Table 1. Comparison of Current Law with H.R. 4090

Current Law H.R. 4090
Findings [Section 4]
(Note: Sections 1, 2 and 3 set forth the bill's short title, table of contents, and references.)		 P.L. 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, made a series of findings related to marriage, responsible parenthood, trends in welfare receipt and the relationship between welfare receipt and nonmarital parenthood, and trends in and negative consequences of nonmarital and teen births. Makes a series of findings related to: (1) the success of the 1996 law in moving families from welfare to work and reducing child poverty; (2) progress made by the Nation in reducing teen pregnancy and births, slowing increases in nonmarital births, and improving child support collections and paternity establishment; (3) the flexibility provided by the 1996 law for states to develop innovative programs; and establishing the sense of Congress that increasing success in moving families from welfare to work and promoting healthy marriage and other means of improving child well-being are important government interests and the policies in federal TANF law (as amended by this bill) are intended to serve those ends.

Title I - Temporary Assistance for Needy Families
Purposes
[Section 101]		 The purpose of TANF is to increase state flexibility in operating a program designed to: (1) assist needy families so that children may live in their homes or those of relatives; (2) end dependence of needy parents on government benefits; (3) reduce out-of-wedlock pregnancies; and (4) encourage the formation and maintenance of two-parent families. The overall purpose of TANF is to improve child well-being by increasing state flexibility in operating a program designed to: (1) provide assistance and services to needy families so that children may live in their homes or those of relatives, (2) end dependence of needy parents on government benefits; (3) reduce out-of-wedlock pregnancies; and (4) encourage the formation and maintenance of healthy, two-parent married families and encourage responsible fatherhood. Italics show new language.
Family assistance grants
[Section 102]		 Capped grants (entitlements to states). Basic grants computed from federal expenditures for TANF's predecessor programs during FY1992 through FY1995. Basic grants frozen for FY1997-FY2002. Nationally, annual grants total $16.5 billion for the states and the District of Columbia (D.C.). Additional amounts are provided for the territories.. Retains basic block grants, and extends them through FY2007. Appropriates $16.5 billion annually for block grants to the states and D.C. and additional amounts for the territories (plus some matching grants for the territories). No change from current funding levels.
Promotion of family formation and healthy marriage
[Section 103] 		No provision for special grants (but law provides bonuses (maximum of 5 states) for reduction in out-of-wedlock births). Appropriates $100 million annually for fiscal years through 2007 for 50% competitive matching grants to states, territories and tribal organizations for programs to promote healthy, married two-parent families and reduce out-of-wedlock births. Grants may be used for advertising campaigns, education in high schools, marriage skills programs for non-married pregnant women and expectant fathers; pre-marital education; marriage enhancement programs for married couples, divorce reduction programs, marriage mentoring programs, and programs to reduce marriage disincentives in means-tested programs, if offered in conjunction with any other listed activity. Note: These grants are funded by repeal of current law out-of-wedlock bonus (maximum of $100 million annually). Provides that state expenditures on non-TANF-eligible families to reduce out-of-wedlock births and promote marriage and responsible fatherhood (TANF goals 3 and 4) may be counted toward required "maintenance-of-effort" state spending.

In a related section, the bill further provides that federal TANF funds used for marriage promotion may be treated as state matching funds for marriage promotion grants. [Section 111(b)] See also state funding below.
Supplemental grant for population increases in certain states
[Section 104]		 Supplemental grants for (17) states with low historic federal grants per poor person and/or high population growth for FY1998-FY2001 (extended through September 30, 2002 at FY2001 funding level by P.L. 107-147). Grants grew each year, from $79 million in FY1998 to $319 million in FY2001. Reestablishes annual supplemental grants through FY2007, freezing them at the FY2001 level ($319 million).
Bonus to reward employment achievement
[Section 105]		 Two bonuses: An out-of-wedlock bonus (up to $100 million per year) for reducing out-of-wedlock birth ratios without increasing abortion rates and a high performance bonus ($200 million per year on average).

High performance bonus paid on the basis of achieving TANF goals. Formula developed by the HHS in consultation with the states. For FY2002 performance, formula includes employment and family formation outcomes, child care affordability, and coverage in certain government programs.

 Eliminates the out-of-wedlock birth bonus and uses the funds for marriage promotion matching grants (see above).

