H.R. 6949

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6949 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 6949

To establish a pilot program in which States may use consolidated 
funds, through Upward Mobility Grants, for antipoverty programs, and 
for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

January 6, 2026

Mr. Moore of Utah introduced the following bill; which was referred to 
the Committee on Ways and Means, and in addition to the Committees on 
Financial Services, Agriculture, Education and Workforce, and Energy 
and Commerce, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To establish a pilot program in which States may use consolidated 
funds, through Upward Mobility Grants, for antipoverty programs, 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 ``Upward Mobility Act of 2026''.

SEC. 2. CONSOLIDATION OF ANTIPOVERTY PROGRAMS.

(a) Definitions.--In this section:
(1) Antipoverty objectives.--The term ``antipoverty 
objectives'' means the objectives described in subsection 
(b)(2).
(2) Antipoverty program.--The term ``antipoverty program'' 
means the set of activities for which a covered amount may be 
used.
(3) Covered amount.--
(A) In general.--Subject to subparagraph (B), the 
term ``covered amount'' means--
(i) an amount that a State is eligible to 
receive in Federal funds, through a grant, 
contract, or other payment--
(I) under subsection (a) or (h) of 
section 16 of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2025) (relating 
to the supplemental nutrition 
assistance program);
(II) for benefits (as defined in 
section 3 of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2012)) for 
participants of the supplemental 
nutrition assistance program 
established under the Food and 
Nutrition Act of 2008 (7 U.S.C. 2011 et 
seq.) pursuant to section 4(a)(1) of 
that Act (7 U.S.C. 2013(a)(1));
(III) under paragraph (1) or (2) of 
section 403(a) of the Social Security 
Act (42 U.S.C. 603(a)) (relating to the 
temporary assistance for needy families 
program State family assistance grant);
(IV) under section 658O(b) of the 
Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858m(b)), from 
amounts appropriated under that Act or 
under section 418(a)(3)(A) of the 
Social Security Act (42 U.S.C. 
618(a)(3)(A)) (relating to a program of 
child care services);
(V) under section 2604 (other than 
subsection (e)), 2607A, 2607B, or 2609A 
of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8623, 
8626a, 8626b, or 8628a) (relating to 
programs of home energy assistance);
(VI) under section 132(b)(2)(B) or 
section 170 of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 
3171(b)(2)(B), 3225) (relating to 
assistance for dislocated workers); and
(VII) under subsection (b) or (d) 
of section 106 of the Housing and 
Community Development Act of 1974 (42 
U.S.C. 5306) (relating to community 
development);
(ii) the amount that public housing 
agencies, as defined in section 3(b) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437a(b)), located in a State are eligible to 
receive through allocations--
(I) under section 8(o) of such Act 
(42 U.S.C. 1437f(o)) for tenant-based 
assistance; and
(II) under section 9 of such Act 
(42 U.S.C. 1437g) for public housing 
from the Capital Fund and Operating 
Fund; and
(iii) the amount that persons and families 
located in a State (other than members of an 
Indian tribe) are eligible to receive in 
Federal assistance under section 521 of the 
Housing Act of 1949 (42 U.S.C. 1490a).
(B) Rule.--The term ``covered amount''--
(i) includes an amount described in 
subparagraph (A) whether or not the State or 
public housing agency involved is directed to 
use the amount to provide funding for 
localities or other entities under Federal law, 
subject to clause (ii); and
(ii) does not include any amount described 
in subparagraph (A) that a State or public 
housing agency is so directed to use to provide 
funding for an Indian tribe.
(4) Direct assistance benefits.--The term ``direct 
assistance benefits'' means--
(A) nutrition (including food) benefits;
(B) cash benefits for low-income families and 
individuals;
(C) child care subsidies;
(D) home energy (including utility) assistance;
(E) employment and training services provided 
directly to a dislocated worker; and
(F) housing (including rent) subsidies.
(5) Indian tribe.--The term ``Indian tribe'' has the 
meaning given the term in section 4 of the Indian Self-
Determination and Education Act (25 U.S.C. 5304).
(6) Marginal effective tax rate.--The term ``Marginal 
Effective Tax Rate'', used with respect to an individual, means 
the percentage of an increase in earned income attributable to 
the individual's employment, as determined for a State under 
subsection (j)(2), that is offset by--
(A) the combined reduction or loss in value of per-
capita direct assistance for the individual; and
(B) the combined increase in Federal, State, and 
local income and payroll taxes for the individual.
