TANF Reauthorization: Side-by-Side Comparison of Current Law, S. 667, and H.R. 240 (TANF Provisions)

Order Code RL32834

CRS Report for Congress

Received through the CRS Web

TANF Reauthorization: Side-by-Side Comparison

of Current Law, S. 667, and H.R. 240

(TANF Provisions)

Updated September 26, 2005

(name redacted)

Domestic Social Policy Division

Congressional Research Service ˜ The Library of Congress

TANF Reauthorization: Side-by-Side Comparison of

Current Law, S. 667, and H.R. 240 (TANF Provisions)

Summary

The 109th Congress is considering legislation to reauthorize the block grant of

Temporary Assistance for Needy Families (TANF) for five years. Congress has

inconclusively debated long-term TANF authorizations since 2002, instead adopting

short-term extensions. The latest extension (P.L. 109-19) funds the program through

December 31, 2005. Thus far in the 109th Congress, the Senate Finance Committee

has reported S. 667 (S.Rept. 109-51). A bill introduced by House Republican

leaders, H.R. 240, has received approval from the House Ways and Means

Committee’s Subcommittee on Human Resources.

S. 667 and H.R. 240 are very similar in terms of how they would continue

funding under the TANF program. Both bills extend basic TANF funding at current

levels ($16.6 billion for the 50 states, the District of Columbia, and the territories)

through FY2010 and extend supplemental grants provided to 17 states through

FY2009. Both bills provide new, categorical grants for marriage promotion activities

totaling $200 million per year financed through a reduction in current TANF bonuses

to states. The major difference in the TANF funding provisions of the two bills is

how they provide extra contingency (recession-related) funding to the states. H.R.

240 essentially extends the current law fund that provides matching grants to states

experiencing high and increased unemployment rates and food stamp caseloads. S.

667 eliminates the requirement that states expend additional money to access

contingency funds, and instead bases extra funding on the cost of increased caseloads

for states that meet revised unemployment or food stamp caseload criteria.

The two bills would substantially revise the TANF work participation standards

that states must meet. Under current law, 50% of TANF families with an adult or

minor household head must participate, though the 50% rate is reduced by caseload

reductions that have occurred since welfare reform. Both S. 667 and H.R. 240 would

raise this standard to 70%, though under both bills the standard could be reduced

through credits (though the credits differ between the two bills). Both also eliminate

a separate 90% participation rate requirement for two-parent families. Both bills

would raise the minimum hours required of family members in order to be considered

full participants, though H.R. 240 would raise them by more than would S. 667. The

bills also differ in the activities countable toward the participation standards: H.R.

240 narrows the list of activities countable, requiring recipients to spend at least 24

hours in work, community service, or work experience programs except for a short

(usually three-month) period when states may themselves define what counts as

“activities.” S. 667 keeps all activities under current law as countable, and allows

states to count a wider range of activities for three months (more under some

circumstances).

Both bills contain non-TANF provisions relating to child support enforcement,

responsible “fatherhood” programs, and transitional medical assistance (not

addressed herein). This report will be updated as S. 667 and H.R. 240 move through

the legislative process.

Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Summary of the Similarities and Differences Between the Two Bills . . . . . . . . . 1

TANF Funding Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Basic Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Supplemental Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Contingency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Uses of Grants and Program Requirements . . . . . . . . . . . . . . . . . . . . . . 3

Work Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Participation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Hours Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Creditable Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Marriage Promotion Grants and Family Formation Issues . . . . . . . . . . . . . . 6

Other TANF Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Detailed Comparison of TANF Provisions of S. 667 and H.R. 240 . . . . . . . . . . . 7

Short Title, Findings, and Statement of TANF Goals and Purposes . . . . . . . . . . . 8

Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

TANF Goals and Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

TANF Financing Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

State Family Assistance Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Supplemental Grant for Population Increases in Certain States . . . . . . . . . . . . . . 9

Bonus to Reward Employment Achievement . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Bonus to Reward Reductions in Out-of-wedlock Births . . . . . . . . . . . . . . . . . . . 11

Contingency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Needy State Eligibility Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Financial Eligibility Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Contingency Fund Grant Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Tribal Eligibility for Contingency Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Additional Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Social Service Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Car Ownership Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Transitional Jobs/business Links Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Domestic Violence Prevention Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Repeal of Federal Loan Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Maintenance of Effort . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Funding for Child Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Puerto Rico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Use of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

General Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Transfer of funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Carryover of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Use of Funds for Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Direct Funding and Administration by Indian Tribes . . . . . . . . . . . . . . . . . . . . . 18

Tribal Work Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Tribal Capacity Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Work Participation Requirements and Standards . . . . . . . . . . . . . . . . . . . . . . . . 19

Universal Engagement and Family Self-sufficiency Plan Requirements . . . . . . 19

Sanctions Against Individuals for Work Refusal . . . . . . . . . . . . . . . . . . . . . . . . 22

Work Participation Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Caseload Reduction Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Employment Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Study of the Employment Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Calculation of Participation Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Infant Exemption from the Work Participation Rate . . . . . . . . . . . . . . . . . . 27

Excluding Families in Their First Month of Assistance from

the Work Participation Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Treatment of Sanctioned Families in the Work Participation Rate . . . . . . . 27

Penalty for Failing Participation Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Countable Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

“Core” Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Qualified Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Supplemental Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Postsecondary Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Special Rules for Rehabilitative Activities . . . . . . . . . . . . . . . . . . . . . . . . . 31

Caring for a Disabled Family Member . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Work Activities in Indian Areas of High Joblessness . . . . . . . . . . . . . . . . . 31

Numerical Limits on Vocational Education and Teen Parents . . . . . . . . . . 32

Required Hours of Work Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Special Rule for Teen Parents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Partial Work Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Extra Work Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Other Requirements with Respect to Families Receiving Assistance . . . . . . . . . 34

Drug Testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Eligibility for Teen Parents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Displacement of Regular Workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Marriage Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

TANF Goals and Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Funding for Marriage Promotion Matching Grants . . . . . . . . . . . . . . . . . . . . . . . 37

Allowable Activities for Marriage Promotion Grants . . . . . . . . . . . . . . . . . 37

Domestic Violence Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Requirements for Voluntary Participation . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Performance Goals/reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . 39

Research and Demonstrations on Marriage Promotion . . . . . . . . . . . . . . . . . . . . 40

Provisions to Address Domestic Violence and Voluntary Participation

Issues for Research Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

State Plans, Data Reporting, Research (Other than Marriage Promotion)

and Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

State Plan Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Participation of Faith-based Organizations in Provision of Services . . . . . 42

State Plan Requirement for Community Service after Two Months . . . . . . 42

Measurable Performance Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Program Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Description of State Assistance Programs . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Indian and Tribal Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Two-parent Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Description of Additional State Options for the Work Requirements . . . . . 44

Standard Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Rankings of States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Data Collection and Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Data Reporting on Work Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Data Reporting on Indians . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Reporting on Families Leaving TANF . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Reports for Families Receiving TANF-funded Child Care . . . . . . . . . . . . . 49

Monthly State Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Annual State Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

HHS Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Information on Indians in the TANF Annual Report . . . . . . . . . . . . . . . . . . 51

Single Audit Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Research, Evaluations, and National Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Research on State Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Indicators of Child Well-being . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Research on Tribal Social Services Issues . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Census Bureau Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Teen Pregnancy Resource Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Best Practices for Dealing with Domestic Violence . . . . . . . . . . . . . . . . . . . . . . 54

Waivers and Program Coordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

State Option to Make TANF Programs Mandatory Partners with

One-stop WIA Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Sense of the Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Enforcing Support of Immigrants by Sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . 57

List of Tables

Table 1. Comparison of Current Law with S. 667 and H.R. 240

(TANF Provisions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

TANF Reauthorization: Side-by-Side

Comparison of Current Law, S. 667, and

H.R. 240 (TANF Provisions)

Introduction

The 109th Congress is considering legislation to reauthorize the block grant of

Temporary Assistance for Needy Families (TANF) for five years. The 108th

Congress and its predecessor, the 107th Congress, both inconclusively debated a longterm authorization for TANF and related programs. The program has received 11

short-term extensions since the original funding authority for TANF expired on

September 30, 2002. The latest extension ( P.L. 109-68) funds the program through

December 31, 2005.

The Senate Finance Committee has reported an original bill, S. 667 (S.Rept.

109-51). H.R. 240, introduced by House Republican leaders and making its way

through House committees of jurisdiction, is similar to bills that passed the House

in 2002 and 2003. That bill was approved by the House Ways and Means

Committee’s Subcommittee on Human Resources on March 15, and awaits full

committee action, as well as consideration by other committees that have

jurisdictions over parts of the bill.1

Summary of the Similarities and Differences

Between the Two Bills

S. 667 and H.R. 240 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. 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. This report provides a comparison of the TANF provisions of S. 667 and

H.R. 240. It does not address non-TANF provisions of both bills, such as revisions

to the Child Care and Development Fund, Child Support Enforcement, Abstinence

Education, and transitional Medicaid. One of the key differences between S. 667 and

H.R. 240 is the level of funding for child care. S. 667 would add $6 billion over five

1

In addition to the House Ways and Means Committee, H.R. 240 was referred to the House

Committees on Energy and Commerce, Education and the Workforce, Agriculture, and

Financial Services.

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years to current levels of mandatory child care funding. H.R. 240 would add $1

billion over five years above current levels of mandatory child care funding.

TANF Funding Provisions

S. 667 and H.R. 240 have very similar funding provisions, although they do

differ in some details. The major difference in the funding provision between the

two bills is that S. 667 would completely revamp the TANF contingency (recession)

funds, while H.R. 240 would make relatively minor revisions to the fund.