Replaces the high performance bonus with a bonus to reward employment achievement (annual average of $100 million appropriated for 5 years). Bonus to be based on absolute and relative progress toward goals of job entry, job retention, and increased earnings. Formula to be developed by HHS, in consultation with the National Goverrnors Association and the American Public Human Services Association.
Contingency fund
[Section 106]		 Capped matching grants ($2 billion) provided in case of recession for FY1997-FY2001 (extended through September 30, 2002 by P.L. 107-147). To qualify for contingency dollars, states must spend under the TANF program a sum of their own dollars equal to their pre-TANF spending. Reestablishes a $2 billion contingency fund through FY2007. Permits states to count child care spending and all spending in separate state programs toward state spending required to access contingency fund. Simplifies annual reconciliation process. Adjusts food stamp "needy state" trigger for policy changes made after passage of 1996 welfare law.
Use of funds
[Section 107]		 States may use funds in any manner reasonably calculated to accomplish the TANF purpose (or in any manner that they were authorized to use pre-TANF funds). States may use funds for any purposes or activities reasonably calculated to accomplish the purpose of TANF (or permitted under pre-TANF rules).
State plan must indicate whether the state intends to treat families moving into the state differently from others. Strikes provision about treatment of families migrating into the state-found unconstitutional.
States may transfer up to 30% of TANF funds to the Child Care and Development Block Grant (CCDBG) and the Title XX Social Services Block Grant (SSBG). Specifies that a maximum of 10% of total transfers may go to SSBG in FY2002, 4.25% thereafter. Also allows states to use TANF funds, within the overall 30% transfer limit, as matching funds for the Job Access transportation program for TANF recipients, ex-recipients, and persons at risk of becoming income-eligible for TANF. Increases the overall ceiling on transfers to 50%. Limits SSBG transfers as follows: 5% in FY2004, 6% in FY2005, 8% in FY2006, and 10% (original limit in 1996 law) in FY2007.
Amounts may be spent without fiscal year limit for "assistance" (chiefly ongoing cash aid). For other benefits and services ("nonassistance") amounts must be obligated in the year of award and spent in the following year. Allows use of carry-over funds for any benefit or service without fiscal year limitation. Permits a state or tribe to designate some TANF funds as a contingency reserve.
Repeal of federal  loan for state welfare programs
[Section 108]		 Provides a $1.7 billion revolving and interest-bearing federal loan fund for state welfare programs. Repeals loan fund.
Universal engagement and family self-sufficiency plan requirements
[Section 109]		 State plan must require that a parent or caretaker engage in work (as defined by the state) after, at most, 24 months of assistance. Note: This requirement is not enforced by a specific penalty. (States may, but need not, establish an individual responsibility plan for each family in consultation with the recipient.) Repeals the 24-month work trigger.
States must make an initial assessment of the skills, prior work experience, and employability of each recipient 18 or older or those who have not completed high school within 30 days. Eliminates current law requirement for assessment and requires the development of a family self-sufficiency plan for each family within 60 days of opening a case (within 12 months for families enrolled at the time of enactment). (Replaces section on individual responsibility plans with section on universal engagement and family self-sufficiency plan requirements.) Imposes a penalty on states for failure to establish self-sufficiency plan (5% reduction in TANF grant for first violation, but penalty can be reduced for the degree of violation).
Participation rates are enforced by a penalty on states: loss of 5% of the state's basic grant for first year of violation (penalty may be reduced for the degree of violation). State must replace the amount of federal penalty funds lost with its own funds. Retains penalty rate of current law for state failure to meet participation standards.
Work participation requirements
[Section 110]		 States must have a specified percentage of their adult recipients engaged in creditable work activities. In FY2002 the participation standard is 50% for all families (90% for the two-parent component of the caseload). States must have a specified percentage of families containing adult recipients engaged in direct work or alternative self-sufficiency activities chosen by the state. In FY2003 the standard is 50%, and it rises by 5 percentage points yearly to reach 70% in FY2007. The separate standard for two-parent families is eliminated.
Caseload reduction credit Standards are reduced by a caseload reduction credit: for each percent decline in the caseload from the FY1995 level (not attributable to policy changes), the work participation standard is reduced by 1 percentage point. Measures caseload reduction from a moving base year (rather than from FY1995). For FY2003, the credit is based on the percent decline in the caseload from FY1996; for FY2004, the base is FY1998; for FY2005, FY2001. Thereafter, the base rises each year by one year (thus, the credit for FY2007 is based on the caseload decline from FY2003).
Countable activities Federal law lists 12 activities that count toward meeting the participation standards. Nine activities have priority status: unsubsidized jobs, subsidized private jobs, subsidized public jobs, work experience, on-the-job training; job search (6 weeks usual maximum), community service, vocational educational training (12 month limit), and providing child care for certain TANF recipients. Three other creditable activities: job skills training directly related to employment; and (for high-school dropouts only) education directly related to work and completion of secondary school.

Participation in education (including vocational educational training) may account for no more than 30% of persons credited with work.

 The bill lists six "direct" work activities: Unsubsidized jobs, subsidized private jobs, subsidized public jobs, on-the-job training, supervised work experience, and supervised community service.

States may define any other activity as countable so long as it leads to self-sufficiency and is consistent with the purposes of TANF.
Hours of activity Generally, to count toward the all-family rate, participation of 30 hours (20 hours in priority work activities) is required. For two-parent families the standard is 35 hours (30 in priority work activity), but increases to 55 hours (50 in priority activities) if the family receives federally-subsidized child care.

For a single parent caring for a child under age 6, 20 hours of participation satisfies the standard.

States may exempt the parent of a child under age 1 from work and exclude them from the calculation of work participation rates.

Teen parents are deemed to meet the weekly hour participation standard by maintaining satisfactory attendance in secondary school (or the equivalent in the month) or by participating in education directly related to employment for an average of 20 hours weekly.

 Generally, states must engage all families with adult recipients in a direct work activity or alternative self-sufficiency activity for an average of 40 hours weekly-of which 24 hours must be in one of the direct work activities listed in the law.

For 3 consecutive months within 24 months, persons may be deemed to meet the 24-hour weekly direct work requirement by engaging in short-term activities chosen by the state to promote self-sufficiency (examples listed in the bill are substance abuse counseling or treatment; rehabilitation treatment and services; work-related education or training directly at enabling the family member for work; and job search or job readiness assistance).

No special hourly rule for parent caring for a preschool child.

States may exclude from the calculation of work participation rates families in which the youngest child is under age 1. They also may exclude from work participation rates all families during their first month of assistance and families in tribal program.

Essentially the same as current law. Teen parents are deemed to satisfy the (40-hour weekly) work rule by virtue of satisfactory school attendance (or the equivalent in the month) or by participating in education directly related to employment for an average of 20 hours weekly.
Calculation of rates The monthly participation rate, expressed as a percentage, equals (a) the number of all recipient families in which an individual is engaged in work activities for the month, divided by (b) the number of recipient families with an adult recipient (but excluding families subject that month to a penalty for work refusal, provided they have not been penalized for more than 3 months) and excluding families with children under 1, if the state exempts them from work. [Note: except for teen parents, single parents with a child under 6, and participants in a tribal program with different hour requirements, families must work an average of at least 30 hours weekly to be counted as working.] Excluded from counted families used to determine participation rates are sanctioned families. In addition, as noted above, states have the option to exclude families in the first month of assistance; tribal families, and single parents with an infant. The monthly participation rate is (a) the total number of countable hours, divided by (b) 160 times the number of counted families for the month. This means that a family would receive full work credit for working 160 hours a month-- equivalent to a weekly average of 37 hours-160/4.33. (The average month contains 4.33 weeks, not 4.)