(7) Per-capita direct assistance.--The term ``per-capita 
direct assistance'', used with respect to a State, means--
(A) the total amount of Federal funding used in a 
pilot project in any year for direct assistance 
benefits from the funding sources listed in paragraph 
(3); divided by
(B) the population of the State.
(8) Secretary.--The term ``Secretary'' means the Secretary 
of Health and Human Services, acting through the Assistant 
Secretary for Children and Families.
(9) State.--The term ``State'' means each of the several 
States of the United States, and the District of Columbia.
(b) Purposes.--The purposes of this Act are--
(1) to achieve the goals of--
(A) streamlining service delivery and reducing 
inconsistent eligibility requirements and benefit 
cliffs through pilot projects promoting antipoverty 
objectives;
(B) promoting upward mobility through improved 
employment outcomes described in subsection (j)(2)(B), 
including increased employment and earnings, among 
participants in a pilot project; and
(C) providing incentives to States to reduce 
dependence on per-capita direct assistance through the 
pilot projects by enabling individuals to achieve the 
improved employment outcomes; and
(2) to accomplish those goals by authorizing States to 
apply to receive Upward Mobility Grants for the purpose of 
carrying out a pilot project to promote antipoverty objectives, 
consisting of--
(A) reduced benefit cliffs through benefit 
structures that limit Marginal Effective Tax Rates; and
(B) increased levels of employment and earnings 
among participants in programs covered by the pilot 
project, skills acquisition, housing (including rental 
housing) affordability, access to nutrition, reduced 
home energy costs, affordable child care, and temporary 
assistance to low-income families.
(c) Establishment.--
(1) In general.--There is established a pilot program 
through which the Secretary may--
(A) permit not more than 5 States to carry out 
pilot projects; and
(B) consolidate funding from antipoverty programs 
into Upward Mobility Grants made under subsection 
(d)(1), and make those grants to the States to carry 
out the projects.
(2) Limited scope pilot projects.--A State may elect to 
seek such permission and consolidated funding to carry out a 
limited scope pilot project described in the State's 
application under subsection (f).
(3) Duration.--The Secretary shall provide the permission 
and grants described in this subsection for a pilot project for 
a single period of 5 years.
(d) Upward Mobility Grants.--
(1) Pilot project grant amounts.--Notwithstanding any other 
provision of Federal law applicable to an antipoverty program, 
except as otherwise provided in this section, for each fiscal 
year of the pilot project period applicable to a pilot project 
approved for a State pursuant to subsection (g), the Secretary 
shall make an Upward Mobility Grant to the State, as calculated 
under paragraph (2), for purposes of carrying out the project 
for that fiscal year.
(2) Calculation.--
(A) First year.--For the first fiscal year of the 
pilot project, the Secretary shall make an Upward 
Mobility Grant to the State, in a sum calculated as the 
total of the covered amounts received by the State, for 
the preceding fiscal year, adjusted by the percentage 
change in the Personal Consumption Expenditures Price 
Index of the Bureau of Economic Analysis of the 
Department of Commerce for such preceding fiscal year.
(B) Subsequent years.--For each fiscal year of the 
pilot project (referred to in this subparagraph as a 
``target fiscal year'') after the first fiscal year 
described in subparagraph (A), the Secretary shall make 
an Upward Mobility Grant to the State, in an updated 
sum equal to the sum calculated for the State under 
this paragraph for the preceding fiscal year, 
adjusted--
(i) by the percentage change in that 
Personal Consumption Expenditures Price Index 
between the first day of the preceding fiscal 
year and the first day of the target fiscal 
year; and
(ii) in a manner consistent with the per-
capita direct assistance adjustment prohibition 
described in subsection (k).
(C) Adjustment for appropriations lapse.--
(i) First year.--For the purposes of 
determining, under subparagraph (A), a total of 
covered amounts for a preceding fiscal year in 
which there was a lapse in appropriations, the 
total of the covered amounts shall be 
determined as if the corresponding funding was 
appropriated for the entire fiscal year.
(ii) Subsequent years.--For the purposes of 
determining, under subparagraph (B), a sum 
calculated for a State for a preceding fiscal 
year in which there was a lapse in 
appropriations, the sum shall be determined as 
if the corresponding funding was appropriated 
for the entire fiscal year.
(D) Limited scope pilot projects.--Notwithstanding 
subparagraphs (A) and (B), if a State has obtained 
approval to carry out a limited scope pilot project 
under this section, the Upward Mobility Grant for the 
State shall be a percentage, between 10 and 100 
percent, as indicated by the State in the application 
submitted under subsection (f) of the amount the State 
would otherwise receive under subparagraph (A) or (B).