Basic Funding. The 1996 welfare reform law (P.L. 104-193) entitled states

to a basic TANF block grant equal to peak expenditures in the pre-1996 welfare

programs during the FY1992 to FY1995 period. It also established a maintenance

of effort (MOE) requirement that states continue to spend at least 75% (80% if a state

failed TANF work participation requirements) of what they spent in these programs

in FY1994. Cash welfare caseloads were at their peak in the mid-1990s; both the

basic TANF grant and the MOE are legislatively fixed: they did not change when

cash welfare caseloads declined in the mid- and late-1990s, nor did they increase

when caseloads in some states increased during the recent economic slump. Neither

the basic TANF block grant nor the MOE have been adjusted for inflation.

Both S. 667 and H.R. 240 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 S. 667 and

H.R. 240 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 revisions to the TANF contingency

fund. H.R. 240 would continue the fund on existing rules, with some relatively

minor modifications: allowing some additional state spending to count toward

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meeting the FY1994 funding level threshold and modifications to increase grants for

states that qualify for funds for only part of the year.

S. 667 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 eliminate the matching requirements. Instead, it requires that unspent

TANF balances be below a certain threshold to qualify for contingency funds. S. 667

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.

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-ofwedlock 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%. H.R. 240

would raise the overall transfer limit to 50%; S. 667 would retain the current 30%

transfer limit.

Both bills include provisions to ease some rules regarding use of TANF funds.

Both S. 667 and H.R. 240 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

requirements.

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 S. 667 and H.R. 240 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. H.R. 240 also requires

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states to end benefits (“full family sanction”) for families that fail to comply with

work participation rules.

Both S. 667 and H.R. 240 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 before 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 S. 667 and H.R. 240 raise the work participation standard for all families

to 70% by FY2010, and eliminate the separate standard for two-parent families. Both

bills 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. H.R. 240

retains, but revises, the current law caseload reduction credit so that caseload change

is 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.

S. 667 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 H.R. 240.

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 is required for single parents with a pre-school

child (under the age of 6), and 30 hours is required for other families. Higher hours

are set for the purposes of the two-parent work participation rate.

Both S. 667 and H.R. 240 raise the hours standards. H.R. 240 incorporates a 40hour workweek standard for full credit, but would also provide “partial” credit for

families with at least 24 hours of participation. No special lower-hour standard

would be provided for single parents with preschoolers.

CRS-5

S. 667 also raises the hours standard for full credit, but to a lesser extent than

proposed in the House-passed 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), timelimited 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.

H.R. 240 and S. 667 differ significantly on the types of activities countable as

core activities toward the participation standards. H.R. 240 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 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, S. 667 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 H.R. 240 and S. 667 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). H.R. 240 would allow states to define activities

for families with at least 24 hours in core activities; S. 667 would allow states to

count an expanded set of activities for single-parent families with at least 24 hours

per week in core activities.

S. 667 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

CRS-6

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, S. 667 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 S. 667 and H.R. 240 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. H.R. 240 would require that these funds be used “primarily” for

marriage promotion; S. 667 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.

Although the two bills provide similar funding for “marriage promotion”

activities, they differ significantly in the details of their provisions authorizing these

grants. S. 667 has additional language requiring that organizations familiar with

domestic violence issues be consulted in developing marriage promotion projects and

language to clarify that marriage promotion activities are to be voluntary. S. 667 also

prohibits states from sanctioning recipients who do not participate in marriage

promotion activities.

Other TANF Provisions

Both S. 667 and H.R. 240 would make additional amendments to TANF

provisions regarding state plans, data reporting, tribal TANF programs, and other

provisions of TANF law. These provisions are included in the detailed bill

CRS-7

comparison table shown below. Among the other TANF provisions addressed in the

reauthorization bills:

!

H.R. 240 (as amended by the House Ways and Means Subcommittee

on Human Resources) would require states to conduct drug tests on

applicants and recipients of TANF assistance if the state believes the

individual has recently used drugs. Positive drug tests would lead

to a required sanction of the family’s benefit, potentially ending

benefits to the family for up to three years.

!

S. 667 includes authorizations for additional special-purpose

(categorical) grants other than marriage promotion grants that would

be added to the TANF block grant. These grants include those to

allow states to operate programs to purchase cars; transitional

jobs/business link grants for model employment and training

programs for TANF recipients with barriers; grants for organizations

that create “self-sustaining” social services (e.g., Goodwill

Industries); and domestic violence grants.

!

S. 667 allows states to provide assistance for teen parents not living

with an adult for up to 60 days, to provide a period for the teen to

come into compliance with the current law requirement to live at

home or in an adult-supervised setting.

!

S. 667 includes several provisions relating to tribal welfare

programs, including a $5 million per year increase in funding for

tribal work programs, an $80 million (over five years) grant for

tribes for activities that aim to increase their capacity to operate

TANF programs, and tribal eligibility for TANF contingency and

bonus funds. H.R. 240 funds tribal TANF programs and work

program at current levels through FY2010 and makes tribal

organizations eligible for TANF bonuses.

Detailed Comparison of TANF Provisions

of S. 667 and H.R. 240

Table 1 provides a detailed comparison of the TANF provisions of S. 667 and

H.R. 240. The table provides references to current law provisions in the Social

Security Act (SSA). It also denotes the section number in each of the bills in which

the provision is found.

CRS-8

Table 1. Comparison of Current Law with S. 667 and H.R. 240 (TANF Provisions)

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Short Title, Findings, and Statement of TANF Goals and Purposes

Short Title

The Personal Responsibility and Work

Opportunity Reconciliation Act of 1996 (P.L.

104-193).

The Personal Responsibility and Individual

Development for Everyone Act (PRIDE).

The Personal Responsibility, Work, and Family

Promotion Act of 2005.

Findings

P.L. 104-193, the Personal Responsibility and

Work Opportunity Reconciliation Act of 1996,

made a series of findings related to marriage,

responsible parenthood, trends in welfare

receipt and the relationship between welfare

receipt and nonmarital parenthood, and trends

in and negative consequences of nonmarital and

teen births. [Section 101 of PRWORA]

No provision.

Makes a series of findings related to: (1) the

success of the 1996 law in moving families

from welfare to work and reducing child

poverty; (2) progress made by the nation in

reducing teen pregnancy and births, slowing

increases in nonmarital births, and improving

child support collections and paternity

establishment; (3) the flexibility provided by

the 1996 law for states to develop innovative

programs; (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 4]

TANF Goals and Purposes

The purpose of TANF is to increase state

flexibility in operating a program designed to:

(1) assist needy families so that children may

live in their homes or those of relatives; (2) end

dependence of needy parents on government

Revises goal no. 4 to “encourage the formation

and maintenance of healthy two-parent married

families, and encourage responsible

fatherhood.” [New language in italics] [Section

103(d)]

The overall purpose of TANF is to improve

child well-being by increasing state flexibility

in operating a program designed to: (1) provide

assistance and services to needy families so that

children may live in their homes or those of

CRS-9

Current law

S. 667 (as reported by the Senate Finance

Committee)

benefits; (3) reduce out-of-wedlock

pregnancies; and (4) encourage the formation

and maintenance of two-parent families.

[Section 401 of the Social Security Act (SSA)]

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

relatives, (2) end dependence of needy families

on government benefits and reduce poverty; (3)

reduce out-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 101]

TANF Financing Provisions

State Family Assistance

Grants

Supplemental Grant for

Population Increases in

Certain States

Provides capped grants (entitlements to states

and territories). Nationally, annual family

assistance grants total $16.567 billion for the

states, the District of Columbia (D.C.), and the

territories. Each jurisdiction’s annual grant

equals the same share of the national total as in

FY2002. [(Section 403(a)(1) of the SSA]

Retains basic block grants, and extends them

through 2010 at current funding levels.

Appropriates $16.567 billion annually for

family assistance grants to the states, D.C., and

the territories. Provides that the annual grant of

each jurisdiction shall equal its FY2002

proportion of the national grant total. [Section

102(a)]

Same as S. 667. [Section 102(b)]

Also provides matching grants for the territories

(Section 1108(b) of the SSA).

Extends funding for matching grants to the

territories through FY2010. [Section 102(b)]

Same as S. 667. [Section 102(c)]

Supplemental grants for (17) states with low

historic federal grants per poor person and/or

high population growth. Grants grew each

year, from $79 million in FY1998 to $319

million in FY2001. Grants frozen at $319

million since FY2001. [Section 403(a)(3) of

SSA]

Extends supplemental grants for FY2006

through FY2009, at current funding levels

($319 million). [Section 104]

Same as S. 667. [Section 104]

CRS-10

Current law

Bonus to Reward

Employment Achievement

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

High-performance bonus of $200 million per

year on average. [Section 403(a)(4) of the

SSA]

Replaces the high-performance bonus with a

bonus to reward employment achievement.

Employment achievement bonuses would total

$50 million for each of FY2006 through

FY2008, and $100 for each of FY2009 through

FY2011. [Section 105]

Replaces the high-performance bonus with a

bonus to reward employment achievement.

Average total bonuses would be $100 million

for each of FY2006 through FY2011. [Section

105]

Maximum bonus for a state equals 5% of its

family assistance grant.

