Order Code RL33157
CRS Report for Congress
Received through the CRS Web
Welfare Reauthorization:
A Side-By-Side Comparison of
Current Law, Senate Committee-Approved and
House Budget Reconciliation Bill Provisions
November 21, 2005
Gene Falk, Melinda Gish, Carmen Solomon-Fears, Emilie Stoltzfus
Specialists in Social Legislation
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

Welfare Reauthorization: A Side-By-Side Comparison
of Current Law, Senate Committee-Approved and
House Budget Reconciliation Bill Provisions
Summary
The 109th Congress is considering legislation to reauthorize and amend
programs that were created or revised in the 1996 welfare reform law. Early in 2005,
the Senate Committees on Finance and Health, Education, Labor, and Pensions
(HELP) reported their welfare reauthorization legislation (respectively, S. 667 and
S. 525). The House has included welfare reauthorization as part of its spending
budget reconciliation bill (the House-passed version of S. 1932).
Both the Senate Finance Committee and the House reconciliation bill would
reauthorize through FY2010 and revise the block grant of Temporary Assistance for
Needy Families (TANF). Both would include revisions in the TANF work
participation standards aimed to require more families on the welfare rolls to work
or participate in job preparation activities. The Senate bill would allow a broad range
of activities engaged in by recipients to count toward meeting these standards, while
the House bill would narrow the focus of activities to work or “workfare” outside of
a four-month period. Both the Senate committee and House reconciliation bills also
would establish $200 million per year in grants to promote “healthy” marriages.
Both the Senate committee and House reconciliation bills would extend and
increase funding for mandatory child care, though the size of the funding increase is
a major difference between the two proposals — $6 billion over five years in the
Senate bill and $0.5 billion over five years in the House bill. Both would also
reauthorize the Child Care and Development Block Grant (CCDBG), increasing its
authorization to $3.1 billion by FY2010, and would revise CCDBG rules, including
those related to making school-readiness a program goal and increasing the
percentage of funds to improve the quality of child care.
Both the Senate committee and House reconciliation bills would revise the
Child Support Enforcement program. Both would provide financing options for
states to pay more collected child support to families on TANF or who have left the
rolls. (Generally, federal and state governments keep child support collected for
TANF families as reimbursement for their welfare costs.) The Senate bill would
provide partial federal funding for child support passed through to families — up to
$400 per month for one child and $600 per month for two or more children. The
House bill would provide partial federal funding to states that increase the amount
of passed-through child support. The House reconciliation bill also would reduce
federal funding to the states to operate their child support programs. Both Senate
committee and House bills would also establish “responsible fatherhood” programs
to fund activities to increase the participation of noncustodial parents in their
children’s lives. The Senate committee bill would provide $50 million per year in
mandatory funding (and authorize another $26 million per year); the House
reconciliation bill would authorize (but not provide funding) for up to $20 million
per year. Several other, related programs are affected by either the Senate committee
or House reconciliation bills, or both. This report will be updated as needed.

Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Summary of Similarities and Differences in the Bills . . . . . . . . . . . . . . . . . . . . . . 2
Temporary Assistance for Needy Families Block Grant . . . . . . . . . . . . . . . . 3
TANF Funding Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Basic Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Supplemental Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Contingency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Bonus Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Uses of Grants and Program Requirements . . . . . . . . . . . . . . . . . . . . . . 5
Work Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Participation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Hours Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Creditable Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Marriage Promotion Grants and Family Formation Issues . . . . . . . . . . 8
Child Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Discretionary Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Mandatory Appropriation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Authority to Transfer TANF Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Use of Funds for Direct Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Option to Use Excess Funds for Increasing Payment Rates . . . . . . . . 10
Quality Set-Aside . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Definition of “Quality Activities” . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
State Plan Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Data Collection and Reporting Requirements . . . . . . . . . . . . . . . . . . . 11
Waivers in Response to Gulf Hurricanes . . . . . . . . . . . . . . . . . . . . . . . 11
Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Responsible Fatherhood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Child Support Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Enforcement Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
S. 667 and House Budget Reconciliation Bill:
Major Provisions Related to Child Support Enforcement . . . . . . 15
Assignment of Child Support Rights . . . . . . . . . . . . . . . . . . . . . . 15
Distribution of Child Support . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
TANF Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Former TANF Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Expansion of Collection/Enforcement Tools . . . . . . . . . . . . . . . . 18
Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Other Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Detailed Comparison of Senate Committee Bills
and the House Budget Reconciliation Bill . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Temporary Assistance for Needy Families (TANF) Block Grant . . . . . . . . 21
Findings and Goals and Purposes of TANF . . . . . . . . . . . . . . . . . . . . . 21

Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
TANF Goals and Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
TANF Financing Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
State Family Assistance Grants . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Supplemental Grant for Population Increases
in Certain States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Bonus to Reward Employment Achievement . . . . . . . . . . . . . . . 22
Bonus to Reward Reductions in Out-of-wedlock Births . . . . . . . 24
Contingency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Needy State Eligibility Criteria . . . . . . . . . . . . . . . . . . . . . . 24
Financial Eligibility Requirements . . . . . . . . . . . . . . . . . . . 25
Contingency Fund Grant Amounts . . . . . . . . . . . . . . . . . . . 26
Tribal Eligibility for Contingency Funds . . . . . . . . . . . . . . . 26
Additional Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Social Service Capitalization . . . . . . . . . . . . . . . . . . . . . . . . 26
Car Ownership Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Transitional Jobs/business Links Grants . . . . . . . . . . . . . . . 27
Domestic Violence Prevention Grants . . . . . . . . . . . . . . . . . 29
Repeal of Federal Loan Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Maintenance of Effort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
General Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Transfer of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Carryover of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Use of Funds for Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Direct Funding and Administration by Indian Tribes . . . . . . . . . 32
Tribal Capacity Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Work Participation Requirements and Standards . . . . . . . . . . . . . . . . 33
Universal Engagement and
Family Self-sufficiency Plan Requirements . . . . . . . . . . . . . 33
Sanctions Against Individuals for Work Refusal . . . . . . . . . . . . 36
Work Participation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Caseload Reduction Credit . . . . . . . . . . . . . . . . . . . . . . . . . 38
Employment Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Study of the Employment Credit . . . . . . . . . . . . . . . . . . . . . 42
Calculation of Participation Rates . . . . . . . . . . . . . . . . . . . . . . . . 42
Infant Exemption from the Work Participation Rate . . . . . . 42
Excluding Families in Their First Month of
Assistance from the Work Participation Rate . . . . . . . 42
Treatment of Sanctioned Families in
the Work Participation Rate . . . . . . . . . . . . . . . . . . . . . 43
Penalty for Failing Participation Rate . . . . . . . . . . . . . . . . . . . . . 43
Countable Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
“Core” Activities. Activities Countable as
Sole or Primary Work Activities of Recipients. . . . . . 44
Qualified Activities. Activities that May Substitute
for, or be in Conjunction with,
Core Activities for a Limited Period of Time. . . . . . . . 45
Supplemental Activities. Activities Countable
Generally Only in Conjunction with
“Core” or “Qualified” Activities. . . . . . . . . . . . . . . . . . 45
Postsecondary Education . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Special Rules for Rehabilitative Activities . . . . . . . . . . . . . 47
Caring for a Disabled Family Member . . . . . . . . . . . . . . . . 49
Work Activities in Indian Areas of High Joblessness . . . . . 49
Numerical Limits on Vocational Education
and Teen Parents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Required Hours of Work Activity . . . . . . . . . . . . . . . . . . . . . . . . 49
Special Rule for Teen Parents . . . . . . . . . . . . . . . . . . . . . . . 50
Partial Work Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Extra Work Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Other Requirements with Respect to
Families Receiving Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Drug Testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Eligibility for Teen Parents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Displacement of Regular Workers . . . . . . . . . . . . . . . . . . . . . . . . 52
Disregard of Months Toward the TANF Time Limit
for Months Living in Indian Country Areas
with Joblessness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Marriage Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
TANF Goals and Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Funding for Marriage Promotion Matching Grants . . . . . . . . . . . 54
Allowable Activities for Marriage Promotion Grants . . . . . 55
Domestic Violence Provisions . . . . . . . . . . . . . . . . . . . . . . . 56
Requirements for Voluntary Participation . . . . . . . . . . . . . . 56
Voluntary Participation and Recipients
of TANF Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Performance Goals/reporting Requirements . . . . . . . . . . . . 57
Research and Demonstrations on Marriage Promotion . . . . . . . . 59
Provisions to Address Domestic Violence and
Voluntary Participation Issues for Research Funds . . . 59
State Plans, Data Reporting, Research (Other than
Marriage Promotion) and Other Provisions . . . . . . . . . . . . . . . . . 60
State Plan Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Participation of Faith-based Organizations
in Provision of Services . . . . . . . . . . . . . . . . . . . . . . . . 61
State Plan Requirement for Community Service
after Two Months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Measurable Performance Goals . . . . . . . . . . . . . . . . . . . . . . 61
Program Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Description of State Assistance Programs . . . . . . . . . . . . . . 62
Indian and Tribal Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Two-parent Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Description of Additional State Options
for the Work Requirements . . . . . . . . . . . . . . . . . . . . . 63
Standard Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Rankings of States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Data Collection and Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Data Reporting on Work Participation . . . . . . . . . . . . . . . . 67
Data Reporting on Indians . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Reporting on Families Leaving TANF . . . . . . . . . . . . . . . . 67
Reports for Families Receiving
TANF-funded Child Care . . . . . . . . . . . . . . . . . . . . . . 68

Monthly State Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Annual State Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Annual Report on Program Performance . . . . . . . . . . . . . . . . . . . 68
HHS Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Information on Indians in the TANF Annual Report . . . . . . 69
Single Audit Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Study on Coordination of Data Elements in
the TANF and Workforce Investment Act. . . . . . . . . . . . . . 70
Research, Evaluations, and National Studies . . . . . . . . . . . . . . . . 70
Research on State Programs . . . . . . . . . . . . . . . . . . . . . . . . . 70
Indicators of Child Well-being . . . . . . . . . . . . . . . . . . . . . . 70
Research on Tribal Social Services Issues . . . . . . . . . . . . . . 71
Census Bureau Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Teen Pregnancy Resource Center . . . . . . . . . . . . . . . . . . . . . . . . 72
Best Practices for Dealing with Domestic Violence . . . . . . . . . . 73
Definition of Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
State Option to Make TANF Programs
Mandatory Partners with One-stop WIA Centers . . . . . . . . 73
Sense of the Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Enforcing Support of Immigrants by Sponsors . . . . . . . . . . . . . . 74
Child Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Overview, Goals and Administration . . . . . . . . . . . . . . . . . . . . . . . . . 74
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Lead agency designation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Authorization of appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Entitlement funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Puerto Rico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Amounts Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Territories and tribes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Infants and toddlers; telephone hotline . . . . . . . . . . . . . . . . 77
Transfer of TANF funds to CCDBG . . . . . . . . . . . . . . . . . . . . . . 77
Optional priority use of additional funds . . . . . . . . . . . . . . . . . . . 77
Application and plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Consumer education information . . . . . . . . . . . . . . . . . . . . . . . . . 77
Coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Certification of compliance with quality set-aside percentage . . 79
Strategy for addressing quality of child care available . . . . . . . . 79
Addressing special needs child care . . . . . . . . . . . . . . . . . . . . . . . 80
Meeting the needs of TANF population . . . . . . . . . . . . . . . . . . . 80
Redetermination procedures; protection for working parents . . . 80
Description of requirements for training in
early childhood development . . . . . . . . . . . . . . . . . . . . . . . . 81
Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Use of funds for a resource and referral system . . . . . . . . . . . . . . 81
Use of funds for direct services . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Activities to improve the quality of child care . . . . . . . . . . . . . . . . . . . 82
Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Training and professional development . . . . . . . . . . . . . . . . 82
School readiness activities . . . . . . . . . . . . . . . . . . . . . . . . . . 82

Provider retention and compensation . . . . . . . . . . . . . . . . . . 82
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Certification requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Report by the HHS Secretary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Submission deadline and other . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Use of resource and referral organizations for data collection . . 85
Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Definition of income eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Reports and audits from States to HHS . . . . . . . . . . . . . . . . . . . . . . . . 85
Quarterly reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Annual reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Other Child Care Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Rule of construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Enhancing security at child care centers in federal facilities . . . . 87
Small business child care grant program . . . . . . . . . . . . . . . . . . . 87
Waiver authority to assist states serving
families affected by the Gulf hurricanes . . . . . . . . . . . . . . . 87
Responsible Fatherhood Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Responsible Fatherhood Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Summary of the Responsible Fatherhood Program . . . . . . . . . . . . . . . 88
Prohibitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Child Support Enforcement (CSE) Program . . . . . . . . . . . . . . . . . . . . . . . . 94
Assignment and Distribution of Child Support for
TANF and Former TANF Families . . . . . . . . . . . . . . . . . . . . . . . 94
Assignment of child support rights . . . . . . . . . . . . . . . . . . . . . . . 94
Federal matching funds for limited pass-through of
child support payments to families receiving TANF . . . . . . 95
State option to pass through all child support payments
to families that formerly received TANF . . . . . . . . . . . . . . . 96
Mandatory review and adjustment of child support orders
for families receiving TANF . . . . . . . . . . . . . . . . . . . . . . . . 97
Report on undistributed child support payments . . . . . . . . . . . . . 98
Enforcement Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Decrease in amount of child support arrearage
triggering Passport denial . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Use of tax refund intercept program to collect past-due
child support on behalf of children who are not minors . . . 99
Garnishment of compensation paid to veterans for
service-connected disabilities in order to enforce
child support obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Improving federal debt collection practices . . . . . . . . . . . . . . . . 100
Identification and seizure of assets held by
multi-state financial institutions . . . . . . . . . . . . . . . . . . . . . 100
Information comparisons with insurance data . . . . . . . . . . . . . . 102
Tribal access to the Federal Parent Locator Service . . . . . . . . . 102
Claims upon longshore and harbor workers’ compensation
for child support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

State option to use statewide automated
data processing and information retrieval system
for interstate cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Requirement that state child support
enforcement agencies seek medical support
for children from either parent . . . . . . . . . . . . . . . . . . . . . . 105
Technical amendment relating to
information comparisons and disclosure to
assist in federal debt collection . . . . . . . . . . . . . . . . . . . . . 105
Financing Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Reduction in rate of reimbursement of
child support administrative expenses . . . . . . . . . . . . . . . . 106
Incentive payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Sense of the Senate provision . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Mandatory fee for successful child support collection
for family that has never received TANF . . . . . . . . . . . . . 107
Maintenance of technical assistance funding . . . . . . . . . . . . . . . 107
Maintenance of Federal Parent Locator Service
funding (FPLS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Grants to states for access and visitation programs . . . . . . . . . . 108
Reimbursement of Secretary’s costs of
information comparisons and disclosure for
enforcement of obligations on
higher education act loans and grants . . . . . . . . . . . . . . . . 109
Other Child Support Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Technical amendment relating to cooperative agreements
between states and Indian tribes . . . . . . . . . . . . . . . . . . . . . 110
State law requirement concerning the
Uniform Interstate Family Support Act (UIFSA) . . . . . . . 110
Timing of corrective action year for state noncompliance
with CSE program requirements . . . . . . . . . . . . . . . . . . . . 111
Notice to state child support enforcement agency from
health care plan administrator under certain
circumstances when a child loses health care coverage . . . 112
Authority to continue state program for monitoring and
enforcement of child support orders . . . . . . . . . . . . . . . . . 113
Technical correction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Child Welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Child welfare waivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Extension of authority to approve demonstration projects . . . . 113
Elimination of the number of child welfare waivers
allowed per fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Number of states that may be granted
child welfare waivers on the same topic . . . . . . . . . . . . . . 114
Elimination of limitation on number of waivers that may
be granted to a single state for demonstration projects . . . 114
Process for consideration of amendments to and
extensions of demonstration projects requiring waivers . . 114
Availability of reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Other Child Welfare Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Additional foster care and adoption assistance funding
for Puerto Rico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

Tribal foster care and adoption assistance programs . . . . . . . . . 115
Eligibility for Foster Care and Adoption Assistance
Maintenance Payments (“Rosales” Provision) . . . . . . . . . 116
Transitional Medical Assistance (TMA) . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Extension of Program Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Revision of TMA rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Supplemental Security Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Review of Disability Determinations . . . . . . . . . . . . . . . . . . . . . . . . . 120
SSI Eligibility for Asylees, Refugees, and
Certain Other Noncitizens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Payment of Lump-Sum Benefit Installments under SSI . . . . . . . . . . 120
Abstinence Education State Grant Program . . . . . . . . . . . . . . . . . . . . . . . . 120
Extension of Program Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Social Services Block Grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Program Integration Waivers (“Superwaiver”) . . . . . . . . . . . . . . . . . . . . . 121
Authority for Program Integration Waivers . . . . . . . . . . . . . . . . . . . . 121
Covered Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
General Requirements that Cannot Be Waived . . . . . . . . . . . . . . . . . 122
Program-Specific Requirements that Cannot Be Waived . . . . . . . . . 123
Application and Approval Process . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Cost Neutrality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Evaluation Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
List of Tables
Table 1. Welfare Reauthorization Provisions Included in
Senate Committee Bills and House Budget Reconciliation Bill . . . . . . . . . . 2
Table 2. Comparison of Current Law with S. 667/525 and
the House Budget Reconciliation Bill Welfare Provisions . . . . . . . . . . . . . 21
Acknowledgments
This report benefitted from the contribution of Scott Szymendera of the
Domestic Social Policy Division.

Welfare Reauthorization: A Side-By-Side
Comparison of Current Law,
Senate Committee-Approved and
House Budget Reconciliation Bill Provisions
Introduction
The 109th Congress is considering legislation to reauthorize and amend
programs that were created or revised in the 1996 welfare reform law.1 Early in the
109th Congress, the Senate Finance and Health, Education, Labor, and Pensions
Committees approved and reported their welfare reauthorization legislation
(respectively, S. 667 and S. 525). Neither bill has yet seen action in the full Senate.
In the House, a welfare reauthorization proposal (H.R. 240), introduced by the House
Republican Leadership, has also failed to reach the floor.
On November 18, 2005, the House passed its budget reconciliation bill (S.
1932), which includes welfare reauthorization legislation similar to that which passed
the House in 2002 and 2003. (The House-passed version of S. 1932 is H.R. 4241 as
amended and approved by the House.) Welfare reauthorization legislation was not
included in the Senate-passed reconciliation bill.
The original funding authority for the block grant of Temporary Assistance for
Needy Families (TANF), the Child Care and Development Block Grant (CCDBG),
abstinence education, and transitional medical assistance (TMA) under Medicaid
expired on September 30, 2002. Funding and program authority for TANF,
mandatory child care, abstinence education, and TMA have been continued by
special temporary extension legislation since then, with the latest extension set to
expire on December 31, 2005. CCDBG discretionary funding has been provided,
absent authorization, in annual appropriation bills. Also included in “welfare
reauthorization” legislation have been initiatives to create a responsible fatherhood
grant program, revise the Child Support Enforcement program, amend child welfare
programs, and make some changes to Supplemental Security Income, as well as
create new “superwaiver” authority.
1 For a discussion of issues in reauthorizing welfare programs, see CRS Issue Brief IB10140
Welfare Reauthorization, Overview of the Issues, by Gene Falk, et al. Updated regularly.

CRS-2
Summary of Similarities and Differences in the Bills
Most of the welfare reauthorization provisions approved early in 2005 have
counterparts in the House budget reconciliation bill. There are notable exceptions.
S. 667 (the Finance Committee bill) would extend the abstinence education state
grant program and revise and extend TMA through FY2010, whereas the House
budget reconciliation bill includes none of those provisions. Further, the House
reconciliation bill, unlike the Senate committee bills, includes some additional
provisions that would reduce spending, including proposals to: reduce federal
matching funds for state Child Support Enforcement programs and to revise foster
care and adoption assistance eligibility rules to negate a court ruling that expanded
eligibility for these programs in certain states.
Table 1 summarizes what provisions are included in the Senate committee bills
and the House reconciliation bill. Note that when provisions are included in both,
they still may differ significantly in their details. These differences are the subject
of the remainder of this report.
Table 1. Welfare Reauthorization Provisions Included in Senate
Committee Bills and House Budget Reconciliation Bill
Senate-Committee
House Budget
Provision
Approved Legislation
Reconciliation Bill
Extend TANF funding
Yes — S. 667.
Yes.
through FY2005
Revise TANF Work
Yes — S. 667.
Yes.
Requirements
Establish “Marriage
Yes — S. 667.
Yes.
Promotion Grants” within
TANF
Increase Mandatory Child
Yes — S. 667 increases
Yes — $0.5 billion
Care Funding
mandatory child care
increase over five years.
funding by $6 billion over
five years.
Reauthorize and amend
Yes — S. 525.
Yes.
the Child Care and
Development Block Grant
Establish “Responsible
Yes — S. 667.
Yes.
Fatherhood” programs.
Increase amount of child
Yes — S. 667.
Yes.
support passed-through to
families receiving TANF.
Reduce the federal share
No.
Yes.
of funding for state child
support programs.

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Senate-Committee
House Budget
Provision
Approved Legislation
Reconciliation Bill
Extend and revise child
Yes — S. 667.
Yes.
welfare demonstration
authority
Revise eligibility rules for
No.
Yes.
foster care and adoption
assistance.
Extend abstinence
Yes — S. 667.
No.
education state grants
through FY2010.
Extend transitional
Yes — S. 667.
No.
medical assistance (TMA)
for families that leave
welfare for work.
Program integration
Yes — S. 667.
Yes.
waivers (“Superwaiver”)
Source: Congressional Research Service (CRS).
Temporary Assistance for Needy Families Block Grant
The Senate-committee and House welfare reauthorization proposals have many
similarities, with both extending basic TANF funding at current levels through
FY2010 and incorporating President Bush’s proposal to provide categorical
“marriage promotion” grants.2 Both bills also raise TANF work participation
standards, though the two differ in terms of how much more work would be required
and what activities count toward the participation standards.
TANF Funding Provisions. Both the Senate and House bills have very
similar funding provisions, although they do differ in some details. The major
differences between the two proposals are in the contingency fund and bonuses.
Basic Funding. The 1996 welfare reform law (P.L. 104-193) entitled states
to a basic TANF block grant equal to peak expenditures in the pre-1996 welfare
programs during the FY1992 to FY1995 period. It also established a maintenance
of effort (MOE) requirement that states continue to spend at least 75% (80% if a state
failed TANF work participation requirements) of what they spent in these programs
2 The House budget reconciliation bill is organized by Titles reflecting each House
committee’s legislative change. TANF changes are found both in Title II, from the
Education and Workforce Committee, and Title VIII of the bill, from the Ways and Means
Committee. The two committees share jurisdiction over the TANF work requirements. In
most respects, the committees reported identical legislative language amending TANF work
requirements. The difference in the two committee’s proposals — reflecting a new
requirement that parents visit schools in the Education and Workforce provisions — is noted
in Table 2.

CRS-4
in FY1994. Cash welfare caseloads were at their peak in the mid-1990s; both the
basic TANF grant and the MOE are legislatively fixed: they did not change when
cash welfare caseloads declined in the mid- and late-1990s, nor did they increase
when caseloads in some states increased during the recent economic slump. Neither
the basic TANF block grant nor the MOE has been adjusted for inflation.
Both the Senate and House proposals would continue both the basic block grant
and the MOE at their current funding levels (without inflation or caseload
adjustment) through FY2010.
Supplemental Grants. During the consideration of legislation that led to the
1996 welfare law, fixed funding based on historical expenditures was thought to
disadvantage two groups of states: (1) those that experience relatively high
population growth; and (2) those that had historically low grant levels relative to
poverty in the state. Therefore, additional funding in the form of supplemental grants
was provided to states that met criteria of high population growth and/or low historic
grants per poor person. Supplemental grants have been provided to 17 states:
Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Louisiana,
Mississippi, Montana, New Mexico, Nevada, North Carolina, Tennessee, Texas, and
Utah.
Currently, supplemental grants total $319 million per year. Both the Senate and
House proposals would continue supplemental grants for the same 17 states at the
current funding level through FY2009 (unlike other grants, which expire in
FY2010).
Contingency Funds. The fixed basic grant under TANF also led to concerns
of inadequate funding during economic downturns. TANF includes a contingency
fund, which is designed to provide extra matching grants to states that meet criteria
of economic need (based on unemployment rates and food stamp caseloads) and have
state expenditures in excess of their FY1994 level.
The two bills differ substantially in their proposed revisions to the TANF
contingency fund. The House budget reconciliation bill would continue the fund
under existing rules, with some relatively minor modifications: allowing some
additional state spending to count toward meeting the FY1994 funding level
threshold and modifications to increase grants for states that qualify for funds for
only part of the year.
The Senate Finance Committee proposal fully revamps the contingency fund.
It would eliminate the requirement that states increase expenditures from their own
funds above the regular TANF MOE level and would eliminate the matching
requirements. Instead, it requires that unspent TANF balances be below a certain
threshold to qualify for contingency funds. The Senate committee proposal would
base contingency grants on a portion of the estimated cost of increased cash
assistance caseloads. It also would revise the criteria of economic need for a state.
Bonus Funds. Current TANF law provides “bonus funds” to states that rank
high on a set of outcomes that seek to measure whether they are achieving the block
grant’s goals. It has a “High Performance Bonus” of $200 million per year for states

CRS-5
that rank high in achieving employment and certain other outcomes, as well as a
second $100 million per year bonus paid to the five states with the greatest reduction
in out-of-wedlock birth ratios that also have a decline in abortions.
The Senate Finance Committee bill scales back bonuses, by eliminating the
$100 million per year bonus for reductions in out-of-wedlock births, and reducing
and refocusing the “High Performance Bonus” on employment outcomes. Funding
reductions are used to “pay for” grants to promote healthy marriages and responsible
fatherhood initiatives (see a discussion of these initiatives, below). The House
budget reconciliation bill eliminates both TANF bonuses, in part to pay for grants to
promote healthy marriage and in part achieving budget reductions.
Uses of Grants and Program Requirements. Federal TANF grants and
MOE funds can be used for a wide range of benefits, services, and activities to assist
low-income families with children and to further TANF goals of reducing
out-of-wedlock births and promoting two-parent families. TANF grants can also be
transferred to other block grant programs: up to 30% of the grant can be transferred
to the Child Care and Development Fund (CCDF) and to the Social Services Block
Grant. The limit on transfers to SSBG alone is set at 4.25% (though annual
appropriations have restored the SSBG transfer limit to its original limit of 10% set
in the 1996 welfare law). Within the overall 30% limit, federal TANF funds may
also be used as the state match for federal reverse commuter grants if the program
benefits welfare families.
Both bills would set the SSBG transfer limit permanently at 10%. The House
budget reconciliation bill would raise the overall transfer limit to 50%; the Senate
Finance Committee proposal would retain the current 30% transfer limit.
Both bills include provisions to ease some rules regarding use of TANF funds.
Both House and Senate bills would:
! Allow states to use carryover TANF funds for any TANF benefit and
service. Current law restricts the use of carryover funds for the
provision of “assistance.”
! Narrow the definition of “assistance” to exclude all child care and
transportation aid. TANF funds spent on assistance trigger certain
program requirements, such as work requirements, time limits,
assignment of child support payments, and data reporting. Under
current regulations, child care and transportation aid for nonworking
families is counted as assistance and triggers these requirements.
The bills would eliminate such aid from the definition of
“assistance,” freeing from these requirements nonworking families
that receive only child care or transportation aid.
Work Requirements. Both the Senate Finance Committee bill and the
House budget reconciliation bill incorporate the Bush Administration’s “universal
engagement” proposal, which requires states to develop a self-sufficiency plan for all
TANF adult recipients to monitor progress toward that plan. The House budget

