock pregnancies). These goals are to for encouraging the formation and give consideration to those developed by the maintenance of two-parent married families, Secretary of HHS in establishing encouraging responsible fatherhood, and performance targets for the employment reducing the incidence of out-of-wedlock bonus (see above) and additional criteria pregnancies. [Sections 2013 and 8112(a)] related to other TANF purposes developed by the Secretary (in consultation with state groups). CRS-62 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Program State plan is to describe strategies and Same as S. 667. [Sections 2013 and 8112(a)] Strategies programs the state is using or plans to use to address employment 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) of S. 667] Description of No provision. Requires the state plan to include, to the No provision. State Assistance extent applicable, for each program that Programs provides assistance information on its: financial and nonfinancial eligibility rules; amount of assistance; and applicable time limits and time limit rules. [Section 101(a) of S. 667] Indian and Tribal States must certify that they will provide Requires that the state plan include a Requires tribal family assistance plans to Issues 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 [Section 402(a) of the SSA] ineligible for tribal family assistance the plan and its design. [Section 8112(b)] programs. 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) CRS-63 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill of S. 667] Requires that the certifications include that tribal governments have been consulted in the development of the state plan. [Section 101(a) of S. 667] Two-parent No provision. Requires plan to describe how the state Same as S. 667. [Section 8101(c)] Families intends to encourage equitable treatment of healthy, married two-parent families under TANF. [Section 101(c) of S. 667] Description of No provision. I f s t a t e p r o v i d e s T A N F - f u n d e d No provision. Additional State transportation aid, requires certification by Options for the the governor that state and local Work transportation officials and planning bodies Requirements have been consulted in development of the plan. [Section 101(a) of S. 667] 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 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. CRS-64 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Standard Form No provision. 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) of S. 667]. Performance No provision. (However for the purpose of Requires the Secretary, in consultation with Same as S. 667. [Sections 2013 and 8112(c)] Measures awarding performance bonuses, the Secretary is the 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) of S. 667] Rankings of Directs HHS Secretary to rank states in order of Revises the employment measure to be Deletes "long-term" qualifier from private job States 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, rankings. Also, adds three new ranking programs of the three states with highest and adds three new ranking factors: the degree factors: the degree to which recipients have lowest ratings. [Section 413(d) and(e) of the to which recipients have workplace workplace attachment and advancement, SSA] attachment and advancement, reducing the reducing the overall welfare caseload, and, overall welfare caseload, and, when a when a method of calculation becomes method of calculation becomes practicable, practicable, diverting persons from making CRS-65 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill diverting persons from making formal formal applications to TANF. [Sections applications to TANF. [Section 101(e) of S. 2013(c) and 8112(d)] 667] 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)] Data Collection States are required to collect monthly, and Requires quarterly reports to cover families Same as S. 667. [Section 8113(a)] and Reporting report quarterly, disaggregated case record in MOE-funded separate state programs, as information (but may use sample case record well as those in TANF state programs. information for this purpose) about recipient Permits the Secretary to limit use of families in the TANF program. [Section 411(a) sampling by designating core elements that of the SSA] must be reported for all families. CRS-66 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Required family information includes county of In terms of data elements, adds race and Same as S. 667. residence; whether a member received educational level of each minor parent. disability benefits; ages of members; size of Deletes educational level of each child. family and the relation of each member to the Eliminates reporting of the amount of child family head; employment status and earnings of care and food stamp benefits. Eliminates the the employed adult; marital status of adults; requirement to report on different types of amount of unearned income received by family TANF assistance (conforms reporting with members; citizenship of family members; new, narrower definition of assistance). number of families and persons receiving aid Requires information on why a family is on under TANF (including the number of two- the rolls in excess of 60 months. Requires parent and one-parent families); total dollar reporting on the date the family first value of assistance given; total number of received aid on the basis of its most recent families and persons aided by welfare-to-work application and the marital status of the grants (and the number whose participation parents of any child in the family at the birth ended during a month); number of noncustodial of the child, and if the parents were not then parents who participated in work activities; for married, whether the paternity of the child each teenager, whether he/she is the parent of a has been established. [Section 112(a) of S. child in the family; race and educational level 667] 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); and number of months that the family received each type of aid under the program. 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) of S. 667] CRS-67 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Data Reporting Quarterly reports are to include information Requires that states report hours of Adds to reported activity list: training and on Work required to compute TANF work participation participation in all activities that count other activities directed at TANF purposes. Participation rates. This includes number of hours per week, toward meeting TANF participation Adds and (job) placement to job search. if any, that adults participated in specified standards as well as other work and self- Omits job skills training and vocational activities (education, subsidized private jobs, sufficiency activities. Also requires education. Specifies that work experience and unsubsidized jobs, public sector jobs, work reporting on whether the family has a self- community service are "supervised." Also experience, or community service, job search, sufficiency plan established and progress requires reporting on whether the family has a job skills training or on-the job training, toward universal engagement. [Section self-sufficiency plan established and progress vocational education). [Section 411(a) of the 112(a) of S. 667] toward universal engagement. [Section SSA] 113(a)] Data Reporting No provision. Requires the quarterly report to include No provision. on Indians information on the demographics and caseload characteristics of Indians in state TANF and MOE programs. [Section 113(e) of S. 667] Reporting on From a sample of closed cases, the quarterly Deletes reporting of families leaving TANF Same as S. 667. [Section 8113(a)] Families Leaving report is to give the number of case closures because of marriage. [Section 112(a) of S. TANF because of employment, marriage, time limit, 667] sanction, or state policy. [Section 411(a) of the SSA] Requires quarterly reports to include the Same as S. 667. [Section 8113(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) of S. 667] CRS-68 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Reports for No provision. TANF data collection applies Applies the reporting requirements of the No provision. Families only to families receiving assistance. Child Care and Development Block Grant Receiving TANF- (CCDBG) to TANF-funded child care. funded Child Allows for a waiver process if the state is Care unable to comply with this requirement. [Section 112(d) of S. 667] Monthly State No provision. Requires states to submit monthly reports on Requires states to submit monthly reports on Reports the number of families and persons the number of families and persons receiving receiving assistance from TANF and assistance from TANF. [Section 8113(c)] separate state MOE programs. [Section 112(f) of S. 667] Annual State Regulations require states to annually submit a Requires states to submit an annual report on Same as S. 667. [Section 8113(e)] Reports program report (by December 31 of each year) characteristics of the state TANF program providing financial eligibility rules for all and other state programs funded with MOE programs funded by TANF or state MOE funds. funds. Required information: program name For each MOE program, reports are to include and purpose, description of program the name, purpose, and eligibility criteria. activities, sources of funding, number of beneficiaries, sanction policies, and any work requirements. [Section 112(f) of S. 667] Annual Report No provision. Beginning with FY2007, states must submit Same as S. 667. [Section 8113(e)] on Program to HHS an annual report on achievement and Performance improvement under numerical performance goals and measures. Requires an annual report on progress No provision. toward full engagement. HHS Reports Requires the HHS Secretary to make annual Sets July 1 of each fiscal year as the Same as S. 667. [Section 8113(f)] reports to Congress that include state progress deadline for the report. Deletes applicant in meeting TANF objectives (increasing families from the report. Adds requirement employment and earnings of needy families and to report on characteristics of MOE-funded CRS-69 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill child support collections, and decreasing out- programs. [Section 112(g) of S. 667] 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] Information on No provision. Requires the TANF annual report to include No provision. Indians in the state-specific information about the TANF Annual demographics and caseload characteristics Report of Indians in state TANF and MOE programs. [Section 113(e) of S. 667] Single Audit TANF payments to states are subject to the No provision. The Secretary, within three months of Reports Single Audit Act. [Section 409(a)(1)] receiving 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 8113(g)] CRS-70 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Study on No provision. No provision. Not later than six months after enactment, Coordination of requires the Secretaries of HHS and Labor to Data Elements in submit a joint report describing common or the TANF and conflicting data elements, definitions, Workforce performance measures, and reporting Investment Act. requirements in the Workforce Investment Act and TANF law. [Sections 2014 and 8115(d)] 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 8115(b)] Programs effects, costs, and benefits of state programs. $15 million annually for them through Provides that Secretary may help states develop FY2010. [Section 114(b) of S. 667] 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.) Indicators of No provision. Appropriates $10 million per year for No provision. Child Well-being FY2006 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 CRS-71 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 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 No provision. Appropriates $2 million for FY2006 Sets aside $2 million annually for FY2006 Tribal Social (available until expended) to conduct through FY2010 to be awarded on a Services Issues research on tribal family assistance grants competitive basis to fund demonstration and efforts to reduce poverty among Indians. projects designed to test the effectiveness of [Section 114(f) of S. 667] tribal governments and consortia in coordinating child welfare services to tribal families at risk of child abuse or neglect. [Section 8115(a)] Census Bureau Directs the Census Bureau to expand the Appropriates $10 million annually for Same as S. 667. [Section 8116] Study Survey of Income and Program Participation FY2006 through FY2010 to the Census (SIPP) to obtain data with which to evaluate Bureau. Directs the Bureau to implement or TANF's impact on random national sample of enhance a longitudinal survey of program recipients. Appropriates $10 million annually. participation to permit assessment of [Section 414 of the SSA] outcomes of continued 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 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 CRS-72 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill representative samples. Funds are to remain available through FY2010 for this survey. [Section 115(a) of S. 667] Requires the Secretary of Commerce to No provision. make reports to the Ways and Means and Finance Committees on the well-being of children and families, based on data collected in the above study. First report is due two years after enactment; the second one, five years after enactment. [Section 115(b) of S. 667] Teen Pregnancy No provision. Appropriates $5 million for FY2006 (to be No provision. Resource 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 preventing teen pregnancy; and assist the entertainment media industry by encouraging them to develop content and messages for teens and adults that can help CRS-73 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill prevent teen pregnancy. [Section 119(d) of S. 667] Best Practices No provision. Authorizes $10 million per year for FY2006 No provision. for Dealing with through FY2010 to develop and implement Domestic programs designed to address domestic Violence 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) of S. 667] Definition of Receipt of "assistance" by a parent or other Defines "assistance" to mean payment, by Same policy as S. 667 (different wording of Assistance caretaker relative triggers work and time limit cash, voucher, or other means, to or for an the provision). [Section 8117] rules. Law does not define the term. By individual or family to meet a subsistence regulation, assistance is defined as ongoing aid need, but not including costs of to meet basic needs, plus support services such transportation or child care. It excludes as child care and transportation subsidies, for non-recurrent short-term benefits. [Section unemployed recipients. It excludes non- 117] recurrent short term benefits. Federally-funded "assistance" to a family with an adult is limited to 60 months; states may impose shorter time limits. State Option to The Workforce Investment Act (WIA) makes No provision. Makes state TANF programs mandatory Make TANF TANF an optional partner with one-stop partners with one-stop employment training Programs employment training centers. centers established under the Workforce Mandatory Investment Act unless the governor of a state Partners with decides otherwise and so notifies the