Maximum bonus for a state equals 5% of its

family assistance grant. [Section 105]

Same as S. 667. [Section 105]

Bonus based on achievement of TANF goals,

with formula developed by the Department of

Health and Human Services (HHS) in

consultation with the National Governors

Association and the American Public Human

Services Association. For FY1999-FY2001

performance, formula consisted of three workrelated 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]

Bonus to be based on absolute and relative

progress toward the goal of workforce

attachment and advancement. [Section 105]

Bonus to be based on absolute and relative

progress toward goals of job entry, job

retention, and increased earnings. Formula to

be developed by HHS, in consultation with the

states. [Section 105]

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]

Makes tribal organizations eligible for the

bonus and directs the Secretary to consult with

tribal organizations regarding criteria for their

awards. [Section 105]

Reduces FY2005 high-performance bonus

amount to $0. [Section 702]

Reduces the FY2005 high-performance bonus

amount to $100 million. [Section 122]

No provision.

Provides that appropriated amounts unspent (as

of the date of enactment) for high-performance

bonuses will be available through FY2005 for

payment of high-performance bonuses for

bonus year 2005 — on terms in effect before

repeal of that bonus. [Section 105]

CRS-11

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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]

For FY2006, 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]

Bonus to Reward

Reductions in Out-ofwedlock Births

Appropriated $100 million yearly for bonuses

to the five states with the largest percentage

decline (over recent two years) in the out-ofwedlock birth ratio. To qualify, states had to

reduce their abortion rate to below that of

FY1995. [Section 403(a)(2) of the SSA]

Repeals the bonus beginning in FY2006, and

uses the $100 million per year to fund grants

for marriage promotion activities (see Matching

Grants for Marriage Promotion, below).

[Section 103(b)]

Repeals the bonus beginning in FY2005, and

uses the $100 million per year to fund grants

for marriage promotion activities. [Section

103(b)]

Contingency Fund

Capped matching grants (maximum $2 billion)

provided in case of recession. To qualify for

contingency dollars, states must be “needy” and

must spend under the TANF program a sum of

their own dollars equal to their pre-TANF

spending. [Section 403(b) of the SSA]

Appropriates such sums as are needed for

contingency fund grants, up to $2 billion over

five years, FY2006-FY2010. To qualify for

contingency grants, a state must be “needy,”

have sufficiently low TANF balances, and have

an increase in its assistance caseload of over

5%.

Appropriates such sums as needed for

contingency fund grants, up to $2 billion over

five years, FY2006-FY2010. To qualify for

contingency grants, states must be “needy” and

must spend under the TANF program a sum of

their own dollars equal to their pre-TANF

spending.

Needy State Eligibility

Criteria

The law provides two needy state triggers: ( 1)

an unemployment rate for a three-month period

that is at least 6.5% and is 10% or more above

the rate for the corresponding period in either

of the two preceding calendar years; or (2) a

food stamp caseload increase of 10% over the

FY1994-FY1995 level (adjusted for the impact

of immigrant and food stamp constraints in the

1996 welfare law). [Section 403(b)(5) of the

SSA]

To trigger on as needy, a state must (1) have an

increase (due in large measure to economic

conditions) of 5% in the monthly average

unduplicated number of families receiving

assistance under its TANF program in the most

recently concluded three-month period with

data, compared with the corresponding period

in either of the two most recent preceding fiscal

years, 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

Retains current law needy state triggers, but

revises the food stamp trigger, requiring that

the FY1994-FY1995 caseload base be

readjusted for policy changes made after

passage of 1996 welfare law. [Section 106(c)]

CRS-12

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

data, the average rate of insured unemployment

must be at least one 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)]

Financial Eligibility

Requirements

Before drawing contingency grants, a state

must expend within the TANF program 100%

of what it spent on TANF predecessor

programs in FY1994. Both TANF spending

and FY1994 base spending exclude child care

expenditures.

States then must provide

matching funds to draw down contingency

grants (see Contingency Grant Amounts,

below).

[Section 403(b)(5) and Section

409(a)(10) of the SSA]

Eliminates the requirements that a state spend

100% of what it spent in FY1994 and provide

matching funds. Instead, requires that unspent

balances be 30% or less of cumulative TANF

grants to be eligible for contingency funds.

[Section 106(b)]

Retains current law requirements that states

expend 100% of what they spent on TANF

precessor programs in FY1994 and provide

matching funds. Allows states to count

spending in separate state maintenance of effort

programs toward these spending requirements.

State child care spending also would count

toward this requirement, but would also be

added to base FY1994 spending. [Section

106(d) and 106(e)]

CRS-13

Current law

Contingency Fund Grant

Amounts

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

A state’s total contingency grant could not

exceed 10% of its family assistance grant. The

contingency fund grant equals the state’s

federal Medicaid matching rate times the

benefit cost of an increase in the TANF family

caseload above 5% in the most recently

concluded three-month period with data,

compared with the corresponding period in

either of the two most recent preceding fiscal

years. (The remaining cost of the increased

caseload would have to be paid with state funds

or other federal TANF funds.) [Section 106(a)]

Retains current law's 20% maximum grant,

advance grant, and annual grant based on the

Medicaid matching rate times expenditures

made in excess of 100% of the FY1994 level.

Eliminates the proration of the annual grant for

part-year eligibility for contingency funds.

[Section 106(d)]

No provision. Tribes are not eligible for

contingency fund.

Sets aside $25 million of the contingency fund

appropriation for grants to Indian tribes 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)]

No provision (retains current law).

No provision.

Authorizes appropriation of $40 million for

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 applicants to describe their

strategy for developing a program that

generates its own source of on-going revenue

wh i l e a s s i s t i n g T AN F r ecip ie n t s .

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

No provision.

Payments are capped at 20% of a state’s basic

TANF grant. A maximum advance grant of

one-twelfth of its total maximum grant is

allowed in a given month. [Section 403(b)(3)]

A state’s annual contingency fund grant amount

is the Medicaid matching rate times

expenditures it made in excess of 100% of

FY1994 expenditures. This annual amount is

prorated for the number of months the state is

eligible for continency grants. If a state

received advance grants that are greater than

the annual amount for which it is entitled, the

state must remit any excess back to the federal

Treasury. [Section 403(b)(6)]

Tribal Eligibility for

Contingency Funds

S. 667 (as reported by the Senate Finance

Committee)

Additional Grants

Social Service

Capitalization

CRS-14

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

statutory rules regarding use of TANF funds

would apply. Requires evaluation and report to

Congress. [Section 119(a)]

Car Ownership Grants

No provision.

Authorizes appropriation of $25 million for

each of FY2006-FY2010 for grants for lowincome 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)]

No provision.

Transitional Jobs/business

Links Grants

No provision.

Authorizes appropriations of $200 million for

each of FY2006-FY2010 for business 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 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.

No provision.

CRS-15

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

“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.

Requires a minimum of 40% of funds

appropriated be used for business linkages and

also a minimum of 40% 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)]

Domestic Violence

Prevention Grants

No provision.

Authorizes $20 million per year for FY2006

through FY2010 for competitive matching

grants (at a 75% federal matching rate) to

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 broadbased income support as a means to reduce

No provision.

CRS-16

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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)]

Repeal of Federal Loan

Fund

Provides a $1.7 billion revolving and interestbearing federal loan fund for state welfare

programs. [Section 406 of the SSA]

Repeals the loan fund. [Section 108]

Same as S. 667. [Section 108]

Maintenance of Effort

Establishes a maintenance-of-effort (MOE)

requirement that states spend at least 75% of

what was spent from state funding in FY1994

on programs replaced by TANF. Nationally,

this sum is $10.4 billion. (MOE rises to 80% if

state fails a work participation standard; see

above.) [Section 409(a)(7) of the SSA]

Continues MOE requirement through FY2010,

but raises the MOE percentage to 80% if the

state failed TANF work participation standards

of the preceding fiscal year. [Section 111(a)]

Same as S. 667. [Section 111]

Defines state expenditures to reduce out-ofwedlock births and promote marriage and

responsible fatherhood (including spending on

behalf of non-needy families) as countable

toward required MOE state spending. Subjects

this spending to two 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)]

Defines all state expenditures to reduce out-ofwedlock births and promote marriage and

responsible fatherhood (including spending on

behalf of non-needy families) as countable

toward required MOE state spending. [Section

103(c)]

TANF funds used as the state match for

marriage promotion grants shall not be

considered state spending countable toward the

MOE requirement. [Section 103(b)].

Provides that spending (as the state match)

from federal marriage promotion grants shall

not be treated as state spending toward MOE

requirements. [Section 111(b)]

CRS-17

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Funding for Child Care

PRWORA created a mandatory child care block For mandatory child care, increases funding by

grant and appropriated $13.9 billion for it over $6 billion over five years (FY2006-FY2010).

six years. [Section 418 of the SSA]

[Section 116(a)]

For mandatory child care, increases funding by

$1 billion over five years (FY2006-FY2010).

[Section 208]

Puerto Rico

Puerto Rico and the territories do not qualify

for mandatory child care funds. (Funding for

child care is available from TANF and Section

1108(b) funds).

Sets aside 1.5% of supplemental mandatory

funding for the Commonwealth of Puerto Rico

and 0.5% for the other territories. [Section

116(b)]

No provision.

States may use funds in any manner reasonably

calculated to accomplish the TANF purpose.

[Section 404 of the SSA]

No provision (maintains current law).

Same as S. 667. (No provision, retains current

law.)

States may use funds in any manner that they

were authorized to use pre-TANF funds.

[Section 404 of the SSA]

No provision (maintains current law).

