TANF Reauthorization: Side-by-Side Comparison of Current Law and Two Versions of H.R. 4

CRS Report for Congress
TANF Reauthorization: Side-by-Side Comparison
of Current Law and Two Versions of
H.R. 4 (108 Congress)
Updated March 1, 2005
Vee Burke and Gene Falk
Domestic Social Policy Division

Congressional Research Service ˜ The Library of Congress

TANF Reauthorization: Side-by-Side Comparison of
Current Law and Two Versions of
H.R. 4 (108th Congress)
The 108th Congress did not complete action on legislation to reauthorize the
block grant of Temporary Assistance for Needy Families (TANF), instead adopting
short-term extensions. The latest extension funds the program through March 31,

2005. Though welfare reauthorization failed to receive final action, a bill (H.R. 4)

did pass the House and a substitute measure was reported from the Senate Finance
Committee. The differences in the two bills highlight some of the contentious issues
in the reauthorization debate.
The House-passed and Senate Finance Committee bills were very similar in
terms of how they would continue funding under the TANF program. Both bills
would have extended basic TANF funding at current levels ($16.6 billion for the 50
states, the District of Columbia, and the territories) through FY2008 and extended
supplemental grants provided to 17 states through FY2007. Both bills also would
have provided new, categorical grants for marriage promotion activities. The major
difference in the funding provisions of the two bills was how they provided extra
contingency (recession-related) funding to the states. The House bill essentially
extended the current law fund that provides matching grants to states that experience
high and increased unemployment rates and food stamp caseloads. The Senate
Finance Committee bill eliminated the requirements that states expend additional
money to access contingency funds, and instead based extra funding on the cost of
increased caseloads for states that meet revised unemployment or food stamp
caseload criteria.
The two bills would have substantially revised TANF work participation
standards that states must meet or be subject to a financial penalty. 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 versions of H.R. 4 would have raised this standard to 70%,
though under both bills the standard could have been reduced through credits (though
the credits differ between the two bills). They also both eliminated a separate 90%
participation rate requirement for two-parent families. Both bills would have raised
the minimum hours required of family members to be considered full participants,
though the House raised them more than did the Senate Finance Committee bill. The
bills also differed in the activities countable toward the participation standards: the
House narrowed 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 define what counts as activities
themselves. The Senate Finance Committee bill kept all activities on the current law
list, and also allowed states to count activities on an expanded list for three months
(six months in some circumstances).
Both bills included non-TANF provisions relating to child support enforcement,
responsible “fatherhood” programs, and transitional medical assistance (not
addressed herein). This report will not be updated.

In troduction ......................................................1
Summary of the Similarities and Differences between the Two Bills..........1
Funding Provisions............................................2
Basic Funding............................................2
Supplemental Grants.......................................2
Contingency Funds........................................2
Uses of Grants and Program Requirements......................3
Work Requirements............................................4
Participation Rate Standards.................................4
Hours Standards...........................................4
Creditable Activities.......................................5
Marriage Promotion Grants......................................6
Other Provisions...............................................6
Detailed Comparison of TANF Provisions of the House and
Senate Finance Committee Bill...................................7
Short Title, Findings and Statement of TANF Goals and Purposes...........8
Short Title.......................................................8
Findings .........................................................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
Additional grants.................................................13
Social service capitalization....................................13
Repeal of federal loan fund.........................................14
Maintenance of effort..............................................14
Funding for child care.............................................15
Use of funds.....................................................15
General rules................................................15

Carryover of funds................................................16
Use of funds for education......................................16
Direct funding and administration by Indian tribes.......................17
Work Participation Requirements and Standards........................17
Universal engagement and family self-sufficiency plan requirements........17
Sanctions against individuals for work refusal ..........................20
Work participation requirements.....................................21
Caseload reduction credit......................................21
Employment credit............................................22
Calculation of participation rates................................24
Penalty for failing participation rate..............................25
Countable activities...............................................26
Listed in law or bill...........................................26
State options for activities......................................27
Time limits on activities........................................27
Numerical limits..............................................28
Parents as scholars ...........................................29
Required hours of work activity......................................30
Partial work credit............................................31
Extra work credit.............................................32
Marriage Promotion...............................................32
TANF goals and purposes..........................................32
Funding for marriage promotion matching grants........................32
Allowable activities for marriage promotion grants......................34
Research and demonstrations on marriage promotion.....................35
State Plans, Data Reporting, Research (Other than Marriage Promotion)
and Other Provisions..........................................35
State plan requirements........................................35
Performance measures.........................................38
Rankings of states............................................38
Data collection and reporting........................................39
Use of sample data............................................41
Monthly state reports..........................................41
Annual state reports...........................................41
Data elements................................................41

Single audit reports...............................................42
Research, evaluations, and national studies.............................43
Research on state programs.....................................43
Census Bureau study..........................................43
General Accounting Office study.................................44
Waivers and program coordination...............................44
Definition of assistance ............................................46
Technical corrections .............................................46
State option to make TANF programs mandatory partners with one-stop
WIA centers.................................................46
Sense of the Congress.............................................46
Enforcing support of immigrants by sponsors...........................47
Extension through FY2003.........................................47
List of Tables
Table 1. Comparison of Current Law with H.R. 4, as Passed by the House and as
Reported by the Senate Finance Committee (TANF Provisions).........8

TANF Reauthorization: Side-by-Side
Comparison of Current Law and
Two Versions of H.R. 4 (108 Congress)
The 108th Congress did not complete action on legislation to reauthorize the
block grant of Temporary Assistance for Needy Families (TANF). Instead it and its
predecessor, the 107th Congress, adopted short-term funding extensions since the
original funding authority for TANF expired on September 30, 2002. The latest
short-term extension funds the program through March 31, 2005.
The House of Representatives did pass a bill in February 2003 (H.R. 4), and the
Senate Finance Committee reported an amended version of the legislation in October
2003. Though the full Senate took up the bill in late March 2004, the measure was
set-aside in that chamber after a motion to limit debate on the bill failed to receive
the required 60 votes on April 1.
The lack of final action in the 108th Congress means that welfare reauthorization
is likely to again be a topic in the 109th Congress. This report describes both the
House-passed and Senate Finance Committee-approved versions of welfare
reauthorization legislation in the 108th Congress. The differences in the two bills
highlight some of the contentious issues in the reauthorization debate. Before the bill
was pulled from the Senate floor, the Senate did approve one amendment to the bill
which would have added $6 billion over five years for child care funding (to a total
of $7 billion in child care funds above current law levels for the five years). There
were no approved amendments to the Senate Finance Committee bill’s TANF
Summary of the Similarities and
Differences between the Two Bills
The bills had many similarities, with both extending basic funding at current
levels through FY2008 and incorporating President Bush’s proposal to provide
categorical “marriage promotion” grants. They both also raised TANF work
participation standards, though the two bills differed 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 H.R. 4 as it passed the
House and was reported from the Senate Finance Committee. 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.
Funding Provisions
The House-passed and Senate Finance Committee bills had very similar funding
provisions. The major difference in the funding provision between the two bills was
that the Senate Finance Committee bill would have completely revamped the TANF
contingency (recession) funds, while the House-passed bill would have made
relatively minor revisions to the fund.
Basic Funding. The 1996 welfare reform law 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.
The mid-1990s were the period when cash welfare caseloads were at their peak.
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 the House-passed and Senate Finance Committee versions of H.R. 4 would
have continued both the basic block grant and the MOE at their current funding
levels (without inflation or caseload adjustment) through FY2008.
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) states 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
In FY2003, supplemental grants totaled $319 million. Both the House-passed
and Senate Finance Committee bills would have continued supplemental grants for
the same 17 states at the FY2003 funding level through FY2007 (unlike other grants,
which expire in FY2008).
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 differed substantially in their revisions to the TANF contingency
fund. The House-passed version of H.R. 4 essentially would have continued the fund