One-stop WIA Secretaries of Health and Human Services and Centers Labor. [Sections 2016 and 8120]. CRS-74 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Sense of the No provision. No provision. Provides that it is the sense of Congress that a Congress state welfare-to-work program should include mentoring. [Sections 2017 and 8121] Enforcing Requires sponsors of immigrants to sign a Not later than March 31, 2006, requires the Same as S. 667. [Section 8115(c)] Support of legally enforceable affidavit of support. Deems HHS Secretary, in consultation with the Immigrants by all income and resources of a sponsor (and the Attorney General, to submit a report on the Sponsors 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) of S. 667] Personal Responsibility and Work Opportunity Reconciliation Act of 1996] Child Care Overview, Goals and Administration Overview Social Security Act includes provisions for Provisions for mandatory child care funding Provisions for mandatory child care funding mandatory ("entitlement") funding. [Section are included in S. 667 (PRIDE), Title 1, are included in Title VIII (Ways and Means), 418] Section 116. All amendments to the Sec. 8201. All amendments to the CCDBG Child Care and Development Block Grant Act CCDBG Act are included in S. 525, the Act are included in Title II (Education and the (CCDBG) of 1990, as amended, includes Caring for Children Act of 2005. Work Force), Part 3, Sections 2021-2029. discretionary funding authorization, and program provisions. Goals The five goals of the CCDBG are: (1) to allow Amends the third goal of the CCDBG to Makes same changes to third and fourth goals states the maximum flexibility in developing "assist" states to provide consumer as Senate committee bill (although House bill child care programs; (2) to promote parental education information (rather than to only specifies "low income parents," not "low choice for working parents making child care "encourage" states). Modifies fourth goal, income working parents." decisions; (3) to encourage states to provide eliminating specific reference to providing consumer education information to help parents child care for parents trying to achieve make informed child care choices; (4) to assist independence from public assistance, and states to provide child care to parents trying to replacing with providing child care to low- achieve independence from public assistance; income working parents. and (5) to assist states in implementing the [Section 101 of S. 525] CRS-75 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill health, safety, licensing, and registration standards established in state regulations. [Section 658A of CCDBG Act] Adds three new goals to the CCDBG: (1) to Adds two new goals for the CCDBG: (1) to assist states in improving the quality of child encourage states to improve the quality of care available to families; (2) to promote child care available to families; and (2) to school preparedness by encouraging promote school readiness by encouraging children, families, and caregivers to engage children's exposure to nurturing environments in developmentally appropriate and age- and developmentally-appropriate activities, appropriate activities in child care settings including activities to foster early cognitive that will -- (a) improve the children's and literacy development. [Section 2022 - social, emotional, and behavioral skills; and Education &Workforce] (b) foster their early cognitive, pre-reading, and language development and prenumeracy and mathematics skills (more detailed than House bill); and (3) to promote parental and family involvement in the education of young children in child care settings. [Section 101 of S. 525] Lead agency The chief executive officer of a state designates Allows a state receiving CCDBG funds to No provision. designation an appropriate state agency as the lead agency. designate an agency (which may be a [Section 658D(a) of the CCDBG Act] collaborative agency), or establish a joint interagency office to serve as the lead agency for the state. [Section 103 of S. 525] Funding Authorization of The CCDBG Act authorized $1 billion in Authorizes discretionary funding for the Same as Senate committee bill. appropriations discretionary CCDBG funding for each of fiscal CCDBG at the following levels: [Section 2023] years 1996-2002. (Actual appropriations in FY2006 = $2.3 billion recent years have surpassed authorized levels. FY2007 = $2.5 billion Current appropriation is $2.1 billion.) [Section FY2008 = $2.7 billion CRS-76 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill 658B of CCDBG Act] FY2009 = $2.9 billion FY2010 = $3.1 billion [Section 102 of S. 525] Entitlement Entitles states to a basic block grant based on Increases mandatory funding by $6 billion Increases mandatory funding by $500 million funding FY1992-FY1995 expenditures in welfare- (above the current level) over five years, (above the current level) over five years, related child care. Mandatory funds above this appropriating: appropriating: amount are provided to states on a matching $3.617 billion for FY2006; $2.717 billion for Fiscal Year 2006; basis. Appropriates entitlement (mandatory) $3.717 billion for FY2007; $2.767 billion for Fiscal Year 2007; funding at the FY2002 rate of $2.717 billion $3.917 billion for FY2008; $2.817 billion for Fiscal Year 2008; annually through December 31, 2005. [Section $4.017 billion for FY2009; $2.867 billion for Fiscal Year 2009; and 418 of the Social Security Act; and most recent $4.317 billion for FY2010. $2.917 billion for Fiscal Year 2010. extension P.L. 109-68] [Section 116 of S. 667] [Section 8201] Puerto Rico Puerto Rico receives no entitlement Of the mandatory funds described above, a No provision. (mandatory) child care funding under current total of $75 million over five years is law. appropriated to Puerto Rico. [S. 667, Section 116] Amounts Reserved Territories and Current law provides for the following tribes reservation of funds from the total CCDBG discretionary appropriation: Up to one half of 1% annually for payments to Retains current law. Guam, American Samoa, the Virgin Islands, and Northern Mariana Islands; Not less than 1% and not more than 2% for Changes tribal allocation to exactly 2%. Retains current law Indian tribes and tribal organizations. [Section [Section 109 of S. 525] 658] CRS-77 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Infants and The CCDBG Act itself does not contain any Amends Section 658 of the CCDBG Act to No provision. toddlers; specific provision to reserve funds for require the Secretary to reserve an amount telephone hotline increasing infant and toddler care, however, not to exceed $100 million each fiscal year appropriations law (for FY2004, P.L. 108-199) for improving quality of and access to care includes $100 million from the discretionary for infants and toddlers. Also requires an CCDBG appropriation for states to increase the amount not to exceed $1 million to be supply of quality care for infants and toddlers, reserved for a national toll-free child care as well as $1 million for the Child Care Aware hotline. [Section 109 of S. 525] toll free hotline. Transfer of States may transfer up to 30% of their annual No change to current law. The allowable transfer of the TANF block TANF funds to TANF block grants to the CCDBG. (The grant to CCDBG is increased from 30% to CCDBG maximum is 20% if a state opts to transfer 10% 50%. [Section 8107(c)] of its TANF grant to the Social Services Block Grant.) [Section 404(d)(1) of Social Security Act] Optional priority No provision. Amends the CCDBG Act to add Section No provision. use of additional 658H, which would allow states that receive funds funding of an amount greater than that received in FY2005, to use a portion of the excess to support payment rate increases and to establish tiered payment rates. [Section 106 of S. 525] Application and plan Consumer In order for a state to be eligible to receive Amends current law to specify that resource Same as Senate committee bill, except that education CCDBG funds, it must submit an application and referral services and other means be there is no requirement that the state report to information and plan that meet with approval from HHS. used for the collection and dissemination of the Secretary the manner in which the Among other things, the state plan certifies that consumer education information, and that consumer information was provided, or the the state will collect and disseminate to parents child care providers be recipients of this number of parents to whom it was provided of eligible children and the general public, information (in addition to parents and the during the period of the previous state plan. consumer education information that will general public). Information is outlined to However, the House bill does instruct that the promote informed child care choices. [Section include information about quality and information provided to parents be in plain 658E(c)(2)(D) of CCDBG Act] availability of child care; research and best language, and to the extent practicable, one CRS-78 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill practices on children's development; and the parent can understand. [Section 2024] other assistance programs for which families receiving child care services may be eligible. [Section 104 of S. 525] Payment rates States must certify in their state plans that Requires state plan to demonstrate that the No provision (retains current law). CCDBG provider payment rates are sufficient state has developed and conducted a to ensure families receiving subsidies have statistically valid and reliable market rate equal access to comparable child care services survey for child care services within the two in the state provided to non-CCDBG-eligible years prior to its submission. The state will children. States are also required to provide a also detail the results of the market rate summary of the facts they relied upon to survey; describe how the state will provide determine that the set rates are sufficient to for timely payment for child care services, ensure equal access. [Section 658E(c)(4)] and set payment rates for child care services in accordance with the survey results, (Note: Regulations require that the above- without reducing the number of families in mentioned summary of facts be based on a local the state receiving assistance. Eliminates market rate survey conducted no more than two the requirement that the state submit a years prior to the effective date of the currently summary of the facts relied upon to approved plan.) determine that the set rates are sufficient to ensure equal access. Results are to be made available to the public no later than 30 days after survey's completion. [Section 104 of S. 525] No provision. Includes language stating that nothing shall No provision. prevent a state from differentiating the payment rates to providers on the basis of geographic location, the age or particular needs of children, whether the providers provide child care during weekend and other nontraditional hours, and the state's determination that different rates are needed to enable a parent to choose child care that CRS-79 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill the parent believes to be of high quality. [Section 104 of S. 525] Coordination (While not required to be addressed in the state Adds provision requiring the state plan to Same as Senate committee bill, except plan under current law, one the four stated describe how the state will coordinate child coordination is to be "demonstrated" rather duties of the CCDBG lead agency is to care services with other early childhood than "described," and Title I preschool coordinate the provision of CCDBG services education programs, to expand accessibility programs are not specified in list of programs with other federal, state, and local child care to and continuity of care and early education with which coordination should occur. and early childhood development program.) without displacing services provided by the [Section 2024] [Section 658D(b)(1)(D)] current system. [Section 204 of S. 525] Adds provision requiring the state plan to Same as Senate committee bill, except bill demonstrate how the state encourages does not specify that the child care services partnerships with private and other public provided be for children age 13 and under. entities to leverage existing service delivery (Note: the CCDBG Act already includes this systems and increase the supply and quality age requirement.) [Section 2024] of child care for children under 13. [Section 104 of S. 525] Certification of Regulations require that the state plan describe Certification is not required as part of state Adds provision requiring state plan to certify compliance with activities a state intends to fund with "quality plan, however, states are required annually (every two years) its compliance with the quality set-aside set-aside" money, but neither law nor regulation (beginning in FY2006) to provide the quality set-aside percentage requirement, percentage requires certification of compliance. Secretary with certification regarding including a description of the use of funds, compliance with quality activity beginning in FY2007 (for the preceding fiscal requirements. (See "quality activities" year). [Section 2024] provision below.) Strategy for No provision. Adds provision requiring annual submission Requires same information as Senate addressing to the Secretary of the strategy the state will committee bill, but as part of state plan, rather quality of child implement to address the quality of child than an annual submission. [Section 2024] care available care services available to low-income families from eligible providers. The strategy is to include a description of quantifiable, objective measures for evaluating progress in quality improvement, and a list of state-developed targets for the CRS-80 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill plan's fiscal year. For each year after FY2006, the plan shall include a progress report with respect to achieving the targets. [Section 204 of S. 525] Addressing No provision. Adds provision requiring state plan to Same as Senate committee bill. special needs demonstrate how the state is addressing the [Section 2024] child care needs of eligible parents who have children with special needs; work non-traditional hours; or require child care for infants or toddlers. [Section 104 of S. 525] Meeting the In their state plans, states must demonstrate the The state plan must also describe how the No provision. needs of TANF manner in which the specific child care needs state will inform parents receiving TANF, population of families on, leaving, or at-risk of receiving and other low-income parents, about TANF will be met. eligibility for CCDBG assistance. [Section [Section 658E(c)(2)(H)] 104 of S. 525] Redetermination No provision. State plan must demonstrate that No provision. procedures; redetermination of eligibility for assistance protection for is not to be conducted any more frequently working parents than every six months, except in the case of a parent's loss of employment. States are given the option of demonstrating that they will not terminate child care assistance based on a parent's loss of work without first continuing assistance for at least one month while the parent looks for work. Also requires the state plan to show that procedures and