States may use funds for any purposes or

activities for which they were authorized to use

pre-TANF funds. [Section 107(a)]

A state may treat a family that has resided in

the state for fewer than 12 months under the

welfare rules of the state where they formerly

lived. [Section 404 of the SSA]

Strikes provision permitting different treatment

of families migrating into the state — found

unconstitutional. [Section 107(a)]

Same as S. 667. [Section 107(b)]

States may transfer up to 30% of TANF funds

to the Child Care and Development Block

Grant (CCDBG) and the Title XX Social

Services Block Grant (SSBG). Specifies that a

maximum of 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]

Retains overall transfer limit at 30%. Sets limit

on SSBG transfers at 10% (original limit in

1996 law). [Section 107(b)]

Increases the overall ceiling on transfers to

50%. [Section 107(c)] Sets limit on SSBG

transfers at 10% for FY2006 and each year

thereafter. [Section 107(d)]

Current law

Use of Funds

General Rules

Transfer of funds

CRS-18

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Carryover of Funds

Amounts may be spent without fiscal year limit

for “assistance” (chiefly ongoing cash aid). For

other benefits and services (“nonassistance”)

amounts must be obligated in the year of award

and spent in the following year. [Section 404

of the SSA]

Allows use of carryover funds from TANF

grants for any benefit or service without fiscal

year limitation. Permits a state or tribe to

designate some TANF funds as a contingency

reserve. [Section 107(c)]

Same as S. 667. [Section 107(e)]

Use of Funds for

Education

States may use funds for educational activities

(to promote a TANF goal or because these

activities were allowed under pre-1996 law).

However, only three educational activities may

be counted toward state work participation

rates: high school attendance, education

directly related to work (both for high school

dropouts only) and vocational educational

training. Unless it is defined by the state as

vocational educational training, postsecondary

education is not a countable work activity.

[Section 407(d) of the SSA]

Allows states to use TANF funds to establish an

undergraduate two- or four-year degree

postsecondary program sometimes known as

Parents as Scholars (PAS) or a vocational

educational program. Following services could

be provided in these undergraduate programs:

child care, transportation, payment for books

and supplies, other services provided under

policies determined by the state to ensure

coordination and lack of duplication.

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)]

No provision.

Direct Funding and

Administration by Indian

Tribes

Allows Indian tribes to administer their own

family assistance (TANF) programs. Earmarks

some TANF funds — amount equal to federal

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]

Continues the authority for tribes to operate

TANF programs through FY2010. [Section

113(a)]

Same as S. 667. [Section 114(a)]

Tribal Work Programs

Appropriates $7.6 million annually for work

and training activities (now known as Native

Employment Works (NEW)) to tribes that

operated a pre-TANF work and training

program. [Section 412(b) of the SSA]

Provides $12.6 million annually for NEW

programs through FY2010. [Section 113(a)]

Extends the authority and funding for NEW

programs at current levels ($7.6 million

annually) through FY2010. [Section 114(b)]

CRS-19

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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)]

Tribal Capacity Grants

No provision.

Appropriates $80 million for the period

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)]

No provision.

State plan must require that a parent or

caretaker engage in work (as defined by the

state) after, at most, 24 months of assistance.

[Section 402(a)(1)(ii) of the SSA]. Note: This

requirement is not enforced by a specific

penalty. (States may, but need not, establish an

individual responsibility plan for each family in

consultation with the recipient.) [Section

408(b)(2) of the SSA]

Repeals the 24-month work trigger. Requires

state plans to outline how they intend to require

parents and caretakers to engage in work or

alternative sufficiency activities, as defined by

the state — while observing the ban on

penalizing work refusal by a single parent of a

preschool child who is unable to obtain needed

child care for specified reasons — and to

require families to engage in activities in

accordance with family self-sufficiency plans.

[Section 110(a)]

Same as S. 667. [Section 109(a)]

States must make an initial assessment of the

skills, prior work experience, and employability

of each recipient 18 or older or those who has

not completed high school within 30 days.

[Section 408(b)(1) of the SSA]

Requires states to make an initial screening and

assessment, in a manner they deem appropriate,

of the skills, work experience, education, work

readiness, work barriers and employability of

each adult or minor child head of household

recipient who has attained age 18 or who has

not completed high school and to assess, in a

Requires states, in a manner they deem

appropriate, to assess the skills, work

experience, and employability of each workeligible person (see definition below) and

requires states to develop a family selfsufficiency plan for each family with such a

person. Plans must be established within 60

Work Participation Requirements and Standards

Universal Engagement

and Family Selfsufficiency Plan

Requirements

CRS-20

Current law

S. 667 (as reported by the Senate Finance

Committee)

manner they deem appropriate, the work

support and other assistance and family support

services for which families are eligible and the

well-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 selfsufficiency plan for each family.

Required plan contents: activities designed

to assist the family 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 wellbeing and, when appropriate, adolescent wellbeing; 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 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

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

days of opening a case (within 12 months for

families enrolled at the time of enactment).

[Section 109(b)]

CRS-21

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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)]

Imposes a penalty on states for failure to

establish self-sufficiency plans by revising the

penalty provision for failure to meet TANF

work participation standards. Provides failure

to comply with self-sufficiency requirements

and/or achieve work participation standards

would result in a penalty of up to a 5%

reduction in the TANF grant for the first

violation (more for subsequent violations),

based on the degree of substantial

noncompliance. The Secretary is directed to

take various factors into account in setting the

penalty. These factors include the number or

percentage of families for whom a selfsufficiency 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

Imposes a penalty on state for failure to

establish self-sufficiency plan by revising the

penalty provision for failure to achieve work

participation standard. Provides failure to

comply with self-sufficiency requirements

and/or achieve work participation standards

would result in a penalty of up to a 5%

reduction in the TANF grant for the first

violation (more for subsequent violations).

(The bill does not contain the “substantial

noncompliance” language of S. 667.) [Section

109(b)] See Penalty for Failing Participation

Rate, below.

CRS-22

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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)]

Sanctions Against

Individuals for Work

Refusal

If person in a family receiving TANF assistance

refuses to engage in required work, the state

shall reduce aid to the family pro rata (or more,

at state option) with respect to the period of

work refusal, or shall discontinue aid, subject to

good cause and other exceptions that the state

may establish. [Section 407(e) of the SSA]

No provision (maintains current law).

If a person in a family receiving TANF

assistance fails to engage in required activities

and the family does not otherwise engage in

activities in accordance with its self-sufficiency

plan, the state must impose a penalty as

follows: (a) If the failure is partial and 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 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. [Section 110(f)]

CRS-23

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Exception: a state may not penalize a single

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]

No provision (retains current law).

Same as S. 667.

A state must engage a specified percentage of

families containing adult or teen parent

recipients in creditable work activities. Since

FY2002, the participation standard has been

50% for all families (and since FY1999 it has

been 90% for the two-parent component of the

caseload). [Section 407(a) of the SSA]

A state must engage a specified percentage of

families containing adult or minor heads of

households in the assistance unit in creditable

activities. Participation standards are:

A state must engage a specified percentage of

families with a work-eligible person in direct

work or alternative self-sufficiency activities

chosen by the state. Participation standards are

same as S. 667. A work-eligible person is

defined as a household head who is in the

assistance unit, or would be in the unit if not

sanctioned. [Section 110(b)]

Current law

Work Participation

Standards

50% in FY2006

55% in FY2007

60% in FY2008

65% in FY2009

70% in FY2010.

[Section 109(b)]

Required participation rates may be reduced by

a caseload reduction credit (see below).

Required participation rates may be reduced by

caseload reduction or employment credits, but

a cap is placed on these credits. 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)]

Required participation rates may be reduced by

caseload reduction and “superachiever” credits

(see below).

CRS-24

Current law

Caseload Reduction Credit

Employment Credit

Work participation standards are reduced by a

caseload reduction credit: for each percent

decline in the caseload from the FY1995 level

(not attributable to policy changes), the work

participation standard is reduced by one

percentage point. [Section 407(3) of the SSA]

No provision.

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Effective October 1, 2002, eliminates the

separate standard for two-parent families. Also

forgives states penalized for failing the twoparent standard in FY2002-FY2004. [Section

109(a)]

Effective October 1, 2005, eliminates the

separate standard for two-parent families.

[Section 110(a)]

Retains current law caseload reduction credit

for FY2006 and FY2007 (subject to the limits

shown above). Effective October 1, 2007,

replaces the caseload reduction credit with an

employment credit (subject to limits shown

above). [Section 109(d)]

Measures caseload reduction from a moving

base year (rather than from FY1995) and

shortens the measuring interval. Also changes

the eligibility criteria base year from FY1995 to

the new moving base. For FY2006, the 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. [Section

110(c)]

No provision.

Establishes a “superachiever” caseload

reduction credit for a state with a reduction in

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). [Section 110(d)]

Establishes a percentage point “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

No provision.

CRS-25

Current law

S. 667 (as reported by the Senate Finance

Committee)

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 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)]

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)]

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

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

CRS-26

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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 the amount of the

employment credit that will be used in

calculating participation rates for the

immediately succeeding fiscal year. [Section

109(d)]

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)]

Study of the Employment

Credit

No provision.

Requires the Secretary of HHS to conduct a

study of the design of the employment credit

and report to the Senate Finance Committee

and House Ways and Means Committee by

September 30, 2009. [Section 109(d)]

No provision.

CRS-27

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Calculation of

Participation Rates

The monthly participation rate, expressed as a

percentage, equals (a) the number of all

recipient families in which an individual is

engaged in work activities for the month,

divided by (b) the number of recipient families

with an adult recipient or minor head of

household. The annual participation rate,

which is compared against the participation

standard, is the average of the monthly

participation rates. [SSA, Section 407(b)(1)]

Similar to current law, except that states are

given partial, full, or extra credit for families

depending on the average number of hours per

week in which they engage in activities. (See

Hours, below).