This provision is seen as allowing 13 hours monthly for sick leave and holidays. However, the bill specifies that if a family does not engage in a direct work activity for a weekly average of 24 hours, its countable hours for the month shall be zero.
Sanctions State must reduce the amount of assistance payable to the family pro-rata or terminate assistance if the individual refuses to engage in work.

State is prohibited from sanctioning a single parent caring for a child under age 6 based on refusal to participate in work because of the unavailability of appropriate, suitable and affordable child care.

 State must reduce the amount of assistance payable to the family pro-rata or terminate assistance if the individual refuses without good cause to engage in work or in activities under a family sufficiency plan.

No change from current law
Maintenance of effort
[Section 111]		 Establishes a maintenance-of-effort (MOE) requirement that states spend at least 75% of what was spent from state funding in FY1994 on programs replaced by TANF. Nationally, this sum is $10.4 billion. (MOE rises to 80% if state fails a work participation standard, see below.) Continues existing MOE requirement through FY2007. Provides that federal TANF funds used for marriage promotion may be treated as state matching funds for marriage promotion grants.
Performance improvement
[Section 112]		 Each state must outline, in a 27-month plan, how it intends to: conduct a program providing cash assistance to needy families with children and providing parents with work and support services; require caretaker recipients to engage in work (at state definition) after 24 months of aid or sooner, if then judged work-ready; ensure that caretakers engage in work in accordance with the law; take steps deemed necessary by the state to restrict use and disclosure of information about recipients; establish goals and take action to prevent/reduce the incidence of out-of-wedlock pregnancies; and conduct a program providing education and training on the problem of statutory rape. In addition, the plan must indicate whether the state intends to treat families moving into the state differently from others; indicate whether the state intends to aid noncitizens; set forth objective criteria for benefit delivery and for fair and equitable treatment; and provide that, unless the governor opts out by notice to HHS, the state will require a parent who has received TANF for 2 months and is not work-exempt to participate in community service employment. In the plan the state must certify that it will operate a child support enforcement program and a foster care and adoption assistance program and provide equitable access to Indians ineligible for aid under a tribal plan. It must certify that it has established standards against program fraud and abuse. It must specify which state agency or agencies will administer and supervise TANF. In addition, the state may opt to certify that it has established and is enforcing procedures to screen and identify recipients with a history of domestic violence, to refer them to services, and to waive program rules for some of them.

Authorizes states to administer and provide TANF services through contracts with charitable, religious, or private organizations and to pay recipients by means of certificates, vouchers, or other disbursement forms redeemable with these organizations. Stipulates that any religious organization with a contract to provide welfare services shall retain independence from government and requires states to provide an alternative provider for a beneficiary who objects to the religious character of the designated organization.

 Adds requirement that each state outline how it will encourage equitable treatment of married, 2-parent families and describe any strategies the state is undertaking to deal with (a) employment retention and advancement for recipients; (b) efforts to reduce teen pregnancy; (c) services for struggling and noncompliant families and for clients with special problems; and (d) program integration, including the extent to which employment and training services are provided through the One-Stop Career Center System created under the Workforce Investment Act of 1998.

Strikes provision requiring community service after 2 months of benefits unless state opts out. Adds requirement that plan describe strategies to engage faith-based organizations in provisions of services funded by TANF.

Strikes provision requiring goals to reduce out-of-wedlock pregnancies and replaces it with requirement that states establish specific numerical performance goals, measures, measurement methodology, and plans to improve outcomes regarding each of TANF's four goals.

Adds requirement that the plan describe strategies to improve program management and performance.
Performance measures No provision. (However for the purpose of awarding performance bonuses, the Secretary is to develop a formula in consultation with the national Governors Association and the American Public Welfare Association.) Requires the Secretary in consultation with the National Governors Association and the American Public Human Services Association, to develop uniform performance measures to judge the effectiveness and improvement of state programs in accomplishing TANF purposes.
Rankings of states Directs HHS Secretary to rank states in order of success in moving recipients into long-term private jobs and reducing the proportion of out-of-wedlock births and in both cases to review programs of the three states with highest and lowest ratings. Deletes "long-term" qualifier from private job measure. Adds employment retention and ability to increase wages to factors used for rankings.
Data collection and reporting
[Section 113]		 States are required to collect monthly, and report quarterly, disaggregated case record information (but may use sample case record information for this purpose) about recipient families. Required family information includes:

-county of residence,
-whether a member received disability benefits,
-ages of members,
-size of family and the relation of each member to the family head,
-employment status and earnings of the employed adult,
-marital status of adults;
-race and educational level of each adult;
-race and educational level of each child;
-whether the family received subsidized housing Medicaid, food stamps, or subsidized child care (and if the latter two, the amount);
-number of months that the family received each type of aid under the program;
-number of hours per week, if any, that adults participated in specified activities (education, subsidized private jobs; unsubsidized jobs, public sector jobs, work experience, or community service, job search, job skills training or on-the job training, vocational education);
-information needed to calculate participation rates;
-type and amount of assistance received under the program; including the amount of and reason for any reduction of assistance;
-unearned income;
-citizenship of family members;
-number of families and persons receiving aid under TANF (including the number of two-parent and one-parent families);
-total dollar value of assistance given;
-total number of families and persons aided by welfare-to-work grants (and the number whose participation ended during a month);
-number of noncustodial parents who participated in work activities;
-for each teenager, whether he/she is the parent of a child in the family.

From a sample of closed cases, the quarterly report is to give the number of case closures because of employment, marriage, time limit, sanction, or state policy.

 Permits the Secretary to limit use of sampling by designating core elements that must be reported for all families.

Adds race and educational level of each minor parent. Deletes educational level of each child.

Strikes "each type" of aid and requires the reason for extending aid beyond 60 months .