policies are in place to ensure that working parents are not required to unduly disrupt their employment in order to comply with the state's requirements for eligibility and re-determination. [Section 104 of S. 525] CRS-81 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Description of No provision. Requires state plan to describe any training No provision. requirements for requirements in effect that are applicable to training in early CCDBG providers and that are designed to childhood enable child care providers to promote the development social, emotional, physical, and cognitive development of children. [Section 104 of S. 525] Use of Funds Use of funds for Current law broadly states that CCDBG funds Adds specific language to current law No provision. a resource and are to be used for child care services, activities regarding use of funds: allows a state to use referral system that improve the quality or availability of such CCDBG funds to establish or support a services, and any other activity that the state system of local child care resource and deems appropriate to realize the goals of the referral organizations coordinated, to the program. [Section 658E(c)(3)(B)] extent determined appropriate by the state, by a statewide private, non-profit, community-based lead child care resource and referral organization. The resource and referral organizations will provide parents with information on child care options; and collect and analyze data on supply and demand for child care in political subdivisions within the state, and submit reports to the state. [Section 104 of S. 525] Use of funds for No provision. Requires that after reservation of set-asides, No provision. direct services at least 70% of funds remaining must be used to fund direct services (as defined by the state). [Section 104 of S. 525] CRS-82 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Activities to improve the quality of child care Funding Not less than 4% of a state's annual funding for Increases the "quality set-aside" to not less Same as Senate committee bill. the CCDBG is to be used for quality activities than 6%. [Section 105 of S. 525] [Section 2025] (described below). [Section 658G of CCDBG Act] Definitions The law describes funded activities as those Senate committee bill specifies that quality Provides more detail than current law, designed to provide comprehensive consumer funds be used only for the listed purposes specifying four categories of quality activities education to parents and the public, activities (see below). (Similar to House bill with (see below). that increase parental choice, and activities respect to some categories of activities, but designed to improve the quality and availability greater detail in others (see below)). of child care (such as resource and referral services). [Section 658G of CCDBG Act] Training and (1) programs providing training, education (1) Same as Senate committee bill. professional and other professional development for child development care workers; School readiness (2) develop and implement voluntary (2) activities within child care settings to activities guidelines on pre-reading and language enhance early learning, early literacy, and skills and activities that are aligned with school readiness; state goals for school preparedness; (3) support activities and provide technical assistance in child care settings to enhance early learning for young children, to promote literacy, and to foster school preparedness; Provider (4) engage in programs designed to increase (3) initiatives to increase the retention and retention and the retention and improve the competencies compensation of child care providers, compensation of child care providers, including wage including tiered reimbursement rates for incentive programs and initiatives that providers; and establish tiered payment rates for providers that meet or exceed child care services CRS-83 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill guidelines, as defined by the state; Other (5) evaluate and assess the quality and (4) other activities as approved by the state. effectiveness of child care programs and services on improving overall school preparedness; and (6) carry out other activities determined by the state to improve the quality of child care services for which measurement of outcomes relating to improved child safety, child well-being, or school preparedness is possible. [Section 105 of S. 525] Certification Regulations require that the state plan describe Requires that beginning with FY2006, the As stated above, adds provision requiring state requirements activities a state intends to fund with "quality state will certify annually to the Secretary its plan to certify (every two years) its set-aside" money, but neither law nor regulation compliance with the quality activity compliance with the quality set-aside requires certification of compliance. requirements; will describe how the state percentage requirement, including a used quality funds during the preceding description of the use of funds, beginning in year; will outline the state's strategy for FY2007 (for the preceding fiscal year). addressing the quality of child care in the [Section 2024] state, including a description of quantifiable, objective measures, that the state will use to evaluate the state's progress in improving child care services. Beginning in FY2007, the state will submit a report on its progress in achieving targets for the preceding fiscal year. [Section 105 of S. 525] Report by the HHS Secretary to Congress Frequency The Secretary of HHS is required to prepare Amends current law to replace biennial Amends current law to require that the and submit a biennial report to Congress. report to Congress with an annual report (see biennial report to Congress contain additional below for contents).[Section 108 of S. 525] elements (see below). [Section 2027] CRS-84 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Content The biennial report includes a summary and Adds a new requirement that aggregated Adds new required contents to be included in analysis of the data submitted by states (as statistics on the supply of, demand for, and the biennial report: aggregated statistics on required by Section 658K). The report is also quality of child care, early education, and the supply of, demand for, and quality of child to include an assessment, and where non-school-hours programs be included in care, early education, and non-school-hours appropriate, recommendations for the Congress a report to HHS. However, unlike House programs. [Section 2027] with respect to improving the access of quality bill, under this bill the report would be and affordable child care. [Section 658L of submitted annually rather than biennially. CCDBG Act] Also requires that the following additional information be included: -- a summary and analysis of the data and information provided to the Secretary in the state plan (Section 658E), the strategy addressing quality activities (Section 658G(c)), and the quarterly reports (Section 658K). -- a progress report describing the progress of the states in streamlining data reporting, the Secretary's plans and activities to provide technical assistance to states, and an explanation of any barriers to getting data in an accurate and timely manner. [Section 108 of S. 525] Submission Current law required first report not later than Report will be required annually, beginning Report will continue to be submitted deadline and July 31, 1998, and biennially thereafter. with the first submitted no later than April biennially, as under current law, but will be other [Section 658L] 30, 2006. required to include the new aggregated requirements information (described above) beginning with Also, not later than 30 days after the date of report submitted no later than October 1, such submission, the report is required to be 2007. [Section 2027] posted on the HHS website. [Section 108 of S. 525] CRS-85 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Use of resource No provision In order to collect this newly required Same as Senate committee bill. [Section and referral information, the bill authorizes the Secretary 2027] organizations for to use the national child care data system data collection available through resource and referral organizations. [Section 108 of S. 525] Eligibility Definition of Under federal law, the maximum family income Eliminates the federal maximum income Same as Senate committee bill. [Section income eligibility of a CCDBG-eligible child may not exceed limit of 85% of state median income, and 2028] 85% of its state median income for a family of allows each state to establish income the same size. (States may set their own eligibility levels, prioritized by need (as eligibility levels below the federal maximum.) defined by the state). [Section 110 of S. 525] [Section 658P(4)(B)] Reports and audits from States to HHS Quarterly States receiving CCDBG funds are required to Retains quarterly reporting of current law, No provision (retains current law). reports report to the Secretary on a quarterly basis the but amends the list of data elements that following data collected monthly with respect states are required to collect on a monthly to CCDBG families: family income; county of basis. Changes include requiring that states: residence; gender, race, and age of child(ren) show the cost of each family's subsidy receiving assistance; sources of family income broken down into subsidy amount and co- (including employment, TANF, housing payment amount; report household size; assistance, food stamps, and other programs); identify the reason for any termination in duration of benefit receipt; type of child care benefit; and report whether the child has an used; cost of child care; and average number of individualized education plan. States no hours of child care. In order to collect data, longer would report receipt of housing states may use sampling methods (approved by assistance or food stamps. [Section 107 of the Secretary). [Section 658K] S. 525] Annual reports States must submit annual reports of aggregate Eliminates separate annual report, but No provision (retains current law). data concerning number of providers that requires in fourth quarterly report of each received CCDBG funding; monthly cost of year that the state submit information on the child care services, and the portion paid through annual number and type of child care CRS-86 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill subsidy; the number of payments made through providers that received funding under this vouchers; the manner in which consumer subchapter and the annual number of education information was provided, and the payments made by the state through number of parents receiving it; and the total vouchers, under contracts, or by payment to unduplicated number of children and families parents, by type of child care provider. served during the reporting period. [Section [Section 107 of S. 525] 658K(a)(2)] Information on the number of children and families receiving CCDBG assistance is to be posted on the website of each state. [Section 107 of S. 525] States must comply with the changes in data collection and reporting requirements within two years from the date of this act's enactment. A waiver can be granted (by HHS) to states with plans to procure data systems. [Section 107 of S. 525] Other Child Care Provisions Rule of No provision. Amends CCDBG Act to include a rule of No provision. construction construction stating that nothing in the act shall be construed to require a state to impose state child care licensing requirements on any type of early childhood provider, including any such provider who is exempt form state child care licensing requirements on the date of enactment of the Caring for Children Act of 2005. [Section 111 of S. 525] CRS-87 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Enhancing Current law does not contain this title. This bill includes a separate title with No provision. security at child provisions aimed at enhancing security at care centers in child care centers in federal facilities. The federal facilities bill requires that the Administrator of General Services, among others, issue regulations relating to emergency plans and relocation sites. [Title II, Sections 201 and 202 of S. 525] Small business Current law does not contain this title. This separate title requires the Secretary of No provision. child care grant HHS to establish a program to award program competitive grants to states, which are to be used by states (or eligible consortia of small businesses or entities) to encourage the establishment and operation of employer- operated child care programs. The section authorizes $30 million for the period of FY2006-2010 to carry out the program. [Title III, Section 301 of S. 525] Waiver authority No provision. No provision. Up until June 30, 2006, and to such extent as to assist states the Secretary of HHS considers appropriate, serving families the Secretary may waive or modify certain affected by the CCDBG provisions for states affected by the Gulf hurricanes Gulf hurricanes. These provisions are defined as those relating to the federal income eligibility limits, the work requirements, the required use of quality funds, and any provision that prevents children designated as evacuees from receiving priority services over any children not already receiving services. [Section 2029] CRS-88 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Responsible Fatherhood Program Findings No provision. Lists a number of statements that show Includes a list of statements, but they are not evidence indicating the need to promote and identical to those in S. 667. [New Part C of support involved, committed, and Title IV of the Social Security Act, Section responsible fatherhood, and to encourage 441(a)] and support healthy marriages between parents raising children. [Section 118(a)(1) of S. 667] Responsible No provision. The Responsible Fatherhood program would Same as S. 667. [Sections 2015(b) and Fatherhood be added to the Social Security Act as a new 8119(b)] Program Part C of Title IV. (Note: Because the fatherhood provisions are drafted as an This section of the House Budget amendment to the TANF section of P.L.104- Reconciliation bill may be cited as the 193, they would be subject to the charitable "Promotion and Support of Responsible choice rules.) [Section 118(a)(2) of S. 667] Fatherhood and Healthy Marriage Act of 2005." [Sections 2015(a) and 8119(a)] Summary of the No provision. Establishes five components for the Establishes four components for the Responsible responsible fatherhood program for FY2006 responsible fatherhood program for FY2006 Fatherhood through FY2010. It (1) appropriates $20 through FY2010. It (1) authorizes Program million for a grant program for up to 10 competitive grants for responsible fatherhood eligible states to conduct demonstration projects to public and nonprofit community programs; (2) appropriates $30 million for entities, including religious organizations, and grants for eligible entities (local to Indian tribes and tribal organizations, for government, local public agency, demonstration service projects and activities community-based or nonprofit organization, designed to test the effectiveness of various or private entity, including any charitable or approaches to accomplish the four specified faith-based organizations, or Indian tribe or responsible