H.R. 3156

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3156 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 3156

To reauthorize and reform the Temporary Assistance for Needy Families 
program under part A of title IV of the Social Security Act, and for 
other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 1, 2025

Mr. LaHood introduced the following bill; which was referred to the 
Committee on Ways and Means

_______________________________________________________________________

A BILL

To reauthorize and reform the Temporary Assistance for Needy Families 
program under part A of title IV of the Social Security Act, and for 
other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Jobs and Opportunity with Benefits 
and Services (JOBS) for Success Act of 2025''.

SEC. 2. TABLE OF CONTENTS.

The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Helping more Americans enter and remain in the workforce.
Sec. 5. Expecting universal engagement and case management.
Sec. 6. Promoting accountability by measuring work outcomes.
Sec. 7. Targeting funds to truly needy families.
Sec. 8. Targeting funds to core purposes.
Sec. 9. Strengthening program integrity by measuring improper payments.
Sec. 10. Prohibition on State diversion of Federal funds to replace 
State spending.
Sec. 11. Inclusion of poverty reduction as a program purpose.
Sec. 12. Strengthening accountability through HHS approval of State 
plans.
Sec. 13. Aligning and improving data reporting.
Sec. 14. Technical corrections to data exchange standards to improve 
program coordination.
Sec. 15. Set-aside for economic downturns.
Sec. 16. Welfare for needs not weed.
Sec. 17. Definitions related to use of funds.
Sec. 18. Elimination of obsolete provisions.
Sec. 19. Effective date.

SEC. 3. REFERENCES.

Except as otherwise expressly provided, wherever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Social Security Act.

SEC. 4. HELPING MORE AMERICANS ENTER AND REMAIN IN THE WORKFORCE.

(a) Family Assistance Grants.--Section 403(a)(1) (42 U.S.C. 
603(a)(1)) is amended in each of subparagraphs (A) and (C) by striking 
``2017 and 2018'' and inserting ``2026 through 2030''.
(b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--
Section 403(a)(2)(D) (42 U.S.C. 603(a)(2)(D)) is amended--
(1) by striking ``2017 and 2018'' and inserting ``2026 
through 2030''; and
(2) by striking ``for fiscal year 2017 or 2018''.
(c) Tribal Grants.--Section 412(a) (42 U.S.C. 612(a)) is amended in 
each of paragraphs (1)(A) and (2)(A) by striking ``2017 and 2018'' and 
inserting ``2026 through 2030''.
(d) Grants to the Territories.--Section 1108(b)(2) (42 U.S.C. 
1308(b)(2)) is amended by striking ``2017 and 2018'' and inserting 
``2026 through 2030''.

SEC. 5. EXPECTING UNIVERSAL ENGAGEMENT AND CASE MANAGEMENT.

Section 408(b) (42 U.S.C. 608(b)) is amended to read as follows:
``(b) Individual Opportunity Plans.--
``(1) Assessment.--The State agency responsible for 
administering the State program funded under this part shall 
make an initial assessment of the following for each work-
eligible individual (as defined in the regulations promulgated 
pursuant to section 407(i)(1)(A)(i)):
``(A) The education obtained, skills, prior work 
experience, work readiness, and barriers to work of the 
individual.
``(B) The well-being of the children in the family 
of the individual and, where appropriate, activities or 
services (such as services offered by a program funded 
under section 511) to improve the well-being of the 
children.
``(2) Contents of plans.--On the basis of the assessment 
required by paragraph (1) of this subsection, the State agency, 
in consultation with the individual, shall develop an 
individual opportunity plan that--
``(A) includes a personal responsibility agreement 
in which the individual acknowledges receipt of 
publicly funded benefits and responsibility to comply 
with program requirements in order to receive the 
benefits;
``(B) sets forth the obligations of the individual 
to participate in work activities (as defined in 
section 407(d)), and the number of hours per month for 
which the individual will so participate pursuant to 
section 407;
``(C) sets forth an employment goal and planned 
short-, intermediate-, and long-term actions to achieve 
the goal, and, in the case of an individual who has not 
attained 24 years of age and is in secondary school or 
the equivalent, the intermediate action may be 
completion of secondary school or the equivalent;
``(D) describes the job counseling and other 
services the State will provide to the individual to 
enable the individual to obtain and keep unsubsidized 
employment;
``(E) may include referral to appropriate substance 
abuse or mental health treatment; and
``(F) is signed by the individual.
``(3) Timing.--The State agency shall comply with 
paragraphs (1) and (2) with respect to a work-eligible 
individual--
``(A) within 1 year after the effective date of 
this subsection, in the case of an individual who, as 
of such effective date, is a recipient of assistance 
under the State program funded under this part (as in 
effect immediately before such effective date); or
``(B) within 60 days after the individual is 
determined to be eligible for the assistance, in the 
case of any other individual.
``(4) Universal engagement.--Subject to paragraph (3) of 
this subsection, each State shall require all work-eligible 
recipients receiving funds under the State program funded under 
this part to engage in work in accordance with the provisions 
of sections 407(c), 407(d), and 407(e).
``(5) Penalty for noncompliance by individual.--In addition 
to any other penalties required under the State program funded 
under this part, the State shall reduce, pursuant to section 
407(e)(3), the amount of assistance otherwise payable under the 
State program to a family that includes an individual who fails 
without good cause to comply with an individual opportunity 
plan developed pursuant to this subsection, that is signed by 
the individual.
``(6) Periodic review.--The State shall meet with each 
work-eligible individual assessed by the State under paragraph 
(1), not less frequently than every 90 days, to--
``(A) review the individual opportunity plan 
developed for the individual, including the eligibility 
of the individual for benefits;
``(B) discuss with the individual the progress made 
by the individual in achieving the goals specified in 
the plan; and
``(C) update the plan, as necessary, to reflect any 
changes in the circumstances of the individual since 
the plan was last reviewed.''.