on existing rules, with some relatively minor modifications: allowing some additional
state spending to count toward meeting the FY1994 funding level threshold and
modifications to increase grants for states that qualify for funds for only part of the
The Senate Finance Committee bill fully revamped the contingency fund. It
would have eliminated the requirement that states increase expenditures from their
own funds above the regular TANF MOE level and eliminated the matching
requirements. It added a new financial requirement that unspent TANF balances be
below a certain threshold to qualify for contingency funds. The Finance Committee
proposal would have based contingency grants on a portion of the estimated cost of
increased cash assistance caseloads. The Senate Finance Committee bill would have
also revised 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-of-
wedlock births and promoting two-parent families. TANF grants can also be
transferred to other block grant programs: up to 30% of the grant can be transferred
to the Child Care and Development Fund (CCDF) and to the Social Services Block
Grant, though the limit on transfers to SSBG is set at 4.25% (though annual
appropriations have restored the SSBG transfer limit to its original limit set in the
1996 welfare law of 10%). 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 have set the SSBG transfer limit permanently at 10%.
However, the House bill would have raised the overall transfer limit to 50%. The
Senate Finance Committee bill would have retained the current law 30% transfer
Both bills included provisions to ease some rules regarding use of TANF funds.
Both the House-passed and Senate Finance Committee versions of H.R. 4 would
!Allowed 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.”
!Narrowed the definition of “assistance” to exclude all child care and
transportation aid. TANF funds spent on assistance trigger certain
program requirements, such as work requirement, 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 have eliminated
such aid from the definition of assistance, freeing nonworking
families who receiving only child care or transportation aid from
these requirements.

Work Requirements
Both the House-passed and Senate Finance Committee bills substantially
revised TANF work participation requirements that apply to both the states and to
individuals. They both raised work participation rates that states must meet from the
current law’s standard of 50% to 70%, raised the required hours of working to
receive full credit and provided partial credit for participating families that do not
meet the full credit standard, and revised the list of activities. However, the bills
differed in how they did these three things.
Both bills also incorporated the Bush Administration’s “universal engagement”
proposal, which requires states to develop a self-sufficiency plan for all TANF adult
recipient to monitor progress toward that plan. The House -passed bill also required
states to end benefits (“full family sanction”) for families that fail to comply with
work participation rules.
Participation Rate 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 reduction (not attributable to policy changes) that have occurred since
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 FY2002, the standard was reduced to 0% for 21 states.
Both the House-passed and Senate Finance Committee bills raised the work
participation standard for all families to 70% by FY2008 and eliminated the separate
standard for two-parent families. Both bills also would have revised the credits that
reduce these standards from their statutory rate (i.e., reduce the 70% standard to a
lower rate), but they did so in different ways.
The House-passed bill revised the current 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 have been
measured based on the most recent four years. The House bill also included a
provision to give an additional credit to states that achieved a caseload reduction of

60% of more from FY1995 to FY2001.

The Senate Finance Committee bill retained the current caseload reduction
credit for FY2004 and FY2005, but beginning in FY2006 would have replaced the
caseload reduction credit with a credit for employed welfare leavers. The bill would
have also capped all credits against the participation standard, so that the minimum
effective rate standard would have been 10% in FY2004, 20% in FY2005, 30% in
FY2006, 40% in FY2007, and 50% in FY2008.
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 six), and 30 hours is required for other families. Higher hours
are set for the purposes of the two-parent work participation rate.
Both the House-passed and Senate Finance Committee bills raised the hours
standards. The House-passed bill incorporated a 40-hour workweek standard for full
credit, but would also have provided “partial” credit for families with at least 24
hours of participation. No special lower hour standard would have been provided for
single parents with preschoolers.
The Senate Finance Committee bill also raised the hours standard for full credit,
but by less than proposed in the House-passed bill. Single parents with a pre-school
child would have been given full credit for participation at 24 hours per week, and
other single parent families would have been given full credit at 34 hours per week.
Partial credit for single parent families would have been 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 is met), time-
limited vocational educational training (12 months in a lifetime), and community
service and work experience. In meeting the general 30-hour-per-week standard,
hours in educational activities are countable only for families who are also
participating in at least 20 hours per week of “core” activities. Post-secondary
education, other than that considered “vocational educational training,” does not
count toward current law federal TANF work participation standards.
Both bills would have revised the list of countable activities, but in very
different ways. The House-passed bill would have narrowed what counts as “core”
activity by removing job search and vocational educational training from that list.
Except for a limited period of time (see below), the House bill would have required
that families participate for at least 24 hours per week in work, community service,
or work experience programs to be counted toward the state’s standard. For three
months in a 24-month period (four months in the case of an educational program),
states would have been allowed to define activities that count toward the standards.
These activities would have included job search and vocational educational training
or other types of activities (e.g., English for Speakers of Other Languages classes,
substance abuse treatment or treatment for victims of domestic violence). States
would also have been allowed to determine the activities for which hours would
count above the 24-hour-per-week standard.
The Senate Finance Committee bill retained the current law list of activities,
including keeping time-limited job search and vocational educational training as
“core” activities. However, it provided states with options to allow recipients to
participate in an additional set of activities for three months in a 24-month period.
In the case where that participation is in a rehabilitative activity, another three months
of rehabilitation would have been allowable if combined with a core work activity.
The Senate Finance Committee bill would also have allowed these additional
activities (and job search and vocational educational training to count without regard

to their usual time limits) to count for hours above 24 hours per week spent in core
The Senate Finance Committee bill also allowed 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.
Marriage Promotion Grants
Current law allows states to use TANF funds for any activity “reasonably
calculated” to achieve a TANF purpose. One of the statutory purposes of TANF is
to end dependency of needy parents on government benefits, and one of the stated
means to end such dependency is “marriage.” Another of the statutory purposes of
TANF is to promote the formation and maintenance of two-parent families.
“Promoting marriage” is a currently allowable use of TANF funds.
Both the House-passed and Senate Finance Committee versions of H.R. 4 would
have carved out special “marriage promotion grants” from existing TANF funding.
Both bills included $100 million in competitively awarded matching funds for states,
territories, and tribes for marriage promotion activities. The bills would have
allowed states to use other federal TANF funds or state funds as the match for these
new marriage promotion grants.
Both bills also would have provided an additional $100 million for research and
demonstrations. The House-passed bill required that these funds be used “primarily”
for marriage promotion; the Senate Finance Committee bill required that 80% of
these funds be used for marriage promotion.
Marriage promotion activities listed in both bills were: 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 only have been funded from these grants
if offered in conjunction with other marriage activities. The language of the two bills
was similar, though the Finance Committee bill had 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.
Other Provisions
Both the House-passed bill and Senate Finance Committee bill would have
made 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 comparison table shown below. The

House-passed and Senate Finance Committee versions of H.R. 4 also included
amendments to the Child Care and Development Fund, child support enforcement,
the abstinence education program, and transitional Medicaid. These provisions are
not addressed in this report.
Detailed Comparison of TANF Provisions of the
House and Senate Finance Committee Bill
Table 1 provides a detailed comparison of the TANF programs of the House-
passed and Senate Finance Committee reported versions of H.R. 4. The table
provides references to where current law provisions are found in the Social Security
Act (SSA). It also denotes the section number in each of the bills in which the
provision is found.