CRS-6
reconciliation bill also requires states to end benefits (“full family sanction”) for
families that fail to comply with work participation rules.
Both the Senate Finance Committee bill and House budget reconciliation bill
would substantially revise TANF work participation standards. Both bills would
raise work participation standards that states must meet from the current law’s
standard of 50% to 70%, raise the required hours of working to receive full credit and
provide partial credit for participating families that do not meet the full credit
standard, and revise the list of activities that recipients may participate in for states
to receive credit toward TANF standards. However, the bills differ in how they do
these three things.
Participation Standards. Current law requires states to have a specified
percentage of their families with an adult recipient (or minor head of household)
participating in creditable work activities. The current participation standard is 50%.
States are subject to an additional participation rate standard for two-parent families,
currently 90%. The participation rate standards may be reduced for caseload
reductions (not attributable to policy changes) that occurred since enactment of
welfare reform (FY1995). This “caseload reduction credit” has had a large effect on
participation standards, reducing the standard considerably from its statutory rate.
In FY2003, the standard was reduced to 0% for 20 states.
Both the Senate Finance Committee bill and the House budget reconciliation bill
would raise the work participation standard for all families to 70% by FY2010, and
eliminate the separate standard for two-parent families. Both bills would also change
the credits that reduce these standards from their statutory rate (i.e., reduce the 70%
standard to a lower rate), but they do so in different ways. The House bill would
retain, but revise, the current law caseload reduction credit so that caseload change
would be measured from a more recent year (rather than the pre-welfare reform
caseload level of 1995). Ultimately, caseload reduction would be measured based
on the most recent four years. The House bill also includes a provision to give an
additional credit to states that achieved a caseload reduction of 60% or more from
FY1995 to FY2001.
The Senate Finance Committee bill retains the current caseload reduction credit
for FY2006 and FY2007, but beginning in FY2008 would replace the caseload
reduction credit with a credit for employed welfare leavers. The bill would also cap
all credits against the participation standard, so that the minimum effective standard
would be 10% in FY2006, 20% in FY2007, 30% in FY2008, 40% in FY2009, and
50% in FY2010. There is no such minimum effective standard in the House bill.
Hours Standards. Current law requires that a family be considered
participating only if it participates for a minimum number of hours per week in a
month. Under current law, 20 hours are required for single parents with a pre-school
child (under the age of 6), and 30 hours are required for other families. Higher hours
are set for the purposes of the two-parent work participation rate.
Both the Senate Finance Committee bill and the House budget reconciliation bill
raise the hours standards. The House bill incorporates a 40-hour workweek standard
for full credit, but would also provide “partial” credit for families with at least 24

CRS-7
hours of participation. No special lower-hour standard would be provided for single
parents with preschoolers.
The Senate Finance Committee bill also raises the hours standard for full credit,
but to a lesser extent than proposed in the House bill. Single parents with a
pre-school child would be given full credit for participation at 24 hours per week, and
other single-parent families would be given full credit at 34 hours per week. Partial
credit for single parent families would be provided at 20 hours per week. Higher
hours requirements would apply to two-parent families.
Creditable Activities. Current law lists 12 activities that may be counted
toward TANF work participation standards. The bulk of countable participation is
in a subset of “core” activities focused on work, time-limited job search (countable
for six weeks in a fiscal year, 12 weeks if criteria of economic need are met),
time-limited vocational educational training (12 months in a lifetime), and
community service and work experience. In meeting the general 30-hour-per-week
standard, hours in educational activities are countable only for families who are also
participating in at least 20 hours per week of “core” activities. Post-secondary
education, other than that considered “vocational educational training,” does not
count toward current law federal TANF work participation standards.
The House budget reconciliation bill and the Senate Finance Committee bill
differ significantly on the types of activities that are countable as core activities
toward the participation standards. The House bill narrows the list of core activities
by eliminating job search and vocational education. Instead, the bill would give
states almost total discretion to define activities that would be countable for three
months in a 24-month period (four months to complete training), but once those
months are exhausted, the only activities that would count toward the “core” work
participation standards are work, on-the-job training, community service, or work
experience. Moreover, since job search and vocational education would be countable
as sole or primary activities only during the three (or four) months that the state
would have discretion, any weeks of participation in job search reduce the number
of weeks that vocational education counts toward the participation standards.
On the other hand, the Senate Finance Committee bill retains the current law list
of core activities. It too provides states additional discretion by permitting states to
count an expanded list of activities for three months in a 24-month period (longer for
rehabilitative activities). However, this additional discretion is provided in addition
to, rather than instead of, six weeks of job search and 12 months of vocational
educational training, which are retained as “core” activities.
Both the House budget reconciliation bill and the Senate Finance Committee bill
would give states additional discretion in defining activities countable once a family
has met the “core” work requirement (generally, 24 hours per week in core activities).
The House bill would allow states to define activities for families with at least 24
hours in core activities; the Senate Finance Committee bill would allow states to
count an expanded set of activities for single-parent families with at least 24 hours
per week in core activities.

CRS-8
The Senate Finance Committee proposal includes some additional options for
counting participation in activities toward TANF work standards. It would allow
states to have up to 10% of their caseload enrolled in a special program of two- or
four-year undergraduate education or vocational educational training. This program
is modeled after the “Parents as Scholars” program that has operated in Maine using
TANF MOE funds. It also allows for participation in rehabilitative activities for
disabled persons (including treatment of drug and alcohol abuse) if they combine
rehabilitation with at least 10 hours of “core” activities and if the state develops a
collaborative relationship between agencies and entities providing rehabilitative
services and the state TANF agency. Additionally, the Senate Finance Committee
bill allows caring for a disabled family member to count as a work activity under
certain circumstances.
Marriage Promotion Grants and Family Formation Issues. Current
law allows states to use TANF funds for any activity “reasonably calculated” to
achieve a TANF purpose. One of the statutory purposes of TANF is to end
dependency of needy parents on government benefits, and one of the stated means
to end such dependency is “marriage.” Another of the statutory purposes of TANF
is to promote the formation and maintenance of two-parent families. “Promoting
marriage” is a currently allowable use of TANF funds.
Both the Senate Finance Committee and House budget reconciliation bills
would carve out special “marriage promotion grants” from existing TANF funding.
Both bills include $100 million in competitively awarded matching funds for states,
territories, and tribes for marriage promotion activities. The bills would allow states
to use other federal TANF funds or state funds as the match for these new marriage
promotion grants.
Both bills also would provide an additional $100 million for research and
demonstrations. The House budget reconciliation bill would require that these funds
be used “primarily” for marriage promotion; the Senate Finance Committee bill
would require that 80% of these funds be used for marriage promotion.
Marriage promotion activities listed in both bills are: public advertising
campaigns on the value of marriage and skills needed to increase marital stability and
health; education in high schools on the value of marriage; marriage education and
marriage and relationship skills programs for nonmarried parents or expectant
parents; pre-marital education on marriage for engaged couples; marriage
enhancement and marriage skills training for married couples; divorce education
programs; and marriage mentoring programs. Programs to reduce the disincentives
to marriage in need-based programs could be funded from these grants only if offered
in conjunction with other marriage activities.
Both bills have requirements that grantees of marriage promotion grants
consider domestic violence issues and that participation in marriage promotion
activities be voluntary. The Senate bill also includes a prohibition (not in the House
bill) against states sanctioning families receiving TANF assistance for not
participating in marriage promotion activities.

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Child Care
While the House budget reconciliation legislation consolidates a package of
provisions embodying “child care reauthorization” in a single bill3, at this point, on
the Senate side, reauthorization provisions remain divided between the two bills, S.
667 and S. 525 (The Caring for Children Act of 2005). The Finance Committee-
passed bill (S. 667) contains the proposed mandatory funding appropriation for Child
Care and Development Block Grant (CCDBG) programs, while the HELP
Committee-passed bill (S. 525) includes proposed discretionary funding
authorization, and all provisions relating to the reauthorization of the CCDBG Act.
Therefore, in the child care section of Table 2, most provisions in the Senate column
are drawn from S. 525, with the notable exception of the mandatory (or
“entitlement”) funding provision, which falls under the Finance Committee’s
jurisdiction, and is therefore included in S. 667. A summary of provisions included
in both House and Senate legislation follows, with more detail found in Table 2.

Discretionary Authorization. The discretionary portion of child care
funding is authorized by the Child Care and Development Block Grant Act (as
amended in 1996). Under current law, discretionary CCDBG funding is authorized
at $1 billion annually. However, actual appropriation levels, determined during the
annual appropriations process, have exceeded the authorized level (e.g., FY2005 =
$2.1 billion). Both the House budget reconciliation bill and S. 525 propose to
authorize discretionary funding at $2.3 billion in FY2006, rising by $200 million
each year, up to $3.1 billion in FY2010.
Mandatory Appropriation. Mandatory funding for the CCDBG was
preappropriated in Section 418 of the Social Security Act for FY1997-2002, as part
of the welfare law of 1996 (P.L. 104-193). A series of temporary extensions have
continued that funding at the FY2002 rate of $2.717 billion since the close of
FY2002. (The most recent extension runs through December 31, 2005.)
The House budget reconciliation bill proposes to increase mandatory child care
funding by $500 million over five years (FY2006- FY2010), appropriating $2.917
billion for FY2006, $2.767 billion for FY2007, $2.817 billion for FY2008, $2.867
billion for FY2009, and $2.917 billion for FY2010. (This reflects half of the $1
billion increase that had earlier been proposed in H.R. 240.) The Senate bill, S. 667,
proposes to increase mandatory funding by $6 billion over five years (FY2006-
FY2010), appropriating $3.617 billion for FY2006; $3.717 billion for FY2007;
$3.917 billion for FY2008; $4.017 billion for FY2009; and $4.317 billion for
FY2010. Puerto Rico would receive $75 million of the $6 billion, whereas under
current law (as well as the House bill), Puerto Rico receives no mandatory child care
funding.
3 Child care provisions submitted to the House Budget Committee by the Committee on
Ways and Means (i.e. the mandatory child care funding provisions) are found in title VIII
of the budget reconciliation bill whereas provisions recommended by the Committee on
Education and the Workforce (i.e. amendments to the CCDBG Act) are found in Title II.

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Authority to Transfer TANF Funds. Under current law, states have the
authority to transfer up to 30% of their annual TANF block grant to the CCDBG
(only 20% if they choose to transfer 10% to the Social Services Block Grant). S. 667
would maintain current law, whereas the House bill would allow states to transfer up
to 50% of their annual TANF grants to the CCDBG.
Use of Funds for Direct Services. Current law includes no provision
requiring a given percentage of funds appropriated under the CCDBG Act to be spent
on direct services. S. 525 would require that after the reservation of set-asides, at
least 70% of the funds remaining be used to fund direct services (as defined by the
state). The House bill has no comparable provision.
Option to Use Excess Funds for Increasing Payment Rates. S. 525
would allow states that receive funding above their FY2005 levels to use a portion
of the excess to support payment rate increases for providers and to establish tiered
payment rates. On a related note, the bill (S. 525) would also add to the statute
stricter requirements to set payment rates in accordance with biennial market rate
surveys.
Quality Set-Aside. Current law requires that at least 4% of each state’s total
CCDBG expenditures (from all sources — e.g., mandatory, discretionary, matching
funds) be used for quality activities, described as providing comprehensive consumer
education to parents and the public, activities that increase parental choice, and
activities designed to improve the quality and availability of child care in the state.
Both the House budget reconciliation bill and the HELP Committee’s S. 525
would raise the percentage of CCDBG funds that must be spent for quality activities
to a minimum of 6%.
Definition of “Quality Activities”. Both bills provide greater detail than
current law in terms of defining what is classified as a “quality activity.” In each,
categories of activities are outlined to include school readiness activities (including
activities to enhance early literacy); training and professional development for staff;
and initiatives or programs to promote or increase retention of qualified staff. The
categories reflect a new emphasis on school readiness as a goal of the CCDBG. The
Senate bill (S. 525) also specifies that quality funds could be spent on evaluating and
assessing the quality of programs, and their effectiveness in improving overall school
preparedness. While S. 525 clearly states that quality funds must be spent for any of
the six listed purposes, the House bill provides three broad categories, similar in topic
to those in S. 525, with a fourth, more general category of “other activities as
approved by the state.”
Eligibility. Federal law currently requires that children eligible for services
under the CCDBG must have family income that does not exceed 85% of the state
median (for a family of that size). However, states have the discretion to adopt
income eligibility limits below this federal maximum. Both the House budget
reconciliation bill and S. 525 propose to eliminate the federal maximum of 85% of
state median income (SMI) from the CCDBG law, replacing it with a provision
allowing states to set income eligibility levels (with no federal ceiling), with priorities
based on need.

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State Plan Requirements. Under current CCDBG law, states are required
to submit plans every two years, certifying that their CCDBG programs include
specified elements addressing areas such as parental choice, parental access,
consumer education, licensing, and health and safety requirements.
Both the House budget reconciliation bill and the HELP Committee’s S. 525
would amend current law to require that additional elements be certified in their state
plans. Areas that would be modified or added relate to providing consumer
education information; describing or demonstrating state coordination of child care
services with other early childhood education programs; certifying compliance with
the quality set-aside percentage requirement; and addressing special needs child care.
Unlike the House bill, S. 525 includes provisions requiring that in their state
plans, states demonstrate that the process for redetermining eligibility occur no more
frequently than every six months (with limited exceptions), and also that the state
plan describe any training requirements in effect for child care providers. The Senate
bill would also put into statute the requirement that the provider payment rates,
described in the state plan, be set in accordance with a statistically valid and reliable
biennial survey of market rates (without reducing the number of families served).
State plans would also be required to include the results of those surveys and to
contain a description of how the state will provide for timely payment to providers.
Results of the survey would also be required to be made available to the public no
later than 30 days after the survey’s completion.
Data Collection and Reporting Requirements. Current law specifies a
set of data reporting requirements for states to collect in the administration of their
CCDBG programs. States collect data on a monthly basis and submit to the
Department of Health and Human Services (HHS) disaggregated data on a quarterly
basis. An aggregate report is required to be submitted to HHS on an annual basis.
S. 525 would retain the quarterly reporting in current law, but would amend the
list of data elements that states would be required to collect on a monthly basis. (See
Table 2 for details.) It would also eliminate the separate annual report, instead
requiring that the fourth quarterly report include information on the annual number
and type of child care providers and the method of payment they receive. S. 667
would also extend CCDBG reporting to TANF-funded child care. The House bill
would retain current law, containing none of these provisions.
Waivers in Response to Gulf Hurricanes. The House budget
reconciliation bill would provide the Secretary of HHS with the authority to waive
or modify certain CCDBG provisions for states affected by Hurricanes Katrina and
Rita. Provisions that could be waived include those relating to the federal income
eligibility limits, the work requirements, states’ use of quality funds, and any
provision that prevents children designated as evacuees from receiving priority
services over any children not already receiving CCDBG services. No similar
provisions are included in S. 525.
Other Provisions. Titles II and III of S. 525 propose provisions that stand
apart from CCDBG law or Section 418 of the Social Security Act. Title II of the bill
contains provisions to enhance security at child care centers in federal facilities, and

CRS-12
Title III would establish a small business child care grant program, through which
competitive grants would be awarded to states for establishment and operation of
employer-operated child care programs. The House budget reconciliation bill
includes no similar provisions.
Responsible Fatherhood
To improve the long-term outlook for children in single-parent families, federal,
state, and local governments, along with public and private organizations, are
supporting programs and activities that promote the financial and personal
responsibility of noncustodial fathers to their children and increase the participation
of fathers in the lives of their children. These programs have come to be known as
“responsible fatherhood” programs. Most fatherhood programs include media
campaigns that emphasize the importance of emotional, physical, psychological, and
financial connections of fathers to their children. Most fatherhood programs also
include parenting education; responsible decision-making; mediation services for
both parents; providing an understanding of the CSE program; conflict resolution,
coping with stress, and problem-solving skills; peer support; and job-training
opportunities (skills development, interviewing skills, job search, job-retention skills,
job-advancement skills, etc.).
Sources of federal funding for fatherhood programs include TANF block grant
funds, TANF state Maintenance-of-Effort (MOE) funding, welfare-to-work funds,
Child Support Enforcement (CSE) funds, and Social Services Block Grant (Title XX)
funds. Even so, the federal government does not currently earmark a specific amount
of funding exclusively for responsible fatherhood programs.
Beginning with the 106th Congress, both the House and Senate have introduced
a number of bills that contain responsible fatherhood provisions, but so far none of
the bills have been passed by both Houses of Congress. In the 109th Congress, both
S. 667 and the House budget reconciliation bill would include funding for
responsible fatherhood grant programs.
S. 667 as approved by the Senate Finance Committee would establish five
components for the responsible fatherhood program for FY2006 through FY2010.
It would (1) appropriate $20 million for a grant program for up to 10 programs; (2)
appropriate $30 million for grants for eligible entities (local government, local public
agency, community-based or nonprofit organization, or private entity, including any
charitable or faith-based organizations, or Indian tribe or tribal organization) to
conduct demonstration programs; (3) authorize $5 million for a nationally recognized
nonprofit fatherhood promotion organization to develop and promote a responsible
fatherhood media campaign and establish a national clearinghouse to help states and
communities in their efforts to promote both marriage and responsible fatherhood;
(4) authorize a $20 million block grant for states to conduct responsible fatherhood
media campaigns (authorize $1 million of the $20 million for an evaluation); and (5)
authorize $1 million for a nationally recognized nonprofit research and education
fatherhood organization to establish a national resource center for responsible
fatherhood.

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The House Budget Reconciliation proposal as approved by the Committee on
Ways and Means would establish four components for the responsible fatherhood
program for FY2006 through FY2010. It would (1) authorize competitive grants for
responsible fatherhood projects to public and nonprofit community entities, including
religious organizations, and to Indian tribes and tribal organizations, for
demonstration service projects and activities designed to test the effectiveness of
various approaches to accomplish the four specified responsible fatherhood program
objectives — eligible entities would be allowed to apply for either full service grants
or limited purpose grants of $25,000 or less per fiscal year; (2) authorize funding for
two multicity, multistate fatherhood demonstration projects to be developed and
conducted by a national nonprofit fatherhood promotion organization; (3) authorize
funding for an evaluation of the competitive grant projects and the multicity,
multistate demonstration projects; and (4) authorize the Secretary of HHS by grant,
contract, or cooperative agreement to carry out projects and activities of national
significance relating to fatherhood promotion — such projects or activities could
include collection and dissemination of information, media campaigns, technical
assistance to public and private entities, and research. The bill would authorize $20
million for each of the years FY2006 through FY2010, and stipulates that no more
15% of the annual appropriations can be used for the multicity, multistate
demonstrations, the evaluations, and the projects of national significance.
The Committee on Education and the Workforce shared jurisdiction with the
Committee on Ways and Means with respect to fatherhood programs. The
Committee on Education and the Workforce’s fatherhood program is identical to that
of the Committee on Ways and Means except that it would include five components
rather than four and stipulate that no more than 35% of the $20 million annual
authorization could be used for the multicity, multistate demonstrations, the
economic incentives demonstrations, the evaluations, and the projections of national
significance. In addition to the four components in the Ways and Means Committee
proposal, the Committee on Education and the Workforce’s proposal would authorize
the HHS Secretary to make grants available for FY2006 through FY2010 for two to
five demonstration projects that test the use of economic incentives combined with
a comprehensive approach to addressing employment barriers to encourage
noncustodial parents to enter the workforce and to contribute financially and
emotionally to their children. The fatherhood demonstration projects would be
developed and conducted by a national nonprofit fatherhood promotion organization
that meets the qualifications specified in the bill. The bill would stipulate that out
of the set-aside monies, at least $5 million is to be allocated for the economic
incentive demonstration project.
Child Support Enforcement
The CSE program, Part D of Title IV of the Social Security Act, was enacted in
January 1975 (P.L. 93-647). The CSE program is administered by the Office of
Child Support Enforcement (OCSE) in the Department of HHS, and funded by
general revenues. All 50 states, the District of Columbia, Guam, Puerto Rico, and
the Virgin Islands operate CSE programs and are entitled to federal matching funds.
The following families automatically qualify for CSE services (free of charge):
families receiving TANF benefits (Title IV-A), foster care payments (Title IV-E), or
Medicaid coverage (Title XIX). Collections on behalf of families receiving TANF

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benefits are used to reimburse state and federal governments for TANF payments
made to the family. Other families must apply for CSE services, and states must
charge an application fee that cannot exceed $25. Child support collected on behalf
of nonwelfare families goes to the family (usually through the state disbursement
unit).
Services. The CSE program provides seven major services on behalf of
children: (1) parent location, (2) paternity establishment, (3) establishment of child
support orders, (4) review and modification of support orders, (5) collection of
support payments, (6) distribution of support payments, and (7) establishment and
enforcement of medical support.
Enforcement Techniques. Collection methods used by CSE agencies
include income withholding, intercept of federal and state income tax refunds,
intercept of unemployment compensation, liens against property, security bonds, and
reporting child support obligations to credit bureaus. All jurisdictions also have civil
or criminal contempt-of-court procedures and criminal nonsupport laws. Building
on legislation (P.L. 102-521) enacted in 1992, P.L. 105-187, the Deadbeat Parents
Punishment Act of 1998, established two new federal criminal offenses (subject to
a two-year maximum prison term) with respect to noncustodial parents who
repeatedly fail to financially support children who reside with custodial parents in
another state or who flee across state lines to avoid supporting them.
P.L. 104-193 required states to implement expedited procedures that allow
them to secure assets to satisfy an arrearage by intercepting or seizing periodic or
lump sum payments (such as unemployment and workers’ compensation), lottery
winnings, awards, judgements, or settlements, and assets of the debtor parent held by
public or private retirement funds, and financial institutions. It required states to
implement procedures under which the state would have authority to withhold,
suspend, or restrict use of driver’s licenses, professional and occupational licenses,
and recreational and sporting licenses of persons who owe past-due support or who
fail to comply with subpoenas or warrants relating to paternity or child support
proceedings. It also required states to conduct quarterly data matches with financial
institutions in the state in order to identify and seize the financial resources of debtor
noncustodial parents. P.L. 104-193 authorized the Secretary of State to deny, revoke,
or restrict passports of debtor parents. P.L. 104-193 also required states to enact and
implement the Uniform Interstate Family Support Act (UIFSA), and expand full faith
and credit procedures. P.L. 104-193 also clarified which court has jurisdiction in
cases involving multiple child support orders.
Financing. The federal government currently reimburses each state 66% of
the cost of administering its CSE program. It also refunds states 90% of the
laboratory costs of establishing paternity. In addition, the federal government pays
states an incentive payment to encourage them to operate effective programs. P.L.
104-193 required the HHS Secretary in consultation with the state CSE directors to
develop a new cost-neutral system of incentive payments to states. P.L. 105-200, the
Child Support Performance and Incentive Act of 1998, established a new cost-neutral
incentive payment system. The statutory limit of CSE incentive payments for
FY2005 is $446 million.

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S. 667 and House Budget Reconciliation Bill: Major Provisions
Related to Child Support Enforcement. Over the years, the CSE program has
evolved into a multifaceted program. While cost-recovery still remains an important
function of the program, other aspects of the program include service delivery and
promotion of self-sufficiency and parental responsibility.
The CSE program has helped strengthen families by securing financial support
for children from their noncustodial parent on a consistent and continuing basis and
by helping some families to remain self-sufficient and off public assistance by
providing the requisite CSE services. Child support payments now are generally
recognized as a very important income source for single-parent families. On average
child support constitutes 17% of family income for households that receive it (2001
data). Among poor families who receive it, child support constitutes about 30% of
family income (2001 data).
Both S. 667 and the House budget reconciliation bill would seek to improve the
CSE program and raise collections so as to increase the economic independence of
former welfare families and provide a stable source of income for all single-parent
families with a noncustodial parent. Although both bills share identical objectives
with respect to simplifying CSE assignment and distribution rules and strengthening
the “family-first” policies started in the1996 welfare reform law, the approaches used
differ. Both bills would revise some CSE enforcement tools and add others. This
section of the report does not discuss all of the CSE provisions included in S. 667
and the House bill. For a description of all of the CSE provisions in S. 667 as
reported by the Senate Finance Committee and the House budget reconciliation bill,
see Table 2 in the last section of this report.
The Congressional Budget Office (CBO) estimates that the Senate Finance
Committee-reported bill would increase federal outlays in the CSE program by $628
million over the period FY2006-FY2010, whereas the House budget reconciliation
bill would reduce federal outlays in the CSE program by $4.899 billion over the
period FY2006-FY2010. The following two CSE provisions in the House bill
comprise most of the budget reductions (i.e., savings): a phased-in reduction of the
matching rate for administrative expenses from 66% to 50%, which saves $3.8
billion over the five-year period; and an elimination of the federal match when states
spend CSE incentive payments (i.e., reinvest CSE incentive payments back into the
program), saving $1.6 billion over the five-year period.
Assignment of Child Support Rights. As a condition of receiving TANF
benefits, a family must assign their child support rights to the state. Assignment rules
determine who has legal claim on the child support payments owed by the
noncustodial parent. The child support assignment covers any child support that
accrues while the family receives TANF benefits as well as any child support that
accrued before the family started receiving TANF benefits. Assigned child support
collections are not paid to families, but rather this revenue is kept by states and the
federal government as partial reimbursement for welfare benefits. Nonwelfare
families who apply for CSE services do not assign their child support rights to the
state and thereby receive all of the child support collected on their behalf.

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An extremely important feature of the assignment process is the date on which
an assignment was entered. If the assignment was entered on or before September
30, 1997, then pre-assistance and during-assistance arrearages are “permanently
assigned” to the state. If the assignment was entered on or after October 1, 1997,
then only the arrearages which accumulate while the family receives assistance are
“permanently assigned.” The family’s pre-assistance arrearages are “temporarily
assigned” and the right to those arrearages goes back to the family when it leaves
TANF (unless the arrearages are collected through the federal income tax refund
offset program).
Under S. 667 as reported by the Senate Finance Committee, the child support
assignment would only cover any child support that accrues while the family receives
TANF benefits. This would mean that any child support arrearages that accrued
before the family started receiving TANF benefits would not have to be assigned to
the state (even temporarily) and thereby any child support collected on behalf of the
former-TANF family for pre-assistance arrearages would go to the family. The
House bill includes a similar provision.
Distribution of Child Support. Distribution rules determine the order in
which child support collections are paid in accordance with the assignment rules. In
other words, the distribution rules determine which claim is paid first when a child
support collection occurs. The order of payment of the child support collection is of
tremendous importance because in many cases past-due child support (i.e.,
arrearages) are never fully paid.
TANF Families. While the family receives TANF benefits, the state is
permitted to retain any current support and any assigned arrearages it collects up to
the cumulative amount of TANF benefits which has been paid to the family. The
1996 welfare law (P.L. 104-193) repealed the $50 required pass through and gave
states the choice to decide how much, if any, of the state share (some, all, none) of
child support payments collected on behalf of TANF families to send the family.
States also decide whether to treat child support payments as income to the family.
While states have discretion over their share of child support collections, P.L.
104-193 required states to pay the federal government the federal government’s share
of child support collections collected on behalf of TANF families. This means that
the state, and not the federal government, bears the entire cost of any child support
passed through to (and disregarded by) families. As of August 2004, 18 states were
continuing the $50 (or higher in one state) pass-through and disregard policy that had
been in effect pre-1996.
Both bills would provide incentives (in the form of federal cost sharing) to states
to direct more of the child support collected on behalf of TANF families to the
families themselves (often referred to as a “family-first” policy), as opposed to using
such collections to reimburse state and federal coffers for welfare benefits paid to the
families. However, the approaches of the bills differ with respect to the amount of
federal cost-sharing provided and whether to help states pay for the current cost of
their CSE pass-through and disregard policies or to encourage states to establish such
policies or increase the pass-through and disregard already in place.