SEC. 6. PROMOTING ACCOUNTABILITY BY MEASURING WORK OUTCOMES.

(a) In General.--Section 407(a) (42 U.S.C. 607(a)) is amended to 
read as follows:
``(a) Performance Accountability and Work Outcomes.--
``(1) Work outcomes.--
``(A) In general.--A State to which a grant is made 
under section 403 shall achieve the requisite minimum 
level of performance for a fiscal year described in 
this paragraph with respect to the percentage of 
employment exits for families receiving assistance 
under the State program funded under this part, or be 
subject to penalty as described in section 409(a)(3).
``(B) Calculation of percentage of employment 
exits.--For purposes of this paragraph, the percentage 
of employment exits with respect to a State equals the 
ratio of the number of work-eligible individuals who 
are in unsubsidized employment 6 months after their 
exit to the average monthly number of families 
receiving assistance under the State program funded 
under this part.
``(C) Agreement on requisite level of 
performance.--The Secretary and the State shall 
negotiate the requisite level of performance for the 
State with respect to employment exits for each fiscal 
year beginning with fiscal year 2028.
``(2) Performance accountability.--
``(A) Purpose.--The purpose of this paragraph is to 
provide for the establishment of performance 
accountability measures to assess the effectiveness of 
States in increasing employment, retention, and 
advancement among families receiving assistance under 
the State program funded under this part.
``(B) In general.--A State to which a grant is made 
under section 403 for a fiscal year shall achieve the 
requisite level of performance on an indicator 
described in subparagraph (D) of this paragraph for the 
fiscal year.
``(C) Measuring state performance.--Each State, in 
consultation with the Secretary, shall collect and 
submit to the Secretary the information necessary to 
measure the level of performance of the State for each 
indicator described in subparagraph (D), for fiscal 
year 2027 and each fiscal year thereafter, and the 
Secretary shall use the information collected for 
fiscal year 2027 to establish the baseline level of 
performance for each State for each such indicator.
``(D) Indicators of performance.--The indicators 
described in this subparagraph, for a fiscal year, are 
the following:
``(i) The percentage of individuals who 
were work-eligible individuals as of the time 
of exit from the program, who are in 
unsubsidized employment during the 2nd quarter 
after the exit.
``(ii) The percentage of individuals who 
were work-eligible individuals who were in 
unsubsidized employment in the 2nd quarter 
after the exit, who are also in unsubsidized 
employment during the 4th quarter after the 
exit.
``(iii) The median earnings of individuals 
who were work-eligible individuals as of the 
time of exit from the program, who are in 
unsubsidized employment during the 2nd quarter 
after the exit.
``(iv) The percentage of individuals who 
have not attained 24 years of age, are 
attending high school or enrolled in an 
equivalency program, and are work-eligible 
individuals or were work-eligible individuals 
as of the time of exit from the program, who 
obtain a high school degree or its recognized 
equivalent while receiving assistance under the 
State program funded under this part or within 
1 year after the exit.
``(E) Levels of performance.--
``(i) In general.--For each State 
submitting a State plan pursuant to section 
402(a), there shall be established, in 
accordance with this subparagraph, levels of 
performance for each of the indicators 
described in subparagraph (D).
``(ii) Weight.--The weight assigned to such 
an indicator shall be the following:
``(I) Forty percent, in the case of 
the indicator described in subparagraph 
(D)(i).
``(II) Twenty-five percent, in the 
case of the indicator described in 
subparagraph (D)(ii).
``(III) Twenty-five percent, in the 
case of the indicator described in 
subparagraph (D)(iii).
``(IV) Ten percent, in the case of 
the indicator described in subparagraph 
(D)(iv).
``(iii) Agreement on requisite performance 
level for each indicator.--
``(I) In general.--The Secretary 
and the State shall negotiate the 
requisite level of performance for the 
State with respect to each indicator 
described in clause (ii), for each 
fiscal year beginning with fiscal year 
2028, and shall do so before the 
beginning of the fiscal year involved.
``(II) Requirements in establishing 
performance levels.--In establishing 
the requisite levels of performance, 
the State and the Secretary shall--
``(aa) take into account 
how the levels involved compare 
with the levels established for 
other States; and
``(bb) ensure the levels 
involved are adjusted, using 
the objective statistical model 
referred to in clause (v), 
based on--

``(AA) the 
differences among 
States in economic 
conditions, including 
differences in 
unemployment rates or 
employment losses or 
gains in particular 
industries;

``(BB) the 
characteristics of 
participants on entry 
into the program, 
including indicators of 
prior work history, 
lack of educational or 
occupational skills 
attainment, or other 
factors that may affect 
employment and 
earnings; and

``(CC) take into 
account the extent to 
which the levels 
involved promote 
continuous improvement 
in performance by each 
State.