Table 1. Comparison of Current Law with H.R. 4, as Passed by the House and as
Reported by the Senate Finance Committee (TANF Provisions)
Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
Short Title, Findings, and Statement of TANF Goals and Purposes
rt TitleThe Personal Responsibility and WorkThe Personal Responsibility, Work, and FamilyThe Personal Responsibility and Individual
Opportunity Reconciliation Act of 1996 (P.L.Promotion Act of 2003.Development for Everyone Act (PRIDE).
ndingsP.L. 104-193, the Personal Responsibility andMakes a series of findings related to: (1) theNo provision.
Work Opportunity Reconciliation Act of 1996,success of the 1996 law in moving families from
made a series of findings related to marriage,welfare to work and reducing child poverty; (2)
responsible parenthood, trends in welfare receiptprogress made by the Nation in reducing teen
iki/CRS-RL32210and the relationship between welfare receipt andpregnancy and births, slowing increases in
g/wnonmarital parenthood, and trends in and negativenonmarital births, and improving child support
s.orconsequences of nonmarital and teen births.collections and paternity establishment; (3) the
leak[Section 101 of PRWORA]flexibility provided by the 1996 law for states to
develop innovative programs; and establishing the
://wikisense of Congress that increasing success in
httpmoving 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]
NF goals andThe purpose of TANF is to increase stateThe overall purpose of TANF is to improve childRetains current law except for goal no. 4, which
sesflexibility in operating a program designed to:well-being by increasing state flexibility inadopts language of House bill. [Section 103(d)]

(1) assist needy families so that children may liveoperating a program designed to: (1) provide
in their homes or those of relatives; (2) endassistance and services to needy families so that
dependence of needy parents on governmentchildren may live in their homes or those of
benefits; (3) reduce out-of-wedlock pregnancies;relatives, (2) end dependence of needy families on
and (4) encourage the formation and maintenancegovernment benefits and reduce poverty; (3)
of two-parent families.reduce out-of-wedlock pregnancies; and (4)
[Section 401 of the Social Security Act (SSA)]encourage the formation and maintenance of

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
healthy, two-parent married families and
encourage responsible fatherhood. [New language
in italics] [Section 101]
TANF Financing Provisions
ate familyProvides capped grants (entitlements to states andRetains basic block grants, and extends them forEssentially the same as House bill, but language
sistance grantsterritories) through March 31, 2005. Nationally,FY2004 through 2008. (Section 102(a)differs because of intervening passage of TANF
annual family assistance grants total $16.567Appropriates $16.567 billion annually for familyextension law P.L. 108-40. [Section 102]
billion for the states, the District of Columbiaassistance grants to the states, D.C., and the
(D.C.), and the territories. Each jurisdictionsterritories. Provides that the annual grant of each
annual grant equals the same share of the nationaljurisdiction shall equal its FY2002 proportion of
total as in FY2002. (Section 403(a)(1) of thethe national grant total. [Section 102(b)]. Extends
SSA), as amended by P.L. 108-40 and extendedfunding for matching grants to the territories
iki/CRS-RL32210by P.L. 108-89 Also provides matching grantsthrough FY2008. [Section 102(c)].
g/wfor the territories (Section 1108(b) of the SSA).
s.or(Original PRWORA formula based TANF grants
leakon federal expenditures for TANFs predecessor
programs in FY1992 through FY1995.)
httpental grantr populationSupplemental grants for (17) states with lowhistoric federal grants per poor person and/or highReestablishes annual supplemental grants forFY2004 through FY2007, freezing them at theSame as House bill [Section 104]
es in certainpopulation growth for FY1998-FY2001 (extendedFY2001 level ($319 million). [Section 104]
tesat FY2001 funding level for FY2002 by P.L. 107-
147 and thereafter — through March 31, 2005—
by a series of laws. Grants grew each year, from
$79 million in FY1998 to $319 million in
FY2001. [Section 403(a)(3) of SSA]
Requires the budget baseline to assume that noRequires the budget baseline to assume that noSame as House bill. [Section 104(2)]

supplemental grants will be made after March 31,supplemental grants will be made after FY2007.
2005. [Section 101(b)(1) of P.L. 108-89][Section 104(3)]

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
nus to rewardHigh performance bonus ($200 million per yearReplaces the high performance bonus with a bonusSame as House bill. [Section 105(a)]
ploymenton average) for FY1999-FY2003. Caps a state’sto reward employment achievement (annual
entbonus at 5% of its TANF grant. [Sectionaverage of $100 million appropriated for six years,
403(a)(4) of the SSA] FY2004 through FY2009). Caps a state’s bonus at
5% of its family assistance grant. [Section 105(b)]
Bonus based on achievement of TANF goals, withBonus to be based on absolute and relativeSame as House bill, except that it adds two new
formula developed by the Department of Healthprogress toward goals of job entry, job retention,performance measures: workforce attachment
and Human Services (HHS) in consultation withand increased earnings. Formula to be developedand advancement. [Section 105(a)]
the National Governors Association and theby HHS, in consultation with the states. [Section
American Public Human Services Association.105(b)]
For FY1999-FY2001 performance, formula
consisted of three work-related measures (job
iki/CRS-RL32210entry, job retention, and earnings gain). ForFY2002 and FY2003 performance, formula adds
g/wfamily formation outcomes, child care
s.oraffordability, and coverage by food stamps and
leakMedicaid/SCHIP. [Section 403(a)(4) of the SSA]
://wikiMakes tribal organizations eligible for the bonusSame as House bill. [Section 105(a)]
httpand directs the Secretary to consult with tribal
organizations regarding criteria for their awards.
[Section 105(b)]
Reduces FY2003 high performance bonus amountNo provision.
to $100 million. [Section 105(a)]
Provides that appropriated amounts unspent (as ofNo provision.

the date of enactment) for high performance
bonuses will be available through FY2004 for
payment of high performance bonuses for bonus
year 2003 — on terms in effect before repeal of
that bonus. [Section 105(b)]