CRS-17
Under S. 667 as reported by the Senate Finance Committee, the federal
government would share in the costs of the entire amount of pass-through and
disregard policies used by states. S. 667 would allow states to pay up to $400 per
month in child support collected on behalf of a TANF (or foster care) family ($600
per month to a family with two or more children) to the family and would not require
the state to pay the federal government the federal share of those payments. In order
for the federal government to share in the cost of the child support pass-through, the
state would be required to disregard (i.e., not count) the child support collection paid
to the family in determining the family’s TANF benefit.
Unlike S. 667, the House bill is intended to provide states with an incentive to
increase their pass-through and disregard policies. The House budget reconciliation
bill would allow states to increase the amount of collected child support they pay to
families receiving TANF benefits and would not require the state to pay the federal
government the federal share of the increased payments. The subsidized child
support pass-through payments would be the amount above any payments the state
was making on December 31, 2001. The House bill would limit the federal
government’s cost-sharing of the new pass-through payments to the greater of $100
per month or $50 per month more than the state previously was sharing with the
family. In order for the federal government to share in the cost of an increase in the
child support pass-through, the state would be required to disregard (i.e., not count)
the child support collection paid to the family in determining the family’s TANF
benefit.
Former TANF Families. Pursuant to the 1996 welfare reform law (P.L.
104-193), beginning on October 1, 2000, states must distribute to former TANF
families the following child support collections first before the state and the federal
government are reimbursed (the “family-first” policy): (1) all current child support,
(2) any child support arrearages that accrue after the family leaves TANF (these
arrearages are called never-assigned arrearages), plus (3) any arrearages that accrued
before the family began receiving TANF benefits. (Any child support arrearages that
accrue during the time the family is on TANF belong to the state and federal
government.)
One of the goals of the 1996 welfare reform law with regard to CSE distribution
provisions was to create a distribution priority that favored families once they leave
the TANF rolls. Thus, generally speaking, under current law, child support that
accrues before and after a family receives TANF goes to the family, whereas child
support that accrues while the family is receiving TANF goes to the state. This
additional family income is expected to reduce dependence on public assistance by
both promoting exit from TANF and preventing entry and re-entry to TANF.
S. 667 as reported by the Senate Finance Committee would give states the
option of distributing to former TANF families the full amount of child support
collected on their behalf (i.e., both current support and all child support arrearages
— including arrearages collected through the federal income tax refund offset
program). S. 667 would simplify the CSE distribution process and eliminate the
special treatment of child support arrearages collected through the federal income tax
refund offset program. Under S. 667 the federal government would share with the
states the costs of paying child support arrearages to the family first.

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Similarly, the House bill would give states the option of distributing to former
TANF families the full amount of child support collected on their behalf. Under the
House bill, the federal government would share with the states the costs of paying
child support arrearages accrued while the family received TANF as well as costs
associated with passing through to the family child support collected through the
federal income tax refund offset program, if the state chose the “family-first” option.
Expansion of Collection/Enforcement Tools. Both bills would include
identical or similar provisions with respect to (1) lowering the threshold amount for
denial of a passport to a noncustodial parent who owes past-due child support; (2)
easing the collection of child support from veterans’ benefits; (3) allowing states to
use the federal income tax refund offset program to collect past-due child support for
persons not on TANF who are no longer minors; (4) authorizing the HHS Secretary
to compare information of noncustodial parents who owe past-due child support with
information maintained by insurers concerning insurance payments and to furnish
any information resulting from a match to CSE agencies so they can pursue child
support arrearages; and (5) allowing an assisting state to establish a child support
interstate case based on another state’s request for assistance (thereby enabling an
assisting state to use the CSE statewide automated data processing and information
retrieval system for interstate cases).
Additional provisions that would expand and/or enhance the ability of states to
collect child support payments are contained in S. 667 as reported by the Senate
Finance Committee. They include (1) authorizing the HHS Secretary to act on behalf
of states to seize financial assets (held by a multi-state financial institution) of
noncustodial parents who owe child support; (2) facilitating the collection of child
support from Social Security benefits; (3) requiring that medical support for a child
be provided by either or both parents; and (4) requiring the CSE agency to notify
health care plan administrators under certain circumstances when a child loses health
care coverage.
Other Provisions. Both bills include provisions that would (1) require states
to review and if appropriate adjust child support orders of TANF families every three
years; (2) require the HHS Secretary to submit a report to Congress on the procedures
states use to locate custodial parents for whom child support has been collected but
not yet distributed; (3) establish a minimum funding level for technical assistance;
(4) establish a minimum funding level for the Federal Parent Locator Service; and (5)
designate Indian tribes and tribal organizations as persons authorized to have access
to information in the Federal Parent Locator Service.
S. 667 includes provisions that would (1) increase funding for the CSE access
and visitation program; (2) require states to adopt a later version of the Uniform
Interstate Family Support Act (UIFSA) so as to facilitate the collection of child
support payments in interstate cases; and (3) allow the state of Texas to continue to
operate its CSE program for automatic monitoring and enforcement of court orders
on behalf of nonwelfare families without applying for a federal waiver.
The House budget reconciliation bill includes provision that would (1) establish
a $25 annual fee for individuals who have never been on TANF but receive CSE
services and who received at least $500 in any given year; (2) gradually reduce the

CRS-19
general CSE federal rate of 66% to 50% (over the period FY2007-FY2010); and (3)
eliminate the federal match on CSE incentive payments that states, in compliance
with federal law, reinvest back into the CSE program.
Other Programs
In addition to reauthorizing and modifying the programs discussed above, the
Senate welfare reauthorization bill (S. 667) and the House budget reconciliation bill
would modify some other programs:
! Transitional Medical Assistance (TMA), which is a program that
extends at least six and up to 12 additional months of Medicaid
coverage for families leaving welfare for work. Authority for the
TMA program is scheduled to expire on December 31, 2005 at
which time, absent congressional action, four months of Medicaid
coverage to such families would be provided. S. 667 would extend
12-month TMA through the end of FY2010 and provide state
options to reduce required beneficiary reporting of income to
continue to receive TMA after six months and allow for up to 24
months of TMA. The House reconciliation bill would not extend
TMA beyond December 31, 2005.4
! State abstinence education grants. The program providing grants
to states for abstinence-only education is scheduled to expire on
December 31, 2005. S. 667 would extend this program through
FY2010. The House budget reconciliation bill would not include an
extension of this program.
! Child welfare programs. Both S. 667 and the House budget
reconciliation bills would extend the authority for states to operate
child welfare “waiver” programs through FY2010. The House bill
would add additional instructions to HHS regarding waiver approval
policies and availability of waiver reports. The Senate bill would
allow Indian tribes to receive direct federal funding to operate foster
care and adoption assistance programs and would also permit Puerto
Rico to receive limited additional federal foster care funds. The
House budget reconciliation bill includes two provisions intended to
reduce federal outlays for foster care and adoption assistance: 1) it
seeks to nullify a court rule (known as the Rosales case) that
expands eligibility for foster care in certain states; and 2) it limits the
period of time partial federal reimbursement of foster care costs can
be provided for children who are placed with relatives who are not
licensed to provide foster care, and it requires states seeking this
partial federal matching on behalf of children who are at “imminent
risk” of removal from their homes to redetermine the status of these
children as “candidates” for foster care every six months.
4 For a discussion of the TMA program and issues, see CRS Report RL31698, Transitional
Medical Assistance (TMA) Under Medicaid
, by April Grady.

CRS-20
! Supplemental Security Income (SSI). Both S. 667 and the House
budget reconciliation bill would require that a certain percentage of
disability determinations by state disability agencies be reviewed by
the federal government. S. 667 would also extend the period of SSI
eligibility for refugees and asylees from seven to nine years. The
House bill attempts to achieve budget reductions by requiring that
certain back payments be paid in installments over time, rather than
in one lump sum.
Detailed Comparison of Senate Committee Bills
and the House Budget Reconciliation Bill
Table 2 provides a detailed comparison of welfare and related provisions in the
two Senate committee bills (S. 667 and S. 525) and the House budget reconciliation
bill. For the Senate proposals, the table notes both the bill and section numbers.
The House budget reconciliation bill is organized by Titles reflecting each House
committee’s legislative changes. The welfare and related proposals are found both
in Title II, from the Education and Workforce Committee, and Title VIII of the bill,
from the Ways and Means Committee. In most respects, the committees reported
identical legislative language. In those cases, Table 2 provides both section
references for identical provisions. In cases where the two committees reported
different provisions, the table separately indicates the Education and the Workforce
and Ways and Means provisions.
The House budget reconciliation bill is an omnibus bill that includes many
provisions unrelated to welfare reform programs. Those provisions are not discussed
in this report and not shown on the table. Further, S. 667 makes a number of changes
to the earned income and child tax credits. The tax provisions of S. 667 are also not
addressed in this report or shown on the table.

CRS-21
Table 2. Comparison of Current Law with S. 667/525 and the House Budget Reconciliation Bill Welfare Provisions
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Temporary Assistance for Needy Families (TANF) Block Grant
Findings and Goals and Purposes of TANF
Findings
P.L. 104-193, the Personal Responsibility and
No provision.
Makes a series of findings related to: (1) the
Work Opportunity Reconciliation Act of 1996,
success of the 1996 law in moving families
made a series of findings related to marriage,
from welfare to work and reducing child
responsible parenthood, trends in welfare
poverty; (2) progress made by the nation in
receipt and the relationship between welfare
reducing teen pregnancy and births, slowing
receipt and nonmarital parenthood, and trends
increases in nonmarital births, and improving
in and negative consequences of nonmarital and
child support collections and paternity
teen births. [Section 101 of PRWORA]
establishment; (3) the flexibility provided by
the 1996 law for states to develop innovative
programs; (4) further progress to be made in
promoting work, strengthening families, and
enhancing state flexibility to build on the
success of welfare reform; and (5) establishing
the sense of Congress that increasing success
in moving families from welfare to work and
promoting healthy marriage and other means
of improving child well-being are important
government interests and the policies in
federal TANF law (as amended by this bill)
are intended to serve those ends. [Section
8204]
TANF Goals and
The purpose of TANF is to increase state
Revises goal no. 4 to “encourage the The overall purpose of TANF is to improve
Purposes
flexibility in operating a program designed to:
formation and maintenance of healthy two- child well-being by increasing state flexibility
(1) assist needy families so that children may
parent married families, and encourage in operating a program designed to: (1)
live in their homes or those of relatives; (2) end
responsible fatherhood.” [New language in provide assistance and services to needy
dependence of needy parents on government
italics] [Section 103(d) of S. 667]
families so that children may live in their
benefits; (3) reduce out-of-wedlock
homes or those of relatives, (2) end
pregnancies; and (4) encourage the formation
dependence of needy families on government

CRS-22
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
and maintenance of two-parent families.
benefits and reduce poverty; (3) reduce out-
[Section 401 of the Social Security Act (SSA)]
of-wedlock pregnancies; and (4) encourage
the formation and maintenance of healthy,
two-parent married families, and encourage
responsible fatherhood
. [New language in
italics] [Section 8101]
TANF Financing Provisions
State Family
Provides capped grants (entitlements to states
Retains basic block grants, and extends them Same as S. 667. [Section 8102(b)]
Assistance
and territories). Nationally, annual family
through FY2010 at current funding levels.
Grants
assistance grants total $16.567 billion for the
Appropriates $16.567 billion annually for
states, the District of Columbia (D.C.), and the
family assistance grants to the states, D.C.,
territories. Each jurisdiction’s annual grant
and the territories. Provides that the annual
equals the same share of the national total as in
grant of each jurisdiction shall equal its
FY2002. [(Section 403(a)(1) of the SSA]
FY2002 proportion of the national grant
total. [Section 102(a) of S. 667]
Also provides matching grants for the territories
Extends funding for matching grants to the Same as S. 667. [Section 8102(c)]
(Section 1108(b) of the SSA).
territories through FY2010. [Section 102(b)
of S. 667]
Supplemental
Supplemental grants for (17) states with low
Extends supplemental grants for FY2006 Same as S. 667. [Section 8104]
Grant for
historic federal grants per poor person and/or
through FY2009, at current funding levels
Population
high population growth. Grants grew each
($319 million). [Section 104 of S. 667]
Increases in
year, from $79 million in FY1998 to $319
Certain States
million in FY2001. Grants frozen at $319
million since FY2001. [Section 403(a)(3) of
SSA]
Bonus to Reward
High-performance bonus of $200 million per
Replaces the high-performance bonus with Eliminates the high-performance bonus.
Employment
year on average. [Section 403(a)(4) of the
a bonus to reward employment achievement. [Section 8105]
Achievement
SSA]
Employment achievement bonuses would
total $50 million for each of FY2006
through FY2008, and $100 for each of
FY2009 through FY2011. [Section 105 of
S. 667]

CRS-23
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Maximum bonus for a state equals 5% of its
Maximum bonus for a state equals 5% of its
family assistance grant.
family assistance grant. [Section 105 of S.
667]
Bonus based on achievement of TANF goals,
Bonus to be based on absolute and relative
with formula developed by the Department of
progress toward the goal of workforce
Health and Human Services (HHS) in
attachment and advancement. [Section 105
consultation with the National Governors
of S. 667]f
Association and the American Public Human
Services Association. For FY1999-FY2001
performance, formula consisted of three work-
related measures (job entry, job retention, and
earnings gain). For FY2002 and later years,
formula adds family formation outcomes, child
care affordability, and coverage by food stamps
and Medicaid/SCHIP. [Section 403(a)(4) of the
SSA]
Makes tribes eligible for the bonus, setting
aside 2% of total employment achievement
bonus dollars for them, and directs the
Secretary to consult with them regarding
criteria for their awards. [Section 105 of S.
667]
Reduces FY2005 high-performance bonus
amount to $0. [Section 702 of S. 667]
For FY2006 and FY2007, employment
achievement bonus may be based on three
components of the repealed high-
performance bonus — job entry rate, job
retention rate, and earnings gain rate.
[Section 105 of S. 667]

CRS-24
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Bonus to Reward
Appropriated $100 million yearly for bonuses
Repeals the bonus and uses the $100 million Repeals the bonus beginning in FY2006, and
Reductions in
to the five states with the largest percentage
per year to fund grants for marriage uses the $100 million per year to fund grants
Out-of-wedlock
decline (over recent two years) in the out-of- promotion activities (see Matching Grants for marriage promotion activities. [Section
Births
wedlock birth ratio. To qualify, states had to
for Marriage Promotion, below). [Section 8103(b)]
reduce their abortion rate to below that of
103(b) of S. 667]
FY1995. [Section 403(a)(2) of the SSA]
Contingency
Capped matching grants (maximum $2 billion)
Appropriates such sums as are needed for Appropriates such sums as needed for
Fund
provided in case of recession. To qualify for
contingency fund grants, up to $2 billion contingency fund grants, up to $2 billion over
contingency dollars, states must be “needy” and
over five years, FY2006-FY2010. To five years, FY2006-FY2010. To qualify for
must spend under the TANF program a sum of
qualify for contingency grants, a state must contingency grants, states must be “needy”
their own dollars equal to their pre-TANF
be “needy,” have sufficiently low TANF and must spend under the TANF program a
spending. [Section 403(b) of the SSA]
balances, and have an increase in its sum of their own dollars equal to their pre-
assistance caseload of over 5%.
TANF spending.
Needy State
The law provides two needy state triggers: ( 1)
To trigger on as needy, a state must (1) have Retains current law needy state triggers, but
Eligibility
an unemployment rate for a three-month period
an increase (due in large measure to revises the food stamp trigger, requiring that
Criteria
that is at least 6.5% and is 10% or more above
economic conditions) of 5% in the monthly the FY1994-FY1995 caseload base be
the rate for the corresponding period in either of
average unduplicated number of families readjusted for policy changes made after
the two preceding calendar years; or (2) a food
receiving assistance under its TANF passage of 1996 welfare law. [Section
stamp caseload increase of 10% over the
program in the most recently concluded 8106(c)]
FY1994-FY1995 level (adjusted for the impact
three-month period with data, compared
of immigrant and food stamp constraints in the
with the corresponding period in either of
1996 welfare law). [Section 403(b)(5) of the
the two most recent preceding fiscal years,
SSA]
and (2) meet one of three other conditions.
They are: (a) for the most recent three-
month period with data, the average rate of
seasonally adjusted total unemployment
must be at least 1.5 percentage points or
50% higher than in the corresponding period
in either of the two most recent preceding
fiscal years; (b) for the most recent 13 weeks
with data, the average rate of insured
unemployment must be at least one

CRS-25
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
percentage point higher than in the
corresponding period in either of the two
most recent fiscal years; or, (c) for the most
recently concluded three-months with
national data, the monthly average number
of food stamp recipient households, as of the
last day of each month, must exceed by at
least 15% the corresponding caseload
number in the comparable period in either of
the two most recent preceding fiscal years,
provided the HHS Secretary and the
Secretary of Agriculture agree that the
increased caseload was due, in large
measure, to economic conditions rather than
to policy change. A state that initially
qualifies as needy because of its TANF
caseload plus its food stamp caseload would
continue to be considered needy as long as
the state met the original qualifying
conditions. A state that initially qualified as
needy because of its TANF caseload plus its
total or insured unemployment rate would
not trigger off until its unemployment rate
fell below the original qualifying level
(disregarding seasonal variations in the case
of the insured unemployment rate). [Section
106(b) of S. 667]
Financial
Before drawing contingency grants, a state must
Eliminates the requirements that a state Retains current law requirements that states
Eligibility
expend within the TANF program 100% of
spend 100% of what it spent in FY1994 and expend 100% of what they spent on TANF
Requirements
what it spent on TANF predecessor programs in
provide matching funds. Instead, requires predecessor programs in FY1994 and provide
FY1994. Both TANF spending and FY1994
that unspent balances be 30% or less of matching funds. Allows states to count
base spending exclude child care expenditures.
cumulative TANF grants to be eligible for spending in separate state maintenance of
States then must provide matching funds to
contingency funds. [Section 106(b) of S. effort programs toward these spending

CRS-26
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
draw down contingency grants (see
667]
requirements. State child care spending also
Contingency Grant Amounts, below). [Section
would count toward this requirement, but
403(b)(5) and Section 409(a)(10) of the SSA]
would also be added to base FY1994
spending. [Section 8106(d) and 8106(e)]
Contingency
Payments are capped at 20% of a state’s basic
A state’s total contingency grant could not Retains current law’s 20% maximum grant,
Fund Grant
TANF grant. A maximum advance grant of
exceed 10% of its family assistance grant. advance grant, and annual grant based on the
Amounts
one-twelfth of its total maximum grant is
The contingency fund grant equals the Medicaid matching rate times expenditures
allowed in a given month. [Section 403(b)(3)]
state’s federal Medicaid matching rate times made in excess of 100% of the FY1994 level.
the benefit cost of an increase in the TANF Eliminates the proration of the annual grant
A state’s annual contingency fund grant amount
family caseload above 5% in the most for part-year eligibility for contingency funds.
is the Medicaid matching rate times
recently concluded three-month period with [Section 8106(d)]
expenditures it made in excess of 100% of
data, compared with the corresponding
FY1994 expenditures. This annual amount is
period in either of the two most recent
prorated for the number of months the state is
preceding fiscal years. (The remaining cost
eligible for continency grants. If a state
of the increased caseload would have to be
received advance grants that are greater than the
paid with state funds or other federal TANF
annual amount for which it is entitled, the state
funds.) [Section 106(a) of S. 667]
must remit any excess back to the federal
Treasury. [Section 403(b)(6)]
Tribal Eligibility
No provision. Tribes are not eligible for
Sets aside $25 million of the contingency No provision (retains current law).
for Contingency
contingency fund.
fund appropriation for grants to Indian tribes
Funds
with approved tribal TANF plans. The
Secretary of HHS, in consultation with
tribes, shall determine the criteria for access
to the fund. [Section 106(a) of S. 667]
Additional Grants
Social Service
No provision.
Authorizes appropriation of $40 million for No provision.
Capitalization
each of FY2006-FY2010 for grants to
entities for the purpose of capitalizing and
developing the role of sustainable social
services needed for success in moving
TANF recipients to work. Requires

CRS-27
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
applicants to describe their strategy for
developing a program that generates its own
source of on-going revenue while assisting
TANF recipients. Administrative costs
could not exceed 15% (except for
computerization and information technology
needed for tracking or monitoring required
by TANF), but none of the other statutory
rules regarding use of TANF funds would
apply. Requires evaluation and report to
Congress. [Section 119(a) of S. 667]
Car Ownership
No provision.
Authorizes appropriation of $25 million for No provision.
Grants
each of FY2006-FY2010 for grants for low-
income car ownership. Purposes: to
improve employment opportunities of low-
income families and provide incentives to
states, Indian tribes, localities, and nonprofit
groups to develop and administer programs
that promote car ownership by low-income
families. No more than 5% of the funds
could be used for administrative costs of the
Secretary in carrying out this program.
Requires evaluation. [Section 119(b) of S.
667]
Transitional
No provision.
Authorizes appropriations of $200 million No provision.
Jobs/business
for each of FY2006-FY2010 for business
Links Grants
links and transitional jobs programs. Grants
are to be awarded jointly by the Secretaries
of HHS and Labor to fund programs to
promote “business linkages” and the
“transitional jobs.” Business linkages are
programs designed to improve the wages of

CRS-28
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
eligible individuals by improving jobs skills
in partnership with employers and providing
supports and services at or near the worksite.
Eligible grantees are private organizations,
local workforce investment boards, states,
localities, Indian tribes, and employers.
Individuals eligible to be served by these
programs are TANF recipients, former
recipients, individuals with a disability, or
noncustodial parents having difficulty in
paying child support obligations who also
have limited proficiency in the English
language or other barriers to employment.
“Transitional jobs” programs combine
subsidized, time-limited, wage-paying
supported work in the public or nonprofit
sectors with skill development and activities
to remove barriers to employment. Eligible
grantees are private organizations, local
workforce investment boards, states,
localities, and Indian tribes. Individuals
eligible to be served by these programs are
TANF recipients, former recipients,
individuals with a disability, or noncustodial
parents having difficulty in paying child
support obligations who also have limited
proficiency in the English language or other
barriers to employment.

CRS-29
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Requires a minimum of 40% of funds
appropriated to be used for business linkages
and also a minimum of 40% to be used for
transitional jobs. Benefits and services
provided under these programs are not
considered assistance. The bill also requires
an evaluation, and sets aside $3 million for
the Secretaries to produce assessments of
these programs. [Section 119(c) of S. 667]
Domestic
No provision.
Authorizes $20 million per year for FY2006 No provision.
Violence
through FY2010 for competitive matching
Prevention
grants (at a 75% federal matching rate) to
Grants
states, Indian tribes, and tribal organizations
for the development and dissemination of
best practices for addressing domestic
violence; implementing voluntary skills
programs, including caseworker training,
technical assistance, and voluntary services
for victims of domestic violence; programs
of relationship and financial management
skills; and broad-based income support as a
means to reduce domestic violence.
Grantees must consult with organizations
with demonstrated expertise in providing aid
to victims of domestic violence. Requires
the Secretary of HHS to evaluate activities
under this grant. [Section 114(e) of S. 667]
Repeal of
Provides a $1.7 billion revolving and interest-
Repeals the loan fund. [Section 108]
Repeals the loan fund effective October 1,
Federal Loan
bearing federal loan fund for state welfare
2006. [Section 8108]
Fund
programs. [Section 406 of the SSA]
Maintenance of
Establishes a maintenance-of-effort (MOE)
Continues MOE requirement through Same as S. 667. [Section 8111]
Effort
requirement that states spend at least 75% of
FY2010, but raises the MOE percentage to

CRS-30
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
what was spent from state funding in FY1994
80% if the state failed TANF work
on programs replaced by TANF. Nationally,
participation standards of the preceding
this sum is $10.4 billion. (MOE rises to 80% if
fiscal year. [Section 111(a) of S. 667]
state fails a work participation standard; see
above.) [Section 409(a)(7) of the SSA]
Defines state expenditures to reduce out-of- Defines all state expenditures to reduce out-
wedlock births and promote marriage and of-wedlock births and promote marriage and
responsible fatherhood (including spending responsible fatherhood (including spending on
on behalf of non-needy families) as behalf of non-needy families) as countable
countable toward required MOE state toward required MOE state spending.
spending. Subjects this spending to two [Section 8103(c)]
requirements applicable to MOE funds: (1)
for activities not a part of the pre-1996
welfare program, expenditures must be
above FY1995 levels to be countable toward
the MOE; and (2) expenditures used to
compensate for federal penalties are not
countable toward the MOE. [Section 103(d)
of S. 667]
TANF funds used as the state match for Provides that spending (as the state match)
marriage promotion grants shall not be from federal marriage promotion grants shall
considered state spending countable toward not be treated as state spending toward MOE
the MOE requirement. [Section 103(b) of S. requirements. [Section 8111(b)]
667].
Use of Funds
General Rules
States may use funds in any manner reasonably No provision (maintains current law).
Same as S. 667. (No provision, retains current
calculated to accomplish the TANF purpose.
law.)
[Section 404 of the SSA]
States may use funds in any manner that they No provision (maintains current law).
States may use funds for any purposes or
were authorized to use pre-TANF funds.
activities for which (rather than any manner
[Section 404 of the SSA]
that) they were authorized to use pre-TANF

CRS-31
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
funds. [Section 8107(a)]
A state may treat a family that has resided in
Strikes provision permitting different Same as S. 667. [Section 8107(b)]
the state for fewer than 12 months under the
treatment of families migrating into the state
welfare rules of the state where they formerly
— found unconstitutional. [Section 107(a)
lived. [Section 404 of the SSA]
of S. 667]
Transfer of
States may transfer up to 30% of TANF funds
Retains overall transfer limit at 30%. Sets Increases the overall ceiling on transfers to
Funds
to the Child Care and Development Block
limit on SSBG transfers at 10% (original 50%. [Section 107(c)] Sets limit on SSBG
Grant (CCDBG) and the Title XX Social
limit in 1996 law). [Section 107(b) of S. transfers at 10% for FY2006 and each year
Services Block Grant (SSBG). Specifies that a
667]
thereafter. [Section 8107(d)]
maximum of 4.25% of total transfers may go to
SSBG, effective in FY2001 (but year-by-year
Congress has restored the original 10% limit).
Also allows states to use TANF funds, within
the overall 30% transfer limit, as matching
funds for the job access transportation program
for TANF recipients, ex-recipients, and persons
at risk of becoming income-eligible for TANF.
[Section 404 of the SSA]
Carryover of
Amounts may be spent without fiscal year limit
Allows use of carryover funds from TANF Same as S. 667. [Section 8107(e)]
Funds
for “assistance” (chiefly ongoing cash aid). For
grants for any benefit or service without
other benefits and services (“nonassistance”)
fiscal year limitation. Permits a state or
amounts must be obligated in the year of award
tribe to designate some TANF funds as a
and spent in the following year. [Section 404
contingency reserve. [Section 107(c) of S.
of the SSA]
667]
Use of Funds for
States may use funds for educational activities
Allows states to use TANF funds to No provision.
Education
(to promote a TANF goal or because these
establish an undergraduate two- or four-year
activities were allowed under pre-1996 law).
postsecondary degree program sometimes
However, only three educational activities may known as Parents as Scholars (PAS) or a
be counted toward state work participation
vocational educational program. Following
rates: high school attendance, education
services could be provided in these
directly related to work (both for high school
undergraduate programs: child care,
dropouts only) and vocational educational
transportation, payment for books and

CRS-32
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
training. Unless it is defined by the state as
supplies, other services provided under
vocational educational training, postsecondary policies determined by the state to ensure
education is not a countable work activity.
coordination and lack of duplication.
[Section 407(d) of the SSA]
Participants who are also TANF cash
assistance recipients in these educational
programs could be counted toward state
work participation standards. See Countable
Activities
. [Section 107(d) of S. 667]
Direct Funding
Allows Indian tribes to administer their own
Continues the authority for tribes to operate Same as S. 667. [Section 8114(a)]
and
family assistance (TANF) programs. Earmarks
TANF programs through FY2010. [Section
Administration
some TANF funds — amount equal to federal
113(a) of S. 667]
by Indian Tribes
pre-TANF payments received by state
attributable to Indians — for administration by
tribes at their option. Sums used for tribal
family assistance programs are deducted from
state TANF grants. [Section 412(a) of the SSA]
Tribal Work
Appropriates $7.6 million annually for work Provides $12.6 million annually for NEW Extends the authority and funding for NEW
Programs
and training activities (now known as Native
programs through FY2010. [Section 113(a) programs at current levels ($7.6 million
Employment Works (NEW)) to tribes that
of S. 667]
annually) through FY2010. [Section 8114(b)]
operated a pre-TANF work and training
program. [Section 412(b) of the SSA]
Tribes operating NEW programs may
incorporate these services into a plan under
the Indian Employment, Training and
Related Services Demonstration Act of
1992. This permits the tribe to use a single
plan, budget, and reporting format for
services incorporated into the plan. [Section
113(c) of S. 667]