``(iv) Revisions based on economic 
conditions and individuals receiving assistance 
during the fiscal year.--The Secretary shall, 
in accordance with the objective statistical 
model referred to in clause (v), revise the 
requisite levels of performance for a State and 
a fiscal year to reflect the economic 
conditions and characteristics of the relevant 
individuals in the State during the fiscal 
year.
``(v) Statistical adjustment model.--The 
Secretary shall use an objective statistical 
model to make adjustments to the requisite 
levels of performance for the economic 
conditions and characteristics of the relevant 
individuals, and shall consult with the 
Secretary of Labor to develop a model that is 
the same as or similar to the model described 
in section 116(b)(3)(A)(viii) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 
3141(b)(3)(A)(viii)).
``(vi) Definition of exit.--In this 
paragraph, the term `exit' means, with respect 
to a State program funded under this part, 
ceases to a receive a benefit under the 
program.
``(F) State option to establish common exit 
measures.--Notwithstanding subparagraph (E)(vi) of this 
paragraph, a State that has not provided the 
notification under section 121(b)(1)(C)(ii) of the 
Workforce Innovation and Opportunity Act to exclude the 
State program funded under this part as a mandatory 
one-stop partner may adopt an alternative definition of 
`exit' for the purpose of creating common exit measures 
to improve alignment with workforce programs operated 
under title I of such Act.
``(G) Regulations.--In order to ensure nationwide 
comparability of data, the Secretary, after 
consultation with the Secretary of Labor and with 
States, shall issue regulations governing the 
establishment of the performance accountability system 
under this paragraph and a template for performance 
reports to be used by all States consistent with 
subsection (b).''.
(b) Reports on State Performance on HHS Online Dashboard.--Section 
407(b) (42 U.S.C. 607(b)) is amended to read as follows:
``(b) Publication of State Performance.--The Secretary shall, 
directly or through the use of grants or contracts, and in 
collaboration with each State, establish and operate an Internet 
website that is accessible to the public, with a dashboard that is 
regularly updated and provides easy-to-understand information on the 
performance of each State program funded under this part, including a 
profile for each such program, expressed by use of a template, which 
shall include--
``(1) information on the indicators and requisite 
performance levels established for the State under subsection 
(a), including, with respect to each such level, whether the 
State achieves, exceeds, or fails to achieve the level on an 
ongoing basis, including--
``(A) information on any adjustments made to the 
requisite levels using the statistical adjustment model 
described in subsection (a)(2)(E)(v); and
``(B) a grade based on the overall performance of 
the State, as determined by the Secretary and in 
consultation with the State, and the overall 
performance shall be graded based on the performance 
indicators and weights for each such indicator as 
described in subsection (a);
``(2) information reported under section 411 on the 
characteristics and demographics of individuals receiving 
assistance under the State program, including--
``(A) the number and percentage of child-only cases 
and reason why the cases are child-only; and
``(B) the average weekly number of hours that each 
work-eligible individual in the State program 
participates in work activities, including a separate 
section showing the number and percentage of the work-
eligible individuals with zero hours of the 
participation and the reason for non-participation;
``(3) information on the results of improper payments 
reviews;
``(4) a link to the State plan approved under section 402; 
and
``(5) information regarding any penalty imposed, or other 
corrective action taken, by the Secretary against a State for 
failing to achieve a requisite performance level or any other 
requirement imposed by or under this part.''.
(c) Modification of Rules for Determining Whether an Individual Is 
Engaged in Work.--Section 407(c) (42 U.S.C. 607(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)--
(i) by striking ``For purposes of 
subsection (b)(1)(B)(i), a'' and inserting 
``A''; and
(ii) by striking ``, not fewer than'' and 
all that follows through ``this subsection''; 
and
(B) in subparagraph (B)--
(i) in the matter preceding clause (i), by 
striking ``For purposes of subsection 
(b)(2)(B), an'' and inserting ``An'';
(ii) in clause (i), by striking ``, not 
fewer than'' and all that follows through 
``this subsection''; and
(iii) in clause (ii), by striking ``, not 
fewer than'' and all that follows through 
``subsection (d)''; and
(2) in paragraph (2)--
(A) by striking subparagraphs (A) and (D);
(B) in each of subparagraphs (B) and (C), by 
striking ``For purposes of determining monthly 
participation rates under subsection (b)(1)(B)(i), a'' 
and inserting ``A'';
(C) by redesignating subparagraphs (B) and (C) as 
subparagraphs (A) and (B), respectively; and
(D) by adding at the end the following:
``(C) State option for participation requirement 
exemptions.--For any fiscal year, a State may, at its 
option, not require an individual who is a single 
custodial parent caring for a child who has not 
attained 12 months of age to engage in work, for not 
more than 12 months.''.
(d) Modifications to Allowable Work Activities.--Section 407(d) (42 
U.S.C. 607(d)) is amended--
(1) in paragraph (5), by inserting ``, including 
apprenticeships'' before the semicolon;
(2) in paragraph (6), by inserting ``supervised'' before 
``job search''; and
(3) in paragraph (8), by striking ``(not to exceed 12 
months with respect to any individual)'' and inserting ``, 
including career technical education''.
(e) Penalty Against States.--
(1) In general.--Section 409(a)(3) (42 U.S.C. 609(a)(3)) is 
amended by striking all that precedes subparagraph (B) and 
inserting the following:
``(3) Failure to satisfy work outcomes and work 
engagement.--
``(A) In general.--If the Secretary determines that 
a State to which a grant is made under section 403 for 
a fiscal year has failed to comply with any of section 
407(a)(1), section 408(b)(3), or section 408(b)(4) for 
the fiscal year, the Secretary shall reduce the grant 
payable to the State under section 403(a)(1) for the 
immediately succeeding fiscal year by an amount equal 
to the applicable percentage of the State family 
assistance grant.''.
(2) Transition rule.--The Secretary of Health and Human 
Services may not impose a penalty under section 409(a)(3) of 
the Social Security Act by reason of the failure of a State to 
comply with section 407(a) of such Act for any fiscal year 
before fiscal year 2027.
(f) Pro Rata Reduction of Assistance for Individual 
Noncompliance.--Section 407(e) (42 U.S.C. 607(e)) is amended by adding 
at the end the following:
``(3) Pro rata reduction.--For purposes of paragraph 
(1)(A), the amount of a pro rata reduction in assistance shall 
be determined by multiplying the total amount of monthly 
assistance that would, in the absence of the application of 
this paragraph, be paid to the entire family, by the ratio of--
``(A) the number of hours of required work 
activities as designated in subsection (d) actually 
performed by the individual during the month; to
``(B) the number of hours of work activities that 
the individual was required to perform during the month 
in accordance with subsection (c).
``(4) Penalties and engagement.--
``(A) In general.--Subject to the limitation in 
(B), if in a given month an individual who received 
assistance under this part was required to engage in 
work under section 408(b)(4), failed to fulfill those 
obligations and was subsequently sanctioned in 
accordance with section 407(e)(2) and (3), that 
individual shall judged to be engaged in work for that 
month for purposes of section 408(b)(4).
``(B) Limitation.--If an individual receives no 
benefits for two consecutive months due to sanctioning 
under section 407(e)(2) and (3), that individual shall 
not be counted as engaged in work in subsequent months 
for purposes of section 408(b)(4) unless actual work in 
accordance with section 407(d) was resumed.''.
(g) Conforming Amendment.--The heading of section 412(c) (42 U.S.C. 
612(c)) is amended by striking ``Minimum Work Participation 
Requirements'' and inserting ``Requirements for Work Outcome 
Measures''.