fatherhood program objectives -- t r i b a l o r gan i zat i o n ) t o c o n d u c t eligible entities would be allowed to apply for demonstration programs; (3) authorizes $5 either full service grants or limited purpose million for a nationally recognized nonprofit grants of $25,000 or less per fiscal year; (2) fatherhood promotion organization to authorizes funding for two multicity, develop and promote a responsible multistate fatherhood demonstration projects CRS-89 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill fatherhood media campaign and establish a to be developed and conducted by a national national clearinghouse to help states and nonprofit fatherhood promotion organization; communities in their efforts to promote both (3) authorizes funding for an evaluation of the marriage and responsible fatherhood; (4) competitive grant projects and the multicity, authorizes a $20 million block grant for multistate demonstration projects; and (4) states to conduct responsible fatherhood authorizes the Secretary of HHS by grant, media campaigns (authorizes $1 million of contract, or cooperative agreement to carry the $20 million for an evaluation); and (5) out projects and activities of national authorizes $1 million for a nationally significance relating to fatherhood promotion recognized nonprofit research and education -- such projects or activities could include fatherhood organization to establish a collection and dissemination of information, national resource center for responsible media campaigns, technical assistance to fatherhood. [New Part C of Title IV of the public and private entities, and research. Social Security Act, Sections 441-444] [New Part C of Title IV, Sections 443-446] CRS-90 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Note: The Committee on Education and the Workforce shared jurisdiction with the Committee on Ways and Means with respect to Fatherhood Programs. The Committee on Education and the Workforce's fatherhood program is identical to that of the Committee on Ways and Means except that it includes five components rather than four and stipulates that no more than 35% of the $20 million annual authorization can be used for the multicity, multistate demonstrations, the economic incentives demonstrations, the evaluations, and the projections of national significance. In addition to the four components in the Ways and Means Committee proposal, the Committee on Education and the Workforce's proposal authorizes the HHS Secretary to make grants available for FY2006 through FY2010 for two to five demonstration projects that test the use of economic incentives combined with a comprehensive approach to addressing employment barriers to encourage noncustodial parents to enter the workforce and to contribute financially and emotionally to their children. The fatherhood demonstration projects are to be developed and conducted by a national nonprofit fatherhood promotion organization that meets the qualifications specified in the bill. The bill stipulates that out of the set-aside monies, at least $5 million is to be allocated for the CRS-91 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill economic incentive demonstration project. [Section 2015 of Committee on Education and the Workforce proposal, and New Part C of Title IV, Sections 445 and 449] No provision. The purposes of the responsible fatherhood The first of the three purposes is to provide for demonstration grants are to promote projects and activities by public entities and responsible fatherhood through (1) marriage nonprofit community entities, including promotion (through counseling, mentoring, religious organizations, to test promising disseminating information about the approaches to accomplishing the following advantages of marriage and two-parent four objectives: involvement for children, enhancing relationship skills, teaching how to control (1) promoting responsible, caring and aggressive behavior, disseminating effective parenting and encouraging positive information on the causes of domestic father involvement, including the positive violence and child abuse, marriage involvement of non-resident fathers; preparation programs, premarital counseling, (2) enhancing the abilities and commitment of skills-based marriage education, financial unemployed or low-income fathers to provide planning seminars, and divorce education support for their families and to avoid or leave and reduction programs, including mediation welfare; and counseling); (2) parenting activities (3) improving fathers' ability to effectively (through counseling, mentoring, mediation, manage family business affairs; and disseminating information about good (4) encouraging and supporting healthy parenting practices, skills-based parenting marriages and married fatherhood. education, encouraging child support payments, and other methods); and (3) The second purpose is through the projects fostering economic stability of fathers and activities described above, to improve (through work first services, job search, job outcomes for children such as increased training, subsidized employment, education, family income and economic security, including career-advancing education, job improved school performance, better health, retention, job enhancement, dissemination of improved emotional and behavioral stability employment materials, coordination with and social adjustment, and reduced risk of existing employment services such as delinquency, crime, substance abuse, child welfare-to-work programs, referrals to local abuse and neglect, teen sexual activity, and CRS-92 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill employment training initiatives, and other teen suicide. methods). [New Part C of Title IV, Section 441(a)(2)] The third purpose is to evaluate approaches and disseminate findings to encourage replication of effective approaches to achieving the desired outcomes for both parents and children. [New Part C of Title IV, Section 441(b)] Prohibitions No provision. With regard to both the grants to states and No provision. entities, prohibits the use of responsible fatherhood demonstration grants for court proceedings on matters of child visitation or child custody, or legislative advocacy. [New Part C of Title IV, Section 441(a)(3) and Section 441(b)(2)] Prohibits an eligible state or entity from Requires that entities that apply for a grant to being awarded a grant unless the state or develop and operate fatherhood demonstration entity consults with experts on domestic service projects and activities include in their violence or with relevant community application a description of how they will domestic violence coalitions in developing address child abuse and neglect and domestic programs or activities funded by the grant. violence, including how the applicant will The state or entity also must describe in the coordinate with state and local child protective grant application how the proposed service and domestic violence programs. programs or activities will address, as [New Part C of Title IV, Section 443(b)(3)] appropriate, issues of domestic violence and what the state or entity will do, to the extent relevant, to ensure that participation in such programs or activities is voluntary and to inform potential participants that their involvement is voluntary. [New Part C of Title IV, Section 441(a)(4) and Section 441(b)(3)] CRS-93 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Requires the HHS Secretary to ensure that Requires that each national nonprofit the selected nationally recognized nonprofit fatherhood promotion organization that fatherhood promotion organization applies for funding to develop and operate coordinate the media campaign and national multicity, multistate fatherhood demonstration clearinghouse that are developed with grant projects include in their application a funds with national, state, or local domestic description of how they will address child violence programs. [New Part C of Title IV, abuse and neglect and domestic violence, Section 442(a)(2)] including how the applicant will coordinate with state and local child protective service With respect to the block grant to states to and domestic violence programs. [New Part encourage media campaigns, in developing C of Title IV, Section 444(c)(3)] [Note: A broadcast and printed advertisements for similar provision is in the Education and the media campaigns, the state or other entity Workforce Committee proposal with respect administering the campaign must consult to national nonprofit fatherhood promotion with representatives of state and local organizations that operate economic incentive domestic violence centers. [New Part C of demonstration projects. [New Part C of Title Title IV, Section 443(d)(3)] IV, Section 445(c)(3)] Funding No provision. For each of the years FY2006 through Authorizes $20 million for each of FY2006 FY2010, appropriates $20 million for up to through FY2010. 10 eligible states to conduct demonstration programs and appropriates $30 million for Not more than 15% of the annual eligible entities to conduct demonstration appropriations shall be available for the costs programs. Authorizes $5 million for a of the multicity, multistate demonstration nationally recognized nonprofit fatherhood projects under Section 444, evaluations under promotion organization to develop and Section 445, and projects of national promote a responsible fatherhood media significance under Section 446. campaign. Authorizes a $20 million block grant for states to conduct responsible [Note: See Summary Section above for an fatherhood media campaigns. Authorizes $1 explanation of the difference between the two million for a nationally recognized nonprofit House Committes' responsible fatherhood research and education fatherhood proposals.] organization to establish a national resource center for responsible fatherhood. CRS-94 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill If fully funded, the bill would provide $76 If fully funded, the bill would provide $20 million for responsible fatherhood programs million for responsible fatherhood programs for each of the five years -- totaling $380 for each of the five years -- totaling $100 million. million. Nondiscrimina- No provision. Requires that the responsible fatherhood Same as S. 667. [New Part C of Title IV, tion Clause programs and activities be made available to Section 447] all fathers and expectant fathers, including married and unmarried fathers and custodial and non-custodial fathers, with a special focus on low-income fathers, on the same basis; and that mothers and expectant mothers be able to participate in such programs and activities on the same basis as the fathers. [New Part C of Title IV, Section 445] Child Support Enforcement (CSE) Program Assignment and Distribution of Child Support for TANF and Former TANF Families Assignment of In order to receive benefits, Temporary Stipulates that the assignment covers only Stipulates that the assignment covers child child support Assistance to Needy Families (TANF) child support that accrues during the period support that accrues during the period that the rights recipients must assign their child support rights that the family receives TANF. (In other family receives TANF, but also gives states to the state. The assignment covers any child words, pre-assistance arrearages would be the option of including in the assignment child support that accrues while the family receives eliminated.) [Section 301(a) of S. 667] support that accrued to the family before the TANF and any support that accrued before the family began receiving TANF. This provision family began receiving TANF. [Section would take effect on October 1, 2008. 408(a)(3) of the SSA] [Section 8316] Any assignment of rights to child support that In addition, the bill would give states the Any assignment of rights to child support that was in effect on September 30, 1997 must option to discontinue pre-assistance was in effect on September 30, 1997 may remain in effect. This means that any child assignments in effect on September 30, remain in effect. This means that states would support collected as a result of the assignment 1997. If a state chooses to discontinue the have the option to discontinue pre-assistance is owed to the state and the federal government. child support assignment, the state would assignments in effect on September 30, 1997. [Section 457(b) of the SSA] have to give up its legal claim to collections If a state chooses to discontinue the child CRS-95 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill based on such arrearages and the state would support assignment, the state would have to have to distribute the collections to the give up its legal claim to collections based on family. [Section 301(c) of S. 667] such arrearages and the state would have to distribute the collections to the family. States also would have the option to [Section 8317] discontinue pre-assistance arrearage assignments in effect after September 30, 1997 and before the implementation date of this provision. If a state chooses to discontinue the child support assignment, the state would have to give up its legal claim to collections based on such arrearages and the state would have to distribute the collections to the family. [Section 301(c) of S. 667] Federal While the family receives TANF benefits, the Same as current law. Same as current law. matching funds state is permitted to retain any current child for limited pass- support payments and any assigned arrearages through of child it collects up to the cumulative amount of support TANF benefits which has been paid to the payments to family. In other words, the state can decide families how much, if any, of the state share (some, all, receiving TANF none) of the child support payment collected on behalf of TANF families to send to the family. CRS-96 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill The state is required to pay the federal For families who received assistance from For TANF families, requires the federal government the federal share of the child the state (which could include TANF or government to waive its share of an increase support collected. [Section 457(a)(1) of the foster care), requires the federal government in the child support pass-through (up to the SSA] to waive its share of child support greater of $100 per month or $50 over the collections passed through to TANF families state's stipulated child support pass-through as Child support payments collected on behalf of by the state and disregarded by the state -- of December 31, 2001) for families that TANF families that are passed through to the up to an amount equal to $400 per month in receive TANF benefits. To obtain the federal family and disregarded by the state count the case of a family with one child, and up to matching funds, the state would have to toward the TANF Maintenance-of-Effort $600 per month in the case of a family with disregard the amount passed through to the (MOE) expenditure requirement. [Section two or more children. Like current law, family in determining the family's TANF 409(a)(7)(B) of the SSA] disregarded pass-through amounts would benefit amount. This provision would apply count as TANF MOE expenditures. [Section to amounts distributed on or after October 1, 301(b) of S. 667] 2008. [Section 8301] Includes a provision that allows states with Section 1115 demonstration waivers (on or before October 1, 