CRS-33
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Tribal Capacity
No provision.
Appropriates $80 million for the period No provision.
Grants
FY2006-FY2010 for a tribal TANF
improvement fund. The fund could be used
to provide technical assistance to tribes,
award competitive grants to tribes, and
conduct research to improve knowledge
about tribal family assistance plans.
[Section 113(b) of S. 667]
Work Participation Requirements and Standards
Universal
State plan must require that a parent or
Repeals the 24-month work trigger. Same as S. 667. [Section 2011; Section
Engagement and
caretaker engage in work (as defined by the
Requires state plans to outline how they 8109(a)]
Family Self-
state) after, at most, 24 months of assistance.
intend to require parents and caretakers to
sufficiency Plan
[Section 402(a)(1)(ii) of the SSA]. Note: This
engage in work or alternative sufficiency
Requirements
requirement is not enforced by a specific
activities, as defined by the state — while
penalty. (States may, but need not, establish an
observing the ban on penalizing work refusal
individual responsibility plan for each family in
by a single parent of a preschool child who
consultation with the recipient.) [Section
is unable to obtain needed child care for
408(b)(2) of the SSA]
specified reasons — and to require families
to engage in activities in accordance with
family self-sufficiency plans. [Section
110(a) of S. 667]
States must make an initial assessment of the
Requires states to make an initial screening Requires states, in a manner they deem
skills, prior work experience, and employability
and assessment, in a manner they deem appropriate, to assess the skills, work
of each recipient 18 or older or those who have
appropriate, of the skills, work experience, experience, and employability of each work-
not completed high school within 30 days.
education, work readiness, work barriers and eligible person (see definition below) and
[Section 408(b)(1) of the SSA]
employability of each adult or minor child requires states to develop a family self-
head of household recipient who has attained sufficiency plan for each family with such a
age 18 or who has not completed high person. Plans must be established within 60
school and to assess, in a manner they deem days of opening a case (within 12 months for
appropriate, the work support and other families enrolled at the time of enactment).
assistance and family support services for [Sections 2011(b) and 8109(b)]
which families are eligible and the well-

CRS-34
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
being of the family’s children and, where
appropriate, activities or resources to
improve their well-being. Requires states, in
a manner they deem appropriate, to establish
a self-sufficiency plan for each family.
Required plan contents: activities
designed to assist the family to achieve their
maximum degree of self-sufficiency;
requirement that the recipient participate in
activities in accordance with the plan;
supportive services that the state intends to
provide; steps to promote child well-being
and, when appropriate, adolescent well-
being; information about work support
assistance for which the family may be
eligible (such as food stamps, medicaid,
SCHIP, federal or state funded child care —
including that provided under the Child Care
and Development Block Grant and the
Social Services Block Grant, EITC, low-
income home energy assistance, WIC, WIA
program, and housing assistance). The state
must monitor the participation of adults and
minor child household heads in the self-
sufficiency plans and regularly review the
family’s progress, using methods it deems
appropriate, and revise the plan when
appropriate. Before imposing a sanction
against a recipient for failure to comply with
a TANF rule or a requirement of the self-
sufficiency plan, the state must, to the extent

CRS-35
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
that it deems appropriate, review the plan
and make a good-faith effort (defined by the
state) to consult with the family. States
must comply with self-sufficiency plan
requirements within one year after
enactment (for families then receiving
TANF). For families not enrolled on the
date of enactment, the deadline for self-
sufficiency plans is the later of 60 days after
the family first receives assistance on the
basis of its most recent application, or one
year after enactment. Provides that nothing
in the self-sufficiency plan provisions shall
be construed to establish a private right or
cause of action against a state for failure to
comply with the provisions or to limit
claims that might be available under other
federal or state laws. Requires the
Government Accountability Office to submit
a report to the Ways and Means and Finance
Committees evaluating the implementation
of the universal engagement provisions of
the bill. [Section 110(a) of S. 667]
Imposes a penalty on states for failure to Imposes a penalty on state for failure to
establish self-sufficiency plans by revising establish self-sufficiency plan by revising the
the penalty provision for failure to meet penalty provision for failure to achieve work
TANF work participation standards. participation standard. Provides failure to
Provides failure to comply with self- comply with self-sufficiency requirements
sufficiency requirements and/or achieve and/or achieve work participation standards
work participation standards would result in would result in a penalty of up to a 5%
a penalty of up to a 5% reduction in the reduction in the TANF grant for the first
TANF grant for the first violation (more for violation (more for subsequent violations).
subsequent violations), based on the degree (The bill does not contain the “substantial

CRS-36
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
of substantial noncompliance. The noncompliance” language of S. 667.)
Secretary is directed to take various factors [Sections 2011(b) 8109(b)] See Penalty for
into account in setting the penalty. These Failing Participation Rate, below.
factors include the number or percentage of
families for whom a self-sufficiency plan is
not established in a timely fashion, duration
of delays, whether the failures are isolated
and nonrecurring, and the existence of
systems to ensure establishment and
monitoring of plans. Penalty may be
reduced if the failure is due to circumstances
that caused the state to meet the criteria for
contingency funds or is due to extraordinary
circumstances such as a natural disaster or
regional recession. Requires Secretary, in a
written report to Congress, to justify any
waiver or penalty reduction due to
extraordinary circumstances. [Section
110(a) of S. 667]
Sanctions
If person in a family receiving TANF assistance
No provision (maintains current law).
If a person in a family receiving TANF
Against
refuses to engage in required work, the state
assistance fails to engage in required activities
Individuals for
shall reduce aid to the family pro rata (or more,
and the family does not otherwise engage in
Work Refusal
at state option) with respect to the period of
activities in accordance with its self-
work refusal, or shall discontinue aid, subject to
sufficiency plan, the state must impose a
good cause and other exceptions that the state
penalty as follows: (a) If the failure is partial
may establish. [Section 407(e) of the SSA]
or does not last longer than one month, the
state must reduce assistance to the family pro
rata (or more, at state option) with respect to
any period of failure during the month, or
shall end all assistance to the family, subject
to good cause exceptions that the state may
establish; (b) If the failure is total and persists
for at least two consecutive months, the state

CRS-37
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
must end all cash payments to the family,
including state-funded MOE payments, for at
least one month and thereafter until the person
participates, subject to good cause exceptions
that the state may establish. Exception: If a
state constitution or a state statute enacted
before 1966 obligated local government to
provide assistance to needy parents and
children, the state has one year to comply with
this requirement. [Sections 2012(f) and
8110(e)]
Exception: a state may not penalize a single
No provision (retains current law).
Same as S. 667.
parent caring for a child under age 6 for refusal
to work if the parent has a demonstrated
inability to obtain needed child care that is
appropriate, suitable, and affordable. [Section
407(e) of the SSA]
Work
A state must engage a specified percentage of
A state must engage a specified percentage A state must engage a specified percentage of
Participation
families containing adult or teen parent
of families containing adult or minor heads families with a work-eligible person in direct
Standards
recipients in creditable work activities. Since
of households in the assistance unit in work or alternative self-sufficiency activities
FY2002, the participation standard has been
creditable activities. Participation standards chosen by the state. Participation standards
50% for all families (and since FY1999 it has
are
are same as S. 667. A work-eligible person is
been 90% for the two-parent component of the
defined as a household head who is in the
50% in FY2006
caseload). [Section 407(a) of the SSA]
assistance unit, or would be in the unit if not
55% in FY2007
sanctioned. [Sections 2012(b) and 8110(a)]
60% in FY2008
65% in FY2009
70% in FY2010.
[Section 109(b) of S. 667]

CRS-38
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Required participation rates may be reduced by
Required participation rates may be reduced Required participation rates may be reduced
a caseload reduction credit (see below).
by caseload reduction or employment by caseload reduction and “superachiever”
credits, but a cap is placed on these credits. credits (see below).
Employment credits (or caseload reduction
credits or a combination of the two) may not
reduce participation standards below:
10% in FY2006
20% in FY2007
30% in FY2008
40% in FY2009
50% in FY2010.
[Section 109(c) of S. 667]
Effective October 1, 2002, eliminates the Effective October 1, 2005, eliminates the
separate standard for two-parent families. separate standard for two-parent families.
Also forgives states penalized for failing the [Sections 2012(a) and 8110(a)]
two-parent standard in FY2002-FY2004.
[Section 109(a) of S. 667]
Caseload
Work participation standards are reduced by a
Retains current law caseload reduction credit Measures caseload reduction from a moving
Reduction Credit
caseload reduction credit: for each percent
for FY2006 and FY2007 (subject to the base year (rather than from FY1995) and
decline in the caseload from the FY1995 level
limits shown above). Effective October 1, shortens the measuring interval. Also changes
(not attributable to policy changes), the work
2007, replaces the caseload reduction credit the eligibility criteria base year from FY1995
participation standard is reduced by one
with an employment credit (subject to limits to the new moving base. For FY2006, the
percentage point. [Section 407(3) of the SSA]
shown above). [Section 109(d) of S. 667]
credit is based on the percent decline in the
caseload from FY1996 (not due to changes in
eligibility criteria from FY1996); for FY2007,
the base year is FY1998; for FY2008,
FY2001. For FY2009 and every year
thereafter, the measuring interval is three
years. [Sections 2012(c) and 8110(b)]
No
provision.
Establishes a “superachiever”
caseload
reduction credit for a state with a reduction in

CRS-39
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
FY2001 of at least 60% (for any reason) from
FY1995 level. Places a cap on this credit (20
percentage points for FY2008, lesser amounts
for earlier years). [Sections 2012(d) and
8110(c)]
Employment
No
provision.
E s t a b l i s h e s a p e r c e n t a g e
p o i n t No provision.
Credit
“employment” credit against the work
participation standard (subject to limits
described above). Essentially, the credit
equals a multiple of the percentage of TANF
families in a month who leave ongoing cash
assistance with a job. It is calculated by
dividing (a) twice the quarterly average
unduplicated number of families with an
adult or minor head of household recipient
who leaves welfare and was employed in the
following quarter; by (b) the average
monthly number of families with an adult or
minor head of household recipient who
received assistance during a recent four-
quarter period. At state option, calculations
could include in the numerator: (1) twice
the quarterly average number of families
that received non-recurring short-term
benefits rather than ongoing cash and who
earned at least $1,000 in the quarter after
receiving the benefit, and (2) twice the
quarterly average number of families that
included an adult who received substantial
child care or transportation assistance and
earned at least $1,000 in the quarter. If both
these options were taken, the denominator
would be increased by twice the number of

CRS-40
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
families that received non-recurring short-
term benefits during the year and by twice
the quarterly average number of families
with an adult who received substantial child
care or transportation assistance. In
consultation with directors of state TANF
programs, the Secretary is to define
substantial child care or transportation
assistance, specifying a threshold for each
type of aid — a dollar value or a time
duration. The definition must take account
of large one-time transition payments.
[Section 109(d) of S. 667]
Gives extra credit — as 1.5 families — to a
family whose earnings during the preceding
fiscal year equaled at least 33% of the state’s
average wage. [Section 109(d) of S. 667]
Authorizes and requires the HHS Secretary
to use information in the National Directory
of New Hires to calculate state employment
credits. If the TANF leaver’s employer is
not required to report new hires, the
Secretary must use quarterly wage
information submitted by the state. To
calculate employment credits for families
who received non-recurring short term
benefits and for those who received
substantial child care and transportation
assistance, the Secretary is to use other
required data. By August 31 of each year,
the HHS Secretary must notify each state of

CRS-41
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
the amount of the employment credit that
will be used in calculating participation rates
for the immediately succeeding fiscal year.
[Section 109(d) of S. 667]
Sets October 1, 2007 as the effective date for
replacement of the caseload reduction credit
by the employment credit, but permits states
to have a one-year delay. If a state makes
this choice, its adjusted work participation
standard for FY2008 shall be determined by
using both the caseload reduction credit and
the employment credit (one-half credit for
each). [Section 109(d) of S. 667]

CRS-42
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Study of the
No provision.
Requires the Secretary of HHS to conduct a No provision.
Employment
study of the design of the employment credit
Credit
and report to the Senate Finance Committee
and House Ways and Means Committee by
September 30, 2009. [Section 109(d)]
Calculation of
The monthly participation rate, expressed as a
Similar to current law, except that states are Participation rates equal the share of hours
Participation
percentage, equals (a) the number of all
given partial, full, or extra credit for families spent in creditable activities out of a potential
Rates
recipient families in which an individual is
depending on the average number of hours total of 160 hours monthly per counted family.
engaged in work activities for the month,
per week in which they engage in activities. Monthly participation rate, expressed as a
divided by (b) the number of recipient families
(See Hours, below).
percentage, is (a) the total number of
with an adult recipient or minor head of
countable hours, divided by (b) 160 times the
household. The annual participation rate,
number of counted families for the month.
which is compared against the participation
[Sections 2012(b) and 8110(a)]
standard, is the average of the monthly
participation rates. [SSA, Section 407(b)(1)]
Infant Exemption
States may exempt the parent of a child under
Permits states to exclude all families with Similar to S. 667, but does not include the 12-
from the Work
age 1 from work and exclude them from the
infants (not just single parent families) from month in a lifetime limit on this exclusion.
Participation
calculation of work participation rates.
work participation calculations on a case-by- [Sections 2012(b) and 8110(a)]
Rate
Exclusion is limited to 12 months in a lifetime.
case basis. Limits this exclusion to 12
[SSA, Section 407(b)(5)]
months in a lifetime. [Section 109(e) of S.
667]
Excluding
No provision.
Permits states to exclude a new group from Similar to S. 667, but does not specify that the
Families in Their
work participation calculations — families exclusion is to be made on a case-by-case
First Month of
in first month of assistance. Determination basis. [Sections 2012(b) and 8110(a)]
Assistance from
is made on a case-by-case basis. [Section
the Work
109(e) of S. 667]
Participation
Rate


CRS-43
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Treatment of
States may exclude from the work participation
No provision, retains current law.
Same as S. 667. [Sections 2012(b) and
Sanctioned
rate calculation families subject to sanctions for
8110(a)]
Families in the
refusal to comply with work requirements.
Work
Exclusion is limited to three months in a 12-
Participation
month period. [Section 407(b)(1) of the SSA]
Rate
Penalty for
Participation rates are enforced by a penalty on
Provides that penalty (beginning for No provision, retains current law.
Failing
states: loss of 5% of the state’s basic grant for
FY2007) must be based on the degree of
Participation
first year of violation (higher penalty for repeat
substantial noncompliance. Directs the
Rate
violations). Penalty must be based on the
Secretary to take into account factors such as
degree of noncompliance and may be reduced
the degree to which the state missed the
if the noncompliance is due to circumstances
participation rate, the change in the number
that made the state needy under the contingency of persons engaged in work since the prior
fund definition or due to extraordinary
year, and the number of consecutive years in
circumstances such as a natural disaster or
which the state failed to achieve the work
regional recession. State must replace the
rate. Penalty may be reduced if the failure is
amount of federal penalty funds with its own
due to circumstances that caused the state to
funds. [Section 409(a)(3) of SSA] In addition,
meet the criteria for contingency funds or is
the state’s MOE spending requirement rises
due to extraordinary circumstances such as
from 75% to 80% of its historic level.
a natural disaster or regional recession.
Requires Secretary, in a written report to
Congress, to justify any waiver or penalty
r e d u c t i o n d u e t o e x t r a o r d i n a r y
circumstances. [Section 110(a) of S. 667]

CRS-44
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
States that fail to meet work participation
If the Secretary accepts a state’s corrective No provision.
standards may file a corrective compliance plan
compliance plan for failure to meet work
with the Secretary of HHS. The corrective
participation standards and the state has at
compliance plan outlines what the states will do
least a 5 percentage point improvement in its
to correct or discontinue its failure to meet the
work participation rate over the previous
standards. The Secretary may not impose the
year, the Secretary shall not impose a
penalty if the state corrects the violation of the
financial penalty on the state. [Section
work standards. [Section 409(c) of the SSA]
111(b) of S. 667]
Countable Activities
“Core” Activities.
Federal law lists nine priority activities that
Retains current law list of nine priority Lists six “direct” work activities:
Activities
must account for most weekly hours:
activities as “direct work” activities.
— unsubsidized jobs;
Countable as Sole
— unsubsidized jobs;
— subsidized private jobs;
or Primary Work
— subsidized private jobs;
— subsidized public jobs;
Activities of
— subsidized public jobs;
— on-the-job training;
Recipients.
— work experience
— supervised work experience, and
— on-the-job training;
— supervised community service.
— job search (usual limit, six weeks per fiscal
year)
[Sections 2012(e) and 8110(d)]
— community service;
— vocational educational training (limited to
12 months in a lifetime);
— providing child care for participants in
community service programs. [Section 407(d)
of the SSA]

CRS-45
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Qualified
No provision.
For three months in a 24-month period, For three months within a 24-month period,
Activities.
seven additional activities may substitute persons participating in short-term “qualified”
Activities that
for, or be in conjunction with, direct work activities chosen by the state to promote self-
May Substitute
activities:
sufficiency may substitute for or be in
for, or be in
— postsecondary education;
conjunction with direct work activities
Conjunction with,
— adult literacy programs or activities;
(examples listed in the bill are substance
Core Activities
— substance abuse counseling or treatment abuse counseling or treatment; rehabilitation
for a Limited
(including drug or alcohol abuse counseling treatment and services; work-related education
Period of Time.
or treatment);
or training directly enabling the family
— programs or activities designed to member for work; and job search or job
remove work barriers, as defined by the readiness assistance). A fourth month in the
state;
24-month period is allowed if needed to
— work activities authorized under any complete an education or training program.
waiver for any state that was continued [Sections 2012(e) and 8110(d)]
under Section 415 before the date of
enactment of this bill;
— money management classes; and
— parenting skills classes.
[Section 109(c) of S. 667]
Supplemental
For most recipients, hours of participation in
Retains current law list of three House Ways and Means Committee Provision:
Activities.
these activities are countable only in
supplemental activities, and adds: marriage
Activities
conjunction with participation in priority
education, marriage skills training, conflict States may define any other activity as
Countable
activities (and with a minimum number of
resolution, and programs to promote countable (generally for non-core hours) so
Generally Only in
hours in priority activities). Federal law lists
marriage. [Section 109(g)] Also permits long as it leads to self-sufficiency and is
Conjunction with
three such activities:
states to count all “qualified activities” (see consistent with the purposes of TANF. States
“Core” or
above), as well as job search and vocational may only count up to 16 hours per week of
“Qualified”
— job skills training directly related to
educational training (beyond the usual time these activities toward a family’s total hours.
Activities.
employment;
limits) as supplemental activities once a [Section 8110(d)]
— education directly related to employment;
family has the minimum number of hours of
and
“direct work” participation.
House Education and Workforce Provision:
— progress toward completion of secondary
[Section 109(g) of S. 667]
Same as above (Ways and Means provision),
school.
except it also requires work-eligible persons

CRS-46
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
[Section 407(d) of the SSA] See Required
with minor children in school to make at least
Hours of Work, below.
two verified visits to the school per school
year, and have those hours counted as part of
the 16 hours per week allowed for
supplemental activities. [Section 2012(e)]
Postsecondary
No provision. Postsecondary education not
Three months of postsecondary education is No provision. However, postsecondary
Education
classified as “vocational educational training”
countable as a “qualified activity” (see education may be a state-defined “qualified”
is not countable toward TANF work above).
or “supplemental” activity.
participation standards.
Allows states to establish a program (under
S e c t i o n 1 0 7 ) o f u n d e r g r a d u a t e
postsecondary education (parents as
scholars) or vocational educational training
for TANF recipients, former recipients, and
other low income parents. For TANF
recipients, hours of participation in the
program would be countable toward meeting
state work requirements. Students could
also receive credit for hours spent in one of
the nine “direct” work activities of current
law or in work study, practicums,
internships, clinical placements, laboratory
or field work, or other activities that would
enhance their employability, as determined
by the state, or in study time (at the rate of
not less than one hour for every hour of class
time and not more than two hours for every
hour of class time). Students’ total time in
education, core work, work study, laboratory
or field work, study time, etc., would be
countable against hours requirements. Also,
students could be credited as one working
family if, in addition to complying with the

CRS-47
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
full-time educational participation
requirements of their educational program,
they engaged in one of the countable work
activities above for at least the following
number of hours: six hours weekly in the
first year, eight hours in the second year, 10
hours in the third year, and 12 hours in the
fourth and any later year. For good cause,
states could modify these hour requirements.
To be eligible for these programs, recipients
would be required to maintain satisfactory
academic progress (as defined by the
institution operating the program). With
good cause exceptions, participants would
be required to complete requirements of a
degree or vocational educational training
program within the normal time frame for
full-time students. [Section 107(d) of S.
667]
Special Rules for
No provision.
Recipients engaged in qualified activities No provision.
Rehabilitative
considered rehabilitative (adult basic
Activities
education, or substance abuse treatment) for
three months, may have an additional three
months (known as the 3+3 program) of
participation in those activities counted if
combined with direct work activities.
[Section 109(f) of S. 667]

CRS-48
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Additionally, if a recipient has treatment of
disabilities or substance abuse in her family
self-sufficiency plan and the state has
developed collaborative relationships with
rehabilitation agencies, the recipient may
continue to have participation in such
activities countable without time limit if
combined with a minimum of 10 hours of
participation in a direct work activity.
[Section 110(b) of S. 667]

CRS-49
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Caring for a
No provision.
Permits a state to deem a single parent No provision.
Disabled Family
caring for a dependent with a physical or
Member
mental impairment to be meeting all or part
of the family’s work requirement. [Section
109(f) of S. 667]
Work Activities in
No provisions.
Permits a state to define countable work No provision.
Indian Areas of
activities for persons complying with a
High Joblessness
family self sufficiency plan and living in
areas of Indian country or an Alaskan native
village with high “joblessness.” To qualify
for this option, the state must include in its
TANF plan a description of its policies for
these areas. Also, as noted above, allows
states to define work-barrier removal
activities and to adopt activities authorized
under any waiver for any state that was
continuing before the date of enactment.
[Section 109(f) of S. 667]
Numerical Limits
No more than 30% of persons credited with
Continues the 30% cap, but provides that it No numerical cap on educational activities.
on Vocational
work may consist of persons participating in
does not apply to persons in a 3+3 program
Education and
vocational educational training or may be teen
receiving qualified rehabilitative services or
Teen Parents
parents who are deemed to be working because
to persons engaging in vocational
of satisfactory attendance at secondary school
educational training as a supplementary
or because of spending 20 hours weekly in
activity after meeting the 24-hour “direct
education directly related to employment.
work” requirement. [Section 109(f) of S.
[Section 407(c)(2)(D) of SSA]
667]
Required Hours
Generally, to count toward the all-family rate,
Establishes standard TANF work weeks as Establishes a 160-hour-per-month work
of Work Activity
average weekly participation of 30 hours (20
follows: 24 hours for a single parent with a standard. [Sections 2012(b) and 8110(a)]
hours in priority work activities) is required.
child under age 6; 34 hours for a single
However, in the case of single parents with a
parent with a child over 6 (with 24 hours in Generally, states must engage all families with
preschool age child (who constitute half of all
a priority activity) 39 hours for a two-parent a “work- eligible” member in a direct work

CRS-50
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
TANF cases), the hours requirement is 20 per
family (but 55 hours if that family receives activity or alternative self-sufficiency activity
week. For two-parent families the standard is
federally funded child care) — with most for an average of 40 hours weekly (the actual
35 hours (30 in priority work activity), but
hours in a priority activity. Families standard is 160 hours per month, equal to a
increases to 55 hours (50 in priority activities)
meeting the standard are counted as one weekly average of 37 hours) — of which 24
if the family receives federally-subsidized child
family in calculating the state’s work hours must be in one of the direct work
care. [Section 407(c)(1) of the SSA] For a
participation rate. Those exceeding the activities listed in the law and up to 16 hours
single parent caring for a child under age 6, 20
standard receive extra credit, and some who may be in a TANF-purposeful activity chosen
hours of participation satisfies the standard.
fall short of the standard receive partial by the state.
[Section 407(c)(2)(B) of the SSA]
credit (see below). Average weekly hours
are computed by dividing monthly hours of
participation by 4. [Section 109(f) of S.
667]
Special Rule for
Teen parents are deemed to meet the weekly
Essentially the same as current law. Essentially the same as current law. Teen
Teen Parents
hour participation standard by maintaining
Families with a teen parent who maintains parents are deemed to satisfy the (40-hour
satisfactory attendance in secondary school (or
satisfactory school attendance or participates weekly) work rule by virtue of satisfactory
the equivalent in the month) or by participating
in education directly related to employment school attendance (or the equivalent in the
in education directly related to employment for
for an average of 20 hours weekly are month) or by participating in education
an average of 20 hours weekly. [Section
counted as one working family toward the directly related to employment for an average
407(c)(2)(C) of the SSA]
participation standards. [Section 109(f) of S. of 20 hours weekly [Sections 2012(e) and
667]
8110(d)].
Partial Work
None.
Families who meet core work requirements Families who meet the 24-hour weekly direct
Credit
but fail the full standard receive partial work requirement but fail the 40-hour
credit as follows: Credited as .675 of a standard, receive pro-rata credit for all hours
family are single parent families (with or worked (but zero credit unless they meet the
without a child under six) who have 20-23 24-hour direct work rule). [Sections 2012(b)
hours of work and two-parent families with and 8110(a)]
26-29 hours of work (40-44 hours if they
receive federally subsidized child care).
Counted as .75 of a family are single parent
families without a preschool child who work
24-29 hours and two-parent families with

CRS-51
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
30-34 hours (45-50 if they receive child
care). Counted as .875 of a family are single
parent families without a preschool child
who work 30-33 hours and two-parent
families who work 35-38 hours (51-54 hours
if they receive child care). [Section 109(f)
of S. 667]
Extra Work
None.
Families that exceed the standard hourly Counts all hours worked above the 40-hour
Credit
work requirement receive extra credit, as full weekly standard, provided 24 hours are
follows. Credited as 1.05 of a family are spent in direct work (or, for a limited time, in
single-parent families who work 35-37 hours certain other qualified activities) and no more
and two-parent families who work 40-42 than 16 hours are in non-priority activities.
hours (56-58 hours if they receive child [Sections 2012(e) and 8110(d)]
care). Credited as 1.08 of a family are
single-parent families who work 38 or more
hours and two-parent families who work 43
or more hours (59 or more hours if they
receive child care). [Section 109(f) of S.
667]
Other Requirements with Respect to Families Receiving Assistance
Drug Testing
States are given the authority to test welfare
No provision (retains current law).
States are required to test applicants and
recipients for use of controlled substances and
recipients of TANF for use of drugs if the
sanction recipients who test positive for
state has a reason to believe he or she has
controlled substances. [Section 902 of the
recently used a controlled substance. If the
Personal Responsibility and Work Opportunity
applicant or recipient tests positive for drug
Reconciliation Act.]
use, or if the state otherwise determines that
he or she has recently used drugs, the state
must ensure that the family self-sufficiency
plan addresses the use of the substance;
suspend cash assistance to the family until a
subsequent test shows no drug use; and

CRS-52
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
require the applicant or recipient to undergo
periodic drug tests (every 30 or 60 days) as a
condition of receiving cash assistance.
Requires states to terminate participation in
the program of a family for three years if a
recipient member fails the drug test at least
three consecutive times (states may set a laxer
requirement, allowing failure of the drug test
for up to six consecutive times).
The Secretary of HHS is required to penalize
a state that does not comply with this
requirement. The penalty is a minimum of
5% of the state’s block grant, and a maximum
of 10% of the state’s block grant, with the
Secretary determining the exact penalty
amount. [Section 8122]
Eligibility for
Federal TANF funds cannot be used to assist an
Permits states to use federal TANF funds to No provision (retains current law).
Teen Parents
unmarried teen parent (under the age of 18)
assist an unmarried teen parent for up to 60
who does not reside in the home of her parents
days. Adds transitional living youth projects
or in another adult supervised setting. The state
to the accepted living situations for a teen
must assist such a teen parent in locating a
parent receiving TANF assistance. [Section
second chance home, maternity home, or other
110(b) of S. 667]
appropriate adult-supervised supportive living
arrangement unless the state determines that the
individual’s living arrangement is appropriate.
Displacement of
A recipient may fill a vacant employment
Provides that an adult recipient cannot No provision (retains current law).
Regular
position. However, no adult in a work activity displace any employee or position (including
Workers
that is funded in whole or in part by federal
partial displacement), fill any unfilled
funds may be employed or assigned when
vacancy, or perform work when any