SEC. 7. TARGETING FUNDS TO TRULY NEEDY FAMILIES.

(a) Prohibition on Use of Funds for Families With Income Greater 
Than Twice the Poverty Line.--Section 404(k) (42 U.S.C. 604(k)) is 
amended to read as follows:
``(k) Prohibitions.--
``(1) Use of funds for persons with income greater than 
twice the poverty line.--A State to which a grant is made under 
this part shall not use the grant to provide any assistance or 
services to a family whose monthly income exceeds twice the 
poverty line (as defined by the Office of Management and 
Budget, and revised annually in accordance with section 673(2) 
of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 
9902(2))).''.
(b) Reduction of Limitation of Use Funds for Administrative 
Activities.--
(1) Use of grants.--Section 404(b) (42 U.S.C. 604(b)) is 
amended--
(A) in paragraph (1), by striking ``15'' and 
inserting ``10''; and
(B) by amending paragraph (2) to read as follows:
``(2) Exception.--Paragraph (1) shall not apply to the use 
of a grant for--
``(A) information technology and computerization 
needed for tracking or monitoring required by or under 
this part; or
``(B) case management necessary to assist an 
individual in developing an individual opportunity plan 
under section 408(b).''.
(2) Penalties.--Section 409(a) (42 U.S.C. 609(a)) is 
amended--
(A) in paragraph (7)(B)(i)(I)(dd), by striking 
``15'' and inserting ``10''; and
(B) by adding at the end the following:
``(17) Penalty for failure to comply with administrative 
limitation.--If the Secretary determines that a State to which 
a grant is made under section 403 for a fiscal year has failed 
to comply with section 404(b) for the fiscal year, the 
Secretary shall reduce the grant payable to the State under 
section 403(a)(1) for the immediately succeeding fiscal year by 
an amount equal to not more than 5 percent of the State family 
assistance grant.''.
(c) Prohibition on Use of Funds for Direct Spending on Child Care 
Services or Activities.--Section 404(k) (42 U.S.C. 604(k)), as amended 
by subsection (a) of this section, is amended by adding at the end the 
following:
``(2) Direct spending on child care services or 
activities.--A State to which a grant is made under this part 
shall not use the grant for direct spending on child care and 
other early childhood education programs, services, or 
activities.''.
(d) Expansion of Authority To Transfer Funds.--Section 404(d) (42 
U.S.C. 604(d)) is amended by striking paragraphs (1) through (3) and 
inserting the following:
``(1) In general.--A State may transfer not more than 50 
percent of the grant made to the State under section 403(a)(1) 
to a State program pursuant to any or all of the following 
provisions of law:
``(A) The Child Care and Development Block Grant 
Act of 1990.
``(B) Title I of the Workforce Innovation and 
Opportunity Act.
``(2) Applicable rules.--
``(A) In general.--Except as provided in 
subparagraph (B) of this paragraph, any amount paid to 
a State under this part that is used to carry out a 
State program pursuant to a provision of law specified 
in paragraph (1) shall not be subject to the 
requirements of this part, but shall be subject to the 
requirements that apply to Federal funds provided 
directly under the provision of law to carry out the 
program, and the expenditure of any amount so used 
shall not be considered to be an expenditure under this 
part.
``(B) Funds transferred to the wioa.--In the case 
of funds transferred under paragraph (1)(B) of this 
subsection--
``(i) the State shall provide an assurance 
that the funds will be used to support 
individuals eligible for assistance or services 
under this part pursuant to subsection (k)(1); 
and
``(ii) not more than 15 percent of the 
funds will be reserved for statewide workforce 
investment activities referred to in section 
128(a)(1) of the Workforce Innovation and 
Opportunity Act.
``(3) WIOA transfer authority not available to states 
excluding the state tanf program as a mandatory one-stop 
partner under the wioa.--The authority provided by paragraph 
(1)(B) of this subsection may not be exercised by a State that 
has provided the notification referred to in section 
407(a)(2)(F).''.

SEC. 8. TARGETING FUNDS TO CORE PURPOSES.