1997) related to the child support pass-through provisions to continue to pass through payments to families in accordance with the terms of the waiver. [Section 301(b) of S. 667] State option to Current child support payments must be paid to Simplifies child support distribution rules to Simplifies child support distribution rules. pass through all the family if the family is no longer on TANF. Eliminates the special treatment of child gives states the option of providing families child support support arrearages collected through the that have left TANF the full amount of the payments to With respect to former TANF families: Since federal income tax refund offset program. child support collected on their behalf (i.e., families that October 1, 1997, child support arrearages that both current child support and child support Therefore, all child support collections to formerly accrue after the family leaves TANF also are former TANF families would go to the arrearages). The federal government would received TANF required to be paid to the family before any family first. [Section 301(b) of S. 667] have to share with the states the costs of monies may be retained by the state. paying child support arrearages to the family To the extent that the arrearage amount first. This provision would apply to amounts With respect to former TANF families: Since payable to a former TANF family in any distributed on or after October 1, 2008. October 1, 2000, child support arrearages that given month exceeds the amount that would [Section 8302] accrued before the family began receiving have been payable to the family under CRS-97 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill TANF also are required to be distributed to the current law, the state would be able to elect family first. to have the amount paid to the family [Section 457(a)(2) of the SSA] considered an expenditure for TANF MOE purposes. In addition, amends the Child However, if child support arrearages are Support Enforcement (CSE) State Plan to collected through the federal income tax refund include an election by the state to include offset program, the family does not have first whether it is using the new option to pass claim on the arrearage payments. Such through all arrearage payments to former arrearage payments are retained by the state and TANF families without paying the federal t h e f eder al go ve r n me n t . [ S e c t i o n government its share of such collections or 457(a)(2)(B)(iv) of the SSA] whether it has chosen to maintain the current law distribution method. Further, stipulates that no later than six months after the date of enactment of this legislation, the HHS Secretary, in consultation with the states, would be required to establish the procedures to be used to make estimates of excess costs associated with the new funding option. [Section 301(b) of S. 667] The provisions of Section 301 of this bill would take effect October 1, 2009, or earlier at state option at any date that is 18 months after the date of enactment of the bill but not later than September 30, 2009. [Section 301(e) of S. 667] Mandatory Federal law requires that the state have Requires states to review and, if appropriate, Same as S. 667. [Section 8303] review and procedures under which every three years the adjust child support orders in TANF cases adjustment of state review and adjust (if appropriate) child every three years. This provision would take child support support orders at the request of either parent, effect on October 1, 2007. [Section 302 of orders for and that in the case of TANF families, the state S. 667] families review and update (if appropriate) child support receiving TANF orders at the request of the state CSE agency or CRS-98 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill of either parent. [Section 466(a)(1) of the SSA] Report on No provision. Requires that within six months of Same as S. 667. [Section 8305] undistributed enactment, the HHS Secretary must submit child support to the House Ways and Means Committee payments and the Senate Finance Committee a report on the procedures states use to locate custodial parents for whom child support has been collected but not yet distributed. The report must include an estimate of the total amount of undistributed child support and the average length of time it takes undistributed child support to be distributed. To the extent the Secretary deems appropriate, the report must include recommendations as to whether additional procedures should be established at the state or federal level to expedite the payment of undistributed child support. [Section 303 of S. 667] Enforcement Provisions Decrease in Federal law stipulates that the HHS Secretary is Authorizes the denial, revocation, or Same as S. 667. [Section 8306] amount of child required to submit to the Secretary of State the restriction of passports to noncustodial support names of noncustodial parents who have been parents whose child support arrearages arrearage certified by the state CSE agency as owing exceed $2,500, rather than $5,000 as under triggering more than $5,000 in past-due child support. The current law. This provision would take passport denial Secretary of State has authority to deny, revoke, effect on October 1, 2006. [Section 304 of restrict, or limit passports to noncustodial S. 667] parents whose child support arrearages exceed $5,000. [Section 452(k) of the SSA] CRS-99 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Use of tax Federal law prohibits the use of the federal Permits the federal income tax refund offset Same as S. 667. [Section 8307] refund intercept income tax offset program to recover past-due program to be used to collect arrearages on program to child support on behalf of non-welfare cases in behalf of non-welfare children who are no collect past-due which the child is not a minor, unless the child longer minors. This provision would take child support on was determined disabled while he or she was a effect on October 1, 2007. [Section 305 of behalf of minor and for whom the child support order is S. 667] children who are still in effect. (Since enactment in 1981 (P.L. not minors 97-35), the federal income tax offset program has been used to collect child support arrearages on behalf of welfare families regardless of whether the children were still minors -- as long as the child support order was in effect.) [Section 464(a)(2)(A) of the SSA] Garnishment of The disability compensation benefits of Allows veterans' disability compensation Allows veterans' disability compensation compensation veterans are treated differently than most forms benefits to be intercepted (withheld) and benefits to be intercepted (withheld) and paid paid to veterans of government payment for purposes of paying paid on a routine basis to the custodial on a routine basis to the custodial parent if the for service- child support. Whereas most government parent. This provision prohibits the veteran is 60 days or more in arrears on child connected payments are subject to being automatically garnishment of any veteran's disability support payments. Under the bill, this disabilities in withheld to pay child support, veterans compensation in order to collect alimony provision is prohibited from being used to order to enforce disability compensation is not subject to unless that disability compensation is being collect alimony and no more than 50% of any child support intercept. Before enactment of P.L. 108-136, paid because retirement benefits were particular disability payment may be withheld. obligations there was one exception to this rule. The waived. The provision would take effect on This provision would take effect on October 1, exception occurred when veterans had elected October 1, 2007. [Section 306 of S. 667] 2007. [Section 8308] to forego some of their retirement pay in order to collect additional disability payments. The advantage of veterans replacing retirement pay with disability pay is that the disability pay is not subject to taxation. With this exception, the only way to obtain child support payments from veterans' disability compensation was to request that the Secretary of the Department of Veteran Affairs intercept the disability CRS-100 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill compensation and make the child support payments. P.L. 108-136, enacted November 24, 2003, permits veterans to receive both military retired pay and veterans' disability compensation. [Section 459(h)(1)(A)(ii)(V) of the SSA] Improving Federal law stipulates that any federal agency Allows Social Security benefits to be offset No provision. federal debt that is owed a nontax debt (that is more than to collect past-due child support. The collection 180 days past-due) must notify the Secretary of Committee bill specifically overrules section practices the Treasury to obtain an administrative offset 207 of the Social Security Act which states of the debt. The Department of the Treasury that Social Security benefits are not (or other designated federal disbursing agency) transferrable by garnishment. The provision has the authority to offset Social Security would take effect on a date that is 18 months benefits, certain Black Lung Board benefits, after the date of enactment. [Section 307 of and certain Railroad Retirement benefits to S. 667] collect delinquent debt owed to the United States, subject to an annual $9,000 ($750 per month) exemption. [Section 3716(h)(3) of Title 33 of the U.S.Code] Currently, states have the authority to garnish Social Security benefits for child support payments. But, Social Security payments can only be offset for federal debt recovery. (Thus, under current law child support arrearage payments which are enforced by states cannot be offset from Social Security benefits/payments.) Identification The 1996 welfare reform law required states to Authorizes the HHS Secretary, via the No provision. and seizure of enter into agreements with financial institutions FPLS, to assist states to perform data assets held by conducting business within their state for the matches comparing information from states multi-state purpose of conducting a quarterly data match. and participating multi-state financial financial The data match is intended to identify financial institutions with respect to persons owing CRS-101 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill institutions accounts (in banks, credit unions, money- past-due child support. Authorizes the market mutual funds, etc.) belonging to parents Secretary via the FPLS to seize assets, held who are delinquent in the payment of their child by such financial institutions, of support obligation. In some cases, state law noncustodial parents who owe child support prohibits the placement of liens or levies on arrearage payments, by issuing a notice of a accounts outside of the state and some financial lien or levy and requiring the financial institutions only accept liens and levies from institution to freeze and seize assets in the state where the account is located. In 1998, accounts in multi-state financial institutions Congress made it easier for multi-state financial to satisfy child support obligations. Requires institutions to match records by permitting the the Secretary to transmit any assets seized FPLS to help them coordinate their information. under the procedure to the state for [Section 452(l) of the SSA] accounting and distribution. Stipulates that the Secretary must inform affected account holders/ asset holders of their due process rights. (In effect, would resolve problems of jurisdiction in cases where a state was pursuing an asset in a different state.) [Section 310 of S. 667] CRS-102 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Information No provision. Authorizes the HHS Secretary, via the Same as S. 667. [Section 8311] comparisons FPLS, to compare information of with insurance noncustodial parents who owe past-due child data support with information maintained by insurers (or their agents) concerning insurance claims, settlements, awards, and payments; and to furnish any information resulting from a match to the appropriate state CSE agency in order to secure settlements, awards, etc. for payment of past-due child support. The bill stipulates that no insurer would be liable under federal or state law for disclosures made in good faith under this provision. In addition, a state or federal agency that receives such information from the HHS Secretary must reimburse the Secretary for the costs incurred by the Secretary in providing the information, at rates which the Secretary determines to be reasonable. [Section 311 of S. 667] Tribal access to The FPLS is a national location system Includes Indian tribes and tribal Same as S. 667. [Section 8312] the Federal operated by the federal Office of Child Support organizations that operate a CSE program as Parent Locator Enforcement to assist states in locating "authorized persons." [Section 312] Service noncustodial parents, putative fathers, and custodial parties for the establishment of paternity and child support obligations, as well as the enforcement and modification of orders for child support, custody and visitation. It also identifies support orders or support cases involving the same parties in different states. The FPLS consists of the Federal Case Registry, Federal Offset Program, Multi-state CRS-103 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Financial Institution Data Match, National Directory of New Hires, and the Passport Denial Program. Additionally, the FPLS has access to external sources such as the Internal Revenue Service (IRS), the Social Security Administration (SSA), Department of Veterans Affairs (VA), the Department of Defense (DOD), and the Federal Bureau of Investigation (FBI). The FPLS is only allowed to transmit information in its databases to "authorized persons," which include (1) child support enforcement agencies (and their attorneys and agents); (2) courts, (3) the resident parent, legal guardian, attorney, or agent of a child owed child support; and (4) foster care and adoption agencies. [Section 453(c) of the SSA] Claims upon The Longshore and Harbor Worker's Amends the Longshore and Harbor No provision. longshore and Compensation Act is the federal worker's Workers' Compensation Act to ensure that harbor workers' compensation law for maritime workers and longshore or harbor workers benefits that are compensation persons working in shipyards and on docks, provided by the federal government or by for child support ships, and offshore drilling platforms. The act private insurers are subject to garnishment exempts benefits paid by longshore or harbor for purposes of paying child support employers or their insurers from all claims of obligations. [Section 315 of S. 667] creditors. Thus, Longshore and Harbor Worker's Compensation Act benefits that are paid by longshore or harbor employers or their insurers are not subject to attachment for payment of child support obligations. [Section 17 of the Longshore and Harbor Workers' Compensation Act -- 33 U.S.C. 917] CRS-104 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill State option to The 1996 welfare reform law mandated states Allows an assisting state to establish a child Same as S. 667. [Section 8315] use statewide to establish procedures under which the state support interstate case based on another automated data would use high-volume automated state's request for