CRS-53
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
another person is on layoff from the same or
individual is on layoff from the same job or
any substantially equivalent job, or if the
substantially equivalent job. TANF work
employer has ended the employment of any
activities cannot impair existing contracts or
regular employee or otherwise caused an
services; be inconsistent with any law,
involuntary reduction in its workforce in order
regulation, collective bargaining agreement;
to fill a vacancy with a TANF recipient. These
or infringe on the recall rights or
provisions do not preempt any provision of
promotional opportunities of any worker.
state or local law that provides greater
TANF work activities must be in addition to
protection against displacement. States are
any activity that would otherwise be
required to have a grievance procedure to
available and not supplant the hiring of a
resolve complaints of displacement of
non-TANF worker.
permanent employees.
Requires states to have a grievance
procedure for resolving complaints,
including the opportunity for a hearing, and
sets time standards for the process. It
provides remedies for a violation of the non-
displacement provisions, including
termination and suspension of payments,
prohibition on placement of the participant,
reinstatement of the employee, or other
relief to make the aggrieved employee
whole. These provisions do not preempt or
supersede any state or local law that
provides greater protection. [Section 119(c)
of S. 667]

CRS-54
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Disregard of
Federal TANF grants may not be used to aid a
Modifies this exclusion, providing that No provision (retains current law).
Months Toward
family with an adult who has received 60
months in which an adult lives in Indian
the TANF Time
months of assistance. Months in which an adult
Country with a jobless rate among adult
Limit for Months
lives in Indian Country with a jobless rate of
recipients of 40% or more are not countable
Living in Indian
50% or more are not counted toward the 60
toward the time limit. The 40% threshold is
Country Areas
month time limit.
dropped down to 35% if the state meets any
with Joblessness
of the needy state criteria under the
contingency fund or if the tribe meets
c r i t e r i a f o r c o n t i n ge n c y f u n d s .
Modifications do not apply to Alaska.
[Section 110(c) of S. 667]
Marriage Promotion
TANF Goals and
Two purposes relate to marriage. One goal is to
The stated purpose of promoting the The stated purpose of promoting the formation
Purposes
end dependency of needy parents on
formation and maintenance of two-parent and maintenance of two-parent families is
government benefits, with one of the stated
families is modified to read: encourage the modified to read: encourage the formation
means of accomplishing the goal specified as
formation and maintenance of healthy two- and maintenance of healthy, two-parent
marriage. A second purpose is to encourage the
parent married families, and encourage married families, and encourage responsible
formation and maintenance of two-parent
responsible fatherhood. [New language in fatherhood. [Section 8101]
families.
italics] [Section 103(e) of S. 667]
Funding for
No provision for special grants. States may use
Appropriates $100 million annually for Appropriates $100 million annually for
Marriage
TANF block grants to promote formation and
FY2005 through FY2010 for 50% FY2006 through FY2010 for 50% competitive
Promotion
maintenance of two-parent families (program competitive matching grants to states, Indian matching grants to states, territories, and tribal
Matching Grants
goal no. 4) and to promote marriage as a means
tribes, and tribal organizations for programs organizations for programs to promote and
of ending dependence on government benefits
to promote and support healthy married two- support healthy, married two-parent families.
(goal no. 2).
parent families. [Section 103(b) of S. 667]
Similar to S. 667, but does not include “Indian
tribes” as a potential grant recipient. [Section
8103(b)]

CRS-55
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Makes funds appropriated for each of
FY2006 through FY2010 available to the
Secretary until expended. Also, permits
grantees to use funds without fiscal year
deadline. [Section 103(b) of S. 667]
Provides that federal TANF funds used for Provides that federal TANF funds used for
marriage promotion may be treated as state marriage promotion must be treated as state
matching funds for marriage promotion matching funds for marriage promotion
grants [Section 103(b) of S. 667]
grants. [(Section 8111(b)(1)]
Provides that general rules governing uses of No provision.
TANF block grant funds (other than
administrative limit) shall not apply to
marriage promotion grants. [Section 103(b)
of S. 667]
Allowable
No provision. (TANF and MOE funds may be
Grants may be used for: advertising Grants may be used for: advertising
Activities for
used for marriage promotion activities.)
campaigns; education in high schools; campaigns; education in high schools;
Marriage
voluntary marriage education, marriage marriage education, marriage skills and
Promotion
skills and relationship skills programs that relationship skills programs that may include
Grants
may include parenting skills, financial parenting skills, financial management,
management, conflict resolution, and job conflict resolution, and job and career
and career advancement for non-married advancement for non-married pregnant
pregnant women and expectant fathers; women and expectant fathers; pre-marital
voluntary pre-marital education and education and marriage skills training for
marriage skills training for engaged couples engaged couples and individuals and couples
and individuals and couples interested in interested in marriage; marriage enhancement
marriage; voluntary marriage enhancement and marriage skills training programs for
and marriage skills training programs for married couples; divorce reduction programs;
married couples; voluntary divorce marriage mentoring programs; programs to
reduction programs; voluntary marriage reduce marriage disincentives in means-tested
mentoring programs; programs to reduce programs, if offered in conjunction with any
marriage disincentives in means-tested other listed activity. [Section 8103(b)]

CRS-56
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
programs, if offered in conjunction with any
other listed activity. [Section 103(b) of S.
667]
Domestic
No
provision.
Forbids award of a healthy
marriage Forbids the award of a healthy marriage
Violence
promotion grant unless the applicant promotion grant unless the applicant agrees to
Provisions
consults with organizations that have consult with experts in domestic violence or
demonstrated expertise in working with relevant community domestic violence
survivors of domestic violence; the coalitions and the application describes how
a p p l i c a t i o n d e s c r i b e s h o w t h e the program/activities will deal with issues of
program/activities will deal with issues of domestic violence. [Section 8103(b)]
domestic violence; establishes written
protocols that provide for the identification
of instances and risks of domestic violence;
specifies procedures for making service
referrals and providing protections. [Section
103(b) of S. 667]
Requirements for
No
provision.
Requires that participation in
marriage Same as S. 667. [Section 8103(b)]
Voluntary
promotion activities (other than media
Participation
campaigns and high school education) is
voluntary. Requires that the application for
the grant describe what the grantee will do
to ensure that participation in programs and
activities is voluntary.

Applications for healthy marriage promotion Same as S. 667. [Section 8103(b)]
grants must states what will be done to
ensure that potential participants are
informed that participation is voluntary.

CRS-57
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Voluntary
Grantees must provide assurances that, with No provision.
Participation and
respect to recipients of TANF assistance,
Recipients of
they are informed that participation is
TANF Assistance
voluntary, that they may choose to disenroll
from the program at any time, and they may
be reassigned to other activities.
Recipients of cash assistance may not be
sanctioned for withdrawing from, or failing
to participate in marriage promotion
activities. [Section 103(b) of S. 667]
Performance
No provision.
Requires grantees to establish performance No provision.
Goals/reporting
goals that clarify the primary objective of
Requirements
funded programs is to increase the incidence
and quality of healthy marriages and not
solely to expand the number or percentage
of married couples.
Requires grantees to submit annual reports
to the Secretary of HHS that describe the
written protocols established to identify
domestic violence, identify who was
consulted in the development of the
protocols, describe who provided training
for grantees on domestic violence, and
describe implementation issues with respect
to domestic violence.

CRS-58
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
The Secretary of HHS is required to submit
a report to Congress every six months
providing: the name of each program or
activity funded with marriage promotion
grants; description of types of services
offered under the program; criteria for the
selection of programs or activities funded
with the grant; total number of individuals
served by the programs; total number of
individuals who completed the program; and
total number of individuals who did not
complete the program; and summaries of
written domestic violence protocols, who the
grantees consulted with regard to domestic
violence, and training provided to grantees
on domestic violence. [Section 103(b) of S.
667]

CRS-59
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Research and
No special provision to fund research or
Appropriates $100 million each for FY2005 Appropriates $102 million each for FY2006
Demonstrations
demonstrations. However, available TANF
through FY2010 for research and through FY2010 for research and
on Marriage
research funds (see Research and
demonstration projects and for technical demonstration projects and for technical
Promotion
Demonstrations, below) and other research
assistance to states, tribal organizations, and assistance to states, tribal organizations, and
funds provided to the Department of Health and
other entities chosen by the Secretary. other entities chosen by the Secretary.
Human Services may be used to evaluate
Specifies that 80% of these funds must be Specifies that these funds must be spent
marriage promotion initiatives.
spent on research and demonstration primarily on activities allowed under marriage
projects, or for providing technical promotion grants (see above). (Sets aside $2
assistance, in connection with activities million yearly for demonstration projects for
allowed under marriage promotion grants coordination of child welfare and TANF
(see above). Provides that all appropriated services to tribal families at risk of child abuse
funds shall remain available until expended. or neglect.) Provides that funds appropriated
[Section 114(a) of S. 667]
for FY2005 shall remain available through
FY2006. [Section 8115(a)]
Provisions to
No provision.
Forbids Secretary to pay these research Requires that participation in marriage
Address Domestic
funds to an entity that has not consulted with promotion activities is voluntary and that
Violence and
organizations that have demonstrated grantees consult with experts in domestic
Voluntary
expertise in working with survivors of violence issues.
Participation
domestic violence; describe in the
Issues for
application for a grant how the programs or
Research Funds
activities will appropriately address
domestic violence; establish written
protocols to help identify instances or risks
of domestic violence; specify procedures for
making service referrals; establish
performance goals for the program; and
submit reports annually to the Secretary of
HHS (see marriage promotion grants,
above).

CRS-60
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Requires applications for the grant to
describe what the grantee will do to assure
that participation in marriage promotion
activities is voluntary, and inform potential
recipients that their participation is
voluntary. [Section 114(a) of S. 667]
State Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions
State Plan
Each state must outline (generally in a plan
No provision (though additional state plan Adds requirement that each state must
Requirements
effective for three fiscal years), how it intends
provisions are described below).
describe what it will do to end dependence of
to: conduct a program providing cash
needy families on government benefits and
assistance to needy families with children and
reduce poverty by promoting job preparation
providing parents with work and support
and work and; encourage formation and
services; take steps deemed necessary by the
maintenance of healthy, two-parent married
state to restrict use and disclosure of
families, encourage responsible fatherhood,
information about recipients; and conduct a
and prevent and reduce the incidence of out-
program providing education and training on
of-wedlock pregnancies. [Sections 2013 and
the problem of statutory rape. In addition, the
8112].
plan must indicate whether the state intends to
aid noncitizens; set forth objective criteria for
benefit delivery and for fair and equitable
treatment. In the plan the state must certify that
it will operate a child support enforcement
program and a foster care and adoption
assistance program and provide equitable
access to Indians ineligible for aid under a tribal
plan. It must certify that it has established
standards against program fraud and abuse. It
must specify which state agency or agencies
will administer and supervise TANF. In
addition, the state may opt to certify that it has
established and is enforcing procedures to
screen and identify recipients with a history of

CRS-61
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
domestic violence, to refer them to services,
and to waive program rules for some of them.
[Section 402(a) of the SSA]
Participation of
No state plan provision.
If the state is undertaking strategies or The state plan must describe strategies or
Faith-based
p r o gr a ms to engage faith-ba s e d programs to engage faith-based organizations
Organizations in
organizations in the delivery of TANF in the delivery of TANF services, or that
Provision of
services, or that otherwise relate to the otherwise relate to the charitable choice
Services
charitable choice provisions of P.L. 104-193, provisions of P.L. 104-193. [Section 8112(a)]
the state plan must describe such strategies
and programs. [Section 101(a) of S. 667]
State Plan
Unless the governor opts out by notice to HHS,
Eliminates this requirement. [Section 101(a) Same as S. 667. [Sections 2013 and 8112(a)]
Requirement for
the state will require a parent who has received
of S. 667]
Community
TANF for two months and is not work-exempt
Service after Two
to participate in community service
Months
employment.
Measurable
State plans must establish goals and take action
States must establish measurable State plans must include measurable
Performance
to prevent/reduce the incidence of out-of- performance objectives for pursuing all performance objectives for accomplishing
Goals
wedlock pregnancies.
TANF purposes (current law only specifies ending dependence of needy families on
establishment of goals for reducing out-of- government benefits and reducing poverty
wedlock pregnancies). These goals are to (including objectives consistent with the
give consideration to those developed by the criteria for awarding Employment
Secretary of HHS in establishing Achievement bonuses) and for encouraging
performance targets for the employment the formation and maintenance of two-parent
bonus (see above) and additional criteria married families, encouraging responsible
related to other TANF purposes developed fatherhood, and reducing the incidence of out-
by the Secretary (in consultation with state of-wedlock pregnancies. [Sections 2013 and
groups).
8112(a)]

CRS-62
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Program
States plan is to describe strategies and Same as S. 667. [Sections 2013 and 8112(a)]
Strategies
programs the state is using or plans to use to
address employment retention and
advancement for recipient of assistance;
efforts to reduce teen pregnancy; services
for struggling and noncompliant families;
and program integration, including the
extent to which employment and training
services are provided through One-Stop
Career Centers created under the Workforce
Investment Act. State plan is to describe
strategies to improve program management
and performance. [Section 101(a) of S. 667]
Description of
No provision.
Requires the state plan to include, to the No provision.
State Assistance
extent applicable, for each program that
Programs
provides assistance information on its:
financial and nonfinancial eligibility rules;
amount of assistance; and applicable time
limits and time limit rules. [Section 101(a)
of S. 667]
Indian and Tribal
States must certify that they will provide
Requires that the state plan include a Requires tribal family assistance plans to
Issues
equitable access to TANF to Indians who are
description of how the state will ensure provide assurance that the state in which the
ineligible for tribal family assistance programs.
equitable access to TANF to Indians who are tribe is located has been consulted regarding
[Section 402(a) of the SSA]
ineligible for tribal family assistance the plan and its design. [Section 8112(b)]
programs. States must certify that they will
consult with each Indian tribe regarding the
state plan to ensure equitable access, and
provide each member of an Indian tribe in
the state who is ineligible for aid from a
tribal family assistance program with
equitable access to TANF. [Section 113(d)

CRS-63
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
of S. 667] Requires that the certifications
include that tribal governments have been
consulted in the development of the state
plan. [Section 101(a) of S. 667]
Two-parent
No provision.
Requires plan to describe how the state Same as S. 667. [Section 8101(c)]
Families
intends to encourage equitable treatment of
healthy, married two-parent families under
TANF. [Section 101(c) of S. 667]
Description of
No
provision.
I f s t a t e p r o v i d e s
T A N F - f u n d e d No provision.
Additional State
transportation aid, requires certification by
Options for the
the governor that state and local
Work
transportation officials and planning bodies
Requirements
have been consulted in development of the
plan. [Section 101(a) of S. 667]
If a state counts caring for a disabled family
member as a work activity, the state must
describe how it will do so.
States opting to fund a post-secondary
education program (Parents as Scholars) are
required to file an addendum to the state
plan describing the program’s eligibility
criteria.
States opting to provide continuing
rehabilitative activities are required to file an
addendum to the state plan describing the
process for developing collaborative
relationships between governmental and
private entities and an assurance of regular
contact between the provider and the state.

CRS-64
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Standard Form
No provision.
Requires the HHS Secretary to develop a No provision.
proposed Standard State Plan Form for use
by states not later than nine months after
date of enactment of the bill. Requires states
to use the standard state plan form
beginning in FY2007. Allows states to
delay submission of state plans until
FY2007.
Requires states to make drafts of proposed
plans (and plan amendments) available to
the public through a state-maintained
Internet website and through other means
found appropriate by the state. States also
must make TANF state plans in effect for
any fiscal year available to the public, by the
above means. [Section 101(b) of S. 667].
Performance
No provision. (However for the purpose of
Requires the Secretary, in consultation with Same as S. 667. [Sections 2013 and 8112(c)]
Measures
awarding performance bonuses, the Secretary is
the states, to develop uniform performance
to develop a formula in consultation with the
measures to judge the effectiveness and
National Governors Association and the
improvement of state programs in
American Public Welfare Association.)
accomplishing TANF purposes. [Section
101(d) of S. 667]
Rankings of
Directs HHS Secretary to rank states in order of
Revises the employment measure to be Deletes “long-term” qualifier from private job
States
success in moving recipients into long-term “unsubsidized employment.” Adds measure. Adds employment retention and
private jobs and reducing the proportion of out- employment retention and ability to increase ability to increase wages to factors used for
of-wedlock births and in both cases to review
wages to factors used for rankings. Also, rankings. Also, adds three new ranking
programs of the three states with highest and
adds three new ranking factors: the degree factors: the degree to which recipients have
lowest ratings. [Section 413(d) and(e) of the
to which recipients have workplace workplace attachment and advancement,
SSA]
attachment and advancement, reducing the reducing the overall welfare caseload, and,
overall welfare caseload, and, when a when a method of calculation becomes
method of calculation becomes practicable, practicable, diverting persons from making

CRS-65
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
diverting persons from making formal formal applications to TANF. [Sections
applications to TANF. [Section 101(e) of S. 2013(c) and 8112(d)]
667]
In ranking states, Secretary must take into No provision.
account the average number of minor
children living at home in families with
income below the poverty line, the child
poverty rate, and the amount of TANF
funding provided to each state for these
families. [Section 101(e)]
Data Collection
States are required to collect monthly, and
Requires quarterly reports to cover families Same as S. 667. [Section 8113(a)]
and Reporting
report quarterly, disaggregated case record
in MOE-funded separate state programs, as
information (but may use sample case record
well as those in TANF state programs.
information for this purpose) about recipient
Permits the Secretary to limit use of
families in the TANF program. [Section 411(a)
sampling by designating core elements that
of the SSA]
must be reported for all families.

CRS-66
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Required family information includes county of
In terms of data elements, adds race and Same as S. 667.
residence; whether a member received
educational level of each minor parent.
disability benefits; ages of members; size of
Deletes educational level of each child.
family and the relation of each member to the
Eliminates reporting of the amount of child
family head; employment status and earnings of
care and food stamp benefits. Eliminates the
the employed adult; marital status of adults;
requirement to report on different types of
amount of unearned income received by family TANF assistance (conforms reporting with
members; citizenship of family members;
new, narrower definition of assistance).
number of families and persons receiving aid
Requires information on why a family is on
under TANF (including the number of two- the rolls in excess of 60 months. Requires
parent and one-parent families); total dollar
reporting on the date the family first
value of assistance given; total number of
received aid on the basis of its most recent
families and persons aided by welfare-to-work
application and the marital status of the
grants (and the number whose participation
parents of any child in the family at the birth
ended during a month); number of noncustodial
of the child, and if the parents were not then
parents who participated in work activities; for
married, whether the paternity of the child
each teenager, whether he/she is the parent of a
has been established. [Section 112(a) of S.
child in the family; race and educational level
667]
of each adult; race and educational level of each
child; whether the family received subsidized
housing medicaid, food stamps, or subsidized
child care (and if the latter two, the amount);
and number of months that the family received
each type of aid under the program.
The HHS Secretary shall prescribe
regulations needed to define data elements
and to collect necessary data and shall
consult with the National Governors
Association, the American Public Human
Services Association, the National
Conference of State Legislatures, and others.
[Section 112(e) of S. 667]

CRS-67
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Data Reporting
Quarterly reports are to include information
Requires that states report hours of Adds to reported activity list: training and
on Work
required to compute TANF work participation
participation in all activities that count other activities directed at TANF purposes.
Participation
rates. This includes number of hours per week,
toward meeting TANF participation Adds and (job) placement to job search.
if any, that adults participated in specified
standards as well as other work and self- Omits job skills training and vocational
activities (education, subsidized private jobs,
sufficiency activities. Also requires education. Specifies that work experience and
unsubsidized jobs, public sector jobs, work reporting on whether the family has a self- community service are “supervised.” Also
experience, or community service, job search,
sufficiency plan established and progress requires reporting on whether the family has a
job skills training or on-the job training,
toward universal engagement. [Section self-sufficiency plan established and progress
vocational education). [Section 411(a) of the
112(a) of S. 667]
toward universal engagement. [Section
SSA]
113(a)]
Data Reporting
No provision.
Requires the quarterly report to include No provision.
on Indians
information on the demographics and
caseload characteristics of Indians in state
TANF and MOE programs. [Section 113(e)
of S. 667]
Reporting on
From a sample of closed cases, the quarterly
Deletes reporting of families leaving TANF Same as S. 667. [Section 8113(a)]
Families Leaving
report is to give the number of case closures
because of marriage. [Section 112(a) of S.
TANF
because of employment, marriage, time limit,
667]
sanction, or state policy. [Section 411(a) of the
SSA]
Requires quarterly reports to include the Same as S. 667. [Section 8113(c)]
number of families and persons who became
ineligible to receive TANF during the month
(broken down by the number that lost
eligibility because of earnings, changes in
family composition that result in higher
earnings, sanctions, time limits, or other
specified reasons). [Section 112(c) of S.
667]

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Reports for
No provision. TANF data collection applies
Applies the reporting requirements of the No provision.
Families
only to families receiving assistance.
Child Care and Development Block Grant
Receiving TANF-
(CCDBG) to TANF-funded child care.
funded Child
Allows for a waiver process if the state is
Care
unable to comply with this requirement.
[Section 112(d) of S. 667]
Monthly State
No provision.
Requires states to submit monthly reports on Requires states to submit monthly reports on
Reports
the number of families and persons the number of families and persons receiving
receiving assistance from TANF and assistance from TANF. [Section 8113(c)]
separate state MOE programs. [Section
112(f) of S. 667]
Annual State
Regulations require states to annually submit a
Requires states to submit an annual report on Same as S. 667. [Section 8113(e)]
Reports
program report (by December 31 of each year)
characteristics of the state TANF program
providing financial eligibility rules for all
and other state programs funded with MOE
programs funded by TANF or state MOE funds.
funds. Required information: program name
For each MOE program, reports are to include
and purpose, description of program
the name, purpose, and eligibility criteria.
activities, sources of funding, number of
beneficiaries, sanction policies, and any
work requirements. [Section 112(f) of S.
667]
Annual Report
No provision.
Beginning with FY2007, states must submit Same as S. 667. [Section 8113(e)]
on Program
to HHS an annual report on achievement and
Performance
improvement under numerical performance
goals and measures.
Requires an annual report on progress No provision.
toward full engagement.
HHS Reports
Requires the HHS Secretary to make annual
Sets July 1 of each fiscal year as the Same as S. 667. [Section 8113(f)]
reports to Congress that include state progress
deadline for the report. Deletes applicant
in meeting TANF objectives (increasing
families from the report. Adds requirement
employment and earnings of needy families and
to report on characteristics of MOE-funded

CRS-69
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
child support collections, and decreasing out- programs. [Section 112(g) of S. 667]
of-wedlock pregnancies and child poverty),
demographic and financial characteristics of
applicants, recipients, and ex-recipients;
characteristics of each TANF program; and
trends in employment and earnings of needy
families with children.
Requires the HHS Secretary to submit to four
committees of Congress annual reports on
specified matters about three groups: children
whose families lost TANF eligibility because of
a time limit, children born after enactment of
TANF to teen parents, and persons who became
teen parents after enactment. [Section 413(g)
of the SSA]
Information on
No provision.
Requires the TANF annual report to include No provision.
Indians in the
state-specific information about the
TANF Annual
demographics and caseload characteristics
Report
of Indians in state TANF and MOE
programs. [Section 113(e) of S. 667]
Single Audit
TANF payments to states are subject to the
No
provision.
The Secretary, within three months
of
Reports
Single Audit Act. [Section 409(a)(1)]
receiving an audit from a state, shall analyze
it to identify the extent and nature of problems
related to the state’s oversight of contracts
between nongovernmental entities and the
state TANF program. [Section 8113(g)]

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Study on
No provision.
No provision.
Not later than six months after enactment,
Coordination of
requires the Secretaries of HHS and Labor to
Data Elements in
submit a joint report describing common or
the TANF and
conflicting data elements, definitions,
Workforce
performance measures, and reporting
Investment Act.
requirements in the Workforce Investment Act
and TANF law. [Sections 2014 and 8115(d)]
Research,
Evaluations, and
National Studies

Research on State
Requires HHS Secretary to conduct research on
Continues these provisions and appropriates Same as S. 667. [Section 8115(b)]
Programs
effects, costs, and benefits of state programs.
$15 million annually for them through
Provides that Secretary may help states develop
FY2010. [Section 114(b) of S. 667]
innovative approaches to employing TANF
recipients and shall evaluate them.
Appropriates $15 million yearly and directs
how it shall be divided. [Section 413(h) of the
SSA.] (Note: In subsequent appropriation acts,
Congress has rescinded these funds and
appropriated research funds on a less
prescriptive basis under Section 1110 of the
Social Security Act, which deals with
cooperative research and demonstration
projects.)
Indicators of
No
provision.
Appropriates $10 million per year for No provision.
Child Well-being
FY2006 through FY2010 for the Secretary
of HHS to, through grants, contracts, and
interagency agreements, develop indicators
of child well-being for each state. Among
other requirements, the indicators are
required to be statistically representative at

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
the state level, consistent across states, and
oversampled with respect to low-income
families with children. The Secretary is to
establish an advisory panel to make
recommendations regarding appropriate
measures and statistical tools with respect to
the indicators.
Research on
No
provision.
Appropriates $2 million for
FY2006 Sets aside $2 million annually for FY2006
Tribal Social
(available until expended) to conduct through FY2010 to be awarded on a
Services Issues
research on tribal family assistance grants competitive basis to fund demonstration
and efforts to reduce poverty among Indians. projects designed to test the effectiveness of
[Section 114(f) of S. 667]
tribal governments and consortia in
coordinating child welfare services to tribal
families at risk of child abuse or neglect.
[Section 8115(a)]
Census Bureau
Directs the Census Bureau to expand the
Appropriates $10 million annually for Same as S. 667. [Section 8116]
Study
Survey of Income and Program Participation
FY2006 through FY2010 to the Census
(SIPP) to obtain data with which to evaluate
Bureau. Directs the Bureau to implement or
TANF’s impact on random national sample of
enhance a longitudinal survey of program
recipients. Appropriates $10 million annually.
participation to permit assessment of
[Section 414 of the SSA]
outcomes of continued reform on the
economic and child well-being of low-
income families with children, including
those who received TANF-funded aid or
services. Survey content should include
information needed to examine the issues of
out-of-wedlock childbearing, marriage,
welfare dependency, beginning and ending
of spells of assistance, work, earnings, and
employment stability. To the extent
possible, survey is to provide state

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
representative samples. Funds are to remain
available through FY2010 for this survey.
[Section 115(a) of S. 667]
Requires the Secretary of Commerce to No provision.
make reports to the Ways and Means and
Finance Committees on the well-being of
children and families, based on data
collected in the above study. First report is
due two years after enactment; the second
one, five years after enactment. [Section
115(b) of S. 667]
Teen Pregnancy
No provision.
Appropriates $5 million for FY2006 (to be No provision.
Resource Center
available through FY2010) for the Secretary
of HHS to award a grant to a nationally
recognized, nonpartisan, nonprofit
organization (that meets stipulated
requirements) to establish and operate a
national teen pregnancy prevention resource
center. The purpose of the resource center is
to improve the well-being of children and
families and encourage young people to
delay pregnancy until marriage. The
resource center will provide information and
technical assistance to states, Indian tribes,
local communities, and other private or
public organizations seeking to reduce rates
of teen pregnancy; support parents in their
role in preventing teen pregnancy; and assist
the entertainment media industry by
encouraging them to develop content and
messages for teens and adults that can help

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
prevent teen pregnancy. [Section 119(d) of
S. 667]
Best Practices
No provision.
Authorizes $10 million per year for FY2006 No provision.
for Dealing with
through FY2010 to develop and implement
Domestic
programs designed to address domestic
Violence
violence. Programs shall include training
for caseworkers administering TANF;
technical assistance; provision of voluntary
services for victims of domestic violence;
and activities related to the prevention of
domestic violence. [Section 103(c) of S.
667]
Definition of
Receipt of assistance by a parent or other
Defines “assistance” to mean payment, by Same policy as S. 667 (different wording of
Assistance
caretaker relative triggers work and time limit
cash, voucher, or other means, to or for an the provision). [Section 8117]
rules. Law does not define the term. By
individual or family to meet a subsistence
regulation, assistance is defined as ongoing aid
need, but not including costs of
to meet basic needs, plus support services such
transportation or child care. It excludes
as child care and transportation subsidies, for
non-recurrent short-term benefits. [Section
unemployed recipients. It excludes non- 117]
recurrent short term benefits. Federally-funded
“assistance” to a family with an adult is limited
to 60 months; states may impose shorter time
limits.
State Option to
The Workforce Investment Act (WIA) makes
No
provision.
Makes state TANF programs
mandatory
Make TANF
TANF an optional partner with one-stop
partners with one-stop employment training
Programs
employment training centers.
centers established under the Workforce
Mandatory
Investment Act unless the governor of a state
Partners with
decides otherwise and so notifies the
One-stop WIA
Secretaries of Health and Human Services and
Centers
Labor. [Sections 2016 and 8120].