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
For FY2004, employment achievement bonus mayFor FY2004 and FY2005, employment
be based on three components of the repealed highachievement bonus may be based on three
performance bonus job entry rate, job retentioncomponents of the repealed high performance
rate, and earnings gain rate. [Section 105(b)]bonus job entry rate, job retention rate, and
Note: Reduction in annual bonuses from $200earnings gain rate. [Section 105(a)]
million to $100 million per year helps finance
grants for marriage promotion activities (see
Matching Grants for Marriage Promotion, below).
nus to rewardAppropriated $100 million yearly for bonuses toRepeals the bonus, and uses the $100 million perSame as the House bill. [Section 103(b)]
uctions in out-the five states with the largest percentage declineyear to fund grants for marriage promotion
edlock births(over recent two years) in the out-of-wedlockactivities (see Matching Grants for Marriage
birth ratio. To qualify, states had to reduce theirPromotion, below). [Section 103(b)]
iki/CRS-RL32210abortion rate to below that of FY1995. [Section403(a)(2) of the SSA]
s.orntingency fundCapped matching grants ($2 billion) provided inReestablishes a $2 billion contingency fund forAppropriates such sums as are needed for
leakcase of recession for FY1997-FY2001 (extendedFY2004 through FY2008. Eases access to the fundcontingency fund grants, up to $2 billion over
through September 30, 2002 by P.L. 107-147 andby permitting states to count child care spendingfive years, FY2004-FY2008. Reduces the level
://wikithrough March 31, 2005 by a series of laws). Toand all spending in separate state programs towardof state spending required to qualify (from 100%
httpqualify for contingency dollars, states must beMOE spending requirement. Eliminates the pro-of the state’s historic level to 75-80%, the
needy and must spend under the TANFrata reduction in the federal match rate for statesstandard TANF MOE) and eliminates the
program a sum of their own dollars equal to theirthat qualify for funds only for part of the year.requirement for state matching funds. Entitles
pre-TANF spending. The law provides two needyAdjusts food stamp “needy state” trigger for policyneedy states to a contingency fund grant
state triggers: 1) an unemployment rate for achanges made after passage of 1996 welfare lawreflecting costs of TANF caseloads. Revises
three-month period that is at least 6.5% and isEffective date: October 1, 2003. [Section 106]needy state definition. To trigger on as needy, a
10% or more above the rate for thestate must (1) have an increase (due in large
corresponding period in either of the twomeasure to economic conditions) of 5% in the
preceding calendar years; or 2) a food stampmonthly average unduplicated number of
caseload increase of 10% over the FY1994-families receiving assistance under its TANF
FY1995 level (adjusted for the impact ofprogram in the most recently concluded three-
immigrant and food stamp constraints in the 1996month period with data, compared with the
welfare law). Payments are capped at 20% of acorresponding period in either of the two most
state’s basic TANF grant and a state can drawrecent preceding fiscal years, and (2) meet one
down no more than one-twelfth of its grant in aof three other conditions. They are: (a) for the
given month. Under a reconciliation process, itsmost recent three-month period with data, the

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
federal match rate is reduced if it received fundsaverage rate of seasonally adjusted total
for fewer than 12 months in any year. [Sectionunemployment must be at least 1.5 percentage
403(b) of SSA]points or 50% higher than in the corresponding
period in either of the two most recent preceding
fiscal years; (b) for the most recent 13 weeks
with data, the average rate of insured
unemployment must be at least one 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, exceeds by at least 15% the
iki/CRS-RL32210corresponding caseload number in thecomparable period in either of the two most
g/wrecent preceding fiscal years, provided the HHS
s.orSecretary and the Secretary of Agriculture agree
leakthat the increased caseload was due, in large
measure, to economic conditions rather than to
://wikipolicy change. A state that initially qualifies as
httpneedy 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).
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

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
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.) A states total contingency grant could
not exceed 10% of its family assistance grant.
To receive a contingency fund grant, a state must
have spent 70% of its TANF grants (excluding
welfare-to-work funds from the Department of
Labor). Unexpended balances are the total
amount of TANF grants not yet spent by the
state as of the end of the preceding fiscal year
minus current year expenditures through the end
iki/CRS-RL32210of the most recent quarter that exceed the prorata share of the current fiscal year TANF grant.
g/w[Section 106]
leakRepeals the fiscal penalty for failure of a state
that receives contingency funds to meet the
://wikisuper-MOE” requirement (100% of its historic
httpspending level). [Section 106] However,
specifies that a state could not be considered
needy unless it has met the lesser TANF MOE
spending requirement (75%-80%). [Section
ditional grants
cial serviceNo provision.No provision.Authorizes appropriation of $40 million for each
pitalizationof FY2004-FY2008 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 while assisting

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
TANF recipients. Administrative costs could not
exceed 15% (except for computerization and
information technology needed for tracking or
monitoring required by TANF), but none of the
other statutory rules regarding use of TANF
funds would apply. Requires evaluation and
report to Congress. [Section 119(a)]
r ownershipNo provision.No provision.Authorizes appropriation of $25 million for each
antsof FY2004-FY2009 for grants for low-income
car ownership. Purposes: to improve
employment opportunities of low-income
families and provide incentives to states, Indian
iki/CRS-RL32210tribes, localities, and nonprofit groups to developand administer programs that promote car
g/wownership by low-income families. No more
s.orthan 5% of the funds could be used for
leakadministrative costs of the Secretary in carrying
out this program. Requires evaluation. [Section
://wiki 119(b)]
peal of federalProvides a $1.7 billion revolving and interest-Repeals loan fund. [Section 108]Same as House bill. [Section 108]
fundbearing federal loan fund for state welfare
programs. [Section 406 of the SSA]
aintenance ofEstablishes a maintenance-of-effort (MOE)Continues MOE requirement through FY2009, butSame as House bill. [Section 111]
requirement that states spend at least 75% of whatraises the MOE percentage to 80% if the state
was spent from state funding in FY1994 onfailed TANF work participation standards of the
programs replaced by TANF. Nationally, thispreceding fiscal year. [Section 111(a)]
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]
Defines all state expenditures to reduce out-of-Same as House bill, except that Senate bill
wedlock births and promote marriage andspecifies that two current law MOE limitations
responsible fatherhood (including spending onwould apply. These provisions exclude from

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
behalf of non-TANF-eligible families) as countableMOE qualification spending in other state
toward required “maintenance-of-effort” (MOE)programs unless the sum exceeds the FY1995
state spending. [Section 103(c)]amount spent in those programs and spending
made to repay penalties imposed on the state.
[Section 103(c)]
Provides that spending (as the state match) fromTANF funds used as the state match for marriage
federal marriage promotion grants shall not bepromotion grants shall not be considered State
treated as state spending toward MOEspending countable toward the MOE
requirements. [Section 111(b)]requirement. [Section 103(b)].
for childPRWORA created a mandatory child care blockIncreases mandatory child care funding by $1For mandatory child care, same as House bill.
grant and appropriated $13.9 billion for it over sixbillion over five years, providing $2.9 billion[Section 116 (a)] No provision for discretionary
years. [Section 418 of the SSA] It alsoannually. [Section 208] Authorizes increasedfunding. (The Senate Health, Education, Labor
iki/CRS-RL32210authorized $1 billion annually through FY2002 inCCDBG funds for FY2004-FY2007. [Sectionand Pensions committee reported a separate bill,
g/wdiscretionary funding under an expanded Child202(b)]S. 880, to reauthorize discretionary CCDBG
s.orCare and Development Block Grant (CCDBG).funding.)
leak[Section 603(a) of PRWORA] FY2003
appropriations totaled $4.8 billion — $2.7 billion
://wikiin mandatory funds and $2.1 billion in
httpdiscretionary funds. (In addition, the welfare law
permits states to transfer some TANF funds to the
No provision.Sets aside $10 million in mandatory child care
funds for the Commonwealth of Puerto Rico.
[Section 116(b)]
f funds
neral rulesStates may use funds in any manner reasonablyNo provision (maintains current law).No provision (maintains current law).

calculated to accomplish the TANF purpose.
[Section 404 of the SSA]