Adds to reported activity list: training and other activities directed at TANF purposes. Adds and (job) placement to job search. Omits job skills training. Specifies that work experience and community service are "supervised."

Adds information needed to calculate progress toward universal engagement.

Deletes type of assistance.

Deletes marriage.

Requires new information on recipient families in the quarterly report:
-the date the family first received aid on the basis of its most recent application;
-whether a self-sufficiency plan is established for the family;
-the marital status of the parents or guardians of any child in the family and whether the parents or guardians are living.
Requires reports to include the number of families and persons who became ineligible to receive TANF during the month (broken down by the number that lost eligibility because of earnings, changes in family composition that result in higher earnings, sanctions, time limits, or other specified reasons).
Monthly state reports No provision States are required to submit monthly reports on the number of families and persons receiving assistance.
Annual state reports Regulations require states to annually submit a program report (by December 31 of each year) providing financial eligibility rules for all programs funded by TANF or state MOE funds. For each MOE program, reports are to include the name, purpose, and eligibility criteria. Requires states to submit an annual report on characteristics of the state TANF program and other state programs funded with MOE funds. Required information: program name and purpose, description of program activities, sources of funding, number of beneficiaries, sanction policies, and any work requirements.

Beginning with FY2004, states must submit to HHS an annual report on achievement and improvement under numerical performance goals and measures.
Data elements The HHS Secretary shall prescribe regulations to define data elements for required state reports and shall consult with the Secretary of Labor in defining data elements regarding programs operated with welfare-to-work funds. The HHS Secretary shall prescribe regulations needed to define data elements and to collect necessary data and shall consult with the National governors Association, the American Public Human Services Association, the National Conference of State Legislators, and others in defining the data elements.
HHS reports Requires the HHS Secretary to make annual reports to Congress that include state progress in meeting TANF objectives (increasing employment and earnings of needy families and child support collections, and decreasing out-of-wedlock pregnancies and child poverty), demographic and financial characteristics of applicants, recipients, and ex-recipients; characteristics of each TANF program; and trends in employment and earnings of needy families with children.

Requires the HHS Secretary to submit to four committees of Congress annual reports on specified matters about three roups: children whose families lost TANF eligibility because of a time limit, children born after enactment of TANF to teen parents, and persons who became teen parents after enactment.

 Sets July 1 of each fiscal year as the deadline for the report. Deletes applicant families from the report. Adds requirement to report on characteristics of MOE-funded programs.
Research Requires HHS Secretary to conduct research on effects, costs, and benefits of state programs. Provides that Secretary may help states develop innovative approaches to employing TANF recipients and shall evaluate them. For 6 years, appropriates $15 million yearly, half for TANF research and novel approaches cited above and half for state-initiated TANF studies and completing pre-TANF waiver projects. Continues these provisions and appropriates $15 million annually for them.
Direct funding and administration by Indian tribes
[Section 114]		 Earmarks some TANF funds-amount equal to federal pre-TANF payments received by state attributable to Indians - for administration by tribes. Deducts these sums from state TANF grants. Also appropriates $7.6 million annually for work and training activities (now known as Native Employment Works [NEW]) to tribes that operated a pre-TANF work and training program. Continues Indian tribal assistance grants and NEW work/training grants through FY2007.
Research, evaluations, and national studies [Section 115] The law authorizes the Secretary to conduct a series of research studies, demonstration projects, and evaluations, and appropriates $15 million annually for such activities. Extends annual appropriation of $15 million for each of FY2003 through FY2007.

Appropriates an additional $100 million each fiscal year through 2007 for research and demonstration projects and for technical assistance to states, tribal organizations, and other entities chosen by the Secretary. Specifies that these funds shall be spent primarily on activities allowed under marriage promotion grants (see above).
Study by the Census Bureau
[Section 116]		 Directs the Census Bureau to expand the Survey of Income and Program Participation (SIPP) to obtain data with which to evaluate TANF's impact on random national sample of recipients. Authorizes appropriation of $10 million annually for 7 years. Authorizes appropriation of $10 million annually for FY2003 through FY2007.
Repeal of waiver continuation authority
[Section 117]		 AFDC waivers in effect on date of enactment of TANF continue until their scheduled expiration, unless the state chooses to end them early.

Note: As of April 1, 2002, 10 states had waivers scheduled to continue beyond September 30, 2002.

 Discontinues all unexpired waivers.
Definition of "assistance"
[Section 118]		 Receipt of assistance by a parent or other caretaker relative triggers work and time limit rules. Law does not define the term. By regulation, assistance is defined as ongoing aid to meet basic needs, plus support services such as child care and transportation subsidies, for unemployed recipients. It excludes non-recurrent short term benefits.

Federally-funded "assistance" to a family with an adult is limited to 60 months; states may impose shorter time limits. By regulation, assistance is defined as ongoing aid to meet basic needs, plus support services such as child care and transportation subsidies, for unemployed recipients. It excludes non-recurrent short term benefits.

 Defines "assistance" to mean payment, by cash, voucher, or other means, to or for an individual or family to meet a subsistence need, but not including costs of transportation or child care. It excludes non-recurrent short-term benefits.
Technical corrections
[Section 119]		 Makes a number of technical corrections to current law.
Fatherhood program
[Section 120]
(a) Short title		 No provision. This section of H.R. 4090 may be cited as the "Promotion and Support of Responsible Fatherhood and Healthy Marriage Act of 2002"
(b) Fatherhood program No provision. The Fatherhood program would be added to the Social Security Act as a new Part C of Title IV.
Findings (Section 441 of new Part C) No provision. There is evidence indicating the need to promote and support involved, committed, and responsible fatherhood, and to encourage and support healthy marriages between parents raising children.
Purposes (Section 441 of new Part C) No provision. The first of the three purposes is to provide for projects and activities by public entities and nonprofit community entities, including religious organizations, to test promising approaches to accomplishing the following four objectives:

(1) promoting responsible, caring and effective parenting and encouraging positive father involvement, including the positive involvement of non-resident fathers;

(2) enhancing the abilities and commitment of unemployed or low-income fathers to provide support for their families and to avoid or leave welfare;

(3) improving fathers' ability to effectively manage family business affairs; and

(4) encouraging and supporting healthy marriages and married fatherhood.