(3) Payments.--For each fiscal year quarter during the 
pilot project, the Secretary shall make a payment to the State 
under the Upward Mobility Grant, equal to 25 percent of the 
amount of the grant.
(e) Impact of Participation.--
(1) Waiver.--Notwithstanding any other provision of Federal 
law applicable to an antipoverty program, except as otherwise 
provided in this section, if a State elects to carry out a 
pilot project and obtains approval of an application under 
subsection (g), the Secretary shall, subject to paragraph (2) 
and consistent with the goals of the antipoverty programs 
included in the pilot project, grant the State, for purposes of 
the pilot project, such waivers to statutory or regulatory 
requirements, as the State requests in its application--
(A) relating to consolidating, replacing, or 
altering eligibility requirements;
(B) relating to the design, operation, or delivery 
of an antipoverty program; and
(C) relating to the use, allocation, or 
distribution of funding.
(2) Provisions excluded from waiver authority.--A waiver 
shall not be granted under paragraph (1) with respect to any 
provision of law relating to--
(A) the goals of any antipoverty program;
(B) civil rights or the prohibition of 
discrimination;
(C) health or safety;
(D) labor standards under the Fair Labor Standards 
Act of 1938 (29 U.S.C. 201 et seq.);
(E) environmental protection;
(F) any restriction on providing benefits to 
individuals who are not citizens of or are unlawfully 
present in the United States;
(G) the protection of religious freedom for 
providers and beneficiaries of assistance;
(H) any funding restriction or limitation provided 
in an appropriations Act;
(I) a maintenance of effort requirement; or
(J) any requirement that a State distribute to a 
sub-State entity part or all of an amount paid to the 
State.
(3) Housing programs.--Funds made available under a pilot 
project for the goals of an antipoverty program related to a 
covered amount described in clause (i)(VII), (ii), or (iii) of 
subsection (a)(3)(A) shall continue to be provided to the same 
eligible local entities or recipients as under applicable law 
in effect as of the date of enactment of this Act.
(4) Impact on funding.--
(A) In general.--During the period of the pilot 
project--
(i) the State shall not be eligible to 
receive Federal funding for the antipoverty 
programs, outside the pilot project; and
(ii) individuals receiving per-capita 
direct assistance through the pilot project 
shall not be eligible for additional benefits 
under the antipoverty programs, outside the 
pilot project.
(B) Exceptions.--Notwithstanding subparagraph (A), 
in the case of a State carrying out a limited scope 
pilot project described in subsection (c)(2), the State 
may continue to receive Federal funding for the 
antipoverty programs, outside the pilot project.
(C) SNAP contingency fund.--
(i) In general.--Notwithstanding 
subparagraph (A), on the request of a State 
carrying out a pilot project, the Secretary of 
Agriculture may use contingency reserve funding 
made available under the provisions described 
in clause (ii) to provide benefits to 
individuals receiving per-capita direct 
assistance through the pilot project under the 
supplemental nutrition assistance program 
established under the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.) during a period of 
economic downturn, a natural disaster, a public 
health emergency, or another unanticipated 
event that increases the demand for those 
benefits, as determined by the Secretary of 
Agriculture.
(ii) Provisions described.--The provisions 
referred to in clause (i) are the following:
(I) The matter under the heading 
``supplemental nutrition assistance 
program'' under the heading ``Food and 
Nutrition Service'' under the heading 
``DOMESTIC FOOD PROGRAMS'' in title IV 
of division B of the Continuing 
Appropriations, Agriculture, 
Legislative Branch, Military 
Construction and Veterans Affairs, and 
Extensions Act, 2026 (Public Law 119-
37).
(II) The matter under the heading 
``supplemental nutrition assistance 
program'' under the heading ``Food and 
Nutrition Service'' under the heading 
``DOMESTIC FOOD PROGRAMS'' in title IV 
of division B of the Consolidated 
Appropriations Act, 2024 (Public Law 
118-42; 138 Stat. 93).
(III) Section 1109 of the Full-Year 
Continuing Appropriations and 
Extensions Act, 2025 (Public Law 119-4; 
139 Stat. 13).
(D) Temporary assistance for needy families (tanf) 
contingency fund.--Notwithstanding subparagraph (A), on 
the request of a State carrying out a pilot project, 
the Secretary may use funds available under section 
403(b) of the Social Security Act (42 U.S.C. 603(b)) to 
provide benefits to individuals receiving per-capita 
direct assistance under the temporary assistance for 
needy families program established under part A of 
title IV of the Social Security Act (42 U.S.C. 601 et 
seq.) through the pilot project during a period of 
economic downturn, a natural disaster, a public health 
emergency, or another unanticipated event that 
increases the demand for those benefits, as determined 
by the Secretary. Nothing in the preceding sentence 
shall be construed as requiring the State carrying out 
the pilot project to submit a request under section 
403(b) of the Social Security Act (42 U.S.C. 603(b)) 
during an eligible month (as defined in paragraph (4) 
of such section) for payment of funds under such 
section or for the Secretary to determine that the 
State is an eligible State for purposes of such 
section.