Participation rates equal the share of hours

spent in creditable activities out of a potential

total of 160 hours monthly per counted family.

Monthly participation rate, expressed as a

percentage, is (a) the total number of countable

hours, divided by (b) 160 times the number of

counted families for the month. [Section

110(b)]

Infant Exemption from the

Work Participation Rate

States may exempt the parent of a child under

age 1 from work and exclude them from the

calculation of work participation rates.

Exclusion is limited to 12 months in a lifetime.

[SSA, Section 407(b)(5)]

Permits states to exclude all families with

infants (not just single parent families) from

work participation calculations on a case-bycase basis. Limits this exclusion to 12 months

in a lifetime. [Section 109(e)]

Similar to S. 667, but does not include the 12month in a lifetime limit on this exclusion.

[Section 110(b)]

Excluding Families in

Their First Month of

Assistance from the Work

Participation Rate

No provision.

Permits states to exclude a new group from

work participation calculations — families in

first month of assistance. Determination is

made on a case-by-case basis. [Section 109(e)]

Similar to S. 667, but does not specify that the

exclusion is to be made on a case-by-case basis.

[Section 110(b)]

Treatment of Sanctioned

Families in the Work

Participation Rate

States may exclude from the work participation

rate calculation families subject to sanctions for

refusal to comply with work requirements.

Exclusion is limited to three months in a 12month period. [Section 407(b)(1) of the SSA]

No provision, retains current law.

Same as S. 667. [Section 110(b)]

Penalty for Failing

Participation Rate

Participation rates are enforced by a penalty on

states: loss of 5% of the state’s basic grant for

first year of violation (higher penalty for repeat

violations). Penalty must be based on the

degree of noncompliance and may be reduced

if the noncompliance is due to circumstances

that made the state needy under the contingency

fund definition or due to extraordinary

circumstances such as a natural disaster or

Provides that penalty (beginning for FY2007)

must be based on the degree of substantial

noncompliance. Directs the Secretary to take

into account factors such as the degree to which

the state missed the participation rate, the

change in the number of persons engaged in

work since the prior year, and the number of

consecutive years in which the state failed to

achieve the work rate. Penalty may be reduced

No provision, retains current law.

CRS-28

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

regional recession. State must replace the

amount of federal penalty funds with its own

funds. [Section 409(a)(3) of SSA] In addition,

the state’s MOE spending requirement rises

from 75% to 80% of its historic level.

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)]

States that fail to meet work participation

standards may file a corrective compliance plan

with the Secretary of HHS. The corrective

compliance plan outlines what the states will do

to correct or discontinue its failure to meet the

standards. The Secretary may not impose the

penalty if the state corrects the violation of the

work standards. [Section 409(c) of the SSA]

If the Secretary accepts a state’s corrective

compliance plan for failure to meet work

participation standards and the state has at least

a 5 percentage point improvement in its work

participation rate over the previous year, the

Secretary shall not impose a financial penalty

on the state. [Section 111(b)]

No provision.

Federal law lists nine priority activities that

must account for most weekly hours:

- unsubsidized jobs;

- subsidized private jobs;

- subsidized public jobs;

- work experience

- on-the-job training;

- job search (usual limit, six weeks per fiscal

year)

- community service;

- vocational educational training (limited to

12 months in a lifetime);

- providing child care for participants in

community service programs.

Retains current law list of nine priority

activities as “direct work” activities.

Lists six “direct” work activities:

- unsubsidized jobs;

- subsidized private jobs;

- subsidized public jobs;

- on-the-job training;

- supervised work experience, and

- supervised community service.

Countable Activities

“Core” Activities.

Activities Countable as

Sole or Primary Work

Activities of Recipients.

[Section 407(d) of the SSA]

[Section 110(e)]

CRS-29

Current law

Qualified Activities.

Activities that May

Substitute for, or be in

Conjunction with, Core

Activities for a Limited

Period of Time.

No provision.

S. 667 (as reported by the Senate Finance

Committee)

For three months in a 24-month period, seven

additional activities may be substitute for, or be

in conjunction with, direct work activities:

- postsecondary education;

- adult literacy programs or activities;

- substance abuse counseling or treatment

(including drug or alcohol abuse counseling

or treatment);

- programs or activities designed to remove

work barriers, as defined by the state;

- work activities authorized under any waiver

for any state that was continued under

Section 415 before the date of enactment of

this bill;

- money management classes; and

- parenting skills classes.

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

For three months within a 24-month period,

persons participation in short-term “qualified”

activities chosen by the state to promote selfsufficiency may substitute for or be in

conjunction with direct work activities

(examples listed in the bill are substance abuse

counseling or treatment; rehabilitation

treatment and services; work-related education

or training directly enabling the family member

for work; and job search or job readiness

assistance). [Section 110(e)]

[Section 109(c)]

Supplemental Activities.

Activities Countable

Generally Only in

Conjunction with “Core”

or “Qualified” Activities.

For most recipients, hours of participation in

these activities are countable only in

conjunction with participation in priority

activities (and with a minimum number of

hours in priority activities). Federal law lists

three such activities:

-- job skills training directly related to

employment;

-- education directly related to employment;

and

-- progress toward completion of secondary

school.

[Section 407(d) of the SSA] See Required

Hours of Work, below.

Retain current law list of three supplemental

activities, and adds: marriage education,

marriage skills training, conflict resolution, and

programs to promote marriage. [Section

109(g)] Also permits states to count all

“qualified activities” (see above), as well as job

search and vocational educational training

(beyond the usual time limits) as supplemental

activities once a family has the minimum

number of hours of “direct work” participation.

[Section 109(g)]

States may define any other activity as

countable (generally for non-core hours) so

long as it leads to self-sufficiency and is

consistent with the purposes of TANF.

[Section 110(e)]

CRS-30

Current law

Postsecondary Education

No provision. Postsecondary education not

classified as “vocational educational training”

is not countable toward TANF work

participation standards.

S. 667 (as reported by the Senate Finance

Committee)

Three months of postsecondary education is

countable as a “qualified activity” (see above).

Allows states to establish a program (under

Section 107) of undergraduate 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

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

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

No provision.

However, postsecondary

education may be a state-defined “qualified” or

“supplemental” activity.

CRS-31

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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)]

Special Rules for

Rehabilitative Activities

No provision.

Recipients engaged in qualified activities

considered rehabilitative (adult basic 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)]

No provision.

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)]

Caring for a Disabled

Family Member

No provision.

Permits a state to deem a single parent caring

for a dependent with a physical or mental

impairment to be meeting all or part of the

family’s work requirement. [Section 109(f)]

No provision.

Work Activities in Indian

Areas of High Joblessness

No provisions.

Permits a state to define countable work

activities for persons complying with a family

self sufficiency plan and living in areas of

Indian country or an Alaskan native village

with high “joblessness.” To qualify for this

No provision.

CRS-32

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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)]

Numerical Limits on

Vocational Education and

Teen Parents

No more than 30% of persons credited with

work may consist of persons participating in

vocational educational training or may be teen

parents who are deemed to be working because

of satisfactory attendance at secondary school

or because of spending 20 hours weekly in

education directly related to employment.

[Section 407(c)(2)(D) of SSA]

Continues the 30% cap, but provides that it

does not apply to persons in a 3+3 program

receiving qualified rehabilitative services or to

persons engaging in vocational educational

training as a supplementary activity after

meeting the 24-hour “direct work” requirement.

[Section 109(f)]

No provision.

Required Hours of Work

Activity

Generally, to count toward the all-family rate,

average weekly participation of 30 hours (20

hours in priority work activities) is required.

However, in the case of single parents with a

preschool age child (who constitute half of all

TANF cases), the hours requirement is 20 per

week. For two-parent families the standard is

35 hours (30 in priority work activity), but

increases to 55 hours (50 in priority activities)

if the family receives federally-subsidized child

care. [Section 407(c)(1) of the SSA] For a

single parent caring for a child under age 6, 20

hours of participation satisfies the standard.

[Section 407(c)(2)(B) of the SSA]

Establishes standard TANF work weeks as

follows: 24 hours for a single parent with a

child under age 6; 34 hours for a single parent

with a child over 6 (with 24 hours in a priority

activity) 39 hours for a two-parent family (but

55 hours if that family receives federally

funded child care) — with most hours in a

priority activity. Families meeting the standard

are counted as one family in calculating the

state’s work participating rate.

Those

exceeding the standard receive extra credit, and

some who fall short of the standard receive

partial credit (see below). Average weekly

hours are computed by dividing monthly hours

of participation by 4. [Section 109(f)]

Establishes a 160-hour-per-month

standard. [Section 110(b)]

work

Generally, states must engage all families with

a “work- eligible” member in a direct work

activity or alternative self-sufficiency activity

for an average of 40 hours weekly (the actual

standard is 160 hours per month, equal to a

weekly average of 37 hours) — of which 24

hours must be in one of the direct work

activities listed in the law and up to 16 hours

may be in a TANF-purposeful activity chosen

by the state. [Section 110(e)]

CRS-33

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Special Rule for Teen

Parents

Teen parents are deemed to meet the weekly

hour participation standard by maintaining

satisfactory attendance in secondary school (or

the equivalent in the month) or by participating

in education directly related to employment for

an average of 20 hours weekly. [Section

407(c)(2)(C) of the SSA]

Counted as one working family is a teen parent

who maintains satisfactory school attendance or

participates in education directly related to

employment for an average of 20 hours weekly.

[Section 109(f)]

Essentially the same as current law. Teen

parents are deemed to satisfy the (40-hour

weekly) work rule by virtue of satisfactory

school attendance (or the equivalent in the

month) or by participating in education directly

related to employment for an average of 20

hours weekly [Section 110(e)].