The second purpose is through the projects and activities described above, to improve outcomes for children such as increased family income and economic security, improved school performance, better health, improved emotional and behavioral stability and social adjustment, and reduced risk of delinquency, crime, substance abuse, child abuse and neglect, teen sexual activity, and teen suicide.

The third purpose is to evaluate approaches and disseminate findings to encourage replication of effective approaches to achieving the desired outcomes for both parents and children.
Definitions (Section 442 of new Part C) No provision. Declares the terms "Indian tribe" and "tribal organization" to have the meanings given them in subsections (e) and (l), respectively, of Section 4 of the Indian Self-Determination and Education Assistance Act.
Competitive grants for service projects (Section 443 of new Part C) No provision. Generally authorizes the HHS Secretary to make grants for FY2003 through FY2007 to public and nonprofit community entities, including religious organizations, and to Indian tribes and tribal organizations, for demonstration service projects and activities designed to test the effectiveness of various approaches to accomplish the four specified objectives.

Requires that in order to qualify for a full-service project grant an entity (applicant) must submit an application to the Secretary that contains the following elements:
Project description - A description of the project and how it will be carried out, including the geographical area to be covered and the number and characteristics of clients to be served, and how it will address each of the four specified objectives; and of how the entity or its contractor will self-evaluate the project.
Experience and qualifications - A demonstration of the applicant's ability to carry out the project, and such other qualifications as the Secretary may require.
Addressing child abuse and domestic violence - A description of how the applicant will address child abuse and domestic violence, including how the applicant will coordinate with state and local child protective service and domestic violence programs.
Addressing concerns relating to substance abuse and sexual activity - A commitment to make available to each individual participating in the project education about alcohol, tobacco, and other drugs, and about the health risks associated with abusing such substances, and information about diseases and conditions transmitted through substance abuse and sexual contact, including HIV/AIDS, and to coordinate with providers of services addressing such problems, as appropriate.
Coordination with specified programs - An undertaking to coordinate, as appropriate, with state and local entities responsible for the Temporary Assistance for Needy Families (TANF), Welfare-to-Work (W-tW), Child Support Enforcement (CSE), and Child Welfare Service programs under Title IV of the Social Security Act, including programs under Title I of the Workforce Investment Act of 1998 (including the One-Stop delivery system), and such other programs as the Secretary may require.
Records, reports, and audits - An agreement to maintain records, make reports, and cooperate with reviews or audits as required by the Secretary.
Self-initiated evaluation - If the applicant elects to contract for independent evaluation of the project (part or all of the cost of which may be paid for using grant funds), a commitment to submit to the Secretary a copy of the evaluation report by 30 days after completion of the report and not more than one year after completion of the project.
Cooperation with Secretary's oversight and evaluation - An agreement to cooperate with the Secretary's evaluation of the project, by means including random assignment of clients to service recipient and control groups, if determined appropriate; and also agreement to give the Secretary access to project staff and clients, and project documents and records.

Requires that in order to qualify for a limited purpose grant of less than $25,000 per fiscal year, an entity (applicant) must submit an application to the Secretary that contains the following elements:
Project description - A description of the project and how it will be carried out, including the number and characteristics of clients to be served, the proposed duration of the project, and how it will address at least one of the four specified objectives.
Qualifications - Such information as the Secretary may require as to the capacity of the entity to carry out the project, including any previous experience with similar activities.

Coordination with related programs - As required by the Secretary in appropriate cases, an undertaking to coordinate and cooperate with state and local entities responsible for specific programs relating to the objectives of the project, including, as appropriate, jobs programs and programs serving children and families.
Records, reports, and audits - An agreement to maintain such records, make such reports, and cooperate with such reviews or audits as the Secretary may find necessary for purposes of oversight of project activities and expenditures.
Cooperation with Secretary's oversight and evaluation - An agreement to cooperate with the Secretary's evaluation of projects assisted under this section, by means including affording the Secretary access to the project and to project-related records and documents, staff and clients.

Stipulates that in awarding grants, the Secretary must seek to achieve a balance among entities of differing sizes, entities in differing geographic areas, entities in urban and in rural areas, and entities employing differing methods of achieving the four specified objectives. It further provides that the Secretary may give preference to projects in which a majority of the clients to be served are low-income fathers.

Provides that the specified federal grant funds may be used for up to 80% of the annual costs of full-service projects (or up to 90%, if the entity demonstrates circumstances limiting the entity's ability to secure non-federal resources), and for up to 100% of annual costs for limited-purpose projects. The non-federal share may be in cash or in kind.
Multi-city, multi-state demonstration projects (Section 444 of new Part C) No provision. Generally allows the HHS Secretary to make multi-city, multi-state demonstration project grants for FY2003 through FY2007 to eligible entities (described below) for two multi-city, multi-state projects demonstrating approaches to achieving the four specified objectives. One of the projects is required to test the use of married couples to deliver program services.

Provides that an entity eligible for a multi-city, multi-state grant must be a national nonprofit fatherhood promotion organization with substantial experience in designing and successfully conducting programs meeting the three purposes described earlier, and with experience in simultaneously conducting such programs in more than one major metropolitan area in more than one state, and in coordinating, when appropriate, with state and local government agencies (including agencies responsible for child support enforcement and workforce development) and private, and nonprofit agencies (including community-based and religious organizations).

Requires that in order to qualify for a multi-city, multi-state demonstration project grant, an entity (applicant) must submit an application to the Secretary that contains the following elements:
Qualifications - An entity must meet the eligible entity requirements described above. Further, the application must include any other information that Secretary may find necessary to demonstrate the entity's capacity to carry out the project, including the entity's ability to provide the non-federal share of project resources.
Project description - A description of and commitments concerning the project design, including the following elements.
In general - A detailed description of the project, which (a) provides for projects to be conducted in at least three major metropolitan areas; (b) states how it will address each of the four specified objectives; (c) demonstrates that there are sufficient potential clients to permit random assignment to service recipient and control groups; and (d) demonstrates that the project will direct a majority of resources to serving low-income fathers (but need not employ means-testing).