(E) Low-income home energy assistance program 
(liheap) emergency fund.--Notwithstanding subparagraph 
(A), on the request of a State carrying out a pilot 
project, the Secretary may use funds available under 
section 2602(e) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621(e)) (in addition 
to meeting the objectives described in that section) to 
provide benefits to households that include individuals 
receiving per-capita direct assistance through the 
pilot project under the Low-Income Home Energy 
Assistance Program established under that Act during a 
period of economic downturn, a natural disaster, a 
public health emergency, or another unanticipated event 
that increases the demand for those benefits, as 
determined by the Secretary.
(F) Emergency funding.--
(i) In general.--Notwithstanding 
subparagraph (A), nothing shall prohibit a 
State carrying out a pilot project from 
receiving an appropriation described in clause 
(ii), and using that appropriation to provide 
benefits to individuals receiving per-capita 
direct assistance through the pilot project.
(ii) Appropriation.--An appropriation 
described in this clause is an appropriation--
(I) for an antipoverty program 
related to a covered amount described 
in subsection (a)(3)(A); and
(II) made in an Act other than an 
regular appropriations Act.
(5) Clarification.--A waiver granted to a State under 
paragraph (1) includes a waiver for agencies, persons, and 
families in the State described in clauses (ii) and (iii) of 
subsection (a)(3)(A).
(f) Applications.--To be eligible to receive an Upward Mobility 
Grant to carry out a pilot project under this section, a State shall 
submit an application to the Secretary at such time, in such manner, 
and containing such information as the Secretary may require, 
including--
(1) information stating--
(A) how the State will utilize the Upward Mobility 
Grant to achieve the antipoverty objectives described 
in subsection (b)(2)(B);
(B) how the State will achieve the goals of the 
antipoverty programs included in the pilot project 
involved, including (as applicable to the programs 
included) skills acquisition, housing (including rental 
housing) affordability, access to nutrition, reduced 
home energy costs, affordable child care, and temporary 
assistance to low-income families; and
(C) how the State will ensure that funds made 
available under the pilot project for the goals of an 
antipoverty program related to a covered amount 
described in clause (i)(VII), (ii), or (iii) of 
subsection (a)(3)(A) shall continue to be provided to 
the same eligible local entities or recipients as under 
applicable law in effect as of the date of enactment of 
this Act, and information demonstrating demonstrable, 
substantive, and robust engagement with those local 
entities and recipients on the waiver provisions 
described in subsection (e)(1).
(2)(A) information stating which statutory and regulatory 
requirements applicable to an antipoverty program the State 
requests to be waived, as described in subparagraphs (A), (B), 
and (C) of subsection (e)(1);
(B) a description of how the State will utilize the Upward 
Mobility Grant funds to design and use a benefit structure for 
benefits and services provided through the pilot project that 
promotes upward mobility through improvements on the upward 
mobility measures outlined in subsection (j)(2); and
(C) benchmark goals for improvements on those measures;
(3) information describing--
(A) the eligibility criteria established by the 
State for pilot project participants;
(B) how the State, in carrying out the pilot 
project, will--
(i) protect beneficiary data and privacy;
(ii) prevent fraudulent use of funds; and
(iii) maintain clear, auditable records for 
all funds and services; and
(C) the program integrity measures established by 
the State to ensure that the State provides direct 
assistance benefits to eligible pilot project 
participants in compliance with the criteria 
established under subparagraph (A) and requirements 
established under clauses (i), (ii), and (iii) of 
subparagraph (B);
(4)(A) information describing how the State will apply the 
work requirement for direct assistance benefit recipients 
specified in subsection (h); and
(B) information describing the program integrity measures 
established by the State to ensure compliance with that work 
requirement;
(5) information demonstrating how the State will engage 
nonprofit organizations, faith-based organizations, private 
service providers, local governments, and other local entities 
to deliver holistic, customized case management and a portion 
of the services for the pilot project;
(6) information describing how the State will evaluate the 
project by contracting under subsection (j) with an 
independent, third-party evaluator, and will ensure the most 