Partial Work Credit

None.

Families who meet core work requirements but

fail the full standard receive partial credit as

follows: Credited as .675 of a family are single

parent families (with or without a child under

six) who have 20-23 hours of work and twoparent families with 26-29 hours of work (4044 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 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)]

Families who meet the 24-hour weekly direct

work requirement but fail the 40-hour standard,

receive pro-rata credit for all hours worked (but

zero credit unless meet the 24-hour direct work

rule). [Section 110(b)]

Extra Work Credit

None.

Families that exceed the standard hourly work

requirement receive extra credit, as follows.

Credited as 1.05 of a family are single-parent

families who work 35-37 hours and two-parent

families who work 40-42 hours (56-58 hours if

they receive child care). Credited as 1.08 of a

family are single-parent families who work 38

Counts all hours worked above the 40-hour full

weekly standard, provided 24 hours are spent in

direct work (or, for a limited time, in certain

other qualified activities) and no more than 16

hours are in non-priority activities. [Section

110(c)]

CRS-34

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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)]

Other Requirements with Respect to Families Receiving Assistance

Drug Testing

States are given the authority to test welfare

recipients for use of controlled substances and

sanction recipients who test positive for

controlled substances. [Section 902 of the

Personal Responsibility and Work Opportunity

Reconciliation Act.]

No provision (retains current law).

States are required to test applicants and

recipients of TANF for use of drugs if the state

has a reason to believe he or she has recently

used a controlled substance. If the applicant or

recipient tests positive for drug 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 require the applicant or recipient to

undergo periodic drug tests (every 90 or 60

days) as a condition of receiving cash

assistance.

Requires states to end benefits to the family for

three years if the recipient 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

CRS-35

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Secretary determining the exact penalty

amount. [Section 123]

Eligibility for Teen

Parents

Federal TANF funds cannot be used to assist an

unmarried teen parent (under the age of 18)

who does not reside in the home of her parents

or in another adult supervised setting. The

State must assist such a teen parent in locating

a second chance home, maternity home, or

other appropriate adult-supervised supportive

living arrangement unless the state determines

that the individual’s living arrangement is

appropriate.

Permits states to use federal TANF funds to

assist an unmarried teen parent for up to 60

days. Adds transitional living youth projects to

the accepted living situations for a teen parent

receiving TANF assistance. [Section 110(b)]

No provision (retains current law).

Displacement of Regular

Workers

A recipient may fill a vacant employment

position. However, no adult in a work activity

that is funded in whole or in part by federal

funds may be employed or assigned when

another person is on layoff from the same or

any substantially equivalent job, or if the

employer has ended the employment of any

regular employee or otherwise caused an

involuntary reduction in its workforce in order

to fill a vacancy with a TANF recipient. These

provisions do not preempt any provision of

state or local law that provides greater

protection against displacement. States are

required to have a grievance procedure to

resolve complaints of displacement of

permanent employees.

Provides that an adult recipient cannot displace

any employee or position (including partial

displacement), fill any unfilled vacancy, or

perform work when any individual is on layoff

from the same job or substantially equivalent

job. TANF work activities cannot impair

existing contracts or services; be inconsistent

with any law, regulation, collective bargaining

agreement; or infringe on the recall rights or

promotional opportunities of any worker.

TANF work activities must be in addition to

any activity that would otherwise be available

and not supplant the hiring of a non-TANF

worker.

No provision (retains current law).

Requires states to have a grievance procedure

for resolving complaints, including the

opportunity for a hearing, and sets time

CRS-36

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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)]

Disregard of Months

Toward the TANF Time

Limit for Months Living

in Indian Country Areas

with Joblessness

Federal TANF grants may not be used to aid a

family with an adult who has received 60

months of assistance. Months in which an adult

lives in Indian Country with a jobless rate of

50% or more are not counted toward the 60

month time limit.

Modifies this exclusion, providing that months

in which an adult lives in Indian Country with

a jobless rate among adult recipients of 40% or

more are not countable toward the time limit.

The 40% threshold is dropped down to 35% if

the state meets any of the needy state criteria

under the contingency fund or if the tribe meets

criteria for contingency funds. Modifications

do not apply to Alaska. [Section 110(c)]

No provision (retains current law).

Two purposes relate to marriage. One goal is to

end dependency of needy parents on

government benefits, with one of the stated

means of accomplishing the goal specified as

marriage. A second purpose is to encourage the

formation and maintenance of two-parent

families.

The stated purpose of promoting the formation

and maintenance of two-parent families is

modified to read: encourage the formation and

maintenance of healthy two-parent married

families, and encourage responsible

fatherhood. [New language in italics] [Section

103(e)]

The stated purpose of promoting the formation

and maintenance of two-parent families is

modified to read: encourage the formation and

maintenance of healthy, two-parent married

families, and encourage responsible

fatherhood. [Section 101]

Marriage Promotion

TANF Goals and Purposes

CRS-37

Funding for Marriage

Promotion Matching

Grants

Allowable Activities for

Marriage Promotion

Grants

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Current law

S. 667 (as reported by the Senate Finance

Committee)

No provision for special grants. States may use

TANF block grants to promote formation and

maintenance of two-parent families (program

goal no. 4) and to promote marriage as a means

of ending dependence on government benefits

(goal no. 2).

Appropriates $100 million annually for FY2006

through FY2010 for 50% competitive matching

grants to states, Indian tribes, and tribal

organizations for programs to promote and

support healthy married two-parent families.

[Section 103(b)]

Appropriates $100 million annually for FY2005

through FY2010 for 50% competitive matching

grants to states, territories, and tribal

organizations for programs to promote and

support healthy, married two-parent families

Similar to S. 667, but does not include “Indian

tribes” as a potential grant recipient. [Section

103(b)]

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)]

Makes funds appropriated for FY2005 available

to the Secretary through FY2006. [Section

103(b)]

Provides that federal TANF funds used for

marriage promotion may be treated as state

matching funds for marriage promotion grants

[Section 103(b)]

Provides that federal TANF funds used for

marriage promotion must be treated as state

matching funds for marriage promotion grants.

[(Section 111(b)(1)]

See Maintenance of

Effort for treatment of TANF spending on

behalf of marriage promotion. [Section 103(c)]

Provides that general rules governing uses of

TANF block grant funds (other than

administrative limit) shall not apply to marriage

promotion grants. [Section 103(b)]

No provision.

Grants may be used for:

advertising

campaigns; education in high schools;

voluntary marriage education, marriage skills

and relationship skills programs that may

include parenting skills, financial management,

conflict resolution, and job and career

advancement for non-married pregnant women

Grants may be used for:

advertising

campaigns; education in high schools; marriage

education, marriage skills and relationship

skills programs that may include parenting

skills, financial management, conflict

resolution, and job and career advancement for

non-married pregnant women and expectant

No provision. (TANF and MOE funds may be

used for marriage promotion activities.)

CRS-38

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

and expectant fathers; voluntary pre-marital

education and marriage skills training for

engaged couples and individuals and couples

interested in marriage; voluntary marriage

enhancement and marriage skills training

programs for married couples; voluntary

divorce reduction programs; voluntary marriage

mentoring programs; programs to reduce

marriage disincentives in means-tested

programs, if offered in conjunction with any

other listed activity. [Section 103(b)]

fathers; pre-marital education and marriage

skills training for engaged couples and

individuals and couples interested in marriage;

marriage enhancement and marriage skills

training programs for married couples; divorce

reduction programs; marriage mentoring

programs; programs to reduce marriage

disincentives in means-tested programs, if

offered in conjunction with any other listed

activity. [Section 103(b)]

Domestic Violence

Provisions

No provision.

Forbids award of a grant unless the applicant

has consulted with organizations that have

demonstrated expertise in working with

survivors of domestic violence; the application

describes how the program/activities will deal

with issues of 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)]

No provision.

Requirements for

Voluntary Participation

No provision.

Requires that participation in marriage

promotion activities (other than media

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.

No provision.

CRS-39

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

States, Indian tribes, or tribal organizations that

carry out marriage promotion activities are

required to assure the Secretary of HHS that

recipients who elect to participate in marriage

promotion activities are informed that

participation is 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)]

Performance

Goals/reporting

Requirements

No provision.

Requires grantees to establish performance

goals that clarify the primary objective of

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.

The Secretary of HHS is required to submit a

report to Congress every six months providing:

No provision.

CRS-40

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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)]

Research and

Demonstrations on

Marriage Promotion

No special provision to fund research or

demonstrations. However, available TANF

research funds (see Research and

Demonstrations, below) and other research

funds provided to the Department of Health and

Human Service may be used to evaluate

marriage promotion initiatives.

Appropriates $100 million each for FY2005

through FY2010 for research and

demonstration projects and for technical

assistance to states, tribal organizations, and

other entities chosen by the Secretary.

Specifies that 80% of these funds must be spent

on research and demonstration projects, or for

providing technical assistance, in connection

with activities allowed under marriage

promotion grants (see above). Provides that all

appropriated funds shall remain available until

expended. [Section 114(a)]

Appropriates $102 million each for FY2005

through FY2010 for research and

demonstration projects and for technical

assistance to states, tribal organizations, and

other entities chosen by the Secretary.

Specifies that these funds must be spent

primarily on activities allowed under marriage

promotion grants (see above). (Sets aside $2

million yearly for demonstration projects for

coordination of child welfare and TANF

services to tribal families at risk of child abuse

or neglect.) Provides that funds appropriated

for FY2005 shall remain available through

FY2006. [Section 115(a)]

Provisions to Address

Domestic Violence and

Voluntary Participation

Issues for Research Funds

No provision.