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Sense of the
No provision.
No provision.
Provides that it is the sense of Congress that a
Congress
state welfare-to-work program should include
mentoring. [Sections 2017 and 8121]
Enforcing
Requires sponsors of immigrants to sign a
Not later than March 31, 2006, requires the Same as S. 667. [Section 8115(c)]
Support of
legally enforceable affidavit of support. Deems
HHS Secretary, in consultation with the
Immigrants by
all income and resources of a sponsor (and the
Attorney General, to submit a report on the
Sponsors
sponsor’s spouse) as available to the sponsored
enforcement of affidavits of support and
alien until he or she becomes naturalized or
sponsor deeming required by P.L. 104-193.
meets a work test. [Sections 421 and 423 of the
[Section 115(c) of S. 667]
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996]
Child Care
Overview, Goals and Administration
Overview
Social Security Act includes provisions for
Provisions for mandatory child care funding Provisions for mandatory child care funding
mandatory (“entitlement”) funding. [Section
are included in S. 667 (PRIDE), Title 1, are included in Title VIII (Ways and Means),
418]
Section 116. All amendments to the Sec. 8201. All amendments to the CCDBG
Child Care and Development Block Grant Act
CCDBG Act are included in S. 525, the Act are included in Title II (Education and the
(CCDBG) of 1990, as amended, includes
Caring for Children Act of 2005.
Work Force), Part 3, Sections 2021-2029.
discretionary funding authorization, and
program provisions.
Goals
The five goals of the CCDBG are: (1) to allow
Amends the third goal of the CCDBG to Makes same changes to third and fourth goals
states the maximum flexibility in developing
“assist” states to provide consumer as Senate bill (although House bill only
child care programs; (2) to promote parental
education information (rather than to specifies “low income parents,” not “low
choice for working parents making child care
“encourage” states). Modifies fourth goal, income working parents.”
decisions; (3) to encourage states to provide
eliminating specific reference to providing
consumer education information to help parents
child care for parents trying to achieve
make informed child care choices; (4) to assist
independence from public assistance, and
states to provide child care to parents trying to
replacing with providing child care to low-
achieve independence from public assistance;
income working parents.
and (5) to assist states in implementing the
[Section 101 of S. 525]

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
health, safety, licensing, and registration
standards established in state regulations.
[Section 658A of CCDBG Act]
Adds three new goals to the CCDBG: (1) to Adds two new goals for the CCDBG: (1) to
assist states in improving the quality of child encourage states to improve the quality of
care available to families; (2) to promote child care available to families; and (2) to
school preparedness by encouraging promote school readiness by encouraging
children, families, and caregivers to engage children’s exposure to nurturing environments
in developmentally appropriate and age- and developmentally-appropriate activities,
appropriate activities in child care settings including activities to foster early cognitive
that will — (a) improve the children’s and literacy development. [Section 2022 -
social, emotional, and behavioral skills; and Education &Workforce]
(b) foster their early cognitive, pre-reading,
and language development and prenumeracy
and mathematics skills (more detailed than
House bill); and (3) to promote parental and
family involvement in the education of
young children in child care settings.
[Section 101 of S. 525]
Lead agency
The chief executive officer of a state designates
Allows a state receiving CCDBG funds to No provision.
designation
an appropriate state agency as the lead agency.
designate an agency (which may be a
[Section 658D(a) of the CCDBG Act]
collaborative agency), or establish a joint
interagency office to serve as the lead
agency for the state. [Section 103 of S. 525]
Funding
Authorization of
The CCDBG Act authorized $1 billion in
Authorizes discretionary funding for the Same as Senate bill.
appropriations
discretionary CCDBG funding for each of fiscal
CCDBG at the following levels:
[Section 2023]
years 1996-2002. (Actual appropriations in
FY2006 = $2.3 billion
recent years have surpassed authorized levels.
FY2007 = $2.5 billion
Current appropriation is $2.1 billion.) [Section
FY2008 = $2.7 billion

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
658B of CCDBG Act]
FY2009 = $2.9 billion
FY2010 = $3.1 billion
[Section 102 of S. 525]
Entitlement
Entitles states to a basic block grant based on
Increases mandatory funding by $6 billion
Increases mandatory funding by $500 million
funding
FY1992-FY1995 expenditures in welfare- (above the current level) over five years,
(above the current level) over five years,
related child care. Mandatory funds above this
appropriating:
appropriating:
amount are provided to states on a matching
$3.617 billion for FY2006;
$2.717 billion for Fiscal Year 2006;
basis. Appropriates entitlement (mandatory)
$3.717 billion for FY2007;
$2.767 billion for Fiscal Year 2007;
funding at the FY2002 rate of $2.717 billion
$3.917 billion for FY2008;
$2.817 billion for Fiscal Year 2008;
annually through December 31, 2005. [Section
$4.017 billion for FY2009;
$2.867 billion for Fiscal Year 2009; and
418 of the Social Security Act; and most recent
$4.317 billion for FY2010.
$2.917 billion for Fiscal Year 2010.
extension P.L. 109-68]
[Section 116 of S. 667]
[Section 8201]
Puerto Rico
Puerto Rico receives no
entitlement
Of the mandatory funds described above, a No provision.
(mandatory) child care funding under current
total of $75 million over five years is
law.
appropriated to Puerto Rico. [S. 667, Section
116]
Amounts
Reserved

Territories and
Current law provides for the following
tribes
reservation of funds from the total CCDBG
discretionary appropriation:
Up to one half of 1% annually for payments to
Retains current law.Retains current law.
Guam, American Samoa, the Virgin Islands,
and Northern Mariana Islands;
Not less than 1% and not more than 2% for
Changes tribal allocation to exactly 2%.
Retains current law
Indian tribes and tribal organizations. [Section
[Section 109 of S. 525]
658]

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Infants and
The CCDBG Act itself does not contain any Amends Section 658 of the CCDBG Act to No provision.
toddlers;
specific provision to reserve funds for
require the Secretary to reserve an amount
telephone hotline
increasing infant and toddler care, however,
not to exceed $100 million each fiscal year
appropriations law (for FY2004, P.L. 108-199)
for improving quality of and access to care
includes $100 million from the discretionary
for infants and toddlers. Also requires an
CCDBG appropriation for states to increase the
amount not to exceed $1 million to be
supply of quality care for infants and toddlers,
reserved for a national toll-free child care
as well as $1 million for the Child Care Aware
hotline. [Section 109 of S. 525]
toll free hotline.
Transfer of
States may transfer up to 30% of their annual
No change to current law.
The allowable transfer of the TANF block
TANF funds to
TANF block grants to the CCDBG. (The
grant to CCDBG is increased from 30% to
CCDBG
maximum is 20% if a state opts to transfer 10%
50%. [Section 8107(c)]
of its TANF grant to the Social Services Block
Grant.) [Section 404(d)(1) of Social Security
Act]
Optional priority
No provision.
Amends the CCDBG Act to add Section No provision.
use of additional
658H, which would allow states that receive
funds
funding of an amount greater than that
received in FY2005, to use a portion of the
excess to support payment rate increases and
to establish tiered payment rates. [Section
106 of S. 525]
Application and plan
Consumer
In order for a state to be eligible to receive
Amends current law to specify that resource Same as Senate bill, except that there is no
education
CCDBG funds, it must submit an application
and referral services and other means be requirement that the state report to the
information
and plan that meet with approval from HHS.
used for the collection and dissemination of Secretary the manner in which the consumer
Among other things, the state plan certifies that
consumer education information, and that information was provided, or the number of
the state will collect and disseminate to parents
child care providers be recipients of this parents to whom it was provided during the
of eligible children and the general public,
information (in addition to parents and the period of the previous state plan. However,
consumer education information that will
general public). Information is outlined to the House bill does instruct that the
promote informed child care choices. [Section
include information about quality and information provided to parents be in plain
658E(c)(2)(D) of CCDBG Act]
availability of child care; research and best language, and to the extent practicable, one

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
practices on children’s development; and the parent can understand. [Section 2024]
other assistance programs for which families
receiving child care services may be eligible.
[Section 104 of S. 525]
Payment rates
States must certify in their state plans that
Requires state plan to demonstrate that the No provision (retains current law).
CCDBG provider payment rates are sufficient
state has developed and conducted a
to ensure families receiving subsidies have
statistically valid and reliable market rate
equal access to comparable child care services
survey for child care services within the two
in the state provided to non-CCDBG-eligible
years prior to its submission. The state will
children. States are also required to provide a
also detail the results of the market rate
summary of the facts they relied upon to
survey; describe how the state will provide
determine that the set rates are sufficient to
for timely payment for child care services,
ensure equal access. [Section 658E(c)(4)]
and set payment rates for child care services
in accordance with the survey results,
(Note: Regulations require that the above- without reducing the number of families in
mentioned summary of facts be based on a local
the state receiving assistance. Eliminates
market rate survey conducted no more than two
the requirement that the state submit a
years prior to the effective date of the currently
summary of the facts relied upon to
approved plan.)
determine that the set rates are sufficient to
ensure equal access.
Results are to be made available to the
public no later than 30 days after survey’s
completion. [Section 104 of S. 525]
No provision.
Includes language stating that nothing shall No provision.
prevent a state from differentiating the
payment rates to providers on the basis of
geographic location, the age or particular
needs of children, whether the providers
provide child care during weekend and other
nontraditional hours, and the state’s
determination that different rates are needed
to enable a parent to choose child care that

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
the parent believes to be of high quality.
[Section 104 of S. 525]
Coordination
(While not required to be addressed in the state
Adds provision requiring the state plan to Same as Senate bill, except coordination is to
plan under current law, one the four stated
describe how the state will coordinate child be “demonstrated” rather than “described,”
duties of the CCDBG lead agency is to
care services with other early childhood and Title I preschool programs are not
coordinate the provision of CCDBG services
education programs, to expand accessibility specified in list of programs with which
with other federal, state, and local child care
to and continuity of care and early education coordination should occur. [Section 2024]
and early childhood development program.)
without displacing services provided by the
[Section 658D(b)(1)(D)]
current system. [Section 204 of S. 525]
Adds provision requiring the state plan to Same as Senate bill, except bill does not
demonstrate how the state encourages specify that the child care services provided
partnerships with private and other public be for children age 13 and under. (Note: the
entities to leverage existing service delivery CCDBG Act already includes this age
systems and increase the supply and quality requirement.) [Section 2024]
of child care for children under 13. [Section
104 of S. 525]
Certification of
Regulations require that the state plan describe
Certification is not required as part of state Adds provision requiring state plan to certify
compliance with
activities a state intends to fund with “quality
plan, however, states are required annually (every two years) its compliance with the
quality set-aside
set-aside” money, but neither law nor regulation
(beginning in FY2006) to provide the quality set-aside percentage requirement,
percentage
requires certification of compliance.
Secretary with certification regarding including a description of the use of funds,
compliance with quality activity beginning in FY2007 (for the preceding fiscal
requirements. (See “quality activities” year). [Section 2024]
provision below.)
Strategy for
No provision.
Adds provision requiring annual submission Requires same information as Senate bill, but
addressing
to the Secretary of the strategy the state will as part of state plan, rather than an annual
quality of child
implement to address the quality of child submission. [Section 2024]
care available
care services available to low-income
families from eligible providers. The
strategy is to include a description of
quantifiable, objective measures for
evaluating progress in quality improvement,
and a list of state-developed targets for the

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
plan’s fiscal year. For each year after
FY2006, the plan shall include a progress
report with respect to achieving the targets.
[Section 204 of S. 525]
Addressing
No provision.
Adds provision requiring state plan to Same as Senate bill.
special needs
demonstrate how the state is addressing the [Section 2024]
child care
needs of eligible parents who have children
with special needs; work non-traditional
hours; or require child care for infants or
toddlers. [Section 104 of S. 525]
Meeting the
In their state plans, states must demonstrate the
The state plan must also describe how the No provision.
needs of TANF
manner in which the specific child care needs
state will inform parents receiving TANF,
population
of families on, leaving, or at-risk of receiving
and other low-income parents, about
TANF will be met.
eligibility for CCDBG assistance. [Section
[Section 658E(c)(2)(H)]
104 of S. 525]
Redetermination
No
provision.
State plan must demonstrate
that No provision.
procedures;
redetermination of eligibility for assistance
protection for
is not to be conducted any more frequently
working parents
than every six months, except in the case of
a parent’s loss of employment. States are
given the option of demonstrating that they
will not terminate child care assistance
based on a parent’s loss of work without
first continuing assistance for at least one
month while the parent looks for work.
Also requires the state plan to show that
procedures and policies are in place to
ensure that working parents are not required
to unduly disrupt their employment in order
to comply with the state’s requirements for
eligibility and re-determination.
[Section 104 of S. 525]

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Description of
No provision.
Requires state plan to describe any training No provision.
requirements for
requirements in effect that are applicable to
training in early
CCDBG providers and that are designed to
childhood
enable child care providers to promote the
development
social, emotional, physical, and cognitive
development of children. [Section 104 of S.
525]
Use of Funds
Use of funds for
Current law broadly states that CCDBG funds
Adds specific language to current law No provision.
a resource and
are to be used for child care services, activities
regarding use of funds: allows a state to use
referral system
that improve the quality or availability of such
CCDBG funds to establish or support a
services, and any other activity that the state
system of local child care resource and
deems appropriate to realize the goals of the
referral organizations coordinated, to the
program. [Section 658E(c)(3)(B)]
extent determined appropriate by the state,
by a statewide private, non-profit,
community-based lead child care resource
and referral organization. The resource and
referral organizations will provide parents
with information on child care options; and
collect and analyze data on supply and
demand for child care in political
subdivisions within the state, and submit
reports to the state. [Section 104 of S. 525]
Use of funds for
No provision.
Requires that after reservation of set-asides, No provision.
direct services
at least 70% of funds remaining must be
used to fund direct services (as defined by
the state). [Section 104 of S. 525]

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Activities to improve the quality of child care
Funding
Not less than 4% of a state’s annual funding for
Increases the “quality set-aside” to not less Same as Senate bill.
the CCDBG is to be used for quality activities
than 6%. [Section 105 of S. 525]
[Section 2025]
(described below). [Section 658G of CCDBG
Act]
Definitions
The law describes funded activities as those
Senate bill specifies that quality funds be Provides more detail than current law,
designed to provide comprehensive consumer
used only for the listed purposes (see specifying four categories of quality activities
education to parents and the public, activities
below). (Similar to House bill with respect (see below).
that increase parental choice, and activities
to some categories of activities, but greater
designed to improve the quality and availability
detail in others (see below)).
of child care (such as resource and referral
services). [Section 658G of CCDBG Act]
Training and
(1) programs providing training, education (1) Same as Senate bill.
professional
and other professional development for child
development
care workers;
School readiness
(2) develop and implement voluntary (2) activities within child care settings to
activities
guidelines on pre-reading and language enhance early learning, early literacy, and
skills and activities that are aligned with school readiness;
state goals for school preparedness;
(3) support activities and provide technical
assistance in child care settings to enhance
early learning for young children, to
promote literacy, and to foster school
preparedness;
Provider
(4) engage in programs designed to increase (3) initiatives to increase the retention and
retention and
the retention and improve the competencies compensation of child care providers,
compensation
of child care providers, including wage including tiered reimbursement rates for
incentive programs and initiatives that providers; and
establish tiered payment rates for providers
that meet or exceed child care services

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guidelines, as defined by the state;
Other
(5) evaluate and assess the quality and (4) other activities as approved by the state.
effectiveness of child care programs and
services on improving overall school
preparedness; and
(6) carry out other activities determined by
the state to improve the quality of child care
services for which measurement of
outcomes relating to improved child safety,
child well-being, or school preparedness is
possible.
[Section 105 of S. 525]
Certification
Regulations require that the state plan describe
Requires that beginning with FY2006, the As stated above, adds provision requiring state
requirements
activities a state intends to fund with “quality
state will certify annually to the Secretary its plan to certify (every two years) its
set-aside” money, but neither law nor regulation
compliance with the quality activity compliance with the quality set-aside
requires certification of compliance.
requirements; will describe how the state percentage requirement, including a
used quality funds during the preceding description of the use of funds, beginning in
year; will outline the state’s strategy for FY2007 (for the preceding fiscal year).
addressing the quality of child care in the [Section 2024]
state, including a description of quantifiable,
objective measures, that the state will use to
evaluate the state’s progress in improving
child care services. Beginning in FY2007,
the state will submit a report on its progress
in achieving targets for the preceding fiscal
year. [Section 105 of S. 525]
Report by the HHS Secretary to Congress
Frequency
The Secretary of HHS is required to prepare
Amends current law to replace biennial Amends current law to require that the
and submit a biennial report to Congress.
report to Congress with an annual report (see biennial report to Congress contain additional
below for contents).[Section 108 of S. 525] elements (see below). [Section 2027]

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Content
The biennial report includes a summary and
Adds a new requirement that aggregated Adds new required contents to be included in
analysis of the data submitted by states (as
statistics on the supply of, demand for, and the biennial report: aggregated statistics on
required by Section 658K). The report is also
quality of child care, early education, and the supply of, demand for, and quality of child
to include an assessment, and where
non-school-hours programs be included in care, early education, and non-school-hours
appropriate, recommendations for the Congress
a report to HHS. However, unlike House programs. [Section 2027]
with respect to improving the access of quality
bill, under this bill the report would be
and affordable child care. [Section 658L of
submitted annually rather than biennially.
CCDBG Act]
Also requires that the following additional
information be included:
— a summary and analysis of the data and
information provided to the Secretary in the
state plan (Section 658E), the strategy
addressing quality activities (Section
658G(c)), and the quarterly reports (Section
658K).
— a progress report describing the progress
of the states in streamlining data reporting,
the Secretary’s plans and activities to
provide technical assistance to states, and an
explanation of any barriers to getting data in
an accurate and timely manner. [Section
108 of S. 525]
Submission
Current law required first report not later than
Report will be required annually, beginning Report will continue to be submitted
deadline and
July 31, 1998, and biennially thereafter.
with the first submitted no later than April biennially, as under current law, but will be
other
[Section 658L]
30, 2006.
required to include the new aggregated
requirements
information (described above) beginning with
Also, not later than 30 days after the date of report submitted no later than October 1,
such submission, the report is required to be 2007. [Section 2027]
posted on the HHS website. [Section 108 of
S. 525]

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Use of resource
No provision
In order to collect this newly required Same as Senate bill. [Section 2027]
and referral
information, the bill authorizes the Secretary
organizations for
to use the national child care data system
data collection
available through resource and referral
organizations. [Section 108 of S. 525]
Eligibility
Definition of
Under federal law, the maximum family income
Eliminates the federal maximum income Same as Senate bill. [Section 2028]
income eligibility
of a CCDBG-eligible child may not exceed
limit of 85% of state median income, and
85% of its state median income for a family of
allows each state to establish income
the same size. (States may set their own
eligibility levels, prioritized by need (as
eligibility levels below the federal maximum.)
defined by the state). [Section 110 of S. 525]
[Section 658P(4)(B)]
Reports and audits from States to HHS
Quarterly
States receiving CCDBG funds are required to
Retains quarterly reporting of current law, No provision (retains current law).
reports
report to the Secretary on a quarterly basis the
but amends the list of data elements that
following data collected monthly with respect
states are required to collect on a monthly
to CCDBG families: family income; county of
basis. Changes include requiring that states:
residence; gender, race, and age of child(ren)
show the cost of each family’s subsidy
receiving assistance; sources of family income
broken down into subsidy amount and co-
(including employment, TANF, housing
payment amount; report household size;
assistance, food stamps, and other programs);
identify the reason for any termination in
duration of benefit receipt; type of child care
benefit; and report whether the child has an
used; cost of child care; and average number of
individualized education plan. States no
hours of child care. In order to collect data,
longer would report receipt of housing
states may use sampling methods (approved by
assistance or food stamps. [Section 107 of
the Secretary). [Section 658K]
S. 525]
Annual reports
States must submit annual reports of aggregate
Eliminates separate annual report, but No provision (retains current law).
data concerning number of providers that
requires in fourth quarterly report of each
received CCDBG funding; monthly cost of
year that the state submit information on the
child care services, and the portion paid through
annual number and type of child care

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subsidy; the number of payments made through
providers that received funding under this
vouchers; the manner in which consumer
subchapter and the annual number of
education information was provided, and the
payments made by the state through
number of parents receiving it; and the total
vouchers, under contracts, or by payment to
unduplicated number of children and families
parents, by type of child care provider.
served during the reporting period. [Section
[Section 107 of S. 525]
658K(a)(2)]
Information on the number of children and
families receiving CCDBG assistance is to
be posted on the website of each state.
[Section 107 of S. 525]
States must comply with the changes in data
collection and reporting requirements within
two years from the date of this act’s
enactment. A waiver can be granted (by
HHS) to states with plans to procure data
systems. [Section 107 of S. 525]
Other Child Care Provisions
Rule of
No provision.
Amends CCDBG Act to include a rule of No provision.
construction
construction stating that nothing in the act
shall be construed to require a state to
impose state child care licensing
requirements on any type of early childhood
provider, including any such provider who is
exempt form state child care licensing
requirements on the date of enactment of the
Caring for Children Act of 2005. [Section
111 of S. 525]

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as reported from committee)
House Budget Reconciliation Bill
Enhancing
Current law does not contain this title.
This bill includes a separate title with No provision.
security at child
provisions aimed at enhancing security at
care centers in
child care centers in federal facilities. The
federal facilities
bill requires that the Administrator of
General Services, among others, issue
regulations relating to emergency plans and
relocation sites. [Title II, Sections 201 and
202 of S. 525]
Small business
Current law does not contain this title.
This separate title requires the Secretary of No provision.
child care grant
HHS to establish a program to award
program
competitive grants to states, which are to be
used by states (or eligible consortia of small
businesses or entities) to encourage the
establishment and operation of employer-
operated child care programs. The section
authorizes $30 million for the period of
FY2006-2010 to carry out the program.
[Title III, Section 301 of S. 525]
Waiver authority
No provision.
No provision.
Up until June 30, 2006, and to such extent as
to assist states
the Secretary of HHS considers appropriate,
serving families
the Secretary may waive or modify certain
affected by the
CCDBG provisions for states affected by the
Gulf hurricanes
Gulf hurricanes. These provisions are defined
as those relating to the federal income
eligibility limits, the work requirements, the
required use of quality funds, and any
provision that prevents children designated as
evacuees from receiving priority services over
any children not already receiving services.
[Section 2029]

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House Budget Reconciliation Bill
Responsible Fatherhood Program
Findings
No provision.
Lists a number of statements that show Includes a list of statements, but they are not
evidence indicating the need to promote and identical to those in S. 667. [New Part C of
support involved, committed, and Title IV of the Social Security Act, Section
responsible fatherhood, and to encourage 441(a)]
and support healthy marriages between
parents raising children. [Section 118(a)(1)
of S. 667]
Responsible
No provision.
The Responsible Fatherhood program would Same as S. 667. [Sections 2015(b) and
Fatherhood
be added to the Social Security Act as a new 8119(b)]
Program
Part C of Title IV. (Note: Because the
fatherhood provisions are drafted as an This section of the House Budget
amendment to the TANF section of P.L.104- Reconciliation bill may be cited as the
193, they would be subject to the charitable “Promotion and Support of Responsible
choice rules.) [Section 118(a)(2) of S. 667]
Fatherhood and Healthy Marriage Act of
2005.” [Sections 2015(a) and 8119(a)]
Summary of the
No
provision.
Establishes five components for
the Establishes four components for the
Responsible
responsible fatherhood program for FY2006 responsible fatherhood program for FY2006
Fatherhood
through FY2010. It (1) appropriates $20 through FY2010. It (1) authorizes
Program
million for a grant program for up to 10 competitive grants for responsible fatherhood
eligible states to conduct demonstration projects to public and nonprofit community
programs; (2) appropriates $30 million for entities, including religious organizations, and
grants for eligible entities (local to Indian tribes and tribal organizations, for
government, local public agency, demonstration service projects and activities
community-based or nonprofit organization, designed to test the effectiveness of various
or private entity, including any charitable or approaches to accomplish the four specified
faith-based organizations, or Indian tribe or responsible fatherhood program objectives —
t r i b a l o r ga n i za t i o n ) t o c o n d u c t eligible entities would be allowed to apply for
demonstration programs; (3) authorizes $5 either full service grants or limited purpose
million for a nationally recognized nonprofit grants of $25,000 or less per fiscal year; (2)
fatherhood promotion organization to authorizes funding for two multicity,
develop and promote a responsible multistate fatherhood demonstration projects

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fatherhood media campaign and establish a to be developed and conducted by a national
national clearinghouse to help states and nonprofit fatherhood promotion organization;
communities in their efforts to promote both (3) authorizes funding for an evaluation of the
marriage and responsible fatherhood; (4) competitive grant projects and the multicity,
authorizes a $20 million block grant for multistate demonstration projects; and (4)
states to conduct responsible fatherhood authorizes the Secretary of HHS by grant,
media campaigns (authorizes $1 million of contract, or cooperative agreement to carry
the $20 million for an evaluation); and (5) out projects and activities of national
authorizes $1 million for a nationally significance relating to fatherhood promotion
recognized nonprofit research and education — such projects or activities could include
fatherhood organization to establish a collection and dissemination of information,
national resource center for responsible media campaigns, technical assistance to
fatherhood. [New Part C of Title IV of the public and private entities, and research.
Social Security Act, Sections 441-444]
[New Part C of Title IV, Sections 443-446]

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House Budget Reconciliation Bill
Note: The Committee on Education and the
Workforce shared jurisdiction with the
Committee on Ways and Means with respect
to Fatherhood Programs. The Committee on
Education and the Workforce’s fatherhood
program is identical to that of the Committee
on Ways and Means except that it includes
five components rather than four and
stipulates that no more than 35% of the $20
million annual authorization can be used for
the multicity, multistate demonstrations, the
economic incentives demonstrations, the
evaluations, and the projections of national
significance.
In addition to the four components in the
Ways and Means Committee proposal, the
Committee on Education and the Workforce’s
proposal authorizes the HHS Secretary to
make grants available for FY2006 through
FY2010 for two to five demonstration projects
that test the use of economic incentives
combined with a comprehensive approach to
addressing employment barriers to encourage
noncustodial parents to enter the workforce
and to contribute financially and emotionally
to their children. The fatherhood
demonstration projects are to be developed
and conducted by a national nonprofit
fatherhood promotion organization that meets
the qualifications specified in the bill. The
bill stipulates that out of the set-aside monies,
at least