rigorous results from the evaluation and the strongest possible 
measurement through the evaluation of the causal link between 
the State's proposed benefit structure and the upward mobility 
measures listed in subsection (j)(2), including--
(A) the methodology that will be used to evaluate 
the pilot project;
(B) the data the State will collect and provide to 
the evaluator;
(C) the process by which the State will collect the 
data to provide to the evaluator; and
(D) information on the evaluator's qualifications, 
including--
(i) confirmation that the evaluator is 
independent from the State and from any 
nonprofit organizations, faith-based 
organizations, private service providers, local 
governments, and other local entities 
participating in the pilot project; and
(ii) information stating whether the 
evaluator has demonstrated substantial 
experience in conducting rigorous evaluations, 
utilizing the methodology described under 
subparagraph (A);
(7) information--
(A) describing how the State will use utilize 
fiscal savings resulting from improvements on upward 
mobility measures under subsection (j)(2) to improve 
program operations and infrastructure of programs 
covered by the pilot project, including--
(i) establishing a State reserve fund to 
provide temporary per-capita direct assistance 
benefits to eligible individuals and households 
during a period of economic downturn, a natural 
disaster, a public health emergency, or another 
unanticipated event that increases the demand 
for those benefits, as determined by the 
corresponding Secretary;
(ii) using the savings to improve program 
management, eligibility verification, benefits 
distribution, compliance monitoring, and 
enforcement of the work requirement required 
under subsection (h);
(iii) using the savings for renovation, 
expansion, or maintenance of community 
facilities to promote antipoverty objectives 
described in subsection (b)(2)(B);
(iv) using the savings for resources for 
capacity-building to increase collaboration 
with and involvement of nonprofit 
organizations, faith-based organizations, 
private service providers, local governments, 
and other local entities to deliver services 
funded under the pilot project;
(v) using the savings to integrate program 
operations, improve case management, streamline 
client intake, or reduce administrative 
duplication; and
(vi) providing work supports for 
individuals who are employed and working hours 
consistent with section 261.32 of title 45, 
Code of Federal Regulations (or a successor 
regulation), who are not receiving assistance 
through the Upward Mobility Grant; and
(B) demonstrating how the supports described in 
subparagraph (A)(vi) will be designed to--
(i) increase the level of hours worked for 
those receiving such a support; and
(ii) increase the level of earnings for 
those receiving such a support;
(8) at the election of the State, a proposal--
(A) that describes how the State will reduce 
regulatory barriers for the purpose of increasing 
market access to, or lowering the costs of, nutrition, 
child care, home energy (including utilities), 
employment and training services for dislocated 
workers, or housing (including rental housing) 
(referred to in this paragraph as ``covered basics''); 
and
(B) that includes--
(i) identification of existing (as of the 
date of submission) State regulatory barriers 
that limit market entry to, or production or 
supply of, any of the covered basics; and
(ii) actions the State will take to reduce, 
streamline, or eliminate regulations 
establishing such barriers; and
(9) in the case of a State seeking to carry out a limited 
scope pilot project--
(A) a detailed description of the more limited 
scope of the pilot project, including whether the 
project will involve a limited percentage of the 
individuals eligible to participate in the pilot 
project, a limited geographic area, a limited number of 
antipoverty programs, or some other limitation on the 
project; and
(B) information indicating the percentage described 
in subsection (d)(2)(D) that the State seeks to receive 
through the pilot program.
(g) Evaluating and Approving Applications.--
(1) In general.--In order for a State to receive an Upward 
Mobility Grant to carry out a pilot project under this section, 
the State shall obtain approval from the Secretary of the 
application for the pilot project submitted under subsection 
(f).
(2) Comment period.--On receiving the application, the 
Secretary shall--
(A) not later than 5 days after the date of that 
receipt, provide notice on the website of the 
Department of Health and Human Services of receipt of 
the application; and
(B) give interested persons, including stakeholders 
in the State, an opportunity to submit comments on the 
application for a 30-day period beginning on the date 
on which the Secretary provides notice under 
subparagraph (A).