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
States may use funds in any manner that theyStates may use funds for any purposes or activitiesNo provision (maintains current law).
were authorized to use pre-TANF funds. [Sectionfor which they were authorized to use pre-TANF
404 of the SSA]funds. [Section 107(a)]
A state may treat a family that has resided in theStrikes provision permitting different treatment ofSame as House bill. [Section 107(a)]
state for fewer than 12 months under the welfarefamilies migrating into the state — found
rules of the state where they formerly lived.unconstitutional. [Section 107(b)]
[Section 404 of the SSA]
ansfer of fundsStates may transfer up to 30% of TANF funds toIncreases the overall ceiling on transfers to 50%.Retains overall transfer limit at 30%. Sets limit
the Child Care and Development Block Grant[Section 107(c)] Sets limit on SSBG transfers aton SSBG transfers at 10%. [Section 107(b)]
(CCDBG) and the Title XX Social Services Block10% (original limit in 1996 law) for FY2004 and
Grant (SSBG). Specifies that a maximum ofeach year thereafter. [Section 107(d)]
4.25% of total transfers may go to SSBG,
iki/CRS-RL32210effective in FY2001 ( but year-by-year Congress
g/whas restored the original 10% limit.) Also allows
s.orstates to use TANF funds, within the overall 30%
leaktransfer limit, as matching funds for the Job
Access transportation program for TANF
://wikirecipients, ex-recipients, and persons at risk of
httpbecoming income-eligible for TANF. [Section
404 of the SSA]
rryover of fundsAmounts may be spent without fiscal year limitAllows use of carry-over funds from TANF grantsSame as House bill. [Section 107(c)]
for “assistance” (chiefly ongoing cash aid). Forfor any benefit or service without fiscal year
other benefits and services (“nonassistance”)limitation. Permits a state or tribe to designate
amounts must be obligated in the year of awardsome TANF funds as a contingency reserve.
and spent in the following year. [Section 404 of[Section 107(e)]
the SSA]
f funds forStates may use funds for educational activities (toNo provision.Allows states to use TANF funds to establish an
ucationpromote a TANF goal or because these activitiesundergraduate two- or four-year degree
were allowed under pre-1996 law). However,postsecondary program sometimes known as
only three educational activities may be countedParents as Scholars (PAS) or a vocational
toward state work participation rates: high schooleducational program. Following services could
attendance, education directly related to workbe provided in these undergraduate programs:

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
(both for high school dropouts only) andchild care, transportation, payment for books and
vocational educational training. Unless it issupplies, other services provided under policies
defined by the state as vocational educationaldetermined by the state to ensure coordination
training, postsecondary education is not aand lack of duplication. TANF funds could not
countable work activity. [Section 407(d) of thebe used for tuition. Participants in these
SSA] educational programs could be counted toward
state work participation standards. See
Countable Activities.
andEarmarks some TANF funds amount equal toContinues Indian tribal assistance grants and NEWSame as House bill. [Section 113(a)]
ministration byfederal pre-TANF payments received by statework/training grants through FY2008. [Section
n tribesattributable to Indians — for administration by114]
tribes. Deducts these sums from state TANF
iki/CRS-RL32210grants. Also appropriates $7.6 million annuallyfor work and training activities (now known as
g/wNative Employment Works (NEW)) to tribes that
s.oroperated a pre-TANF work and training program.
leak[Section 412 of the SSA]
://wikiNo provision. for tribal improvement fund.Authorizes appropriation of $100 million for
httpHowever, see below for $2 million annual setasideeach of FY2004-FY2008 for a tribal TANF
from research appropriation for demonstrationimprovement fund. The fund could be used to
projects to coordinate child welfare and TANFprovide technical assistance to tribes, award
services to tribal families.competitive grants to tribes, and conduct
research to improve knowledge about tribal
family assistance plans. [Section 113(b)]
Work Participation Requirements and Standards
alState plan must require that a parent or caretakerRepeals the 24-month work trigger. Requires stateSame as House bill. [Section 110]

gagement andengage in work (as defined by the state) after, atplans to outline how they intend to require parents
mily self-most, 24 months of assistance. [Sectionand caretakers to engage in work or alternative
ficiency plan402(a)(1)(ii) of the SSA]. Note: Thissufficiency activities, as defined by the state —
entsrequirement is not enforced by a specific penalty.while observing the ban on penalizing work refusal
(States may, but need not, establish an individualby a single parent of a preschool child who is
responsibility plan for each family in consultationunable to obtain needed child care for specified

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
with the recipient.) [Section 408(b)(2) of thereasons — and to require families to engage in
SSA] activities in accordance with family self-
sufficiency plans. [Section 109(a)]
States must make an initial assessment of theRequires states, in a manner they deemRequires states to make an initial screening and
skills, prior work experience, and employabilityappropriate, to assess the skills, work experience,assessment, in a manner they deem appropriate,
of each recipient 18 or older or those who haveand employability of each work-eligible person (aof the skills, work experience, education, work
not completed high school within 30 days.person who is married or a single household headreadiness, work barriers and employability of
[Section 408(b)(1) of the SSA]and whose needs — except for sanction periods ofeach adult or minor child head of household
more than three months — are included inrecipient who has attained age 18 or who has not
determining the familys TANF cash benefit) andcompleted high school and to assess, in a manner
to develop a family self-sufficiency plan for eachthey deem appropriate, the work support and
family with such a person. Plans must beother assistance and family support services for
iki/CRS-RL32210established within 60 days of opening a case(within 12 months for families enrolled at the timewhich families are eligible and the well-being ofthe familys children and, where appropriate,
g/wof enactment). [Section 109(b)]activities or resources to improve their well
s.orbeing. Requires states, in a manner they deem
leakappropriate, to establish a self-sufficiency plan
for each family. Required plan contents:
://wikiactivities designed to assist the family achieve
httptheir maximum degree of self-sufficiency,
requirement that the recipient participate in
activities in accordance with the plan, supportive
services that the state intends to provide, steps to
promote child well-being and, when appropriate,
adolescent well-being , information about work
support assistance for which the family may be
eligible (such as food stamps, medicaid, SCHIP,
federal or state funded child care — including
that provided under the Child Care and
Development Block Grant and the Social
Services Block Grant, EITC, low-income home
energy assistance, WIC, WIA program, and
housing assistance). The state must monitor the
participation of adults and minor child household
heads in the self-sufficiency plans and regularly

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
review the familys 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 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
iki/CRS-RL32210is the later of: 60 days after the family firstreceives assistance on the basis of its most recent
g/wapplication, or one year after enactment.
s.orProvides that nothing in the self-sufficiency plan
leakprovisions shall be construed to establish a
private right or cause of action against a state for
://wikifailure to comply with the provisions or to limit
httpclaims that might be available under other
federal or state laws. Requires the General
Accounting 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]
Imposes a penalty on state for failure to establishSame as House bill, except that penalty must be
self-sufficiency plan by revising the penaltybased on the degree of substantial
provision for failure to achieve work participationnoncompliance and the Secretary is directed to
rate. Provides that failure to comply with self-take various factors into account in setting the
sufficiency requirements or to achieve workpenalty. These factors include the number or
participation standards will carry the same penaltypercentage of families for whom a self-
— 5% reduction in TANF grant for first violation,sufficiency plan is not established in a timely
reduced for the degree of noncompliance. [Sectionfashion, duration of delays, whether the failures
109(b)] See Penalty for failing participation rate.are isolated and nonrecurring, and the existence

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
of systems to ensure establishment and
monitoring of plans. Penalty may be reduced if
the failure is due to circumstances that caused
the state to meet the criteria for contingency
funds or is due to extraordinary circumstances
such as a natural disaster or regional recession.
Requires Secretary, in a written report to
Congress, to justify any waiver or penalty
reduction due to extraordinary circumstances.
[Section 110]
nctions againstIf person in a family receiving TANF assistanceIf a person in a family receiving TANF assistanceNo provision (maintains current law)

iduals forrefuses to engage in required work, the state shallfails to engage in required activities and the family
iki/CRS-RL32210rk refusal reduce aid to the family pro rata (or more, at stateoption) with respect to the period of work refusal,does not otherwise engage in activities inaccordance with its self-sufficiency plan, the state
g/wor shall discontinue aid, subject to good cause andmust impose a penalty as follows:
s.orother exceptions that the state may establish.(a) If the failure is partial and does not last longer
leak[Section 407(e) of the SSA]than one month, the state must reduce assistance to
the family pro rata (or more, at state option) with
://wikirespect to any period of failure during the month,
httpor 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 requirement is to control, but only for one
year that begins with the date of enactment of this
paragraph.) [Section 110(f)]