Forbids Secretary to pay these research funds to

an entity that has not consulted with

organizations that have demonstrated expertise

in working with survivors of domestic violence;

describe in the application for a grant how the

No provision.

CRS-41

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

programs or 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).

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)]

State Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions

State Plan Requirements

Each state must outline (generally in a plan

effective for three fiscal years), how it intends

to:

conduct a program providing cash

assistance to needy families with children and

providing parents with work and support

services; require caretaker recipients to engage

in work (at state definition) after 24 months of

aid or sooner, if then judged work-ready;

ensure that caretakers engage in work in

accordance with the law; take steps deemed

necessary by the state to restrict use and

disclosure of information about recipients; and

conduct a program providing education and

training on the problem of statutory rape. In

addition, the plan must indicate whether the

state intends to treat families moving into the

state differently from others; indicate whether

Adds requirement that each state must describe

what it will do to end dependence of needy

families on government benefits and reduce

poverty by promoting job preparation and work

and; encourage formation and maintenance of

healthy, two-parent married families, encourage

responsible fatherhood, and prevent and reduce

the incidence of out-of-wedlock pregnancies.

[Section 112].

CRS-42

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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

domestic violence, to refer them to services,

and to waive program rules for some of them.

[Section 402(a) of the SSA]

Participation of Faithbased Organizations in

Provision of Services

No state plan provision.

If the state is undertaking strategies or

programs to engage faith-based organizations in

the delivery of TANF services, or that

otherwise relate to the charitable choice

provisions of P.L. 104-193, the state plan must

describe such strategies and programs. [Section

101(a)]

The state plan must describe strategies or

programs to engage faith-based organizations in

the delivery of TANF services, or that

otherwise relate to the charitable choice

provisions of P.L. 104-193. [Section 112(a)]

State Plan Requirement for

Community Service after

Two Months

Unless the governor opts out by notice to HHS,

the state will require a parent who has received

TANF for two months and is not work-exempt

to participate in community service

employment.

Eliminates this requirement. [Section 101(a)]

Same as S. 667. [Section 112(a)]

CRS-43

Current law

Measurable Performance

Goals

State plans must establish goals and take action

to prevent/reduce the incidence of out-ofwedlock pregnancies.

Program Strategies

Description of State

Assistance Programs

No provision.

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

States must establish measurable performance

objectives for pursuing all TANF purposes

(current law only specifies establishment of

goals for reducing o ut-of-wedlock

pregnancies).

These goals are to give

consideration to those developed by the

Secretary of HHS in establishing performance

targets for the employment bonus (see above)

and additional criteria related to other TANF

purposes developed by the Secretary (in

consultation with state groups).

State plans to include measurable performance

objectives for accomplishing ending

dependence of needy families on government

benefits and reducing poverty (including

objectives consistent with the criteria for

awarding Employment Achievement bonuses)

and for encouraging the formation and

maintenance of two-parent married families,

encouraging responsible fatherhood, and

reducing the incidence of out-of-wedlock

pregnancies. [Section 112(a)]

States plan is to describe strategies and

programs the state is using or plans to use to

address emp lo yment 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)]

Same as S. 667. [Section 112(a)]

Requires the state plan to include, to the extent

applicable, for each program that provides

assistance information on its: financial and

nonfinancial eligibility rules; amount of

assistance; and applicable time limits and time

limit rules. [Section 101(a)]

No provision.

CRS-44

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Indian and Tribal Issues

States must certify that they will provide

equitable access to TANF to Indians who are

ineligible for tribal family assistance programs.

[Section 402(a) of the SSA]

Requires that the state plan include a

description of how the state will ensure

equitable access to TANF to Indians who are

ineligible for tribal family assistance 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)]

Requires that the

certifications include that tribal governments

have been consulted in the development of the

state plan. [Section 101(a)]

Requires tribal family assistance plans to

provide assurance that the state in which the

tribe is located has been consulted regarding the

plan and its design. [Section 112(b)]

Two-parent Families

No provision.

Requires plan to describe how the state intends

to encourage equitable treatment of healthy,

married two-parent families under TANF.

[Section 101(c)]

Same as S. 667. [Section 101(c)]

Description of Additional

State Options for the Work

Requirements

No provision.

If state provides TANF-funded transportation

aid, requires certification by the governor that

state and local transportation officials and

planning bodies have been consulted in

development of the plan. [Section 101(a)]

No provision.

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

CRS-45

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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.

Standard Form

Requires the HHS Secretary to develop a

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.

No provision.

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)].

Performance Measures

No provision. (However for the purpose of

awarding performance bonuses, the Secretary is

to develop a formula in consultation with the

National Governors Association and the

American Public Welfare Association.)

Requires the Secretary, in consultation with the

states, to develop uniform performance

measures to judge the effectiveness and

improvement of state programs in

accomplishing TANF purposes.

[Section

101(d)]

Same as S. 667. [Section 112(c)]

CRS-46

Current law

Rankings of States

Directs HHS Secretary to rank states in order of

success in moving recipients into long-term

private jobs and reducing the proportion of outof-wedlock births and in both cases to review

programs of the three states with highest and

lowest ratings. [Section 413(d) and(e) of the

SSA]

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Revises the employment measure to be

“unsubsidized employment.”

Adds

employment retention and ability to increase

wages to factors used for rankings. Also, adds

three new ranking factors: the degree to which

recipients have workplace attachment and

advancement, reducing the overall welfare

caseload, and, when a practicable method of

calculation becomes practicable, diverting

persons from making formal applications to

TANF. [Section 101(e)]

Deletes “long-term” qualifier from private job

measure. Adds employment retention and

ability to increase wages to factors used for

rankings. Also, adds three new ranking factors:

the degree to which recipients have workplace

attachment and advancement, reducing the

overall welfare caseload, and, when a method

of calculation becomes practicable, diverting

persons from making formal applications to

TANF. [Section 112(d)]

In ranking states, Secretary must take into

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)]

No provision.

CRS-47

Data Collection and

Reporting

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Current law

S. 667 (as reported by the Senate Finance

Committee)

States are required to collect monthly, and

report quarterly, disaggregated case record

information (but may use sample case record

information for this purpose) about recipient

families in the TANF program. [Section 411(a)

of the SSA]

Requires quarterly reports to cover families in

MOE-funded separate state programs, as well

as those in TANF state programs. Permits the

Secretary to limit use of sampling by

designating core elements that must be reported

for all families.

Same as S. 667. [Section 113(a)]

Required family information includes: county

of residence; whether a member received

disability benefits; ages of members; size of

family and the relation of each member to the

family head; employment status and earnings of

the employed adult; marital status of adults;

amount of unearned income received by family

members; citizenship of family members;

number of families and persons receiving aid

under TANF (including the number of twoparent and one-parent families); total dollar

value of assistance given; total number of

families and persons aided by welfare-to-work

grants (and the number whose participation

ended during a month); number of noncustodial

parents who participated in work activities; for

each teenager, whether he/she is the parent of a

child in the family; race and educational level

of each adult; race and educational level of

each child; whether the family received

subsidized housing medicaid, food stamps, or

subsidized child care (and if the latter two, the

amount); number of months that the family

received each type of aid under the program.

In terms of data elements, adds race and

educational level of each minor parent. Deletes

educational level of each child. Eliminates

reporting of the amount of child care and food

stamp benefits. Eliminates the requirement to

report on different types of TANF assistance

(conforms reporting with new, narrower

definition of assistance). Requires information

on why a family is on the rolls in excess of 60

months. Requires reporting on the date the

family first received aid on the basis of its most

recent application and the marital status of the

parents of any child in the family at the birth of

the child, and if the parents were not then

married, whether the paternity of the child has

been established. [Section 112(a)]

Same as S. 667.

CRS-48

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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)]

Data Reporting on Work

Participation

Quarterly reports are to include information

required to compute TANF work participation

rates. This includes number of hours per week,

if any, that adults participated in specified

activities (education, subsidized private jobs,

unsubsidized jobs, public sector jobs, work

experience, or community service, job search,

job skills training or on-the job training,

vocational education). [Section 411(a) of the

SSA]

Requires that states report hours of participation

in all activities that count toward meeting

TANF participation standards as well as other

work and self-sufficiency activities. Also

requires reporting on whether the family has a

self-sufficiency plan established for it and

progress toward universal engagement. [Section

112(a)]

Adds to reported activity list: training and

other activities directed at TANF purposes.

Adds and (job) placement to job search. Omits

job skills training and vocational education.

Specifies that work experience and community

service are “supervised.”

Also requires

reporting on whether the family has a selfsufficiency plan established for it and progress

toward universal engagement. [Section 113(a)]

Data Reporting on Indians

No provision.

Requires the quarterly report to include

information on the demographics and caseload

characteristics of Indians in state TANF and

MOE programs. [Section 113(e)]

No provision.

Reporting on Families

Leaving TANF

From a sample of closed cases, the quarterly

report is to give the number of case closures

because of employment, marriage, time limit,

sanction, or state policy. [Section 411(a) of the

SSA]

Deletes reporting of families leaving TANF

because of marriage. [Section 112(a)]

Same as S. 667. [Section 113(a)]

CRS-49

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Requires quarterly reports to include the

number of families and persons who became

ineligible to receive TANF during the month

(broken down by the number that lost eligibility

because of earnings, changes in family

composition that result in higher earnings,

sanctions, time limits, or other specified

reasons). [Section 112(c)]

Same as S. 667. [Section 113(c)]

Reports for Families

Receiving TANF-funded

Child Care

No provision. TANF data collection applies

only to families receiving assistance.