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House Budget Reconciliation Bill
$5 million is to be allocated for the economic
incentive demonstration project. [Section
2015 of Committee on Education and the
Workforce proposal, and New Part C of Title
IV, Sections 445 and 449]
No provision.
The purposes of the responsible fatherhood The first of the three purposes is to provide for
demonstration grants are to promote projects and activities by public entities and
responsible fatherhood through (1) marriage nonprofit community entities, including
promotion (through counseling, mentoring, religious organizations, to test promising
disseminating information about the approaches to accomplishing the following
advantages of marriage and two-parent four objectives:
involvement for children, enhancing
relationship skills, teaching how to control (1) promoting responsible, caring and
aggressive behavior, disseminating effective parenting and encouraging positive
information on the causes of domestic father involvement, including the positive
violence and child abuse, marriage involvement of non-resident fathers;
preparation programs, premarital counseling, (2) enhancing the abilities and commitment of
skills-based marriage education, financial unemployed or low-income fathers to provide
planning seminars, and divorce education support for their families and to avoid or leave
and reduction programs, including mediation welfare;
and counseling); (2) parenting activities (3) improving fathers’ ability to effectively
(through counseling, mentoring, mediation, manage family business affairs; and
disseminating information about good (4) encouraging and supporting healthy
parenting practices, skills-based parenting marriages and married fatherhood.
education, encouraging child support
payments, and other methods); and (3) The second purpose is through the projects
fostering economic stability of fathers and activities described above, to improve
(through work first services, job search, job outcomes for children such as increased
training, subsidized employment, education, family income and economic security,
including career-advancing education, job improved school performance, better health,
retention, job enhancement, dissemination of improved emotional and behavioral stability
employment materials, coordination with and social adjustment, and reduced risk of
existing employment services such as delinquency, crime, substance abuse, child

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Senate Committee Bills (S. 667 or S. 525
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House Budget Reconciliation Bill
welfare-to-work programs, referrals to local abuse and neglect, teen sexual activity, and
employment training initiatives, and other teen suicide.
methods). [New Part C of Title IV, Section
441(a)(2)]
The third purpose is to evaluate approaches
and disseminate findings to encourage
replication of effective approaches to
achieving the desired outcomes for both
parents and children. [New Part C of Title IV,
Section 441(b)]
Prohibitions
No provision.
With regard to both the grants to states and No provision.
entities, prohibits the use of responsible
fatherhood demonstration grants for court
proceedings on matters of child visitation or
child custody, or legislative advocacy. [New
Part C of Title IV, Section 441(a)(3) and
Section 441(b)(2)]
Prohibits an eligible state or entity from Requires that entities that apply for a grant to
being awarded a grant unless the state or develop and operate fatherhood demonstration
entity consults with experts on domestic service projects and activities include in their
violence or with relevant community application a description of how they will
domestic violence coalitions in developing address child abuse and neglect and domestic
programs or activities funded by the grant. violence, including how the applicant will
The state or entity also must describe in the coordinate with state and local child protective
grant application how the proposed service and domestic violence programs.
programs or activities will address, as [New Part C of Title IV, Section 443(b)(3)]
appropriate, issues of domestic violence and
what the state or entity will do, to the extent
relevant, to ensure that participation in such
programs or activities is voluntary and to
inform potential participants that their
involvement is voluntary. [New Part C of
Title IV, Section 441(a)(4) and Section

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
441(b)(3)]
Requires the HHS Secretary to ensure that Requires that each national nonprofit
the selected nationally recognized nonprofit fatherhood promotion organization that
fatherhood promotion organization applies for funding to develop and operate
coordinate the media campaign and national multicity, multistate fatherhood demonstration
clearinghouse that are developed with grant projects include in their application a
funds with national, state, or local domestic description of how they will address child
violence programs. [New Part C of Title IV, abuse and neglect and domestic violence,
Section 442(a)(2)]
including how the applicant will coordinate
with state and local child protective service
With respect to the block grant to states to and domestic violence programs. [New Part
encourage media campaigns, in developing C of Title IV, Section 444(c)(3)] [Note: A
broadcast and printed advertisements for similar provision is in the Education and the
media campaigns, the state or other entity Workforce Committee proposal with respect
administering the campaign must consult to national nonprofit fatherhood promotion
with representatives of state and local organizations that operate economic incentive
domestic violence centers. [New Part C of demonstration projects. [New Part C of Title
Title IV, Section 443(d)(3)]
IV, Section 445(c)(3)]
Funding
No provision.
For each of the years FY2006 through Authorizes $20 million for each of FY2006
FY2010, appropriates $20 million for up to through FY2010.
10 eligible states to conduct demonstration
programs and appropriates $30 million for Not more than 15% of the annual
eligible entities to conduct demonstration appropriations shall be available for the costs
programs. Authorizes $5 million for a of the multicity, multistate demonstration
nationally recognized nonprofit fatherhood projects under Section 444, evaluations under
promotion organization to develop and Section 445, and projects of national
promote a responsible fatherhood media significance under Section 446.
campaign. Authorizes a $20 million block
grant for states to conduct responsible [Note: See Summary Section above for an
fatherhood media campaigns. Authorizes $1 explanation of the difference between the two
million for a nationally recognized nonprofit House Committes’ responsible fatherhood
research and education fatherhood proposals.]

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as reported from committee)
House Budget Reconciliation Bill
organization to establish a national resource
center for responsible fatherhood.
If fully funded, the bill would provide $20
If fully funded, the bill would provide $76 million for responsible fatherhood programs
million for responsible fatherhood programs for each of the five years — totaling $100
for each of the five years — totaling $380 million.
million.
Nondiscriminati
No provision.
Requires that the responsible fatherhood Same as S. 667. [New Part C of Title IV,
on Clause
programs and activities be made available to Section 447]
all fathers and expectant fathers, including
married and unmarried fathers and custodial
and non-custodial fathers, with a special
focus on low-income fathers, on the same
basis; and that mothers and expectant
mothers be able to participate in such
programs and activities on the same basis as
the fathers. [New Part C of Title IV, Section
445]
Child Support Enforcement (CSE) Program
Assignment and Distribution of Child Support for TANF and Former TANF Families
Assignment of

In order to receive benefits, Temporary
Stipulates that the assignment covers only Stipulates that the assignment covers child
child support
Assistance to Needy Families (TANF)
child support that accrues during the period support that accrues during the period that the
rights
recipients must assign their child support rights
that the family receives TANF. (In other family receives TANF, but also gives states
to the state. The assignment covers any child
words, pre-assistance arrearages would be the option of including in the assignment child
support that accrues while the family receives
eliminated.) [Section 301(a) of S. 667]
support that accrued to the family before the
TANF and any support that accrued before the
family began receiving TANF. This provision
family began receiving TANF.
would take effect on October 1, 2008.
[Section 8316]
Any assignment of rights to child support that
In addition, the bill would give states the Any assignment of rights to child support that
was in effect on September 30, 1997 must
option to discontinue pre-assistance was in effect on September 30, 1997 may
remain in effect. This means that any child
assignments in effect on September 30, remain in effect. This means that states would

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
support collected as a result of the assignment
1997. If a state chooses to discontinue the have the option to discontinue pre-assistance
is owed to the state and the federal government.
child support assignment, the state would assignments in effect on September 30, 1997.
have to give up its legal claim to collections If a state chooses to discontinue the child
based on such arrearages and the state would support assignment, the state would have to
have to distribute the collections to the give up its legal claim to collections based on
family. [Section 301(c) of S. 667]
such arrearages and the state would have to
distribute the collections to the family.
States also would have the option to [Section 8317]
discontinue pre-assistance arrearage
assignments in effect after September 30,
1997 and before the implementation date of
this provision. If a state chooses to
discontinue the child support assignment,
the state would have to give up its legal
claim to collections based on such
arrearages and the state would have to
distribute the collections to the family.
[Section 301(c) of S. 667]
Federal
While the family receives TANF benefits, the
Same as current law.
Same as current law.
matching funds
state is permitted to retain any current child
for limited pass-
support payments and any assigned arrearages
through of child
it collects up to the cumulative amount of
support
TANF benefits which has been paid to the
payments to
family. In other words, the state can decide
families
how much, if any, of the state share (some, all,
receiving TANF
none) of the child support payment collected on
behalf of TANF families to send to the family.

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as reported from committee)
House Budget Reconciliation Bill
The state is required to pay the federal
For families who received assistance from For TANF families, requires the federal
government the federal share of the child
the state (which could include TANF or government to waive its share of an increase
support collected.
foster care), requires the federal government in the child support pass-through (up to the
to waive its share of child support greater of $100 per month or $50 over the
Child support payments collected on behalf of
collections passed through to TANF families state’s stipulated child support pass-through as
TANF families that are passed through to the
by the state and disregarded by the state — of December 31, 2001) for families that
family and disregarded by the state count
up to an amount equal to $400 per month in receive TANF benefits. To obtain the federal
toward the TANF Maintenance-of-Effort
the case of a family with one child, and up to matching funds, the state would have to
(MOE) expenditure requirement.
$600 per month in the case of a family with disregard the amount passed through to the
two or more children. Like current law, family in determining the family’s TANF
disregarded pass-through amounts would benefit amount. This provision would apply
count as TANF MOE expenditures. [Section to amounts distributed on or after October 1,
301(b) of S. 667]
2008. [Section 8301]
Includes a provision that allows states with
Section 1115 demonstration waivers (on or
before October 1, 1997) related to the child
support pass-through provisions to continue
to pass through payments to families in
accordance with the terms of the waiver.
[Section 301(b) of S. 667]
State option to
Current child support payments must be paid to
Simplifies child support distribution rules. Simplifies child support distribution rules to
pass through all
the family if the family is no longer on TANF.
Eliminates the special treatment of child gives states the option of providing families
child support
support arrearages collected through the that have left TANF the full amount of the
payments to
With respect to former TANF families: Since
federal income tax refund offset program. child support collected on their behalf (i.e.,
families that
October 1, 1997, child support arrearages that
Therefore, all child support collections to both current child support and child support
formerly
accrue after the family leaves TANF also are
former TANF families would go to the arrearages). The federal government would
received TANF
required to be paid to the family before any
family first. [Section 301(b) of S. 667]
have to share with the states the costs of
monies may be retained by the state.
paying child support arrearages to the family
To the extent that the arrearage amount first. This provision would apply to amounts
With respect to former TANF families: Since
payable to a former TANF family in any distributed on or after October 1, 2008.
October 1, 2000, child support arrearages that
given month exceeds the amount that would [Section 8302]
accrued before the family began receiving
have been payable to the family under

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as reported from committee)
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TANF also are required to be distributed to the
current law, the state would be able to elect
family first.
to have the amount paid to the family
considered an expenditure for TANF MOE
However, if child support arrearages are
purposes. In addition, amends the Child
collected through the federal income tax refund
Support Enforcement (CSE) State Plan to
offset program, the family does not have first
include an election by the state to include
claim on the arrearage payments. Such
whether it is using the new option to pass
arrearage payments are retained by the state and
through all arrearage payments to former
the federal government.
TANF families without paying the federal
government its share of such collections or
whether it has chosen to maintain the current
law distribution method. Further, stipulates
that no later than six months after the date of
enactment of this legislation, the HHS
Secretary, in consultation with the states,
would be required to establish the
procedures to be used to make estimates of
excess costs associated with the new funding
option. [Section 301(b) of S. 667]
The provisions of Section 301 of this bill
would take effect October 1, 2009, or earlier
at state option at any date that is 18 months
after the date of enactment of the bill but not
later than September 30, 2009. [Section
301(e) of S. 667]
Mandatory
Federal law requires that the state have
Requires states to review and, if appropriate, Same as S. 667. [Section 8303]
review and
procedures under which every three years the
adjust child support orders in TANF cases
adjustment of
state review and adjust (if appropriate) child
every three years. This provision would take
child support
support orders at the request of either parent,
effect on October 1, 2007. [Section 302 of
orders for
and that in the case of TANF families, the state
S. 667]
families
review and update (if appropriate) child support
receiving TANF
orders at the request of the state CSE agency or

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as reported from committee)
House Budget Reconciliation Bill
of either parent.
Report on
No
provision.
Requires that within six months
of Same as S. 667. [Section 8305]
undistributed
enactment, the HHS Secretary must submit
child support
to the House Ways and Means Committee
payments
and the Senate Finance Committee a report
on the procedures states use to locate
custodial parents for whom child support has
been collected but not yet distributed. The
report must include an estimate of the total
amount of undistributed child support and
the average length of time it takes
undistributed child support to be distributed.
To the extent the Secretary deems
appropriate, the report must include
recommendations as to whether additional
procedures should be established at the state
or federal level to expedite the payment of
undistributed child support. [Section 303 of
S. 667]
Enforcement Provisions
Decrease in

Federal law stipulates that the HHS Secretary is
Authorizes the denial, revocation, or Same as S. 667. [Section 8306]
amount of child
required to submit to the Secretary of State the
restriction of passports to noncustodial
support
names of noncustodial parents who have been
parents whose child support arrearages
arrearage
certified by the state CSE agency as owing
exceed $2,500, rather than $5,000 as under
triggering
more than $5,000 in past-due child support. The
current law. This provision would take
Passport denial
Secretary of State has authority to deny, revoke,
effect on October 1, 2006. [Section 304 of
restrict, or limit passports to noncustodial
S. 667]
parents whose child support arrearages exceed
$5,000.

CRS-99
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Use of tax
Federal law prohibits the use of the federal
Permits the federal income tax refund offset Same as S. 667. [Section 8307]
refund intercept
income tax offset program to recover past-due
program to be used to collect arrearages on
program to
child support on behalf of non-welfare cases in
behalf of non-welfare children who are no
collect past-due
which the child is not a minor, unless the child
longer minors. This provision would take
child support on
was determined disabled while he or she was a
effect on October 1, 2007. [Section 305 of
behalf of
minor and for whom the child support order is
S. 667]
children who are
still in effect. (Since enactment in 1981 (P.L.
not minors
97-35), the federal income tax offset program
has been used to collect child support
arrearages on behalf of welfare families
regardless of whether the children were still
minors — as long as the child support order
was in effect.)
Garnishment of
The disability compensation benefits of
Allows veterans’ disability compensation Allows veterans’ disability compensation
compensation
veterans are treated differently than most forms
benefits to be intercepted (withheld) and benefits to be intercepted (withheld) and paid
paid to veterans
of government payment for purposes of paying paid on a routine basis to the custodial on a routine basis to the custodial parent if the
for service-
child support. Whereas most government
parent. This provision prohibits the veteran is 60 days or more in arrears on child
connected
payments are subject to being automatically
garnishment of any veteran’s disability support payments. Under the bill, this
disabilities in
withheld to pay child support, veterans
compensation in order to collect alimony provision is prohibited from being used to
order to enforce
disability compensation is not subject to
unless that disability compensation is being collect alimony and no more than 50% of any
child support
intercept. Before enactment of P.L. 108-136,
paid because retirement benefits were particular disability payment may be withheld.
obligations
there was one exception to this rule. The
waived. The provision would take effect on This provision would take effect on October 1,
exception occurred when veterans had elected
October 1, 2007. [Section 306 of S. 667]
2007. [Section 8308]
to forego some of their retirement pay in order
to collect additional disability payments. The
advantage of veterans replacing retirement pay
with disability pay is that the disability pay is
not subject to taxation. With this exception, the
only way to obtain child support payments from
veterans’ disability compensation was to
request that the Secretary of the Department of
Veteran Affairs intercept the disability
compensation and make the child support

CRS-100
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
payments. P.L. 108-136, enacted November
24, 2003, permits veterans to receive both
military retired pay and veterans’ disability
compensation.
Federal law stipulates that any federal agency
Allows Social Security benefits to be offset No provision.
Improving
that is owed a nontax debt (that is more than
to collect past-due child support. The
federal debt
180 days past-due) must notify the Secretary of
Committee bill specifically overrules section
collection
the Treasury to obtain an administrative offset
207 of the Social Security Act which states
practices
of the debt. The Department of the Treasury
that Social Security benefits are not
(or other designated federal disbursing agency)
transferrable by garnishment. The provision
has the authority to offset Social Security would take effect on a date that is 18 months
benefits, certain Black Lung Board benefits,
after the date of enactment. [Section 307 of
and certain Railroad Retirement benefits to
S. 667]
collect delinquent debt owed to the United
States, subject to an annual $9,000 ($750 per
month) exemption.
Currently, states have the authority to garnish
Social Security benefits for child support
payments. But, Social Security payments can
only be offset for federal debt recovery. (Thus,
under current law child support arrearage
payments which are enforced by states cannot
b e o f f s e t f r o m S o c i a l S e c u r i t y
benefits/payments.)
Identification
The 1996 welfare reform law required states to
Authorizes the HHS Secretary, via the No provision.
and seizure of
enter into agreements with financial institutions
FPLS, to assist states to perform data
assets held by
conducting business within their state for the
matches comparing information from states
multi-state
purpose of conducting a quarterly data match.
and participating multi-state financial
financial
The data match is intended to identify financial
institutions with respect to persons owing
institutions
accounts (in banks, credit unions, money- past-due child support. Authorizes the
market mutual funds, etc.) belonging to parents
Secretary via the FPLS to seize assets, held
who are delinquent in the payment of their child
by such financial institutions, of

CRS-101
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
support obligation. In some cases, state law
noncustodial parents who owe child support
prohibits the placement of liens or levies on
arrearage payments, by issuing a notice of a
accounts outside of the state and some financial
lien or levy and requiring the financial
institutions only accept liens and levies from institution to freeze and seize assets in
the state where the account is located. In 1998,
accounts in multi-state financial institutions
Congress made it easier for multi-state financial
to satisfy child support obligations. Requires
institutions to match records by permitting the
the Secretary to transmit any assets seized
FPLS to help them coordinate their information.
under the procedure to the state for
accounting and distribution. Stipulates that
the Secretary must inform affected account
holders/ asset holders of their due process
rights. (In effect, would resolve problems of
jurisdiction in cases where a state was
pursuing an asset in a different state.)
[Section 310 of S. 667]

CRS-102
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Information
No provision.
Authorizes the HHS Secretary, via the Same as S. 667. [Section 8311]
comparisons
FPLS, to compare information of
with insurance
noncustodial parents who owe past-due child
data
support with information maintained by
insurers (or their agents) concerning
insurance claims, settlements, awards, and
payments; and to furnish any information
resulting from a match to the appropriate
state CSE agency in order to secure
settlements, awards, etc. for payment of
past-due child support. The bill stipulates
that no insurer would be liable under federal
or state law for disclosures made in good
faith under this provision. In addition, a
state or federal agency that receives such
information from the HHS Secretary must
reimburse the Secretary for the costs
incurred by the Secretary in providing the
information, at rates which the Secretary
determines to be reasonable. [Section 311
of S. 667]
Tribal access to
The FPLS is a national location system Includes Indian tribes and tribal Same as S. 667. [Section 8312]
the Federal
operated by the federal Office of Child Support
organizations that operate a CSE program as
Parent Locator
Enforcement to assist states in locating
“authorized persons.” [Section 312]
Service
noncustodial parents, putative fathers, and
custodial parties for the establishment of
paternity and child support obligations, as well
as the enforcement and modification of orders
for child support, custody and visitation. It also
identifies support orders or support cases
involving the same parties in different states.
The FPLS consists of the Federal Case
Registry, Federal Offset Program, Multi-state

CRS-103
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Financial Institution Data Match, National
Directory of New Hires, and the Passport
Denial Program. Additionally, the FPLS has
access to external sources such as the Internal
Revenue Service (IRS), the Social Security
Administration (SSA), Department of Veterans
Affairs (VA), the Department of Defense
(DOD), and the Federal Bureau of Investigation
(FBI). The FPLS is only allowed to transmit
information in its databases to “authorized
persons,” which include (1) child support
enforcement agencies (and their attorneys and
agents); (2) courts, (3) the resident parent, legal
guardian, attorney, or agent of a child owed
child support; and (4) foster care and adoption
agencies.
Claims upon
The Longshore and Harbor Worker’s
Amends the Longshore and Harbor No provision.
longshore and
Compensation Act is the federal worker’s
Workers’ Compensation Act to ensure that
harbor workers’
compensation law for maritime workers and
longshore or harbor workers benefits that are
compensation
persons working in shipyards and on docks,
provided by the federal government or by
for child support
ships, and offshore drilling platforms. The act
private insurers are subject to garnishment
exempts benefits paid by longshore or harbor
for purposes of paying child support
employers or their insurers from all claims of
obligations. [Section 315 of S. 667]
creditors. Thus, Longshore and Harbor
Worker’s Compensation Act benefits that are
paid by longshore or harbor employers or their
insurers are not subject to attachment for
payment of child support obligations.

CRS-104
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
State option to
The 1996 welfare reform law mandated states
Allows an assisting state to establish a child Same as S. 667. [Section 8315]
use statewide
to establish procedures under which the state
support interstate case based on another
automated data
would use high-volume automated
state’s request for assistance; and thereby an
processing and
administrative enforcement, to the same extent
assisting state would be able to use the CSE
information
as used for intrastate cases, in response to a
statewide automated data processing and
retrieval system
request from another state to enforce a child
information retrieval system for interstate
for interstate
support order. This provision was designed to
cases. [Section 316 of S. 667]
cases
enable child support agencies to quickly locate
and secure assets held by delinquent
noncustodial parents in another state without
opening a full-blown interstate child support
enforcement case in the other state. The
assisting state must use automatic data
processing to search various state data bases
including financial institutions, license records,
employment service data, and state new hire
registries, to determine whether information is
available regarding a parent who owes a child
support obligation. The assisting state is then
required to seize any identified assets. This
provision does not allow states to
open/establish a child support interstate case.

CRS-105
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Requirement
Federal law requires that a state CSE agency
Requires that medical support for a child be No provision.
that state child
issue a notice to the employer of a noncustodial
provided by either or both parents and that it
support
parent, who is subject to a child support order
must be enforced. Authorizes the state CSE
enforcement
issued by a court or administrative agency,
agency to enforce medical support against a
agencies seek
informing the employer of the parent’s
custodial parent whenever health care
medical support
obligation to provide health care coverage for
coverage is available to the custodial parent
for children
the child(ren). The employer must then
at reasonable cost. Stipulates that medical
from either
determine whether family health care coverage
support may include health care coverage
parent
is available for which the dependent child(ren)
(including payment of costs of premiums,
may be eligible, and if so, the employer must
co-payments, and deductibles) and payment
notify the plan administrator of each plan
of medical expenses incurred on behalf of a
covered by the National Medical Support
child. [Section 320 of S. 667]
Notice. If the dependent child(ren) is eligible
for coverage under a plan, the plan
administrator is required to enroll the dependent
child(ren) in an appropriate plan. The plan
administrator also must notify the noncustodial
parent’s employer of the premium amount to be
withheld from the employee’s paycheck.
Technical
P.L. 108-447, the Consolidated Appropriations
Makes technical changes to the Consolidated No provision.
amendment
Act of 2005, added provisions related to the
Appropriations Act of 2005 with respect to
relating to
comparison of data from the Secretary of the
references to Title IV-D provisions related
information
Treasury with data in the National Directory of
to information comparisons and other
comparisons and
New Hires for the purpose of collecting nontax
disclosures. [Section 323 of S. 667]
disclosure to
debt owed to the federal government.
assist in federal
debt collection


CRS-106
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
Financing Provisions
Reduction in rate
The federal government currently reimburses
No provision. (See Sense of the Senate Reduces the general CSE federal matching
of
each state 66% of the cost of administering its
provision below.)
rate of 66% to 62% in FY2007, 58% in
reimbursement
CSE program (i.e., the general CSE federal
FY2008, 54% in FY2009, and 50% in FY2010
of child support
matching rate). It also refunds states 90% of
and each fiscal year thereafter. [Section 8319]
administrative
the laboratory costs of establishing paternity.
expenses
Incentive

Section 455(a)(1) of the Social Security Act
No provision. (See Sense of the Senate Prohibits federal matching of state
payments
requires the HHS Secretary to reimburse each
provision below.)
expenditure of federal CSE incentive
state for CSE expenditures at specified federal
payments. (This means that CSE incentive
matching rates, with the exception of
payments that are received by states and
expenditures on (1)enforcing any state or
reinvested in the CSE program are not eligible
federal law with respect to parental kidnaping,
for federal reimbursement.) This provision
or (2) making or enforcing a child custody or
would take effect on October 1, 2007. [Section
visitation determination. P.L. 105-22 (enacted
8320]
in 1998) required mandatory reinvestment of
CSE incentive payments by states back into the
CSE program or related activities. State
spending of CSE incentive payments on CSE
activities are matched at the 66% federal
matching rate (or at the 90% federal matching
rate if the activities are related to paternity
determination).
Sense of the
No provision.
Note: The Senate Budget Reconciliation bill No provision.
Senate provision
does not include welfare reauthorization or
child support enforcement provisions, but
does include one provision opposing the
House bill’s reduction in CSE funding. It
affirms that the federal funding levels for the
rate of reimbursement of child support
administrative expenses should not be
reduced below the levels provided under

CRS-107
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
current law, that states should continue to be
permitted to use federal child support
incentive payments for child support
program expenditures that are eligible for
federal matching payments, and expresses
the sense of the Senate that it does not
support additional fees for successful child
support collection. [S.Amdt.2363 to S.
1932, the Deficit Reduction Omnibus
Reconciliation Act of 2005]
Mandatory fee
Federal law requires that non-welfare families
No provision. (See Sense of the Senate Requires families that have never been on
for successful
must apply for CSE services, and states must
provision below.)
TANF to pay a $25 annual user fee when child
child support
charge an application fee that cannot exceed
support enforcement efforts on their behalf are
collection for
$25. The state may charge the application fee
successful (i.e., at least $500 annually is
family that has
against the custodial parent, pay the fee out of
collected on their behalf). Such fees could be
never received
state funds, or recover it from the noncustodial
recovered from the custodial parent, the
TANF
parent. In addition, states have the option of
noncustodial parent, or the state (with state
recovering costs in excess of the application
funds). This provision would take effect on
fee. Such recovery may be from either the
October 1, 2006. [Section 8304]
custodial parent or the noncustodial parent.
Maintenance of
Federal law appropriates an amount equal to
Changes the amount available for technical Same as S. 667. [Section 8309]
technical
1% of the federal share of child support
assistance funding to an amount equal to 1%
assistance
collected on behalf of TANF families the
of the federal share of child support
funding
preceding year for the Secretary to provide to
collected or the amount appropriated for
the states for: information dissemination and
FY2002, whichever is greater. [Section 308
technical assistance, training of state and
of S. 667]
federal staff, staffing studies, and related
activities needed to improve CSE programs
(including technical assistance concerning state
automated CSE systems), and research
demonstrations and special projects of regional
or national significance relating to the operation

CRS-108
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
of CSE programs. Such funds are available
until they are expended.
Maintenance of
Federal law appropriates an amount equal to
Changes the amount available for the FPLS Same as S. 667. [Section 8310]
Federal Parent
2% of the federal share of child support
to an amount equal to 2% of the federal
Locator Service
collected on behalf of TANF families the
share of child support collected or the
funding (FPLS)
preceding year for the Secretary to use for
amount appropriated for FY2002, whichever
operation of the FPLS to the extent that the
is greater. Makes all funds appropriated for
costs of the FPLS are not recovered by user
this purpose available until expended.
fees. Funds that were appropriated for FY1997- [Section 309 of S. 667]
FY2001 remain available until expended.
Grants to states
The 1996 welfare reform law (P.L. 104-193)
Increases funding for Access and Visitation No provision.
for access and
authorized grants to states (via CSE funding) to
grants from $10 million annually to $12
visitation
establish and operate access and visitation
million in FY2006, $14 million in FY2007,
programs
programs. The purpose of the grants is to
$16 million in FY2008, and $20 million
facilitate noncustodial parents’ access to and
annually in FY2009 and each succeeding
visitation of their children. An annual
fiscal year. Extends the Access and
entitlement of $10 million from the federal CSE
Visitation program to Indian tribes and tribal
budget account is available to states for these
organizations that had received direct child
grants. Eligible activities include but are not
support enforcement payments from the
limited to mediation, counseling, education,
federal government for at least one year.
development of parenting plans, visitation
Includes a specified amount to be set aside
enforcement, and development of guidelines for
for Indian tribes and tribal organizations:
visitation and alternative custody arrangements.
$250,000 for FY2006; $600,000 for
The allotment formula is based on the ratio of
FY2007; $800,000 for FY2008; and $1.670
the number of children in the state living with
million for FY2009 or any succeeding fiscal
only one biological parent in relation to the
year.
total number of such children in all states. The
amount of the allotment available to a state is
Increases the minimum allotment to states to
this same ratio to $10 million. The allotments
$120,000 in FY2006, $140,000 in FY2007,
are to be adjusted to ensure that there is a
$160,000 in FY2008, and $180,000 in
minimum allotment amount of $50,000 per
FY2009 or any succeeding fiscal year. The
state for FY1997 and FY1998, and a minimum minimum allotment for Indian tribes and
of $100,000 for any year after FY1998. States
tribal organizations would be $10,000 for a