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
Exception: a state may not penalize a singleContinues this provision.Same as House bill.
parent caring for a child under age six 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
rk participationFor a minimum number of hours, a state mustFor a minimum number of hours, a state mustFor a minimum number of hours, a state must
entsengage a specified percentage of familiesengage a specified percentage of familiesengage a specified percentage of families
containing adult or teen parent recipients incontaining adult or teen parent recipients in directcontaining adult or teen parent recipients in a
creditable work activities. Since FY2002 thework or alternative self-sufficiency activitiescreditable activity. Participation rates are the
participation standard has been 50% for allchosen by the state. In FY2004 the standard issame as in the House bill. [Section 109(b)]
families (and since FY1999 it has been 90% for50%, and it rises by five percentage points yearly
iki/CRS-RL32210the two-parent component of the caseload).[Section 407(a) of the SSA](55% for 2005, 60% for 2006, 65% for 2007) toreach a peak of 70% for FY2008 and thereafter.
g/w[Section 110(b)]
leakRequired participation rates may be reduced by aRequired participation rates may be reduced byRequired participation rates may be reduced by
caseload reduction credit (see below).caseload reduction and “superachiever credits (seecaseload reduction or employment credits, but a
://wikibelow).cap is placed on these credits. Employment
httpcredits (or caseload reduction credits or a
combination of the two) may not reduce
participation standards below 10% for FY2004,
20% for FY2005; 30% for FY2006, 40% for
FY2007, and 50% for FY2008 and thereafter.
[Section 109(c)] (see below).
Effective October 1, 2002, eliminates the separateSame as House bill. [Section 109(a)]
standard for two-parent families. [Section 110(a)]
seload reductionWork participation standards are reduced by aMeasures caseload reduction from a moving baseRetains current law caseload reduction credit for
editcaseload reduction credit: for each percentyear (rather than from FY1995) and shortens theFY2004 and FY2005. Effective October 1,
decline in the caseload from the FY1995 levelmeasuring interval. Also changes the eligibility2005, replaces the caseload reduction credit with
(not attributable to policy changes), the workcriteria base year from FY1995 to the new movingan employment credit (subject to limits shown
participation standard is reduced by onebase. For FY2004, the credit is based on theabove). [Section 109(d)]

percentage point. [Section 407(3) of the SSA]percent decline in the caseload from FY1996 (not

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
due to changes in eligibility criteria from FY1996);
for FY2005, the base year is FY1998; for FY2006,
FY2001. For FY2007 and every year thereafter,
the measuring interval is three years. [Section
Establishes a “superachiever” caseload reductionNo provision.
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
ployment creditNo provision.No provision.Establishes a percentage point “employment
iki/CRS-RL32210credit against the work participation standard
g/w(subject to limits described above). Essentially,
s.orthe credit equals a multiple of the percentage of
leakTANF families in a month who leave ongoing
cash assistance with a job. It is calculated by
://wikidividing (a) twice the quarterly average
httpunduplicated number of families (excluding
child-only families) that received TANF
assistance during the preceding fiscal year but
who ceased to receive TANF — and did not
receive cash assistance from a separate state-
funded programfor at least two consecutive
months following case closure during the
applicable period (most recent four quarters with
data) and were employed during the calendar
quarter immediately after leaving TANF by (b)
the average monthly number of families (again
excluding child-only families) who received
cash payments under TANF during the
preceding fiscal year. At state option,
calculations could include in the numerator: (1)
twice the quarterly average number of families

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
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. 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
iki/CRS-RL32210directors of state TANF programs, the Secretaryis to define substantial child care or
g/wtransportation assistance, specifying a threshold
s.orfor each type of aid — a dollar value or a time
leakduration. The definition must take account of
large one-time transition payments. [Section
://wiki 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 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

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
Secretary is to use other required data. By
August 30 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
Sets October 1, 2005 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
iki/CRS-RL32210for FY2006 shall be determined by using boththe caseload reduction credit and the
g/wemployment credit (one-half credit for each).
s.or[Section 109(d)]
://wikilculation ofrticipation ratesParticipation rates equal the share of total families(with adult and teen parent recipients) who workParticipation rates equal the share of hours spent increditable activities out of a potential total of 160Participation rates equal the share of totalfamilies (with adult and teen parent recipients)
httpsufficient hours in counted activities to behours monthly per counted family. (A countedwho work in countable activities. The monthly
credited as a participant. The monthlyfamily is one whose household head receivesparticipation rate, expressed as a percentage,
participation rate, expressed as a percentage,TANF assistance.) Monthly participation rate,equals (a) the number of all recipient families in
equals (a) the number of all recipient families inexpressed as a percentage, is (a) the total numberwhich an individual is engaged in work activities
which an individual is engaged in work activitiesof countable hours, divided by (b) 160 times thefor the month, divided by (b) the number of
for the month, divided by (b) the number ofnumber of counted families for the month. Thisrecipient families with an adult or teen parent
recipient families with an adult or teen parentmeans that a family would receive full work creditrecipient (but excluding families subject that
recipient (but excluding families subject thatby working 160 hours a month, equivalent to amonth to a penalty for work refusal, provided
month to a penalty for work refusal, providedweekly average of 37 hours 160/4.33. (Thethey have not been penalized for more than three
they have not been penalized for more than threeaverage month contains 4.33 weeks, not 4.) Themonths). States also may exclude from work
months). States also may exclude from workbill specifies that if a family does not engage in aparticipation calculations families with children
participation calculations single-parent familiesdirect work activity for a weekly average of 24under one, if they are not required to work, and
with children under one, if they are not requiredhours, its countable hours for the month shall beall families during their first month of TANF
to work. States have the option to include in workzero. However, under some circumstances, allowsassistance. States have the option to include in

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
participation calculations families in a tribalcredit for hours below 24. Allows credit for somework participation calculations families in a
TANF program or NEW job training program.hours above 40. See Partial credit and Extratribal TANF program or NEW job training
[Section 407(b) of SSA] [Note: except for teencredit below. [Section 110(e)]program. Calculates weekly hours of work
parents, single parents with a child under six, andactivity by dividing monthly hours by 4. Allows
participants in a tribal program with different hoursome credit for hours below or above the
requirements, families must work an average of atstandard. See Partial credit and Extra credit
least 30 hours weekly to be counted as working.]below. [Section 109]
Permits states to exclude a new group from workSame as House bill, except that the exclusion is
participation calculations — families in first monthdetermined on a case-by-case basis. [Section
of assistance. [Section 110(b)] 109(e)]
iki/CRS-RL32210Permits states to exclude all families with infantsSame as House bill, except that it allows
g/w(not just single-parent families) from workexclusion of families of infants only for 12
s.orparticipation calculations, but requires case-by-casemonths. [Section 109(e)]
leakdetermination of all work exclusions for parents of
infants. [Section 110(b)]
httplty for failingParticipation rates are enforced by a penalty onRetains penalty rate of current law (includingProvides that penalty (beginning for FY2005)
rticipation ratestates: loss of 5% of the state’s basic grant forincrease in MOE requirement) for state failure tomust be based on the degree of substantial
first year of violation (higher penalty for repeatmeet participation standards.noncompliance. Directs the Secretary to take
violations). Penalty must be based on the degreeinto account factors such as the degree to which
of noncompliance and may be reduced if thethe state missed the participation rate, the change
noncompliance is due to circumstances that madein the number of persons engaged in work since
the state needy under the contingency fundthe prior year, and the number of consecutive
definition or due to extraordinary circumstancesyears in which the state failed to achieve the
such as a natural disaster or regional recession.work rate. Penalty may be reduced if the failure
State must replace the amount of federal penaltyis due to circumstances that caused the state to
funds with its own funds. [Section 409(a)(3) ofmeet the criteria for contingency funds or is due
SSA] In addition, the state’s MOE spendingto extraordinary circumstances such as a natural
requirement rises from 75% to 80% of its historicdisaster or regional recession. Requires
level.Secretary, in a written report to Congress, to