Applies the reporting requirements of the Child

Care and Development Block Grant (CCDBG)

to TANF-funded child care. Allows for a

waiver process if the state is unable to comply

with this requirement. [Section 112(d)]

No provision.

Monthly State Reports

No provision.

Requires states to submit monthly reports on

the number of families and persons receiving

assistance from TANF and separate state MOE

programs. [Section 112(f)]

Requires states to submit monthly reports on

the number of families and persons receiving

assistance from TANF. [Section 113(c)]

Annual State Reports

Regulations require states to annually submit a

program report (by December 31 of each year)

providing financial eligibility rules for all

programs funded by TANF or state MOE

funds. For each MOE program, reports are to

include the name, purpose, and eligibility

criteria.

Requires states to submit an annual report on

characteristics of the state TANF program and

other state programs funded with MOE funds.

Required information: program name and

purpose, description of program activities,

sources of funding, number of beneficiaries,

sanction policies, and any work requirements.

[Section 112(f)]

Same as S. 667. [Section 113(e)]

CRS-50

Current law

Annual Report on

Program Performance

HHS Reports

No provision.

Requires the HHS Secretary to make annual

reports to Congress that include state progress

in meeting TANF objectives (increasing

employment and earnings of needy families and

child support collections, and decreasing outof-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]

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Beginning with FY2007, states must submit to

HHS an annual report on achievement and

improvement under numerical performance

goals and measures.

Same as S. 667. [Section 113(e)]

Requires an annual report on progress toward

full engagement.

No provision.

Sets July 1 of each fiscal year as the deadline

for the report. Deletes applicant families from

the report. Adds requirement to report on

characteristics of MOE-funded programs.

[Section 112(g)]

Same as S. 667. [Section 113(f)]

CRS-51

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Information on Indians in

the TANF Annual Report

No provision.

Requires the TANF annual report to include

state-specific information about the

demographics and caseload characteristics of

Indians in state TANF and MOE programs.

[Section 113(e)]

No provision.

Single Audit Reports

TANF payments to states are subject to the

Single Audit Act. [Section 409(a)(1)]

No provision.

The Secretary, within three months of 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 113(g)]

Requires HHS Secretary to conduct research on

effects, costs, and benefits of state programs.

Provides that Secretary may help states develop

innovative approaches to employing TANF

recipients and shall evaluate them.

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.)

Continues these provisions and appropriates

$15 million annually for them through FY2010.

[Section 114(b)]

Same as S. 667. [Section 115(b)]

Research, Evaluations,

and National Studies

Research on State

Programs

CRS-52

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

Indicators of Child Wellbeing

No provision.

Appropriates $10 million per year for FY2006

through FY2010 for the Secretary of HHS to,

through grants, contracts, and interagency

agreements, develop indicators of child wellbeing for each state.

Among other

requirements, the indicators are required to be

statistically representative at 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.

No provision.

Research on Tribal Social

Services Issues

No provision.

Appropriates $2 million for FY2006 (available

until expended) to conduct research on tribal

family assistance grants and efforts to reduce

poverty among Indians. [Section 114(f)]

Sets aside $2 million annually for FY2006

through FY2010 to be awarded on a

competitive basis to fund demonstration

projects designed to test the effectiveness of

tribal governments and consortia in

coordinating child welfare services to tribal

families at risk of child abuse or neglect.

[Section 115(a)]

Census Bureau Study

Directs the Census Bureau to expand the

Survey of Income and Program Participation

(SIPP) to obtain data with which to evaluate

TANF’s impact on random national sample of

recipients. Appropriates $10 million annually.

[Section 414 of the SSA]

Appropriates $10 million annually for FY2006

through FY2010 to the Census Bureau. Directs

the Bureau to implement or enhance a

longitudinal survey of program participation to

permit assessment of 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

Same as S. 667. [Section 116]

CRS-53

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

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 representative samples. Funds are

to remain available through FY2010 for this

survey. [Section 115(a)]

Teen Pregnancy Resource

Center

No provision.

Requires the Secretary of Commerce to 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)]

No provision.

Appropriates $5 million for FY2006 (to be

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

No provision.

CRS-54

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

preventing teen pregnancy; and assist the

entertainment media industry by encouraging

them to develop content and messages for teens

and adults that can help prevent teen

pregnancy. [Section 119(d)]

Best Practices for Dealing

with Domestic Violence

No provision.

Authorizes $10 million per year for FY2006

through FY2010 to develop and implement

program designed to address domestic 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)]

No provision.

Waivers and Program

Coordination

Permits the HHS Secretary to waive

compliance with requirements for TANF state

plans (and for child support plans), but not for

any other part of TANF law (including work

standards, time limits, funding rules, and

penalties). [Section 1115 of the SSA]

Creates “superwaiver” authority for up to 10

states (including any portion of a state) to

coordinate rules of three specified programs for

low-income families (all under jurisdiction of

the Finance Committee): TANF, SSBG, child

care entitlement funds. Specified provisions

could not be waived including: civil rights

provisions, program purposes or goals, state

spending requirements, health or safety rules,

labor standards, and others. Cannot waive

funding restrictions in an appropriation act and

funds cannot not be transferred from one

account to another, and projects could not

increase federal costs. Waivers would be valid

for up to five years. Applicants must give

assurances that they will obtain an evaluation

Similar rules as S. 667, except covers 10

programs and activities: TANF, Welfare-toWork grants, SSBG, Job Opportunities for

Low-Income Individuals (JOLI), Title I of WIA

(excluding Job Corps), Adult Education and

Family Literacy Act, CCDBG, U.S. Housing

Act (excepting Section 8 rental assistance and

set-asides for the elderly and disabled),

Homeless Assistance Act; and the Food Stamp

program. Food stamp non-financial rules

cannot be waived. Requires an evaluation, but

not a random assignment evaluation. [Section

601]

CRS-55

Current law

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

by an independent contractor and that random

assignment of clients to services and control

groups will be used to the maximum extent

feasible.

Purposes: supporting working persons and

families, helping families escape welfare

dependency, promoting child well-being, or

helping build stronger families. Applications to

waive specific provisions of two or more

programs could be made by the head of a state

entity or a sub-state entity administering the

programs. Waiver approval would be required

by each relevant Secretary. In general, an

application would be deemed approved unless

disapproved within 90 days. Requires annual

reports to Congress. Applicants must give

assurance that they will conduct ongoing and

final evaluations

[Section 114(c)]

No provision.

Authorizes five states to replace food stamps

with demonstrations of food assistance block

grant projects. [Section 602]

CRS-56

Current law

Definition of Assistance

Receipt of assistance by a parent or other

caretaker relative triggers work and time limit

rules. Law does not define the term. By

regulation, assistance is defined as ongoing aid

to meet basic needs, plus support services such

as child care and transportation subsidies, for

unemployed recipients. It excludes nonrecurrent short term benefits.

Federally-funded “assistance” to a family with

an adult is limited to 60 months; states may

impose shorter time limits. By regulation,

assistance is defined as ongoing aid to meet

basic needs, plus support services such as child

care and transportation subsidies, for

unemployed recipients. It excludes nonrecurrent short term benefits.

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

No provision.

Not later than six months after enactment,

requires the Secretaries of HHS and Labor to

submit a joint report describing common or

conflicting data elements, definitions,

performance measures, and reporting

requirements in the Workforce Investment Act

and TANF law. [Section 115(d)]

Defines “assistance” to mean payment, by cash,

voucher, or other means, to or for an individual

or family to meet a subsistence need, but not

including costs of transportation or child care.

It excludes non-recurrent short-term benefits.

[Section 117]

Same policy as S. 667 (different wording of the

provision). [Section 117]

CRS-57

Current law

State Option to Make

TANF Programs

Mandatory Partners with

One-stop WIA Centers

The Workforce Investment Act (WIA) makes

TANF an optional partner with one-stop

employment training centers.

Sense of the Congress

Enforcing Support of

Immigrants by Sponsors

Extension Through

FY2005

Requires sponsors of immigrants to sign a

legally enforceable affidavit of support. Deems

all income and resources of a sponsor (and the

sponsor’s spouse) as available to the sponsored

alien until he or she becomes naturalized or

meets a work test. [Sections 421 and 423 of the

Personal Responsibility and Work Opportunity

Reconciliation Act of 1996]

S. 667 (as reported by the Senate Finance

Committee)

H.R. 240 (as approved by the House Ways

and Means Subcommittee on Human

Resources)

No provision.

Makes state TANF programs mandatory

partners with one-stop employment training

centers established under the Workforce

Investment Act unless the governor of a state

decides otherwise and so notifies the

Secretaries of Health and Human Services and

Labor. [Section 120].

No provision.

Provides that it is the sense of Congress that a

state welfare-to-work program should include

mentoring. [Section 121]

Not later than March 31, 2006, requires the

HHS Secretary, in consultation with the

Attorney General, to submit a report on the

enforcement of affidavits of support and

sponsor deeming required by P.L. 104-193.

[Section 115(c)]

Same as S. 667. [Section 115(c)]

Except as otherwise provided in this Act and

the amendments made by it, activities

authorized by the TANF part of the Social

Security Act (SSA) and by Section 1108(b) of

the SSA (TANF and child welfare in the

territories) shall continue through FY2005, in

the manner authorized, and at the level

provided, for FY2002. The FY2005 highperformance bonus is eliminated. [Section 702]

Same as S. 667, except that the FY2005 highperformance bonus is set at $100 million.

[Section 122]

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