(a) Requirement That States Reserve 25 Percent of Grant for 
Spending on Core Activities.--Section 408(a) (42 U.S.C. 608(a)) is 
amended by adding at the end the following:
``(13) Requirement that states reserve 25 percent of grant 
for spending on core activities.--A State to which a grant is 
made under section 403(a)(1) for a fiscal year shall expend not 
less than 25 percent of the grant on work supports, education 
and training, apprenticeships, non-recurring short-term 
benefits, work activities (as defined in section 407(d)), and 
case management necessary to assist an individual in developing 
an individual opportunity plan under section 408(b).''.
(b) Requirement That at Least 25 Percent of Qualified State 
Expenditures Be for Core Activities.--Section 408(a) (42 U.S.C. 
608(a)), as amended by subsection (a) of this section, is amended by 
adding at the end the following:
``(14) Requirement that at least 25 percent of qualified 
state expenditures be for core activities.--Not less than 25 
percent of the qualified State expenditures (as defined in 
section 409(a)(7)(B)(ii)) of a State during the fiscal year 
shall be for work supports, education and training, 
apprenticeships, non-recurring short-term benefits, work 
activities (as defined in section 407(d)), and case management 
necessary to assist an individual in developing an individual 
opportunity plan under section 408(b).''.

SEC. 9. STRENGTHENING PROGRAM INTEGRITY BY MEASURING IMPROPER PAYMENTS.

(a) Applicability of Improper Payments Laws.--Section 404 (42 
U.S.C. 604) is amended by adding at the end the following:
``(l) Applicability of Improper Payments Laws.--
``(1) In general.--The Improper Payments Information Act of 
2002 and the Improper Payments Elimination and Recovery Act of 
2010 shall apply to a State in respect of the State program 
funded under this part in the same manner in which such Acts 
apply to a Federal agency.
``(2) Regulations.--Within 2 years after the date of the 
enactment of this subsection, the Secretary shall prescribe 
regulations governing how a State reviews and reports improper 
payments under the State program funded under this part.''.
(b) Report to Congress.--Within 1 year after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
submit to the Congress a written report that contains a plan to reduce 
or eliminate improper payments made by States under part A of title IV 
of the Social Security Act within 10 years.

SEC. 10. PROHIBITION ON STATE DIVERSION OF FEDERAL FUNDS TO REPLACE 
STATE SPENDING.

Section 408(a) (42 U.S.C. 608(a)), as amended by section 8 of this 
Act, is amended by adding at the end the following:
``(15) Non-supplantation requirement.--Funds made available 
to a State under this part shall be used to supplement, not 
supplant, State general revenue spending on activities 
described in section 404.''.

SEC. 11. INCLUSION OF POVERTY REDUCTION AS A PROGRAM PURPOSE.

Section 401(a) (42 U.S.C. 601(a)) is amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and 
inserting ``; and''; and
(3) by adding at the end the following:
``(5) reduce child poverty by increasing employment entry, 
retention, and advancement of needy parents.''.

SEC. 12. STRENGTHENING ACCOUNTABILITY THROUGH HHS APPROVAL OF STATE 
PLANS.

(a) In General.--Section 402 (42 U.S.C. 602) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``27-month'' and inserting 
``24-month''; and
(ii) by striking ``found'' and inserting 
``approved that''; and
(B) in paragraph (1)--
(i) in subparagraph (A)--
(I) by striking clauses (ii) and 
(iii) and inserting the following:
``(ii) Require work-eligible individuals 
(as defined in the regulations promulgated 
pursuant to section 407(i)(1)(A)(i)) to engage 
in work activities consistent with section 
407(c).'';
(II) by redesignating clauses (iv) 
through (viii) as clauses (iii) through 
(vii), respectively; and
(III) by adding at the end the 
following:
``(viii) Describe the case management 
practices of the State with respect to the 
requirements of section 408(b), provide a copy 
of the form or forms that will be used to 
assess a work-eligible individual (as so 
defined) and prepare an individual opportunity 
plan for the individual, describe how the State 
will ensure that such a plan is reviewed in 
accordance with section 408(b)(6), and describe 
how the State will measure progress under the 
plan.
``(ix) Propose the requisite levels of 
performance for the State for purposes of 
section 407(a) for each year in the 2-year 
period referred to in subsection (d) of this 
section, and provide an explanation with 
supporting data of why each such level is 
appropriate.
``(x) Describe how the State will engage 
low-income noncustodial parents who owe child 
support and how such a parent will be provided 
with access to work support and other services 
under the program to which the parent is 
referred to support their employment and 
advancement.
``(xi) Describe how the State will comply 
with improper payments provisions in section 
404(l).
``(xii) Describe coordination with other 
programs, including whether the State intends 
to exercise authority provided by section 
404(d) of this Act to transfer any funds paid 
to the State under this part, provide assurance 
that, in the case of a transfer to carry out a 
program under title I of the Workforce 
Innovation and Opportunity Act, the State will 
comply with section 404(d)(3)(B) of this Act 
and coordinate with the one-stop delivery 
system under the Workforce Innovation and 
Opportunity Act, and describe how the State 
will coordinate with the programs involved to 
provide services to families receiving 
assistance under the program referred to in 
paragraph (1) of this subsection.
``(xiii) Describe how the State will 
promote marriage, such as through temporary 
disregard of the income of a new spouse when an 
individual receiving assistance under the State 
program marries so that the couple doesn't 
automatically lose benefits due to marriage.
``(xiv) Describe how the State will allow 
for a transitional period of benefits, such as 
through temporary earned income disregards or a 
gradual reduction in the monthly benefit 
amount, for an individual receiving assistance 
who obtains employment and becomes ineligible 
due to an increase in income obtained through 
employment or through an increase in wages.''; 
and
(ii) in subparagraph (B), by striking 
clauses (iv) and (v);
(2) by striking subsection (c) and inserting the following:
``(c) Public Availability of State Plans.--The Secretary shall make 
available to the public, on the website described in section 407(b), a 
link to any plan or plan amendment submitted by a State under this 
subsection.''; and
(3) by adding at the end the following:
``(d) 2-Year Plan.--A plan submitted pursuant to this section shall 
be designed to be implemented during a 2-year period.
``(e) Combined Plan Allowed.--A State may submit to the Secretary 
and the Secretary of Labor a combined State plan that--
``(1) meets the requirements of subsections (a) and (d); 
and
``(2) is for programs and activities under the Workforce 
Innovation and Opportunity Act.
``(f) Approval of Plans.--The Secretary shall approve any plan 
submitted pursuant to this section that meets the requirements of 
subsections (a) through (d).''.
(b) Duties of the Secretary.--
(1) Coordination of activities; dissemination of 
information.--Section 416 (42 U.S.C. 616) is amended--
(A) by inserting ``(a) In General.--'' before ``The 
programs''; and
(B) by adding at the end the following:
``(b) Coordination of Activities.--The Secretary shall coordinate 
all activities of the Department of Health and Human Services relating 
to work activities (as defined in section 407(d)) and requirements and 
measurement of employment outcomes, and, to the maximum extent 
practicable, coordinate the activities of the Department in this regard 
with similar activities of other Federal entities.
``(c) Dissemination of Information.--The Secretary shall 
disseminate, for voluntary informational purposes, information on 
practices that scientifically valid research indicates are most 
successful in improving the quality of State and tribal programs funded 
under this part.''.
(c) Technical Assistance.--
(1) In general.--Section 406 (42 U.S.C. 606) is amended to 
read as follows:

``SEC. 406. TECHNICAL ASSISTANCE.

``(a) In General.--The Secretary shall provide technical assistance 
to States and Indian tribes (which may include providing technical 
assistance on a reimbursable basis), which shall be provided by 
qualified experts on practices grounded in scientifically valid 
research, where appropriate, to support activities related to the 
publication of State performance under section 407(b) and to carry out 
State and tribal programs funded under this part.
``(b) Publication of State Performance.--The Secretary may use 
funds reserved under this section to carry out section 407(b).
``(c) Reservation of Funds.--The Secretary shall reserve not more 
than $25,000,000 of the amount appropriated by section 403(a)(1)(C) for 
a fiscal year to carry out this section.''.
(2) Conforming amendment.--Section 403(a)(1)(B) (42 U.S.C. 
603(a)(1)(B)) is amended by inserting ``and the amount 
specified in section 406(b)'' after ``section 413(h)(1)''.

SEC. 13. ALIGNING AND IMPROVING DATA REPORTING.

(a) Requirement That States Report Full-Population Data.--Section 
411(a)(1) (42 U.S.C. 611(a)(1)) is amended--
(1) by striking subparagraph (B);
(2) by striking ``(1) General reporting requirement.--''; 
and
(3) by--
(A) redesignating--
(i) subparagraph (A) as paragraph (1);
(ii) clauses (i) through (xvii) of 
subparagraph (A) as subparagraphs (A) through 
(Q), respectively;
(iii) subclauses (I) through (V) of clause 
(ii) as clauses (i) through (v), respectively;
(iv) subclauses (I) through (VII) of clause 
(xi) as clauses (i) through (vii), 
respectively; and
(v) subclauses (I) through (V) of clause 
(xvi) as clauses (i) through (v), respectively; 
and
(B) moving each such redesignated provision 2 ems 
to the left.
(b) Report on Participation in Work Activities.--Section 411(a)(1) 
(42 U.S.C. 611(a)(1)), as amended by subsection (a)(3) of this section, 
is amended by striking subparagraphs (K) and (L) and inserting the 
following:
``(K) The work eligibility status of each 
individual in the family, and--
``(i) in the case of each work-eligible 
individual (as defined in the regulations 
promulgated pursuant to section 
407(i)(1)(A)(i)) in the family, the number of 
hours (including zero hours) per month of 
participation in work activities (as defined in 
section 407(d)); and
``(ii) in the case of each individual in 
the family who is not a work-eligible 
individual (as so defined), the reason for that 
status.
``(L) For each work-eligible individual (as so 
defined) and each adult in the family who did not 
participate in work activities (as so defined) during a 
month, the reason for the lack of participation.''.
(c) Reporting of Information on Employment and Earnings Outcomes.--
Section 411(c) (42 U.S.C. 611(c)) is amended to read as follows:
``(c) Reporting of Information on Employment and Earnings 
Outcomes.--The Secretary, in consultation with the Secretary of Labor, 
shall determine the information that is necessary to compute the 
employment and earnings outcomes and the statistical adjustment model 
for the employment and earnings outcomes required under section 407, 
and each eligible State shall collect and report that information to 
the Secretary.''.

SEC. 14. TECHNICAL CORRECTIONS TO DATA EXCHANGE STANDARDS TO IMPROVE 
PROGRAM COORDINATION.

(a) In General.--Section 411(d) (42 U.S.C. 611(d)) is amended to 
read as follows:
``(d) Data Exchange Standards for Improved Interoperability.--
``(1) Designation.--The Secretary shall, in consultation 
with an interagency work group established by the Office of 
Management and Budget and considering State government 
perspectives, by rule, designate data exchange standards to 
govern, under this part--
``(A) necessary categories of information that 
State agencies operating programs under State plans 
approved under this part are required under applicable 
Federal law to electronically exchange with another 
State agency; and
``(B) Federal reporting and data exchange required 
under applicable Federal law.
``(2) Requirements.--The data exchange standards required 
by paragraph (1) shall, to the extent practicable--
``(A) incorporate a widely accepted, non-
proprietary, searchable, computer-readable format, such 
as the eXtensible Markup Language;
``(B) contain interoperable standards developed and 
maintained by intergovernmental partnerships, such as 
the National Information Exchange Model;
``(C) incorporate interoperable standards developed 
and maintained by Federal entities with authority over 
contracting and financial assistance;
``(D) be consistent with and implement applicable 
accounting principles;
``(E) be implemented in a manner that is cost-
effective and improves program efficiency and 
effectiveness; and
``(F) be capable of being continually upgraded as 
necessary.
``(3) Rule of construction.--Nothing in this subsection 
shall be construed to require a change to existing data 
exchange standards found to be effective and efficient.''.
(b) Effective Date.--Not later than the date that is 24 months 
after the date of the enactment of this section, the Secretary of 
Health and Human Services shall issue a proposed rule that--
(1) identifies federally required data exchanges, include 
specification and timing of exchanges to be standardized, and 
address the factors used in determining whether and when to 
standardize data exchanges; and
(2) specifies State implementation options and describes 
future milestones.