The project description must include an agreement that the entity will cooperate with the Secretary's and evaluator's oversight and evaluation of the project, by means including providing access to the project and to project-related records and documents; and will, in consultation with the evaluator and as required by the Secretary, modify the project design, initially and subsequently (including by providing for random assignment), as necessary to facilitate oversight and evaluation and to make appropriate mid-course adjustment in the project design indicated by interim evaluations; and will submit revised descriptions of modified project designs to the Secretary.

Addressing child abuse and domestic violence - A description of how the applicant will address child abuse and domestic violence, including how the applicant will coordinate with state and local child protective service and domestic violence programs.

Addressing concerns relating to substance abuse and sexual activity - A commitment to make available to each individual participating in the project education about alcohol, tobacco, and other drugs, and about the health risks associated with abusing such substances, and information about diseases and conditions transmitted through substance abuse and sexual contact, including HIV/AIDS, and to coordinate with providers of services addressing such problems, as appropriate.

Coordination with specified programs - An undertaking to coordinate, as appropriate, with state and local entities responsible for the Temporary Assistance for Needy Families, Welfare-to-Work, Child Support Enforcement, and Child Welfare Service programs under Ttitle IV of the Social Security Act, including programs under Title I of the Workforce Investment Act of 1998 (including the One-Stop delivery system), and such other programs required by the Secretary.

Records, reports, and audits - An agreement to maintain records, make reports, and cooperate with reviews or audits required by the Secretary.

Provides that federal grant funds for multi-city, multi-state demonstration projects may be used for up to 80% of annual costs of the demonstration projects. The non-federal share may be in cash or in kind.
Evaluation (Section 445 of new Part C) No provision. Authorizes the Secretary, directly or by contract or cooperative agreement, to evaluate the effectiveness of the selected competitive grants for service projects and the selected multi-city, multi-state demonstration projects from the standpoint of the four specified objectives.

Requires that evaluations under this section use assessment methods including, to the maximum extent feasible, random assignment of clients to service delivery and control groups; to describe and measure the effectiveness of the projects in achieving their goals; and describe and assess, their impact on marriage, parenting, domestic violence, child abuse, money management, employment and earnings, payment of child support, and child well-being, health and education.

Requires the Secretary to publish an implementation evaluation report covering the first 24 months of the activities under this proposed legislation to be completed by 36 months after initiation of such activities; and a final report on the evaluation to be completed by September 30, 2010.
Projects of national significance (Section 446 of new Part C) No provision. Authorizes the HHS Secretary, by grant, contract or cooperative agreement, to carry out projects and activities of national significance relating to fatherhood promotion, including the following elements.

Collection and dissemination of information - Assisting states, communities, and private entities, including religious organizations, in efforts to promote and support marriage and responsible fatherhood by collecting, evaluating, developing, and making available (through the Internet and by other means) to all interested parties information regarding approaches to accomplishing the four specified objectives.
Media campaign - Developing, promoting, and distributing to interested states, local governments, public agencies, and private nonprofit organizations, including charitable and religious organizations, a media campaign that promotes and encourages involved, committed and responsible fatherhood and married fatherhood .
Technical assistance - Providing technical assistance, including consultation and training, to public and private entities, including community organizations and faith-based organizations, in the implementation of local fatherhood promotion programs.

Research - Conducting research related to the three purposes described earlier.
Nondiscrimination (Section 447 of new Part C) No provision. The projects and activities assisted must be made available on the same basis to all fathers and expectant fathers able to benefit from such projects and activities, including married and unmarried fathers and custodial and non-custodial fathers, with particular attention to low-income fathers, and to mothers and expectant mothers on the same basis as to fathers.
Authorization of appropriations; reservation for certain purpose (Section 448 of new Part C) Not applicable. Appropriations of $20 million for each of FY2003 through FY2007 are authorized.

Not more than 15% of the annual appropriations shall be available for the costs of the multi-city, multi-state demonstration projects under Section 444, evaluations under Section 445, and projects of national significance under Section 446.

Title II - Child Care
Entitlement funding
[Section 201] 		Entitles states to a basic block grant based on FY1992-FY1995 expenditures in welfare-related child care. Mandatory funds above this amount are provided to states on a matching basis. Appropriates entitlement (mandatory) funds for FY1997 through FY2002. ($2.717 billion for FY2002). Appropriates $2.717 billion in entitlement (mandatory) funds for each of fiscal years 2002 through 2007.

Title III - Child Support
Federal matching funds for limited pass through of child support payments to families receiving TANF
[Section 301]		 While the family receives TANF benefits, the state is permitted to retain any current child support payments and any assigned arrearages it collects up to the cumulative amount of TANF benefits which has been paid to the family. In other words, the state can decide how much, if any, of the state share (some, all, none) of the child support payment collected on behalf of TANF families to send to the family.

The state is required to pay the federal government the federal share of the child support collected.

 Same as current law.

Provides federal matching funds for the cost of the child support pass through (up to the greater of $100 per month or $50 over the state's stipulated child support pass through as of December 31, 2001) for families that receive TANF benefits. To obtain the federal matching funds, the state has to disregard the amount passed through in determining the TANF benefit amount. This provision would take effect beginning October 1, 2004.
State option to pass through all child support payments to families that formerly received TANF
[Section 302]		 Current child support payments must be paid to the family if the family is no longer on TANF.

With respect to former TANF families:

Since October 1, 1997, child support arrearages that accrue after the family leaves TANF also are required to be paid to the family before any monies may be retained by the state.

With respect to former TANF families: Beginning October 1, 2000, child support arrearages that accrued before the family began receiving TANF also are required to be distributed to the family first.