(3) Evaluation of applications.--In evaluating an 
application to carry out a project, the Secretary shall--
(A) evaluate the application based on the extent to 
which the project--
(i) will achieve the antipoverty objectives 
described in subsection (b)(2)(B);
(ii) will achieve the goals described in 
subsection (f)(1)(B); and
(iii) will meet the requirements described 
in subsection (f)(1)(C) relating to provision 
of funds and to engagement;
(B) evaluate the application based on the extent to 
which the project will make improvements on the upward 
mobility measures described in subsection (j)(2); and
(C) consider the extent to which the methodology of 
the project evaluation under subsection (j) and data 
collection under subsection (f) will--
(i) produce rigorous results, using 
experimental designs that use--
(I) random assignment; or
(II) if random assignment is not 
feasible, another reliable, evidence-
based research methodology that allows 
for the strongest practicable causal 
inferences; and
(ii) provide sufficient contextual 
information on the characteristics of the 
population served by the project, including 
demographic and geographic information, to 
assess the applicability of the project in 
other settings.
(4) Priority.--In determining which applications to approve 
under this subsection, the Secretary shall give priority to--
(A) applications for a pilot project with a program 
design that limits--
(i) the average Marginal Effective Tax Rate 
of an increase in earned income attributable to 
employment through the pilot project to not 
more than 50 percent; and
(ii) the average Marginal Effective Tax 
Rate of an increase in such earned income to 
not more than 50 percent, among participants 
for whom such increase results in lack of 
eligibility for any per-capita direct 
assistance;
(B) applications the Secretary projects will most 
make improvements on the upward mobility measures 
described in subsection (j)(2);
(C) applications for a pilot project for which the 
methodology described in paragraph (3)(C) will use an 
experimental design that uses--
(i) random assignment; or
(ii) if random assignment is not feasible--
(I) a natural experiment design;
(II) a synthetic control method;
(III) a differences-in-differences 
technique;
(IV) a regression discontinuity 
method;
(V) an instrumental variable 
method;
(VI) a panel data with mixed 
effects method;
(VII) a propensity score matching 
method; or
(VIII) a cross-sectional regression 
method; and
(D) applications that describe program integrity 
measures that will maximize compliance with--
(i) the work requirement described in 
subsection (h); and
(ii) the requirements established under 
clauses (i), (ii), (iii) of subsection 
(f)(3)(B).
(5) Approval or disapproval.--
(A) Grounds for disapproval.--In reviewing an 
application, the Secretary determines that the project 
will not achieve the antipoverty objectives described 
in subsection (b)(2)(B), achieve the goals described in 
subsection (f)(1)(B), or meet the requirements 
described in subsection (f)(1)(C) relating to the 
provision of funds and to engagement, the Secretary 
shall disapprove the application. Nothing in this 
subparagraph shall be construed to prevent the 
Secretary from disapproving an application for another 
reason specified in this section.
(B) Timeline.--The Secretary shall decide whether 
or not to approve the application not later than 90 
days after the date of receipt of the application.
(6) Process after disapproval.--If the Secretary decides to 
disapprove the application of a State--
(A) the Secretary shall provide the State with a 
detailed explanation of the decision;
(B) the State may submit a modified application to 
the Secretary for approval; and
(C) if a modified application is submitted, the 
Secretary shall make a decision on approval of the 
application, after evaluating and giving priority as 
described in paragraphs (3) and (4), not later than 30 
days after the date of receipt of the modified 
application.
(h) Work Requirement and Program Integrity.--
(1) SNAP requirements.--The requirements under subsections 
(d) and (o) of section 6 of the Food and Nutrition Act of 2008 
(7 U.S.C. 2015) shall apply to recipients of direct assistance 
benefits under a pilot project carried out under this section, 
subject to such changes to those requirements as the Secretary 
determines necessary.
(2) Regulations; audit.--The Secretary shall--
(A) prescribe such regulations as the Secretary 
determines necessary and appropriate to ensure 
compliance with and State enforcement of the 
requirements described in paragraph (1); and
(B) audit the program integrity measures described 
in paragraphs (3)(C) and (4)(B) of subsection (f) 
established by States.
(i) Data Sharing.--The Secretary shall facilitate data sharing, 
concerning data and other information relating to antipoverty programs, 
with Federal agencies and offices (other than the Administration for 
Children and Families of the Department of Health and Human Services) 
as necessary to administer the pilot program carried out under this 
Act. The Secretary shall cooperate with each State participating in the 
pilot program to coordinate access by Federal agencies and offices to 
data and other information relating to antipoverty programs included in 
the State's pilot project.
(j) Evaluations.--
(1) In general.--
(A) Determinations.--Each State that carries out a 
pilot project under this Act shall enter into a 
contract for an annual independent, third-party 
evaluation of the pilot project, for purposes of 
determining, for purposes of this section--
(i) per-capita direct assistance, and per-
capita direct assistance described in paragraph 
(2)(C); and
(ii) improvement on the upward mobility 
measures described in paragraph (2), as 
described in paragraph (3).