assistance; and thereby an processing and administrative enforcement, to the same extent assisting state would be able to use the CSE information as used for intrastate cases, in response to a statewide automated data processing and retrieval system request from another state to enforce a child information retrieval system for interstate for interstate support order. This provision was designed to cases. [Section 316 of S. 667] cases enable child support agencies to quickly locate and secure assets held by delinquent noncustodial parents in another state without opening a full-blown interstate child support enforcement case in the other state. The assisting state must use automatic data processing to search various state data bases including financial institutions, license records, employment service data, and state new hire registries, to determine whether information is available regarding a parent who owes a child support obligation. The assisting state is then required to seize any identified assets. This provision does not allow states to open/establish a child support interstate case. [Section 466(a)(14) of the SSA] CRS-105 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Requirement Federal law requires that a state CSE agency Requires that medical support for a child be No provision. that state child issue a notice to the employer of a noncustodial provided by either or both parents and that it support parent, who is subject to a child support order must be enforced. Authorizes the state CSE enforcement issued by a court or administrative agency, agency to enforce medical support against a agencies seek informing the employer of the parent's custodial parent whenever health care medical support obligation to provide health care coverage for coverage is available to the custodial parent for children the child(ren). The employer must then at reasonable cost. Stipulates that medical from either determine whether family health care coverage support may include health care coverage parent is available for which the dependent child(ren) (including payment of costs of premiums, may be eligible, and if so, the employer must co-payments, and deductibles) and payment notify the plan administrator of each plan of medical expenses incurred on behalf of a covered by the National Medical Support child. [Section 320 of S. 667] Notice. If the dependent child(ren) is eligible for coverage under a plan, the plan administrator is required to enroll the dependent child(ren) in an appropriate plan. The plan administrator also must notify the noncustodial parent's employer of the premium amount to be withheld from the employee's paycheck. [Section 466(a)(19) of the SSA] Technical P.L. 108-447, the Consolidated Appropriations Makes technical changes to the Consolidated No provision. amendment Act of 2005, added provisions related to the Appropriations Act of 2005 with respect to relating to comparison of data from the Secretary of the references to Title IV-D provisions related information Treasury with data in the National Directory of to information comparisons and other comparisons and New Hires for the purpose of collecting nontax disclosures. [Section 323 of S. 667] disclosure to debt owed to the federal government. assist in federal debt collection CRS-106 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Financing Provisions Reduction in rate The federal government currently reimburses No provision. (See Sense of the Senate Reduces the general CSE federal matching of each state 66% of the cost of administering its provision below.) rate of 66% to 62% in FY2007, 58% in reimbursement CSE program (i.e., the general CSE federal FY2008, 54% in FY2009, and 50% in FY2010 of child support matching rate). It also refunds states 90% of and each fiscal year thereafter. [Section 8319] administrative the laboratory costs of establishing paternity. expenses [Section 455(a)(2) of the SSA] Incentive Section 455(a)(1) of the Social Security Act No provision. (See Sense of the Senate Prohibits federal matching of state payments requires the HHS Secretary to reimburse each provision below.) expenditure of federal CSE incentive state for CSE expenditures at specified federal payments. (This means that CSE incentive matching rates, with the exception of payments that are received by states and expenditures on (1)enforcing any state or reinvested in the CSE program are not eligible federal law with respect to parental kidnaping, for federal reimbursement.) This provision or (2) making or enforcing a child custody or would take effect on October 1, 2007. [Section visitation determination. P.L. 105-22 (enacted 8320] in 1998) required mandatory reinvestment of CSE incentive payments by states back into the CSE program or related activities. [Section 458(f) of the SSA] State spending of CSE incentive payments on CSE activities are matched at the 66% federal matching rate (or at the 90% federal matching rate if the activities are related to paternity determination). Sense of the No provision. Note: The Senate Budget Reconciliation bill No provision. Senate provision does not include welfare reauthorization or child support enforcement provisions, but does include one provision opposing the House bill's reduction in CSE funding. It affirms that the federal funding levels for the rate of reimbursement of child support CRS-107 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill administrative expenses should not be reduced below the levels provided under current law, that states should continue to be permitted to use federal child support incentive payments for child support program expenditures that are eligible for federal matching payments, and expresses the sense of the Senate that it does not support additional fees for successful child support collection. [S.Amdt.2363 to S. 1932, the Deficit Reduction Omnibus Reconciliation Act of 2005] Mandatory fee Federal law requires that non-welfare families No provision. (See Sense of the Senate Requires families that have never been on for successful must apply for CSE services, and states must provision below.) TANF to pay a $25 annual user fee when child child support charge an application fee that cannot exceed support enforcement efforts on their behalf are collection for $25. The state may charge the application fee successful (i.e., at least $500 annually is family that has against the custodial parent, pay the fee out of collected on their behalf). Such fees could be never received state funds, or recover it from the noncustodial recovered from the custodial parent, the TANF parent. In addition, states have the option of noncustodial parent, or the state (with state recovering costs in excess of the application funds). This provision would take effect on fee. Such recovery may be from either the October 1, 2006. [Section 8304] custodial parent or the noncustodial parent. [Section 454(6)(B) of the SSA] Maintenance of Federal law appropriates an amount equal to Changes the amount available for technical Same as S. 667. [Section 8309] technical 1% of the federal share of child support assistance funding to an amount equal to 1% assistance collected on behalf of TANF families the of the federal share of child support funding preceding year for the Secretary to provide to collected or the amount appropriated for the states for: information dissemination and FY2002, whichever is greater. [Section 308 technical assistance, training of state and of S. 667] federal staff, staffing studies, and related activities needed to improve CSE programs (including technical assistance concerning state CRS-108 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill automated CSE systems), and research demonstrations and special projects of regional or national significance relating to the operation of CSE programs. Such funds are available until they are expended. [Section 452(j) of the SSA] Maintenance of Federal law appropriates an amount equal to Changes the amount available for the FPLS Same as S. 667. [Section 8310] Federal Parent 2% of the federal share of child support to an amount equal to 2% of the federal Locator Service collected on behalf of TANF families the share of child support collected or the funding (FPLS) preceding year for the Secretary to use for amount appropriated for FY2002, whichever operation of the FPLS to the extent that the is greater. Makes all funds appropriated for costs of the FPLS are not recovered by user this purpose available until expended. fees. Funds that were appropriated for FY1997- [Section 309 of S. 667] FY2001 remain available until expended. [Section 453(o) of the SSA] Grants to states The 1996 welfare reform law (P.L. 104-193) Increases funding for Access and Visitation No provision. for access and authorized grants to states (via CSE funding) to grants from $10 million annually to $12 visitation establish and operate access and visitation million in FY2006, $14 million in FY2007, programs programs. The purpose of the grants is to $16 million in FY2008, and $20 million facilitate noncustodial parents' access to and annually in FY2009 and each succeeding visitation of their children. An annual fiscal year. Extends the Access and entitlement of $10 million from the federal CSE Visitation program to Indian tribes and tribal budget account is available to states for these organizations that had received direct child grants. Eligible activities include but are not support enforcement payments from the limited to mediation, counseling, education, federal government for at least one year. development of parenting plans, visitation Includes a specified amount to be set aside enforcement, and development of guidelines for for Indian tribes and tribal organizations: visitation and alternative custody arrangements. $250,000 for FY2006; $600,000 for The allotment formula is based on the ratio of FY2007; $800,000 for FY2008; and $1.670 the number of children in the state living with million for FY2009 or any succeeding fiscal only one biological parent in relation to the year. total number of such children in all states. The amount of the allotment available to a state is Increases the minimum allotment to states to CRS-109 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill this same ratio to $10 million. The allotments $120,000 in FY2006, $140,000 in FY2007, are to be adjusted to ensure that there is a $160,000 in FY2008, and $180,000 in minimum allotment amount of $50,000 per FY2009 or any succeeding fiscal year. The state for FY1997 and FY1998, and a minimum minimum allotment for Indian tribes and of $100,000 for any year after FY1998. States tribal organizations would be $10,000 for a may use the grants to create their own programs fiscal year. The tribal allotment would not or to fund programs operated by courts, local be able to exceed the minimum state public agencies, or nonprofit organizations. allotment for any given fiscal year. The programs do not need to be statewide. States must monitor, evaluate, and report on The allotment formula for Indian tribes and their programs in accord with regulations issued tribal organizations that operate child by the HHS Secretary. [Section 459B of the support enforcement programs would be SSA] based on the ratio of the number of children in the tribe or tribal organization living with only one parent in relation to the total number of children living with only one parent in all Indian tribes or tribal organizations. The amount of the allotment available to an Indian tribe or tribal organization would be this same ratio to the maximum allotment for Indian tribes and tribal organizations (i.e., $250,000 for FY2006; $600,000 for FY2007; $800,000 for FY2008; and $1.670 million for FY2009 or any succeeding fiscal year). (Pro rata reductions would be made if they are necessary.) [Section 318 of S. 667] Reimbursement Federal law (P.L. 106-113) authorized the Amends the reimbursement of costs Same as S. 667. [Section 8313] of Secretary's Department of Education to have access to the provision by eliminating the word costs of National Directory of New Hires. The additional, thereby requiring the Secretary information provisions were designed to improve the ability of Education to reimburse the HHS comparisons of the Department of Education to collect on Secretary for any costs incurred by the HHS and disclosure defaulted loans and grant overpayments made Secretary in providing requested information CRS-110 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill for enforcement to individuals under the Higher Education Act on new hires. [Section 313 of S. 667] of obligations on of 1965. The Federal Office of Child Support higher education Enforcement (OCSE) and the Department of act loans and Education negotiated and implemented a grants Computer Matching Agreement in December 2000. Under the agreement, the Secretary of Education is required to reimburse the HHS Secretary for the additional costs incurred by the HHS Secretary in furnishing requested information. [Section 453(j)(6)(F) of the SSA] Other Child Support Provisions Technical Federal law requires that any state that has a Deletes the reference to child welfare Same as S. 667. [Section 8314] amendment child welfare program and that has Indian programs. [Section 314 of S. 667] relating to country may enter into a cooperative agreement cooperative with an Indian tribe or tribal organization if the agreements tribe demonstrates that it has an established between states tribal court system with several specific and Indian characteristics related to paternity tribes establishment and the establishment and enforcement of child support obligations. The HHS Secretary may make direct payments to Indian tribes and tribal organizations that have approved child support enforcement plans. [Section 454(33) of the SSA] State law The 1996 welfare reform law (P.L. 104-193) Requires that each state's Uniform Interstate No provision. requirement required that on and after January 1, 1998, each Family Support Act (UIFSA) include any concerning the state must have in effect the Uniform Interstate amendments officially adopted as of August Uniform Family Support Act (UIFSA), as approved by 2001 by the National Conference of Interstate the American Bar Association on February 9, Commissioners on Uniform State Laws. CRS-111 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Family Support 1993, and as in effect on August 22, 1996, In addition, clarifies current law by Act (UIFSA) including any amendments officially adopted as stipulating that a court of a state that has of such date by the National Conference of established a child support order has Commissioners on Uniform State Laws. continuing, exclusive jurisdiction to modify [Section 466(f) of the SSA] its order if the order is the controlling order and the state is the child's state or the Federal law requires states to treat past-due residence of any individual contestant; or if child support obligations as final judgments that the state is not the residence of the child or are entitled to full faith and credit in every state. an individual contestant, the court has the This means that a person who has a child contestant's consent in a record or in open support order in one state does not have to court that the court may continue to exercise obtain a second order in another state to obtain jurisdiction to modify its order. It also child support due should the noncustodial modifies the current rules regarding the parent move from the issuing court's enforcement of modified orders. [Section jurisdiction. P.L. 103-383 restricts a state 317 of S. 667] court's ability to modify a child support order issued by another state unless the child and the custodial parent have moved to the state where the modification is sought or have agreed to the modification. The 1996 welfare reform law (P.L. 104-193) clarified the definition of a child's home state, makes several revisions to ensure that the full faith and credit laws can be applied consistently with UIFSA, and clarifies the rules regarding which child support orders states must honor when there is more than one order. Timing of Federal law requires that audits be conducted at Changes the timing of the corrective action No provision. corrective action least every three years to determine whether the year for states that are found to be in year for state standards and requirements prescribed by law noncompliance of child support enforcement noncompliance and regulations have been met by the child program requirements. Changes the with CSE support program of every state. If a state fails corrective action year to the fiscal year program the audit, federal TANF funds must be reduced following the fiscal year in which the CRS-112 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill requirements by an amount equal to at least 1% but not more Secretary made a finding of noncompliance than 2% for the first failure to comply, at least and recommended a corrective action plan. 2% but not more than 3% for the second failure, This change would be made retroactively in and at least 3% but not more than 5% for the order to allow the Secretary to treat all third and subsequent failures. [Section findings of noncompliance consistently. 