However, if child support arrearages are collected through the federal income tax refund offset program, the family does not have first claim on the arrearage payments. Such arrearage payments are retained by the state and the federal government.

 Simplifies child support distribution rules to give states the option of providing families that have left TANF the full amount of the child support collected on their behalf (i.e., both current child support and child support arrearages). The federal government would share with the states the costs of paying child support arrearages to the family first. This provision would be effective beginning October 1, 2004.
Mandatory review and adjustment of child support orders for families receiving TANF
[Section 303]		 Federal law requires that the state have procedures under which every 3 years the state review and adjust (if appropriate) child support orders at the request of either parent, and that in the case of TANF families, the State review and update (if appropriate) child support orders at the request of the state Child Support Enforcement (CSE) agency or of either parent. Requires states to review and, if appropriate, adjust child support orders in both TANF and non-TANF cases every 3 years, at the request of either parent in both cases or the state CSE agency (in the case of a TANF family). This provision would take effect on October 1, 2004.
Mandatory fee for successful child support collection for family that has never received TANF

[Section 304]		 Federal law requires that non-welfare families must apply for CSE services, and states must charge an application fee that cannot exceed $25. In addition, states have the option of recovering costs in excess of the application fee. Such recovery may be from either the custodial parent or the noncustodial parent. Requires families that have never been on TANF to pay a $25 annual user fee when child support enforcement efforts on their behalf are successful. This provision would take effect on October 1, 2003.
Report on undistributed child support payments
[Section 305]		 No provision. Requires that within 6 months of enactment, the HHS Secretary must submit to Congress a report on the procedures states use to locate custodial parents for whom child support has been collected but not yet distributed because of a change of address. The report would be required to include recommendations on actions to expedite the payment of undistributed child support.
Use of new hire information to assist in administration of unemployment compensation programs
[Section 306]		 Federal law requires all employers in the nation to report basic information on every newly-hired employee to the state. States are then required to collect all this information in the State Directory of New Hires, to use this information to locate noncustodial parents who owe child support and to send a wage withholding order to their employer, and to (within 3 business days) report all information in their State Directory of New Hires to the National Directory of New Hires. Information in the State Directory of New Hires is used by State Employment Security Agencies (the agency that operates the State Unemployment Compensation program) to match against unemployment compensation records to determine whether people drawing unemployment compensation benefits are actually working. (Note that states currently have access to the new hire information only in their own state.) Authorizes State Employment Security Agencies (which are responsible for administering the Unemployment Compensation program) to request and receive information from the National Directory of New Hires (which includes information from all of the state directories as well as federal employers) in order to help detect fraud in the unemployment compensation system. This provision would take effect on October 1, 2003.
Immigration provisions
[Section 307]

(a)Nonimmigrant aliens ineligible to receive visas and excluded from admission for nonpayment of child support

 No provision. Stipulates that any non-immigrant alien is inadmissable to the United States if he or she owes child support arrearages in excess of $2,500 if the individual has not entered into an approved payment plan. This provision may be waived if the Attorney General (1) receives a request for the waiver from the court or administrative agency having jurisdiction over the judgment, decree, or order obligating the alien to pay support, or (2) determines that there are prevailing humanitarian or public interest concerns. This provision would take effect 180 days after enactment.
(b) Authorization to serve legal process in child support cases on certain arriving aliens No provision. Allows immigration officers to serve any alien who is applying for admission to the United States with court orders or summons regarding the applicant's obligation to pay child support. This provision would take effect 180 days after enactment.
(c) Authorization to share child support enforcement information to enforce immigration and naturalization law No provision. Stipulates that if the HHS Secretary receives a certification by the CSE agency that a non-immigrant alien owes in excess of $2,500 in child support arrearages, the HHS Secretary may alert the Secretary of State and the Attorney General so that they can carry out their responsibilities. Moreover, requires that the CSE state plan provide that the state CSE agency will have in effect a procedure for certifying to the HHS Secretary determinations that nonimmigrant aliens owe child support arrearages in excess of $2,500. The provision amending the CSE state plan would take effect beginning October 1, 2004. However, if state legislation is needed to implement the provision, the state plan would not be regarded as failing to comply with CSE state plan requirements for a specified period of time.
Decrease in amount of child support arrearage triggering passport denial
[Section 308]		 Federal law stipulates that the HHS Secretary is required to submit to the Secretary of State the names of noncustodial parents who have been certified by the state CSE agency as owing more than $5,000 in past-due child support. The Secretary of State has authority to deny, revoke, restrict, or limit passports to noncustodial parents whose child support arrearages exceed $5,000. Authorizes the denial, revocation, or restriction of passports to noncustodial parents whose child support arrearages exceed $2,500, rather than $5,000 as under current law. This provision would take effect on October 1, 2003.
Use of tax refund intercept program to collect past-due child support on behalf of children who are not minors
[Section 309]		 Federal law prohibits the use of the federal income tax offset program to recover past-due child support on behalf of non-welfare cases in which the child is not a minor, unless the child was determined disabled while he or she was a minor and for whom the child support order is still in effect. (Since its enactment in 1981 (P.L. 97-35), the federal income tax offset program has been used to collect child support arrearages on behalf of welfare families regardless of whether the children were still minors-as long as the child support order was in effect.) Permits the federal income tax refund offset program to be used to collect arrearages on behalf of non-welfare children who are no longer minors. This provision would take effect on October 1, 2004.
Garnishment of compensation paid to veterans for service-connected disabilities in order to enforce child support obligations
[Section 310]		 The disability compensation benefits of veterans are treated differently than most forms of government payment for purposes of paying child support. Whereas most government payments are subject to being automatically withheld to pay child support, veterans disability compensation is not subject to intercept. The only exception occurs when veterans have elected to forego some of their retirement pay in order to collect additional disability payments. The advantage of veterans replacing retirement pay with disability pay is that the disability pay is not subject to taxation. With this exception, which occurs rarely, the only way to obtain child support payments from veterans' disability compensation is to request that the Secretary of the Veterans Administration intercept the disability compensation and make the child support payments. Allows veterans' disability compensation benefits to be intercepted (withheld) and paid on a routine basis to the custodial parent if the veteran is 60 days or more in arrears on child support payments. This provision cannot be used to collect alimony and no more than 50% of any particular disability payment can be withheld. This provision would take effect on October 1, 2004.
Improving federal debt collection practices
[Section 311] 		Federal law stipulates that any federal agency that is owed a nontax debt (that is more than 180 days past-due) must notify the Secretary of the Treasury to obtain an administrative offset of the debt. Currently, Social Security payments can only be offset for Federal debt recovery. Expands the federal administrative offset program by allowing certain Social Security benefits to be offset to collect unpaid child support (on behalf of families receiving CSE [Title IV-D of the Social Security Act] services) in appropriate cases selected by the states.
Maintenance of technical assistance funding
[Section 312] 		Federal law authorizes the HHS Secretary to use 1% of the federal share of child support collected on behalf of TANF families the preceding year to provide to the states - information dissemination and technical assistance, training of state and federal staff, staffing studies, and related activities needed to improve CSE programs (including technical assistance concerning state automated CSE systems), and research demonstration and special projects of regional or national significance relating to the operation of CSE programs. Authorizes the HHS Secretary to use 1% of the federal share of child support collected on behalf of TANF families the preceding year, or the amount appropriated for FY2002, whichever is greater, to provide to the states - information dissemination and technical assistance, training of state and federal staff, staffing studies, and related activities needed to improve CSE programs (including technical assistance concerning state automated CSE systems), and research demonstration and special projects of regional or national significance relating to the operation of CSE programs.
Maintenance of Federal Parent Locator Service funding
[Section 313] 		Federal law authorizes the HHS Secretary to use 2% of the federal share of child support collected on behalf of TANF families the preceding year for operation of the Federal Parent Locator Service to the extent that the costs of the Federal Parent Locator Service are not recovered by user fees. Authorizes the HHS Secretary to use 2% of the federal share of child support collected on behalf of TANF families the preceding year, or the amount appropriated for FY2002, whichever is greater, for operation of the Federal Parent Locator Service to the extent that the costs of the Federal Parent Locator Service are not recovered by user fees.