SEC. 15. SET-ASIDE FOR ECONOMIC DOWNTURNS.

Section 404(e) (42 U.S.C. 604(e)) is amended to read as follows:
``(e) Deadlines for Obligation and Expenditures of Funds by 
States.--
``(1) In general.--Except as provided in paragraph (2), a 
State to which a grant is made under section 403(a)(1) shall 
obligate the funds within 2 years after the date the funds are 
made available, and shall expend the funds within 3 years after 
such date.
``(2) Exception for limited amount of funds set aside for 
future use.--
``(A) In general.--A State to which funds are paid 
under section 403(a)(1) may reserve not more than 15 
percent of the funds for use in the State program 
funded under this part without fiscal year limitation.
``(B) Notice of intent to reserve funds.--A State 
that intends to reserve funds paid to the State under 
section 402(a)(1) shall notify the Secretary of the 
intention not later than the end of the period in which 
the funds are available for obligation without regard 
to subparagraph (A) of this paragraph.''.

SEC. 16. WELFARE FOR NEEDS NOT WEED.

Section 408(a)(12)(A) (42 U.S.C. 608(a)(12)(A)) is amended--
(1) in clause (ii), by striking ``; or'' and inserting a 
semicolon;
(2) in clause (iii), by striking the period and inserting 
``; or''; and
(3) by adding at the end the following:
``(iv) any establishment that offers 
marihuana (as defined in section 102 of the 
Controlled Substances Act) for sale.''.

SEC. 17. DEFINITIONS RELATED TO USE OF FUNDS.

Section 419 (42 U.S.C. 619) is amended by adding at the end the 
following:
``(6) Assistance.--The term `assistance' means cash, 
payments, vouchers, and other forms of benefits designed to 
meet a family's ongoing basic needs (such as for food, 
clothing, shelter, utilities, household goods, personal care 
items, and general incidental expenses).
``(7) Work supports.--The term `work supports' means 
assistance and non-assistance transportation benefits (such as 
the value of allowances, bus tokens, car payments, auto repair, 
auto insurance reimbursement, and van services) provided in 
order to help families obtain, retain, or advance in 
employment, participate in work activities (as defined in 
section 407(d)), or as a non-recurrent, short-term benefit, 
including goods provided to individuals in order to help them 
obtain or maintain employment (such as tools, uniforms, fees to 
obtain special licenses, bonuses, incentives, and work support 
allowances and expenditures for job access).
``(8) Supportive services.--The term `supportive services' 
means services such as domestic violence services, and mental 
health, substance abuse and disability services, housing 
counseling services, and other family supports, except to the 
extent that the provision of the service would violate section 
408(a)(6).
``(9) TANF benefit.--The term `TANF benefit' means--
``(A) assistance; or
``(B) wage subsidies that are paid, with funds 
provided under section 403(a) or with qualified State 
expenditures, with respect to a person who--
``(i) was a work-eligible individual (as 
defined in the regulations promulgated pursuant 
to section 407(i)(1)(A)(i)) at the time of 
entry into subsidized employment, such as on-
the-job training or apprenticeship; and
``(ii) is not receiving assistance.''.

SEC. 18. ELIMINATION OF OBSOLETE PROVISIONS.