CRS-109
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
may use the grants to create their own programs
fiscal year. The tribal allotment would not
or to fund programs operated by courts, local
be able to exceed the minimum state
public agencies, or nonprofit organizations.
allotment for any given fiscal year.
The programs do not need to be statewide.
States must monitor, evaluate, and report on
The allotment formula for Indian tribes and
their programs in accord with regulations issued
tribal organizations that operate child
by the HHS Secretary.
support enforcement programs would be
based on the ratio of the number of children
in the tribe or tribal organization living with
only one parent in relation to the total
number of children living with only one
parent in all Indian tribes or tribal
organizations. The amount of the allotment
available to an Indian tribe or tribal
organization would be this same ratio to the
maximum allotment for Indian tribes and
tribal organizations (i.e., $250,000 for
FY2006; $600,000 for FY2007; $800,000
for FY2008; and $1.670 million for FY2009
or any succeeding fiscal year). (Pro rata
reductions would be made if they are
necessary.) [Section 318 of S. 667]
Reimbursement
Federal law (P.L. 106-113) authorized the
Amends the reimbursement of costs Same as S. 667. [Section 8313]
of Secretary’s
Department of Education to have access to the
provision by eliminating the word
costs of
National Directory of New Hires. The
additional, thereby requiring the Secretary
information
provisions were designed to improve the ability
of Education to reimburse the HHS
comparisons
of the Department of Education to collect on
Secretary for any costs incurred by the HHS
and disclosure
defaulted loans and grant overpayments made
Secretary in providing requested information
for enforcement
to individuals under the Higher Education Act
on new hires. [Section 313 of S. 667]
of obligations on
of 1965. The Federal Office of Child Support
higher education
Enforcement (OCSE) and the Department of
act loans and
Education negotiated and implemented a
grants
Computer Matching Agreement in December

CRS-110
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
2000. Under the agreement, the Secretary of
Education is required to reimburse the HHS
Secretary for the additional costs incurred by
the HHS Secretary in furnishing requested
information.
Other Child Support Provisions
Technical
Federal law requires that any state that has a
Deletes the reference to child welfare Same as S. 667. [Section 8314]
amendment
child welfare program and that has Indian
programs. [Section 314 of S. 667]
relating to
country may enter into a cooperative agreement
cooperative
with an Indian tribe or tribal organization if the
agreements
tribe demonstrates that it has an established
between states
tribal court system with several specific
and Indian
characteristi cs r el at ed t o paternity
tribes
establishment and the establishment and
enforcement of child support obligations. The
HHS Secretary may make direct payments to
Indian tribes and tribal organizations that have
approved child support enforcement plans.
State law
The 1996 welfare reform law (P.L. 104-193)
Requires that each state’s Uniform Interstate No provision.
requirement
required that on and after January 1, 1998, each
Family Support Act (UIFSA) include any
concerning the
state must have in effect the Uniform Interstate
amendments officially adopted as of August
Uniform
Family Support Act (UIFSA), as approved by 2001 by the National Conference of
Interstate
the American Bar Association on February 9,
Commissioners on Uniform State Laws.
Family Support
1993, and as in effect on August 22, 1996,
Act (UIFSA)
including any amendments officially adopted as
In addition, clarifies current law by
of such date by the National Conference of
stipulating that a court of a state that has
Commissioners on Uniform State Laws.
established a child support order has
continuing, exclusive jurisdiction to modify
Federal law requires states to treat past-due
its order if the order is the controlling order

CRS-111
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
child support obligations as final judgments that
and the state is the child’s state or the
are entitled to full faith and credit in every state.
residence of any individual contestant; or if
This means that a person who has a child
the state is not the residence of the child or
support order in one state does not have to
an individual contestant, the court has the
obtain a second order in another state to obtain
contestant’s consent in a record or in open
child support due should the noncustodial
court that the court may continue to exercise
parent move from the issuing court’s
jurisdiction to modify its order. It also
jurisdiction. P.L. 103-383 restricts a state
modifies the current rules regarding the
court’s ability to modify a child support order
enforcement of modified orders. [Section
issued by another state unless the child and the
317 of S. 667]
custodial parent have moved to the state where
the modification is sought or have agreed to the
modification. The 1996 welfare reform law
(P.L. 104-193) clarified the definition of a
child’s home state, makes several revisions to
ensure that the full faith and credit laws can be
applied consistently with UIFSA, and clarifies
the rules regarding which child support orders
states must honor when there is more than one
order.
Timing of
Federal law requires that audits be conducted at
Changes the timing of the corrective action No provision.
corrective action
least every three years to determine whether the
year for states that are found to be in
year for state
standards and requirements prescribed by law
noncompliance of child support enforcement
noncompliance
and regulations have been met by the child
program requirements. Changes the
with CSE
support program of every state. If a state fails
corrective action year to the fiscal year
program
the audit, federal TANF funds must be reduced
following the fiscal year in which the
requirements
by an amount equal to at least 1% but not more
Secretary made a finding of noncompliance
than 2% for the first failure to comply, at least
and recommended a corrective action plan.
2% but not more than 3% for the second failure,
This change would be made retroactively in
and at least 3% but not more than 5% for the
order to allow the Secretary to treat all
third and subsequent failures.
findings of noncompliance consistently.
The provision would take effect with respect
The HHS Secretary also must review state
to determinations of state compliance for

CRS-112
Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
reports on compliance with federal
FY2002 and succeeding fiscal years.
requirements and provide states with
[Section 319 of S. 667]
recommendations for corrective action. The
purpose of the audits is to assess the
completeness, reliability, and security of data
reported for use in calculating the performance
indicators and to assess the adequacy of
financial management of the state program.
Federal law calls for penalties to be imposed
against states that fail to comply with a
corrective action plan in the succeeding fiscal
year.
Notice to state
Federal law requires the health care plan
Requires the health care plan administrator No provision.
child support
administrator to notify qualified beneficiaries of
to notify the state CSE agency if the
enforcement
their beneficiary rights with regard to health
noncustodial parent with the health care
agency from
care coverage when or if one of the following
coverage dies, loses his or her job or is
health care plan
events occurs: (1) the noncustodial parent with
working fewer hours, becomes eligible for
administrator
the health care coverage dies; (2) the
Medicaid benefits, or is involved in a
under certain
noncustodial parent with the health care
bankruptcy proceeding pertaining to the
circumstances
coverage loses his or her job or starts working
noncustodial parent’s former employer. In
when a child
fewer hours; (3) the noncustodial parent with
addition, the bill requires the health care
loses health care
the health care coverage becomes eligible for
plan administrator to notify the state CSE
coverage
Medicaid benefits; (4) the noncustodial parent
agency if the noncustodial parent with the
with the health care coverage becomes involved
health care coverage gets divorced or
in a bankruptcy proceeding pertaining to his or
obtains a legal separation, or if the
her former employer; (5) the noncustodial
noncustodial parent’s child ceases to be a
parent with the health care coverage gets
dependent child (in cases where the
divorced or obtains a legal separation; or (6) the
noncustodial parent has notified the plan
child of the noncustodial parent with the health
administrator of such an occurrence).
care coverage ceases to be a dependent child.
[Section 321 of S. 667]
(With respect to (5) and (6), the noncustodial
parent (i.e., the covered employee) is required
to notify the health care plan administrator of

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House Budget Reconciliation Bill
such an event.)
Authority to
Federal law stipulates that the following
Allows the state of Texas to continue to No provision.
continue state
families automatically qualify for CSE services:
operate its CSE program for monitoring and
program for
families receiving TANF benefits (Title IV-A),
enforcement of court orders on behalf of a
monitoring and
foster care payments (Title IV-E), Medicaid
nonwelfare families without applying for a
enforcement of
coverage (Title XIX), or food stamps (if
federal waiver. Currently the state of Texas
child support
cooperation is required by the state). Other
does not require these families to apply for
orders
families (i.e., nonwelfare families) must apply
CSE services. [Section 322 of S. 667]
for CSE services.
Technical
Section 453(j) of the Social Security Act
No provision.
Makes a technical correction to the Social
correction
currently includes two paragraphs labeled (7).
Security Act by renumbering the second
paragraph labeled Section 453(j)(7). [Section
8318]
Child Welfare
Child welfare waivers
Extension of
Section 1130 (a)(1) and (2) of the Social
Extends the HHS Secretary’s authorization Same as S. 667. [Section 8402]
authority to
Security Act permits the Department of Health
to permit child welfare demonstration
approve
and Human Services (HHS) Secretary to
projects through FY2010. [Section 401 of S.
demonstration
approve state demonstration projects that are
667]
projects
likely to promote the objectives of the child
welfare programs authorized under Title IV-B
and Title IV-E. This authority extends through
December 31, 2005.

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as reported from committee)
House Budget Reconciliation Bill
Elimination of
Section 1130(a)(2) limits to 10 the number of
No provision.
Removes the restriction on the number of
the number of
demonstration projects the HHS Secretary may
demonstration projects the HHS Secretary
child welfare
approve in a single fiscal year.
may approve in each fiscal year. [Section
waivers allowed
8402]
per fiscal year
Number of states
No current provision. In the past, HHS has
No
provision
Adds language to assert that the
HHS
that may be
expressed a “preference” for projects that
Secretary may not refuse to grant a particular
granted child
“would test policy alternatives that are unique;
waiver of child welfare program rules on the
welfare waivers
that differ in their approach to serving families
grounds that the purpose of the waiver or
on the same topic
and children; [and] that differ in significant
demonstration project is similar to another
ways from other proposals.”
waiver or demonstration project. [Section
8403]
Elimination of
No current provision. In the past, HHS has
No
provision.
Adds language to assert that the
HHS
limitation on
expressed a “preference” for projects “that are
Secretary may not impose a limit on the
number of
submitted by states that have not previously
number of waivers or demonstration projects
waivers that may
been approved for a child welfare
that a single state is granted. [Section 8404]
be granted to a
demonstration project.”
single state for
demonstration
projects

Process for
No statutory provision.
No provision.
Adds language to require the HHS Secretary
consideration of
to develop a “streamlined process” for
amendments to
considering amendments or extensions that
and extensions of
states propose to their demonstration projects.
demonstration
[Section 8405]
projects
requiring
waivers

Availability of
Section 1130(f)(1) and (2) provides that states
No provision.
Requires the HHS Secretary to make available
reports
conducting demonstration projects under a
(to states or other interested parties) any of the

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as reported from committee)
House Budget Reconciliation Bill
waiver granted by the HHS Secretary must
demonstration project evaluation reports that
obtain an evaluation of the project’s
it receives from a state and any demonstration
effectiveness and must provide interim and
project evaluation or report made by the HHS
final evaluation reports to the HHS Secretary
Secretary, with a focus on information that
when, and in the manner, that the Secretary
promotes best practices and program
requests.
improvements. [Section 8406]
Other Child Welfare Provisions
Additional foster
Federal funding for Title IV-E of the Social
Allows Puerto Rico to receive additional No provision.
care and
Security Act programs for Puerto Rico is
funding for Title IV-E programs above the
adoption
included in an overall cap on funding for public
cap, but limits that additional funding to
assistance
assistance programs. Total funding to Puerto
$6,250,000 for FY2007 through FY2010.
funding for
Rico for TANF, Title IV-E and adult public
Also, provides that any adoption incentive
Puerto Rico
assistance programs which operate in lieu of
bonuses earned would be excluded from the
Supplemental Security Income (SSI) in the
cap. [Section 402 of S. 667]
commonwealth is limited by statute to
$107,255,000. Certain bonus, loan, and
evaluation funding is excluded from that cap.
Tribal foster
Title IV-E foster care and adoption assistance
Allows, beginning in FY2006, an Indian No provision.
care and
programs may only be operated by the states
tribe or tribal consortium to receive direct
adoption
and territories. Tribes may only access Title
federal Title IV-E foster care and adoption
assistance
IV-E funds through special agreements with a
assistance funding. With certain specified
programs
state or with states.
exceptions, programs are to operate under
the same rules as apply to the states. Tribes
and consortia may define service areas
where a plan is in effect and to approve
placements in foster homes that are deemed
safe by tribal standards. The federal
matching rate for foster care maintenance
and adoption assistance payments is
determined based on the per-capita income
of the service population of the tribal

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Senate Committee Bills (S. 667 or S. 525
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as reported from committee)
House Budget Reconciliation Bill
program.
Alternatively ,tribes and consortia may
maintain existing cooperative agreements
with states to administer Title IV-E
programs and may continue to enter into
such agreements. [Section 403 of S. 667.]
Eligibility for
Section 472(a) provides that a state with a
No provision.
Rewrites Section 472(a) generally, restating
Foster Care and
foster care program approved under Title IV-E
all current eligibility requirements to clarify
Adoption
must make foster care maintenance payments
that for purposes of determining AFDC
Assistance
on behalf of eligible children who are removed
eligibility, the home from which the child is
Maintenance
from their home and placed into foster care.
removed is always the home that a judge
Payments
These eligibility criteria include a requirement
found to be “contrary to the child’s welfare,”
(“Rosales”
that the child must have met — in the home
or the home from which the child’s parent or
Provision)
from which he/she was removed — the income
legal guardian entered into a voluntary
and other eligibility tests necessary to receive
agreement to place the child in foster care.
aid under the now-defunct Aid to Families with
The clarification is in response to a 2003
Dependent Children (AFDC) program (as it
decision by the 9th Circuit Court of Appeals,
existed on July 16, 1996). Section 474 provides
Rosales v. Thompson, (321 F.3d. 835) which
that states are entitled to receive federal
read the statute to permit eligibility for certain
matching funds at the Federal Medical Annual
children to be based on their financial and
Percentage (FMAP) rate (ranging from
other circumstances in the homes of relatives
50%-83% based on state’s per capita income)
who were not their parents or legal guardians
for every foster care maintenance payment it
and which were not the homes that were found
makes on behalf of an eligible child. Section
unsafe for them. The decision is contrary to
473(a)(2) provides that under one pathway to
longstanding practice and to the way the
eligibility for adoption assistance, a special
eligibility test is understood by the U.S.
needs adoptee must have been eligible for aid
Department of Health and Human Services
under the AFDC program (as it existed on July
(HHS). Under the Rosales court’s reading of
16, 1996) both in the month that the child was
the law, states in the 9th circuit (which
removed from the home and placed into foster
includes CA, WA, OR, AZ, MT, ID, NV, AK
care and in the month in which the adoption
and HI) may apply a broader Title IV-E

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
proceedings were initiated.
eligibility test, and nearly any child who lived
with a relative (rather than his or her parents)
at the time of removal to foster care could be
found eligible for federal foster care.
Rewrites Section 473(a)(2) regarding
eligibility for adoption assistance to make
same clarification with regard to home of
removal that was made for foster care.
Removes the requirement that the child meet
the AFDC eligibility criteria (as they existed
on July 16, 1996) at the time the adoption
proceedings were initiated. (This provision is
not expected to change the number of special
needs adoptees who are found eligible for
federal adoption assistance.)
Limitation on
Section 474(a)(3) authorizes open-ended
No provision.
Specifies that claims for federal matching
Federal
federal matching of eligible state costs
funds based on training and other
Reimbursement
associated with the federal foster care program.
administrative costs on behalf of otherwise
for
These include training costs (matched at 75%)
eligible children who are placed in settings
Administrative
and all other administrative costs, including
ineligible for Title IV-E funding would be
Expenses
child placement and case management services
available in only two circumstances: 1) In the
(matched at 50%). Section 472 provides that a
case of a child who is placed in the home of a
condition of eligibility for federal foster care
relative that is not a licensed foster care
maintenance payment is placement of a child in
provider, for 12 months or as long as it takes
a licensed foster family home or a child care
a state to normally license a foster family
institution (not including “detention facilities”
home (whichever is shorter) and; 2) In the
or public institutions that accommodate more
case of a foster child who is moved from an
than 25 children). Section 471(a)(15)(B)(i)
ineligible facility (e.g. a juvenile detention
provides that a state must make reasonable
center) to an eligible facility or licensed foster
efforts to preserve a family prior to the
family home, but for no more than 1 calendar
placement of a child in foster care or to prevent
month. Specifies that in the case of a child
or eliminate the need for removing the child
who is at imminent risk of removal to foster

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Current law
as reported from committee)
House Budget Reconciliation Bill
from the child’s home. As part of meeting this
care the state may only make administrative
duty, states may make certain administrative
claims if — 1) reasonable efforts are being
claims on behalf of children who have not been
made to prevent the removal of the child from
removed from their homes but are at imminent
the home or (if necessary) to pursue the
risk of removal. These children are called
removal; and 2) not less than every six months
“candidates” for Title IV-E foster care.
the state determines that the child continues to
be at imminent risk of removal.
Transitional Medical Assistance (TMA)
Extension of
The transitional medical assistance (TMA)
Would extend TMA through FY2010. No provision.
Program
program provides at least six, and up to 12,
[Section 601 of S. 667]
Authority
months of Medicaid for families that would
lose eligibility because of increased earnings or
the loss of an earned income disregard. The
authority for TMA expires December 31, 2005.
(If TMA were to expire, states would be
required to provide four months of additional
eligibility for families who would otherwise
lose Medicaid eligibility because of increased
earnings.
Revision of TMA
To qualify for TMA, a family must have
Permits states to waive the requirement that No provision.
rules
received Medicaid in three of the previous six
a family must have received Medicaid for
months. For the first six months of TMA, states
three of the previous six months to qualify
are required to provide the same scope and
for TMA. Permits states to waive some or
duration of benefits as provided in the regular
all of the requirements that a family report
Medicaid program. A family may qualify for
its income and child support to maintain
up to an additional six months of TMA, but is
TMA eligibility during the second six
required to report their gross earnings and child
months of TMA. Allows states to provide
care costs in months four, seven and 10. TMA
up to an additional 12 months (for a total of
may be terminated for a number of reasons,
24 months of TMA) for families with
including monthly earnings net of child care
monthly earnings net of child care costs of
costs that exceed 185% of the poverty line.
185% of poverty or below. [Section 601 of

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as reported from committee)
House Budget Reconciliation Bill
Supplemental Security Income
Review of
No provision.
Requires a federal review by the Social Requires that SSA review a percentage of
Disability
Security Administration (SSA) of state state agency disability determinations: 20% in
Determinations
agency determinations of disability for the FY2006, 40% in FY2007, and 50% in FY2008
Supplemental Security Income (SSI) and thereafter.
program. It would require SSA to review at
least 25% of disability determinations in
FY2006, and 50% of all determinations for
FY2006-FY2015. [Section 501 of S. 667]
Note: There is an apparent drafting error in
the bill, which has two rules for FY2006.
SSI Eligibility
Asylees, refugees, Cuban/Haitian entrants,
Extends the period of SSI eligibility for such No provision.
for Asylees,
Vietnam-born Amerasians, and certain other
persons to nine years. [Section 502 of S.
Refugees, and
aliens whose deportation is withheld for
667]
Certain Other
humanitarian reasons are eligible for SSI for
Noncitizens
seven years after entry/grant of such status.
After seven years, these persons must become
U.S. citizens to receive SSI.
Payment of
Individuals eligible for past-due benefits of an
No provision.
Reduces the threshold for paying past-due
Lump-Sum
amount (after withholding to reimburse a state
benefits in installments, to an amount (after
Benefit
for interim assistance and payment of attorney
withholding to reimburse a state for interim
Installments
fees) that equals or exceeds 12 times the
assistance and payment of attorney fees) that
under SSI
monthly benefit are required to receive these
equals or exceeds three times the monthly
benefits in installments.
benefit. [Section 8502]
Abstinence Education State Grant Program
Extension of
The law appropriated $50 million annually for
Extends the appropriation for abstinence No provision.
Program
each of the fiscal years 1998-2002 for matching
education state grants at $50 million
Funding
grants to states to provide abstinence education
annually through FY2010. Provides that
and, at state option, mentoring, counseling, and
unused funds may be reallotted to other

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
adult supervision to promote abstinence from states. [Section 201]
sexual activity, with a focus on groups that are
most likely to bear children out-of-wedlock.
Funds must be requested by states when they
apply for Maternal and Child Health (MCH)
block grant funds and must be used exclusively
for the teaching of abstinence. States must
match every $4 in federal funds with $3 in state
funds.
Social Services Block Grant
Funding
The Social Services Block Grant is funded at an
Increases funding for the Social Services No provision.
annual amount of $1.7 billion.
Block Grant for FY2006 through FY2010 to
$1.9 billion. [Section 107(b)(2) of S. 667]
Program Integration Waivers (“Superwaiver”)
Authority for
No directly comparable provisions. Note:
Purpose: To establish a “program of Purpose: To establish a “program of
Program
Waivers granted under the pre-TANF Aid to
demonstration projects” in states (or demonstration projects” in states (or portions
Integration
Families with Dependent Children (AFDC)
portions of states) that would coordinate of states) that would coordinate multiple
Waivers
program are scheduled to continue until their
assistance among qualifying programs so as public assistance, workforce development, and
expiration date. Under current laws governing
to support working individuals and families, other programs so as to support working
the programs/ activities covered by the new
help families escape welfare dependency, individuals and families, help families escape
proposed authority, waiver authority varies
promote child well-being, or help build welfare dependency, promote child well-
widely and generally is not specific to program stronger families.
being, or help build stronger families.
coordination. Limitations on waivers for
Projects would use innovative approaches to
Workforce Investment Act programs also are
New authority: Establishes broad new strengthen service systems and provide more
numerous. In other cases (e.g., Social Services
authority that would, subject to limits coordinated and effective service delivery.
Block Grant), federal rules are limited, and
discussed below, allow the heads of federal
there are few to waive.
agencies to waive statutory and regulatory New authority: Establishes broad new
authority that would, subject to limits
requirements of specified covered programs discussed below, allow the heads of federal
(see below) at the request of state or sub- agencies to waive statutory and regulatory
state entities.
requirements of specified covered programs

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Senate Committee Bills (S. 667 or S. 525
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as reported from committee)
House Budget Reconciliation Bill
(see below) at the request of state or sub-state
entities.
Covered
No provision.
TANF, mandatory child care, and Title XX.
House Ways and Means Committee Provision:
Programs
Same as S. 667.
House Education and Workforce Committee
Provision adds:

Activities funded under Title I of the
Workforce Investment Act (WIA), except for
the Job Corps; Job Opportunities for
L o w - I n c o m e I n d i v i d u a l s ( J O L I )
demonstration projects authorized under
Section 505 of the 1988 Family Support Act;
activities funded under the Wagner-Peyser
Act; activities funded under the Adult
Education and Family Literacy Act; and
activities funded under the Child Care and
Development Block Grant.
General
Federal agencies may not use the new House Ways and Means Committee Provision:
Requirements
authority to waive provisions of law relating
that Cannot Be
to:
Federal agencies may not use the new
Waived
authority to waive provisions of law relating
— civil rights or prohibition of to:
discrimination;
— the purposes or goals of any program;
— civil rights or prohibition of
— “maintenance of effort” requirements discrimination;
(e.g., provisions that require states or other — the purposes or goals of any program;
entities to maintain a certain level of — “maintenance of effort” requirements
spending);
(e.g., provisions that require states or other
— health or safety;
entities to maintain a certain level of
— labor standards under the Fair Labor spending);
Standards Act of 1938;
— health or safety;
— environmental protection;
— labor standards under the Fair Labor
— any requirement that a state pass through Standards Act of 1938, or

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Senate Committee Bills (S. 667 or S. 525
Current law
as reported from committee)
House Budget Reconciliation Bill
to a sub-state entity any funds paid to the — environmental protection.
state;
— any “funding restriction or limitation” House Education and Workforce Committee
provided in an appropriations act; —
Provision:
— requirements, the waiver of which would
have the effect of transferring appropriated All of the above plus:
funds from one appropriations account to
another;
— any requirement that a state pass through
— “any funding restriction” in authorizing to a sub-state entity any funds paid to the
(or other non-appropriations) laws except for state;
program requirements such as application — any “funding restriction or limitation”
procedures, performance standards, provided in an appropriations act; —
reporting requirements, or eligibility — requirements, the waiver of which would
standards; or
have the effect of transferring appropriated
— a requirement, if waiving it would have funds from one appropriations account to
the effect of transferring funds from a another;
“direct spending” program to another — “any funding restriction” in authorizing
program.
(or other non-appropriations) laws except for
program requirements such as application
procedures, performance standards, reporting
requirements, or eligibility standards; or
— a requirement, if waiving it would have
the effect of transferring funds from a “direct
spending” program to another program.
Program-
Prohibits waiver of Child Care and House Ways and Means Committee Provision:
Specific
Development Block grant quality
Requirements
improvement, report and audit, limitation on None.
that Cannot Be
what financial assistance should be
Waived
expended for, and state plan requirements.
House Education and Workforce Provision:
Cannot waive:
— Section 241(a) of the Adult Education and
Family Literacy Act (which requires that
federal funds be used to supplement, not
supplant, existing state or local spending);
— WIA requirements relating to wage and
labor standards, nondisplacement protections,

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worker rights, participation and protection of
workers and program participants, grievance
p r o c e d u r e s a n d j u d i c i a l r e v i e w ,
nondiscrimination, allocation of funds to local
areas, the eligibility of providers or
participants, the establishment and functions
of local areas and local boards, or procedures
for review and approval of plans.
Application and
Requests/applications for demonstration Same as S. 667.
Approval
project waivers under the new authority
Process
would contain, among other items: (1) a
description and justification of the project
for which the waivers are being requested
(including how it is expected to improve
achievement of the included programs’
purposes from the standpoint of quality and
cost-effectiveness and the performance
objectives of the project), (2) information
and assurances necessary to establish that
the project will meet cost-neutrality
requirements (see below), and (3) assurance
that the applicant agencies will conduct
ongoing and final project evaluations and
make interim and final project reports.
Federal approval of waiver requests: In
general, the head of a federal agency with
responsibility for a program/activity for
which a waiver is requested may approve a
waiver/demonstration application and may
waive any requirement (subject to some
limits, see below) applicable to the program

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Senate Committee Bills (S. 667 or S. 525
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as reported from committee)
House Budget Reconciliation Bill
to the extent necessary and appropriate for
the conduct of the proposed demonstration.
To approve a project and waive
requirements, a federal agency head must
determine that the project: (1) has a
reasonable likelihood of achieving the
objectives of the programs included in the
project, (2) may reasonably be expected to
meet cost-neutrality requirements (see
below), and (3) includes 2 or more covered
programs.
Approval is required of each federal agency
head with responsibility for a program
covered by the waiver/demonstration
request.
If a demonstration/waiver request is not
disapproved within 90 days of receipt, it
would be deemed approved. However, the
deadline could be extended if the federal
agency asks for additional information.
Projects may not be approved for a period
longer than five years.
Cost Neutrality
For any fiscal year, total federal payments Same as S. 667.
for affected programs in a state in which a
demonstration project under the new
authority is being conducted may not exceed
the estimated amount that would have been
paid if the project had not been conducted.
(This allows “savings” in one program to be
offset by new “costs” in another program.)

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Senate Committee Bills (S. 667 or S. 525
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as reported from committee)
House Budget Reconciliation Bill
The determination would be made by the
federal Office of Management and Budget
(OMB).
Upon request by an applicant entity, the
OMB would be permitted (at its discretion)
to adjust the annual cost-neutrality
requirement so that cost-neutrality is
measured over a period longer than one year,
but no more than five years.
Limitation
Limits this waiver authority to 10 states.
No limitation.
Evaluation
Requires an independent evaluation that, to Requires ongoing and final evaluations of the
Requirements
the maximum extent possible, uses random project.
assignment of potential participants to
experimental and control groups.
Reports
No provision.
Each federal agency would be required to
submit reports of applications for waivers/
demonstrations under the new authority to the
congressional committees with jurisdiction
(including the agency’s decision and the
reasons for approving or denying the
application).

Each federal agency would be required to
provide annual reports to Congress on
demonstrations approved under the new
authority (including how well each project is
improving program achievement from the
standpoint of quality and cost-effectiveness
and recommendations for program
modifications based on project outcomes).