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
justify any waiver or penalty reduction due to
extraordinary circumstances. [Section 110]
untable activities
in law or billFederal law lists 12 activities that count towardLists sixdirect” work activities. Generally theseLists 17 countable activities. Continues current
meeting the participation standards. Ninesix activities must account for most weekly hours:law list of 12 activities (treating the nine priority
activities have priority status and must account forunsubsidized jobs, subsidized private jobs,activities in current law as direct work [core]
most weekly hours: unsubsidized jobs, subsidizedsubsidized public jobs, on-the-job training,activities). Adds fivequalified activities:
private jobs, subsidized public jobs, worksupervised work experience, and supervisedpostsecondary education (including a parents as
experience, on-the-job training; job search,community service. [Section 110(e)]scholars program, described below), adult
community service; vocational educationalliteracy programs or activities, substance abuse
iki/CRS-RL32210training providing child care for certain TANFcounseling or treatment, programs or activities
g/wrecipients. Three other activities can receive workdesigned to remove work barriers, as defined by
s.orcredit: job skills training directly related tothe state, and work activities authorized under
leakemployment; education directly related to workany waiver for any state that was continued
(high-school dropouts only), and secondaryunder Section 415 before the date of enactment
://wikischool attendance (high school dropouts). On oneof this bill. Under some conditions, treats some
httpoccasion per person, a state may treat three orof the qualified activities as “rehabilitative” ones
four days weekly of job search as a full weeks(see below).

participation. [Section 407(d) of the SSA] See
Required Hours of Work.

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
ate options forNoneStates may define any other activity as countablePermits a state to deem a single parent caring for
tivities(generally for non-core hours) so long as it leads toa dependent with a physical or mental
self-sufficiency and is consistent with the purposesimpairment to be meeting all or part of the
of TANF. [Section 110(e)]familys work requirement. 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 highjoblessness.”
To qualify for this option, the state must include
in its TANF plan a description of its policies for
these areas. Also, as noted above, allows states
to define work-barrier removal activities and to
iki/CRS-RL32210adopt activities authorized under any waiver for
g/wany state that was continuing before the date of
s.orenactment. [Section 109(f)]
://wikie limits ontivitiesJob search six weeks usual maximum (with nomore than four consecutive weeks). PeriodNo provision (maintains current law).Removes time limits on job search andvocational educational training for persons
httpallowed for job search doubles to 12 weeks if thereceiving qualified rehabilitative services.
state meets the unemployment or increased foodDeletes requirement that only four consecutive
stamp caseload criteria for a needy state under theweeks of job search can be counted within the
contingency fund or its unemployment rate isnormal six week limit. Doubles the permissible
more than 50% of the national average.length of job search if the state meets the
Vocational educational training, 12 month limit.unemployment rate or increased food stamp
[Section 407(d) of the SSA]caseload criteria for a “needy state” under the
contingency fund definition. [Section 109(f)]
For three consecutive months within 24 months,For three months in any 24-month period, a state
persons may be deemed to meet the 24-hourmay give work credit for any hours spent in one
weekly direct work requirement by engaging inof the fivequalified activities above — even if
short-termqualified activities chosen by the statethe person has not engaged for 24 hours weekly
to promote self-sufficiency (examples listed in thein direct work. To receive credit, the person

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
bill are substance abuse counseling or treatment;must engage for an average of at least 24 hours
rehabilitation treatment and services; work-relatedin a qualified activity, and the activity must be in
education or training directly enabling the familyher self-sufficiency plan. [Section 109(f)]
member for work; and job search or job readiness
assistance). [Section 110(e)]
On a case-by-case basis, and in order to permit aIn some cases a state may give work credit for a
person to complete a certificate program or othersecond three-month period (within the 24-month
work-related education or training program, a statelimit) — sometimes called the 3+3 plan — to
may give direct work credit for engaging in apersons engaged in a combination of qualified
qualified program for a total of four months withinrehabiliitative activities and priority work
a 24-month period. [Section 110(e)]activities. Eligible for this period of extended
iki/CRS-RL32210time are persons whose family self-sufficiency
g/wplan requires engagement in one of three
s.orqualified rehabilitative services, namely, adult
leakliteracy programs or activities, participation in a
://wikiprogram designed to increase proficiency in theEnglish language, and substance abuse or
httpmental health treatment. Total hours of their
activity must average 24 hours weekly. {Section
erical limitsNo more than 30% of persons credited with workOmits this provision from amended section onContinues the 30% cap, but provides that it does
may consist of persons participating in vocationalcounting participation.not apply to persons in a 3+3 program receiving
educational training or may be teen parents whoqualified rehabilitative services or to persons
are deemed to be working because of satisfactoryengaging in vocational educational training as a
attendance at secondary school or because ofsupplementary activity after meeting the 24 hour
spending 20 hours weekly in education directlycore” requirement. [Section 109(f)]

related to employment. [Section 407(c)(2)(D) of

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
rents as scholars States may use TANF funds and MOE state fundsNo provision.Allows states to establish a program (under
for postsecondary education. However, unless itSection 107) of undergraduate postsecondary
is defined by the state asvocational educationaleducation (parents as scholars) or vocational
training, postsecondary education is noteducational training for up to 10% of TANF
creditable toward TANF work participationfamilies. Hours of participation in the program
requirements.would be countable toward meeting state work
requirements. Students could also receive credit
for hours spent in one of the ninedirect” 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
iki/CRS-RL32210determined by the state, or in study time (at the
g/wrate of not less than one hour for every hour of
s.orclass time and not more than two hours for every
leakhour of class time. Students’ total time in
://wikieducation, core work, work study, laboratory or
httpfield 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