(B) Qualifications.--The evaluator shall 
demonstrate the independence described in clause (i), 
and the substantial experience described in clause 
(ii), of subsection (f)(6)(D).
(2) Upward mobility measures.--The State shall require the 
evaluator to conduct annual evaluations of the pilot project on 
upward mobility measures, which measure--
(A) the Marginal Effective Tax Rates, for pilot 
project participants, of increases in earned income 
attributable to employment through the pilot project;
(B) participant employment outcomes, consisting of 
achievement of (relative to the full fiscal year that 
precedes the date on which the Secretary approves the 
application for the pilot project under subsection (g) 
(referred to in this paragraph as the ``pre-
implementation year''))--
(i) higher earnings of participants;
(ii) a higher percentage of participants 
with employment;
(iii) a higher percentage of participants 
with full-time employment; and
(iv) a higher percentage of participants 
who have retained employment;
(C) reduction (relative to the pre-implementation 
year) in per-capita direct assistance by reducing the 
dependence of participants on per-capita direct 
assistance through improvement in employment outcomes 
described in subparagraph (B);
(D) elimination or reduction in (relative to the 
pre-implementation year) marriage penalties for 
participants; and
(E) reduction (relative to the pre-implementation 
year) in poverty among participants.
(3) Improvement.--The State shall require the evaluator, as 
part of each annual evaluation, to measure--
(A) improvement (relative to the pre-implementation 
year) on the upward mobility measures described in 
paragraph (2); and
(B) improvement on the upward mobility measures, 
relative to the benchmark goals described under 
subsection (f)(2)(C).
(4) Use of evaluations.--The evaluator shall prepare and 
submit to the Secretary a report containing the results of each 
annual evaluation.
(5) Comparison.--The evaluator shall make comparisons on 
the upward mobility measures by comparing the outcomes of the 
entire population enrolled in the antipoverty programs related 
to a covered amount described in subsection (a)(3)(A)(i) for 
the preceding fiscal year described in subsection (d)(2)(A), to 
the outcomes for that entire population enrolled in those 
antipoverty programs (included in the pilot project or not so 
included) for the year covered by the evaluation.
(k) Funding Adjustment.--No State shall receive an adjustment to an 
Upward Mobility Grant because the State increased the amount of the 
per-capita direct assistance provided, through an Upward Mobility 
Grant.

SEC. 3. TRANSFERS AND SAVINGS PROVISION.

(a) Definitions.--For purposes of this section, unless otherwise 
provided or indicated by the context--
(1) the term ``Administration'' means the Administration 
for Children and Families;
(2) the term ``covered Federal agency'' means an agency, as 
defined in section 551(1) of title 5, United States Code, that 
carries out an antipoverty program;
(3) the term ``function'' means any duty, obligation, 
power, authority, responsibility, right, privilege, activity, 
or program;
(4) the term ``Secretary'' means the Secretary of Health 
and Human Services, acting through the Assistant Secretary for 
Children and Families; and
(5) the term ``transferred function'' means a function 
(including a part of a function) transferred under this 
section.
(b) Administrative Funding.--
(1) Amounts to states for administrative costs.--
(A) In general.--Notwithstanding any other 
provision of this section, for each State carrying out 
a pilot project under this Act, each head of a covered 
Federal agency shall transfer to the State, for a 
fiscal year, an amount that bears the same relationship 
to the total amount of funding for administrative costs 
of the antipoverty program involved for that fiscal 
year for all States as the amount of funding the State 
received for the nonadministrative costs of the program 
for the prior fiscal year bears to the total amount of 
funding that all States received for those costs for 
the prior fiscal year.
(B) Determination.--For the purposes of 
determining, under subparagraph (A), the funding a 
State received for nonadministrative costs for a prior 
fiscal year in which there was a lapse in 
appropriations, the funding shall be determined as if 
the corresponding money was appropriated for the entire 
fiscal year.
(2) Limited scope pilot projects.--For a State carrying out 
a limited scope pilot project under section 2(c)(2), the head 
of the Federal agency shall adjust the amount to be transferred 
under paragraph (1) to account for the limited scope.
(c) Transfer of Functions.--
(1) In general.--There are transferred to the 
Administration a portion, determined by the Office of 
Management and Budget, of the functions that the heads of 
covered Federal agencies exercised before the date of the 
enactment of this Act (including related functions of any 
officer or employee of a covered Federal agency). The portion 
shall consist of those functions (or parts of functions) that 
the Office determines are appropriate for the Administration to 
exercise in carrying out this Act.