409(a)(8)(B) of the SSA] The provision would take effect with respect to determinations of state compliance for The HHS Secretary also must review state FY2002 and succeeding fiscal years. reports on compliance with federal [Section 319 of S. 667] requirements and provide states with recommendations for corrective action. The purpose of the audits is to assess the completeness, reliability, and security of data reported for use in calculating the performance indicators and to assess the adequacy of financial management of the state program. Federal law calls for penalties to be imposed against states that fail to comply with a corrective action plan in the succeeding fiscal year. [Section 409(a)(8) of the SSA] Notice to state Federal law requires the health care plan Requires the health care plan administrator No provision. child support administrator to notify qualified beneficiaries of to notify the state CSE agency if the enforcement their beneficiary rights with regard to health noncustodial parent with the health care agency from care coverage when or if one of the following coverage dies, loses his or her job or is health care plan events occurs: (1) the noncustodial parent with working fewer hours, becomes eligible for administrator the health care coverage dies; (2) the Medicaid benefits, or is involved in a under certain noncustodial parent with the health care bankruptcy proceeding pertaining to the circumstances coverage loses his or her job or starts working noncustodial parent's former employer. In when a child fewer hours; (3) the noncustodial parent with addition, the bill requires the health care loses health care the health care coverage becomes eligible for plan administrator to notify the state CSE coverage Medicaid benefits; (4) the noncustodial parent agency if the noncustodial parent with the with the health care coverage becomes involved health care coverage gets divorced or in a bankruptcy proceeding pertaining to his or obtains a legal separation, or if the CRS-113 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill her former employer; (5) the noncustodial noncustodial parent's child ceases to be a parent with the health care coverage gets dependent child (in cases where the divorced or obtains a legal separation; or (6) the noncustodial parent has notified the plan child of the noncustodial parent with the health administrator of such an occurrence). care coverage ceases to be a dependent child. [Section 321 of S. 667] (With respect to (5) and (6), the noncustodial parent (i.e., the covered employee) is required to notify the health care plan administrator of such an event.) [Section 606(a)(4) of the Employee Retirement Income Security Act of 1974 -- 29 U.S.C. 1166(a)(4)] Authority to Federal law stipulates that the following Allows the state of Texas to continue to No provision. continue state families automatically qualify for CSE services: operate its CSE program for monitoring and program for families receiving TANF benefits (Title IV-A), enforcement of court orders on behalf of a monitoring and foster care payments (Title IV-E), Medicaid nonwelfare families without applying for a enforcement of coverage (Title XIX), or food stamps (if federal waiver. Currently the state of Texas child support cooperation is required by the state). Other does not require these families to apply for orders families (i.e., nonwelfare families) must apply CSE services. [Section 322 of S. 667] for CSE services. [Sections 454(a)(4) and 454(a)(6) of the SSA; also Section 1115 of the SSA] Technical Section 453(j) of the Social Security Act No provision. Makes a technical correction to the Social correction currently includes two paragraphs labeled (7). Security Act by renumbering the second paragraph labeled Section 453(j)(7). [Section 8318] Child Welfare Child welfare waivers CRS-114 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Extension of Section 1130 (a)(1) and (2) of the Social Extends the HHS Secretary's authorization Same as S. 667. [Section 8402] authority to Security Act permits the Department of Health to permit child welfare demonstration approve and Human Services (HHS) Secretary to projects through FY2010. [Section 401 of S. demonstration approve state demonstration projects that are 667] projects likely to promote the objectives of the child welfare programs authorized under Title IV-B and Title IV-E. This authority extends through December 31, 2005. CRS-115 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Elimination of Section 1130(a)(2) limits to 10 the number of No provision. Removes the restriction on the number of the number of demonstration projects the HHS Secretary may demonstration projects the HHS Secretary child welfare approve in a single fiscal year. may approve in each fiscal year. [Section waivers allowed 8402] per fiscal year Number of states No current provision. In the past, HHS has No provision Adds language to assert that the HHS that may be expressed a "preference" for projects that Secretary may not refuse to grant a particular granted child "would test policy alternatives that are unique; waiver of child welfare program rules on the welfare waivers that differ in their approach to serving families grounds that the purpose of the waiver or on the same topic and children; [and] that differ in significant demonstration project is similar to another ways from other proposals." waiver or demonstration project. [Section 8403] Elimination of No current provision. In the past, HHS has No provision. Adds language to assert that the HHS limitation on expressed a "preference" for projects "that are Secretary may not impose a limit on the number of submitted by states that have not previously number of waivers or demonstration projects waivers that may been approved for a child welfare that a single state is granted. [Section 8404] be granted to a demonstration project." single state for demonstration projects Process for No statutory provision. No provision. Adds language to require the HHS Secretary consideration of to develop a "streamlined process" for amendments to considering amendments or extensions that and extensions of states propose to their demonstration projects. demonstration [Section 8405] projects requiring waivers Availability of Section 1130(f)(1) and (2) provides that states No provision. Requires the HHS Secretary to make available reports conducting demonstration projects under a (to states or other interested parties) any of the CRS-116 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill waiver granted by the HHS Secretary must demonstration project evaluation reports that obtain an evaluation of the project's it receives from a state and any demonstration effectiveness and must provide interim and project evaluation or report made by the HHS final evaluation reports to the HHS Secretary Secretary, with a focus on information that when, and in the manner, that the Secretary promotes best practices and program requests. improvements. [Section 8406] Other Child Welfare Provisions Additional foster Federal funding for Title IV-E of the Social Allows Puerto Rico to receive additional No provision. care and Security Act programs for Puerto Rico is funding for Title IV-E programs above the adoption included in an overall cap on funding for public cap, but limits that additional funding to assistance assistance programs. Total funding to Puerto $6,250,000 for FY2007 through FY2010. funding for Rico for TANF, Title IV-E and adult public Also, provides that any adoption incentive Puerto Rico assistance programs which operate in lieu of bonuses earned would be excluded from the Supplemental Security Income (SSI) in the cap. [Section 402 of S. 667] commonwealth is limited by statute to $107,255,000. Certain bonus, loan, and evaluation funding is excluded from that cap. Tribal foster Title IV-E foster care and adoption assistance Allows, beginning in FY2006, an Indian No provision. care and programs may only be operated by the states tribe or tribal consortium to receive direct adoption and territories. Tribes may only access Title federal Title IV-E foster care and adoption assistance IV-E funds through special agreements with a assistance funding. With certain specified programs state or with states. exceptions, programs are to operate under the same rules as apply to the states. Tribes and consortia may define service areas where a plan is in effect and to approve placements in foster homes that are deemed safe by tribal standards. The federal matching rate for foster care maintenance and adoption assistance payments is determined based on the per-capita income of the service population of the tribal CRS-117 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill program. Alternatively ,tribes and consortia may maintain existing cooperative agreements with states to administer Title IV-E programs and may continue to enter into such agreements. [Section 403 of S. 667.] Eligibility for Section 472(a) provides that a state with a No provision. Rewrites Section 472(a) generally, restating Foster Care and foster care program approved under Title IV-E all current eligibility requirements to clarify Adoption must make foster care maintenance payments that for purposes of determining AFDC Assistance on behalf of eligible children who are removed eligibility, the home from which the child is Maintenance from their home and placed into foster care. removed is always the home that a judge Payments These eligibility criteria include a requirement found to be "contrary to the child's welfare," ("Rosales" that the child must have met -- in the home or the home from which the child's parent or Provision) from which he/she was removed -- the income legal guardian entered into a voluntary and other eligibility tests necessary to receive agreement to place the child in foster care. aid under the now-defunct Aid to Families with The clarification is in response to a 2003 Dependent Children (AFDC) program (as it decision by the 9th Circuit Court of Appeals, existed on July 16, 1996). Section 474 provides Rosales v. Thompson, (321 F.3d. 835) which that states are entitled to receive federal read the statute to permit eligibility for certain matching funds at the Federal Medical Annual children to be based on their financial and Percentage (FMAP) rate (ranging from other circumstances in the homes of relatives 50%-83% based on state's per capita income) who were not their parents or legal guardians for every foster care maintenance payment it and which were not the homes that were found makes on behalf of an eligible child. Section unsafe for them. The decision is contrary to 473(a)(2) provides that under one pathway to longstanding practice and to the way the eligibility for adoption assistance, a special eligibility test is understood by the U.S. needs adoptee must have been eligible for aid Department of Health and Human Services under the AFDC program (as it existed on July (HHS). Under the Rosales court's reading of 16, 1996) both in the month that the child was the law, states in the 9th circuit (which removed from the home and placed into foster includes CA, WA, OR, AZ, MT, ID, NV, AK care and in the month in which the adoption and HI) may apply a broader Title IV-E CRS-118 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill proceedings were initiated. eligibility test, and nearly any child who lived with a relative (rather than his or her parents) at the time of removal to foster care could be found eligible for federal foster care. Rewrites Section 473(a)(2) regarding eligibility for adoption assistance to make same clarification with regard to home of removal that was made for foster care. Removes the requirement that the child meet the AFDC eligibility criteria (as they existed on July 16, 1996) at the time the adoption proceedings were initiated. (This provision is not expected to change the number of special needs adoptees who are found eligible for federal adoption assistance.) [Section 8407] Limitation on Section 474(a)(3) authorizes open-ended No provision. Specifies that claims for federal matching Federal federal matching of eligible state costs funds based on training and other Reimbursement associated with the federal foster care program. administrative costs on behalf of otherwise for These include training costs (matched at 75%) eligible children who are placed in settings Administrative and all other administrative costs, including ineligible for Title IV-E funding would be Expenses child placement and case management services available in only two circumstances: 1) In the (matched at 50%). Section 472 provides that a case of a child who is placed in the home of a condition of eligibility for federal foster care relative that is not a licensed foster care maintenance payment is placement of a child in provider, for 12 months or as long as it takes a licensed foster family home or a child care a state to normally license a foster family institution (not including "detention facilities" home (whichever is shorter) and; 2) In the or public institutions that accommodate more case of a foster child who is moved from an than 25 children). Section 471(a)(15)(B)(i) ineligible facility (e.g. a juvenile detention provides that a state must make reasonable center) to an eligible facility or licensed foster efforts to preserve a family prior to the family home, but for no more than 1 calendar placement of a child in foster care or to prevent month. Specifies that in the case of a child or eliminate the need for removing the child who is at imminent risk of removal to foster CRS-119 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill from the child's home. As part of