(a) Elimination of Supplemental Grants to States.--Section 403(a) 
(42 U.S.C. 603(a)) is amended by striking paragraph (3).
(b) Elimination of Bonus To Reward High Performance States.--
(1) In general.--Section 403(a) (42 U.S.C. 603(a)) is 
amended by striking paragraph (4).
(2) Conforming amendment.--Section 1108(a)(2) (42 U.S.C. 
1308(a)(2)) is amended by striking ``403(a)(4),''.
(c) Elimination of Welfare-to-Work Grants.--
(1) In general.--Section 403(a) (42 U.S.C. 603(a)) is 
amended by striking paragraph (5).
(2) Conforming amendments.--
(A) Elimination of exclusion from time limit.--
Section 408(a)(7) (42 U.S.C. 608(a)(7)) is amended by 
striking subparagraph (G).
(B) Elimination of penalty for misuse of 
competitive welfare-to-work funds.--Section 409(a)(1) 
(42 U.S.C. 609(a)(1)) is amended by striking 
subparagraph (C).
(C) Elimination of exclusion from qualified state 
expenditures of state funds used to match welfare-to-
work grant funds.--Section 409(a)(7)(B)(iv) (42 U.S.C. 
609(a)(7)(B)(iv)) is amended in the 1st sentence--
(i) by adding ``or'' at the end of 
subclause (II); and
(ii) by striking subclause (III) and 
redesignating subclause (IV) as subclause 
(III).
(D) Elimination of penalty for failure of state to 
maintain historic effort during year in which welfare-
to-work grant is received.--Section 409(a) (42 U.S.C. 
609(a)) is amended by striking paragraph (13).
(E) Elimination of requirements relating to 
welfare-to-work grants in quarterly state reports.--
Section 411(a) (42 U.S.C. 611(a)), as amended by 
section 13(a) of this Act, is amended--
(i) in paragraph (1), by striking ``(except 
for information relating to activities carried 
out under section 403(a)(5))''; and
(ii) in each of paragraphs (2) through (4), 
by striking the comma and all that follows and 
inserting a period.
(F) Indian tribal programs.--Section 412(a) (42 
U.S.C. 612(a)) is amended by striking paragraph (3).
(G) Elimination of requirement to disclose certain 
information to private industry council receiving 
welfare-to-work funds.--Section 454A(f) (42 U.S.C. 
654a(f)) is amended by striking paragraph (5).
(H) Grants to territories.--Section 1108(a)(2) (42 
U.S.C. 1308(a)(2)) is amended by striking 
``403(a)(5),''.
(d) Conforming Amendments Related to Elimination of Federal Loans 
for State Welfare Programs.--
(1) Elimination of associated penalty provision.--
(A) In general.--Section 409(a) (42 U.S.C. 609(a)) 
is amended by striking paragraph (6).
(B) Conforming amendments.--Section 412(g)(1) (42 
U.S.C. 612(g)(1)) is amended by striking ``(a)(6),''.
(2) Elimination of provision providing for tribal 
eligibility.--Section 412 (42 U.S.C. 612) is amended by 
striking subsection (f).
(3) Elimination of disregard of loan in applying limit on 
payments to the territories.--Section 1108(a)(2) (42 U.S.C. 
1308(a)(2)) is amended by striking ``406,''.
(e) Elimination of Limitations on Other State Programs Funded With 
Qualified State Expenditures.--
(1) The following provisions are each amended by striking 
``or any other State program funded with qualified State 
expenditures (as defined in section 409(a)(7)(B)(i))'':
(A) Paragraphs (1) and (2) of section 407(e) (42 
U.S.C. 607(e)(1) and (2)).
(B) Section 411(a)(1) (42 U.S.C. 611(a)(1)), as 
amended by section 13(a)(3)(A)(i) of this Act.
(C) Subsections (d) and (e)(1) of section 413 (42 
U.S.C. 613(d) and (e)(1)).
(2) Section 413(a) (42 U.S.C. 613(a)) is amended by 
striking ``and any other State program funded with qualified 
State expenditures (as defined in section 409(a)(7)(B)(i))''.
(f) Conforming Amendments Related to Elimination of Report.--
(1) In general.--Section 409(a)(2) (42 U.S.C. 609(a)(2)) is 
amended--
(A) in the paragraph heading, by inserting 
``quarterly'' before ``report'';
(B) in subparagraph (A)(ii), by striking ``clause 
(i)'' and inserting ``subparagraph (A)'';
(C) by striking ``(A) Quarterly reports.--'';
(D) by striking subparagraph (B); and
(E) by redesignating clauses (i) and (ii) of 
subparagraph (A) as subparagraphs (A) and (B), 
respectively (and adjusting the margins accordingly).
(2) Conforming amendments.--
(A) Section 409(b)(2) (42 U.S.C. 609(b)(2)) is 
amended by striking ``and,'' and all that follows and 
inserting a period.
(B) Section 409(c)(4) (42 U.S.C. 609(c)(4)) is 
amended by striking ``(2)(B),''.
(g) Annual Reports to Congress.--Section 411(b)(1)(A) (42 U.S.C. 
611(b)(1)(A)) is amended by striking ``participation rates'' and 
inserting ``outcome measures''.
(h) Reduction in Force Provisions.--Section 416(a) (42 U.S.C. 
616(a)), as so designated by section 12(b)(1)(A) of this Act, is 
amended by striking ``, and the Secretary'' and all that follows and 
inserting a period.
(i) Conforming Cross-References.--
(1) Section 409 (42 U.S.C. 609) is amended--
(A) in subsection (a)(7)(B)(i)(III), by striking 
``(12)'' and inserting ``(10)'';
(B) in subsection (a) (as amended by subsections 
(c)(2)(D), (d)(2)(B), and (e)(1)(A) of this section), 
by redesignating paragraphs (7), (8), (9), (11), (12), 
(14), (15), and (16) as paragraphs (6) through (13), 
respectively;
(C) in subsection (b)(2), by striking ``(8), (10), 
(12), or (13)'' and inserting ``or (10)''; and
(D) in subsection (c)(4), by striking ``(8), (10), 
(12), (13), or (16)'' and inserting ``(10), or (13)''.
(2) Section 452 (42 U.S.C. 652) is amended in each of 
subsections (d)(3)(A)(i) and (g)(1) by striking ``409(a)(8)'' 
and inserting ``409(a)(7)''.
(j) Modifications to Maintenance-of-Effort Requirement.--Section 
409(a)(6)(B)(i) (42 U.S.C. 609(a)(6)(B)(i)), as redesignated by 
subsection (i)(1)(B) of this section, is amended--
(1) in subclause (I)--
(A) in the matter preceding item (aa), by striking 
``all State programs'' and inserting ``the State 
program funded under this part'';
(B) by redesignating items (dd) and (ee) as items 
(ee) and (ff), respectively, and inserting after item 
(cc) the following:
``(dd) Expenditures for a 
purpose described in paragraph 
(3), (4), or (5) of section 
401(a).''; and
(C) in item (ee) (as so redesignated), by striking 
``and (ee)'' and inserting ``(dd), and (ff)'';
(2) by striking subclause (V); and
(3) in subclause (IV), by inserting ``, except any of such 
families whose monthly income exceeds twice the poverty line 
(as defined by the Office of Management and Budget, and revised 
annually in accordance with section 673(2) of the Omnibus 
Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2)))'' before 
the period.

SEC. 19. EFFECTIVE DATE.

The amendments made by this Act shall take effect on October 1, 
2026.
<all>