(2) Delegation and assignment.--Except where otherwise 
expressly prohibited by law or otherwise provided by this Act, 
the Secretary may delegate any of the transferred functions to 
such officers and employees of the Administration as the 
Secretary may designate, and may authorize successive 
redelegations of such functions as may be necessary or 
appropriate. No delegation of transferred functions by the 
Secretary under this section shall relieve such Secretary of 
responsibility for the administration of such functions.
(3) Reorganization.--The Secretary is authorized to 
allocate or reallocate any transferred function among the 
officers of the Administration, and to establish, consolidate, 
alter, or discontinue such organizational entities in the 
Administration as may be necessary or appropriate.
(4) Transfer and allocations of appropriations and 
personnel.--Except as otherwise provided in this Act, the 
personnel employed in connection with, and the assets, 
liabilities, contracts, property, records, and unexpended 
balances of appropriations, authorizations, allocations, and 
other funds employed, used, held, arising from, available to, 
or to be made available in connection with the transferred 
functions, subject to section 1531 of title 31, United States 
Code, shall be transferred to the Administration. Unexpended 
funds transferred pursuant to this section shall be used only 
for the purposes for which the funds were originally authorized 
and appropriated. The Director of the Office of Management and 
Budget shall provide for such further measures and dispositions 
as may be necessary to effectuate the purposes of this Act.
(5) Rules.--The Secretary is authorized to prescribe, in 
accordance with the provisions of chapters 5 and 6 of title 5, 
United States Code, such rules and regulations as the Secretary 
determines necessary or appropriate to administer and manage 
the functions of the Administration to carry out section 2.
(6) Transition.--The Secretary is authorized to utilize--
(A) the services of officers, employees, and other 
personnel of a covered Federal agency with respect to 
transferred functions; and
(B) funds appropriated to such functions for such 
period of time as may reasonably be needed to 
facilitate the orderly implementation of this Act.
(d) Savings Provisions.--
(1) Continuing effect of legal documents.--All orders, 
determinations, rules, regulations, permits, agreements, 
grants, contracts, certificates, licenses, registrations, 
privileges, and other administrative actions--
(A) which have been issued, made, granted, or 
allowed to become effective by the President, any 
covered Federal agency or official thereof, or by a 
court of competent jurisdiction, in the performance of 
transferred functions; and
(B) which are in effect on the date of enactment of 
this Act, or were final before that date and are to 
become effective on or after that date,
shall continue in effect according to their terms until 
modified, terminated, superseded, set aside, or revoked in 
accordance with law by the President, the Secretary or other 
authorized official, a court of competent jurisdiction, or by 
operation of law.
(2) Proceedings not affected.--The provisions of this Act 
shall not affect any proceedings, including notices of proposed 
rulemaking, or any application for any license, permit, 
certificate, or financial assistance pending before any covered 
Federal agency on the date of enactment of this Act, with 
respect to transferred functions but such proceedings and 
applications shall be continued. Orders shall be issued in such 
proceedings, appeals shall be taken therefrom, and payments 
shall be made pursuant to such orders, as if this Act had not 
been enacted, and orders issued in any such proceedings shall 
continue in effect until modified, terminated, superseded, or 
revoked by a duly authorized official, by a court of competent 
jurisdiction, or by operation of law. Nothing in this paragraph 
shall be deemed to prohibit the discontinuance or modification 
of any such proceeding under the same terms and conditions and 
to the same extent that such proceeding could have been 
discontinued or modified if this Act had not been enacted.
(3) Suits not affected.--The provisions of this Act shall 
not affect suits commenced before the date of enactment of this 
Act, and in all such suits, proceedings shall be had, appeals 
taken, and judgments rendered in the same manner and with the 
same effect as if this Act had not been enacted.
(4) Nonabatement of actions.--No suit, action, or other 
proceeding commenced by or against a covered Federal agency, or 
by or against any individual in the official capacity of such 
individual as an officer of a covered Federal agency, shall 
abate by reason of the enactment of this Act.
(5) Administrative actions relating to promulgation of 
regulations.--Any administrative action relating to the 
preparation or promulgation of a regulation by a covered 
Federal agency relating to a transferred function may be 
continued by the Administration with the same effect as if this 
Act had not been enacted.
(6) References.--Reference in any other Federal law, 
Executive order, rule, regulation, or delegation of authority, 
or any document of or relating to--
(A) the head of a covered Federal agency with 
regard to a transferred function, shall be deemed to 
refer to the Secretary; and
(B) a covered Federal agency with regard to a 
transferred function, shall be deemed to refer to the 
Administration.
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