meeting this care the state may only make administrative duty, states may make certain administrative claims if -- 1) reasonable efforts are being claims on behalf of children who have not been made to prevent the removal of the child from removed from their homes but are at imminent the home or (if necessary) to pursue the risk of removal. These children are called removal; and 2) not less than every six months "candidates" for Title IV-E foster care. the state determines that the child continues to be at imminent risk of removal. [Section 8408] Transitional Medical Assistance (TMA) Extension of The transitional medical assistance (TMA) Would extend TMA through FY2010. No provision. Program program provides at least six, and up to 12, [Section 601 of S. 667] Authority months of Medicaid for families that would lose eligibility because of increased earnings or the loss of an earned income disregard. The authority for TMA expires December 31, 2005. (If TMA were to expire, states would be required to provide four months of additional eligibility for families who would otherwise lose Medicaid eligibility because of increased earnings. [Section 1925] Revision of TMA To qualify for TMA, a family must have Permits states to waive the requirement that No provision. rules received Medicaid in three of the previous six a family must have received Medicaid for months. For the first six months of TMA, states three of the previous six months to qualify are required to provide the same scope and for TMA. Permits states to waive some or duration of benefits as provided in the regular all of the requirements that a family report Medicaid program. A family may qualify for its income and child support to maintain up to an additional six months of TMA, but is TMA eligibility during the second six required to report their gross earnings and child months of TMA. Allows states to provide care costs in months four, seven and 10. TMA up to an additional 12 months (for a total of may be terminated for a number of reasons, 24 months of TMA) for families with including monthly earnings net of child care monthly earnings net of child care costs of CRS-120 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill costs that exceed 185% of the poverty line. 185% of poverty or below. [Section 601 of [Section 1925] S. 667] CRS-121 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill Supplemental Security Income Review of No provision. Requires a federal review by the Social Requires that SSA review a percentage of Disability Security Administration (SSA) of state state agency disability determinations: 20% in Determinations agency determinations of disability for the FY2006, 40% in FY2007, and 50% in FY2008 Supplemental Security Income (SSI) and thereafter. program. It would require SSA to review at least 25% of disability determinations in FY2006, and 50% of all determinations for FY2006-FY2015. [Section 501 of S. 667] Note: There is an apparent drafting error in the bill, which has two rules for FY2006. SSI Eligibility Asylees, refugees, Cuban/Haitian entrants, Extends the period of SSI eligibility for such No provision. for Asylees, Vietnam-born Amerasians, and certain other persons to nine years. [Section 502 of S. Refugees, and aliens whose deportation is withheld for 667] Certain Other humanitarian reasons are eligible for SSI for Noncitizens seven years after entry/grant of such status. After seven years, these persons must become U.S. citizens to receive SSI. [Section 402 of PRWORA] Payment of Individuals eligible for past-due benefits of an No provision. Reduces the threshold for paying past-due Lump-Sum amount (after withholding to reimburse a state benefits in installments, to an amount (after Benefit for interim assistance and payment of attorney withholding to reimburse a state for interim Installments fees) that equals or exceeds 12 times the assistance and payment of attorney fees) that under SSI monthly benefit are required to receive these equals or exceeds three times the monthly benefits in installments. [Section 1631(a)(10)] benefit. [Section 8502] Abstinence Education State Grant Program Extension of The law appropriated $50 million annually for Extends the appropriation for abstinence No provision. Program each of the fiscal years 1998-2002 for matching education state grants at $50 million Funding grants to states to provide abstinence education annually through FY2010. Provides that CRS-122 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill and, at state option, mentoring, counseling, and unused funds may be reallotted to other adult supervision to promote abstinence from states. (Section 201.) sexual activity, with a focus on groups that are most likely to bear children out-of-wedlock. Funds must be requested by states when they apply for Maternal and Child Health (MCH) block grant funds and must be used exclusively for the teaching of abstinence. States must match every $4 in federal funds with $3 in state funds. A state's allotment of abstinence education block grant program funding is based on the proportion of low-income children in the state as compared to the national total. (Section 510.) Funding for the abstinence education block grant has been extended through December 31, 2005 by temporary extension measures. Social Services Block Grant Funding The Social Services Block Grant is funded at an Increases funding for the Social Services No provision. annual amount of $1.7 billion. (Section 2003.) Block Grant for FY2006 through FY2010 to $1.9 billion -- Section 107(b)(2) of S. 667. Program Integration Waivers ("Superwaiver") Authority for No directly comparable provisions. Note: Purpose: To establish a "program of Purpose: To establish a "program of Program Waivers granted under the pre-TANF Aid to demonstration projects" in states (or demonstration projects" in states (or portions Integration Families with Dependent Children (AFDC) portions of states) that would coordinate of states) that would coordinate multiple Waivers program are scheduled to continue until their assistance among qualifying programs so as public assistance, workforce development, and expiration date. Under current laws governing to support working individuals and families, other programs so as to support working the programs/ activities covered by the new help families escape welfare dependency, individuals and families, help families escape proposed authority, waiver authority varies promote child well-being, or help build welfare dependency, promote child well- CRS-123 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill widely and generally is not specific to program stronger families. being, or help build stronger families. coordination. Limitations on waivers for Projects would use innovative approaches to Workforce Investment Act programs also are New authority: Establishes broad new strengthen service systems and provide more numerous. In other cases (e.g., Social Services authority that would, subject to limits coordinated and effective service delivery. Block Grant), federal rules are limited, and discussed below, allow the heads of federal there are few to waive. agencies to waive statutory and regulatory New authority: Establishes broad new authority that would, subject to limits requirements of specified covered programs discussed below, allow the heads of federal (see below) at the request of state or sub- agencies to waive statutory and regulatory state entities -- Section 114(c) contains all requirements of specified covered programs "superwaiver" provisions. (see below) at the request of state or sub-state entities. [Section 2041 contains House Education and Workforce Committee "superwaiver" provisions; section 8601 contains House Ways and Means Committee provisions. Covered No provision. TANF, mandatory child care, and Title XX. House Ways and Means Committee Provision: Programs Same as S. 667. House Education and Workforce Committee Provision adds: Activities funded under Title I of the Workforce Investment Act (WIA), except for the Job Corps; Job Opportunities for Low-Income Individuals (JOLI) demonstration projects authorized under Section 505 of the 1988 Family Support Act; activities funded under the Wagner-Peyser Act; activities funded under the Adult Education and Family Literacy Act; and activities funded under the Child Care and Development Block Grant. CRS-124 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill General Federal agencies may not use the new House Ways and Means Committee Provision: Requirements authority to waive provisions of law relating that Cannot Be to: Federal agencies may not use the new Waived authority to waive provisions of law relating -- civil rights or prohibition of to: discrimination; -- the purposes or goals of any program; -- civil rights or prohibition of -- "maintenance of effort" requirements discrimination; (e.g., provisions that require states or other -- the purposes or goals of any program; entities to maintain a certain level of -- "maintenance of effort" requirements spending); (e.g., provisions that require states or other -- health or safety; entities to maintain a certain level of -- labor standards under the Fair Labor spending); Standards Act of 1938; -- health or safety; -- environmental protection; -- labor standards under the Fair Labor -- any requirement that a state pass through Standards Act of 1938, or to a sub-state entity any funds paid to the -- environmental protection. state; -- any "funding restriction or limitation" House Education and Workforce Committee provided in an appropriations act; -- Provision: -- requirements, the waiver of which would have the effect of transferring appropriated All of the above plus: funds from one appropriations account to another; -- any requirement that a state pass through -- "any funding restriction" in authorizing to a sub-state entity any funds paid to the (or other non-appropriations) laws except for state; program requirements such as application -- any "funding restriction or limitation" procedures, performance standards, provided in an appropriations act; -- reporting requirements, or eligibility -- requirements, the waiver of which would standards; or have the effect of transferring appropriated -- a requirement, if waiving it would have funds from one appropriations account to the effect of transferring funds from a another; "direct spending" program to another -- "any funding restriction" in authorizing program. (or other non-appropriations) laws except for program requirements such as application procedures, performance standards, reporting requirements, or eligibility standards; or -- a requirement, if waiving it would have the effect of transferring funds from a "direct CRS-125 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill spending" program to another program. Program- Prohibits waiver of Child Care and House Ways and Means Committee Provision: Specific Development Block grant quality Requirements improvement, report and audit, limitation on None. that Cannot Be what financial assistance should be Waived expended for, and state plan requirements. House Education and Workforce Provision: Cannot waive: -- Section 241(a) of the Adult Education and Family Literacy Act (which requires that federal funds be used to supplement, not supplant, existing state or local spending); -- WIA requirements relating to wage and labor standards, nondisplacement protections, worker rights, participation and protection of workers and program participants, grievance p r o c e d u r e s a n d j u d i c i a l r e vi e w , nondiscrimination, allocation of funds to local areas, the eligibility of providers or participants, the establishment and functions of local areas and local boards, or procedures for review and approval of plans. Application and Requests/applications for demonstration Same as S. 667. Approval project waivers under the new authority Process would contain, among other items: (1) a description and justification of the project for which the waivers are being requested (including how it is expected to improve achievement of the included programs' purposes from the standpoint of quality and cost-effectiveness and the performance objectives of the project), (2) information and assurances necessary to establish that CRS-126 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill the project will meet cost-neutrality requirements (see below), and (3) assurance that the applicant agencies will conduct ongoing and final project evaluations and make interim and final project reports. Federal approval of waiver requests: In general, the head of a federal agency with responsibility for a program/activity for which a waiver is requested may approve a waiver/demonstration application and may waive any requirement (subject to some limits, see below) applicable to the program to the extent necessary and appropriate for the conduct of the proposed demonstration. To approve a project and waive requirements, a federal agency head must determine that the project: (1) has a reasonable likelihood of achieving the objectives of the programs included in the project, (2) may reasonably be expected to meet cost-neutrality requirements (see below), and (3) includes 2 or more covered programs. Approval is required of each federal agency head with responsibility for a program covered by the waiver/demonstration request. If a demonstration/waiver request is not disapproved within 90 days of receipt, it would be deemed approved. However, the CRS-127 Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill deadline could be extended if the federal agency asks for additional information. Projects may not be approved for a period longer than five years. Cost Neutrality For any fiscal year, total federal payments Same as S. 667. for affected programs in a state in which a demonstration project under the new authority is being conducted may not exceed the estimated amount that would have been paid if the project had not been conducted. (This allows "savings" in one program to be offset by new "costs" in another program.) The determination would be made by the federal Office of Management and Budget (OMB). Upon request by an applicant entity, the OMB would be permitted (at its discretion) to adjust the annual cost-neutrality requirement so that cost-neutrality is measured over a period longer than one year, but no more than five years. Limitation Limits this waiver authority to 10 states. No limitation. Evaluation Requires an independent evaluation that, to Requires ongoing and final evaluations of the Requirements the maximum extent possible, uses random project. assignment of potential participants to experimental and control groups. Reports No provision. Each federal agency would be required to submit reports of applications for waivers/ demonstrations under the new authority to the Senate Committee Bills (S. 667 or S. 525 Current law as reported from committee) House Budget Reconciliation Bill congressional committees with jurisdiction (including the agency's decision and the reasons for approving or denying the application). Each federal agency would be required to provide annual reports to Congress on demonstrations approved under the new authority (including how well each project is improving program achievement from the standpoint of quality and cost-effectiveness and recommendations for program modifications based on project outcomes). ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL33157