Title IV - Child Welfare
Extension of authority to approve demonstration projects
[Section 401] 		Section 1130 (a)(1) and (2) permits the Department of Health and Human Services (HHS) Secretary to conduct demonstration projects that are likely to promote the objectives of the child welfare programs authorized under Title IV-B and Title IV-E. This authority is granted for FY1998 through FY2002. Extends the HHS Secretary's authorization to permit child welfare demonstration projects through FY2007.
Elimination of limitation on number of waivers
[Section 402]		 Section 1130(a)(2) limits to 10 the number of demonstration projects the HHS Secretary may grant in a single fiscal year. Removes the restriction on the number of demonstration projects the HHS Secretary may approve in each fiscal year.
Elimination of limitation on number of states that may be granted waivers to conduct demonstration projects on same topic
[Section 403]		 No current provision. However, HHS has expressed a "preference" for projects that "would test policy alternatives that are unique; that differ in their approach to serving families and children; [and] that differ in significant ways from other proposals."c Adds language to assert that the HHS Secretary may not refuse to grant a particular waiver of child welfare program rules on the grounds that the purpose of the waiver or demonstration project is similar to another waiver or demonstration project.
Elimination of limitation on number of waivers that may be granted to a single state for demonstration projects
[Section 404]		 No current provision. However, HHS has expressed a "preference" for projects "that are submitted by States that have not previously been approved for a child welfare demonstration project."d Adds language to assert that the HHS Secretary may not impose a limit on the number of waivers or demonstration projects that a single state is granted.
Streamlined process for consideration of amendments to and extensions of demonstration projects requiring waivers
[Section 405]		 No current statutory provision. Adds language to require the HHS Secretary to develop a "streamlined process" of considering amendments or extensions that states propose to their demonstration projects.
Availability of reports
[Section 406] 		Section 1130 (f)(1) and (2) provides that states conducting demonstration projects under a waiver granted by the HHS Secretary must obtain an evaluation of the project's effectiveness and must provide interim and final evaluation reports to the HHS Secretary when and in the manner, that the secretary requests. Requires the HHS Secretary to make available (to states or other interested parties) any of the demonstration project evaluation reports that it requests and any demonstration project evaluation or report made by the HHS Secretary, which may promote best practices and program improvements.
Technical correction
[Section 407] 		Section 1130(b)(1) states that the HHS Secretary may not waive compliance with certain provisions under Title IV-B and IV-E, including those provisions under "Section 422(b)(9)." Changes this reference to Section 422(b)(10). This technical correction is necessary because the cited language was renumbered in 1997 (P.L. 105-33) without the necessary conforming amendment to Section 1130 of the Social Security Act.

Title V - Supplemental Security Income
Review of state agency blindness and disability determination
[Section 501]		 No provision Requires the Commissioner of Social Security to review determinations made by state agencies that adult applicants became blind or disabled as of a specified onset date. Requires review of at least 15% of determinations made in FY 2003, 30% of those made in FY2004 and 50% of those made in FY2005.

Title VI - Waivers
State program demonstration projects
[Section 601]		 No provision. Establishes broad new waiver authority that would allow the Secretaries of HHS and Labor, upon request of a state, to waive rules in any program operated through their departments (except for Medicaid). Waiver projects must not increase federal costs. The purpose would be to conduct demonstration projects or to integrate programs.

Title VII - Effective Date
Effective date
[Section 701]		 TANF state plan requirements and block grants took effect July 1, 1997, or earlier at state option. Unless otherwise specified, provisions take effect on October 1, 2002. If the Secretary determines that state legislation is required, more time is allowed (3 months after the first regular session of the legislature).