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
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
urs ofGenerally, to count toward the all-family rate,Generally, states must engage all families with aEstablishes standard TANF work weeks as
rk activityaverage weekly participation of 30 hours (20work- eligible” member (married or singlefollows: 24 hours for a single parent with a child
hours in priority work activities) is required.household head who receives TANF assistance) inunder age six; 34 hours for a single parent with
However, in the case of single parents with aa direct work activity or alternative self-sufficiencya child over six (with 24 hours in a priority
iki/CRS-RL32210preschool age child (who constitute half of allactivity for an average of 40 hours weekly (theactivity) 39 hours for a two-parent family (but
g/wTANF cases), the hours requirement is 20 peractual standard is 160 hours per month, equal to a55 hours if that family receives federally funded
s.orweek. For two-parent families the standard is 35weekly average of 37 hours) — of which 24 hourschild care) — with most hours in a priority
leakhours (30 in priority work activity), but increasesmust be in one of the direct work activities listed inactivity. Families meeting the standard are
://wikito 55 hours (50 in priority activities) if the familyreceives federally-subsidized child care. [Sectionthe law and up to 16 hours may be in a TANF-purposeful activity chosen by the state. [Sectioncounted as one family in calculating the state’swork participating rate. Those exceeding the
http407(c)(1) of the SSA] For a single parent caring110(e)]standard receive extra credit, and some who fall
for a child under age six, 20 hours of participationshort of the standard receive partial credit (see
satisfies the standard. [Section 407(c)(2)(B) ofbelow). [Section 109(f)]
the SSA]
Teen parents are deemed to meet the weekly hourEssentially the same as current law. Teen parentsCounted as one working family is a teen parent
participation standard by maintaining satisfactoryare deemed to satisfy the (40-hour weekly) workwho maintains satisfactory school attendance or
attendance in secondary school (or the equivalentrule by virtue of satisfactory school attendance (orparticipates in education directly related to
in the month) or by participating in educationthe equivalent in the month) or by participating inemployment for an average of 20 hours weekly.
directly related to employment for an average ofeducation directly related to employment for an[Section 109(f)]

20 hours weekly. [Section 407(c)(2)(C) of theaverage of 20 hours weekly [Section 110(e)].

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
rtial work creditNoneFamilies who meet the 24-hour weekly direct workFamilies who meet core work requirements but
requirement but fail the 40-hour standard, receivefail the full standard receive partial credit as
credit for all hours worked (but zero credit unlessfollows: Credited as .675 of a family are single
meet the 24-hour direct work rule). Note:parent families (with or without a child under
Generally, to receive any credit for hours below thesix) who have 20-23 hours of work and two-
standard, families must engage for all countedparent families with 26-29 hours of work (40-44
hours in one of the six direct work (core) activities.hours if they receive federally subsidized child
Exception, as noted above (time-limited activities)care). Counted as .75 of a family are single
a state may give direct work credit for hours spentparent families without a preschool child who
on education or training (as qualified activities) forwork 24-29 hours and two-parent families with
up to four months in a 24-month period. 30-34 hours (45-50 if they receive child care).
Counted as .875 of a family are single parent
iki/CRS-RL32210families without a preschool child who work 30-
g/w33 hours and two-parent families who work 35-
s.or38 hours (51-54 hours if they receive child care).
leak[Section 109(f)] Note: generally, to receive any
://wikicredit for hours below the 24 hour standard, a
httpsingle parent family must engage for all these
hours in one of the nine direct work activities
and a two-parent family must spend all hours at
or below 34 weekly in one of these activities (50
hours if the family receives federally funded
child care and has no disabled member).
However, as noted above (time-limited activities
— a state may give work credit for any hours
spent in one of the five qualified activities for up
to six months in a 24-month period).

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
tra work creditNoneCounts all hours worked above the 40 hour fullFamilies who exceed the standard hourly work
weekly standard, provided 24 hours are spent inrequirement receive extra credit, as follows.
direct work (or, for a limited time, in certain otherCredited as 1.05 of a family are single-parent
qualified activities) and no more than 16 hours arefamilies who work 35-37 hours and two-parent
in non-priority activities. [Section 110(c)]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 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)]
Marriage Promotion
g/wNF goals andTwo purposes relate to marriage. One goal is toThe stated purpose of promoting the formation andSame as House bill. [Section 103(d)]
s.orsesend dependency of needy parents on governmentmaintenance of two-parent families is modified to
leakbenefits, with one of the stated means ofread: encourage the formation and maintenance of
accomplishing the goal specified as marriage. Ahealthy, two-parent married families and
://wikisecond purpose is to encourage the formation andencourage responsible fatherhood. [New language
httpmaintenance of two-parent families.in italics] [Section 101]
forNo provision for special grants states may useAppropriates $100 million annually for FY2003Appropriates $100 million annually for FY2004
arriage promotionTANF block grants to promote formation andthrough FY2008 for 50% competitive matchingthrough FY2008 for 50% competitive matching
atching grantsmaintenance of two-parent families (program goalgrants to states, territories and tribal organizationsgrants to states, territories, Indian tribes, and
no. 4) and to promote marriage as a means offor programs to promote and support healthy,tribal organizations for programs to promote and
ending dependence on government benefits (goalmarried two-parent families. Note: Grants aresupport healthy, married two-parent families.
no. 2). funded by repeal of out-of-wedlock birth bonus inNote: Grants are funded by repeal of out-of-
current law. [Section 103(b)]wedlock birth bonus in current law. [Section

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
Makes funds appropriated for FY2003 available toMakes funds appropriated for each of FY2004
the Secretary through FY2004 for grants forthrough FY2008 available to the Secretary until
FY2003). [Section 103(b)]expanded.
Also, permits grantees to use funds without
fiscal year deadline. [Section 103(b)]
Provides that federal TANF funds used forProvides that federal TANF funds used for
marriage promotion must be treated as statemarriage promotion may be treated as state
matching funds for marriage promotion grantsmatching funds for marriage promotion grants
(Section 111(b)(1) See Maintenance of Effort for(Section 103(b). See Maintenance of Effort for
treatment of TANF spending on behalf of marriagetreatment of TANF spending on behalf of
iki/CRS-RL32210promotion.marriage promotion.
s.orNo provision.Provides that general rules governing uses of
leakTANF block grant funds (other than
administrative limit) shall not apply to marriage
://wikipromotion grants. [Section 103(b)]


Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
lowable activitiesGrants may be used for many activities, includingLists same activities as House bill, but specifies
arriageadvertising campaigns; education in high schools;that participation must be voluntary in marriage
omotion grantsmarriage education, marriage skills andeducation, marriage skills and relationships skills
relationship skills programs that may includeprograms, pre-marital education and married
parenting skills, financial management, conflictskills training, marriage enhancement and
resolution, and job and career advancement fordivorce reduction programs, and marriage
non-married pregnant women and expectantmentoring programs. Also, allows marriage
fathers; pre-marital education and marriage skillseducation, marriage skills, and relationship skills
training for engaged couples and individuals andprograms for non-married recent parents.
couples interested in marriage; marriage
enhancement and marriage skills training programs
for married couples; divorce reduction programs;
iki/CRS-RL32210marriage mentoring programs; and programs to
g/wreduce marriage disincentives in means — tested
s.orprograms, if offered in conjunction with any other
leaklisted activity.
://wikiNo provision.Forbids award of a grant unless the applicant has
httpconsulted with experts in domestic violence or
with community domestic violence coalitions in
developing [marriage promotion] programs or
activities. Application must describe how the
program/activities will deal with issues of
domestic violence and how the grantee will
ensure that participation in the marriage
promotion program is voluntary. [Section

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
earch andNo special provision to fund research orAppropriates $102 million each for FY2003Appropriates $100 million each for FY2004
onstrations ondemonstrations. However, available TANFthrough FY2008 for research and demonstrationthrough FY2008 for research and demonstration
arriage promotionresearch funds (see Research andprojects and for technical assistance to states, tribalprojects and for technical assistance to states,
Demonstrations, below) and other research fundsorganizations, and other entities chosen by thetribal organizations, and other entities chosen by
provided to the Department of Health and HumanSecretary. Specifies that these funds must be spentthe Secretary. Specifies that 80% of these funds
Service may be used to evaluate marriageprimarily on activities allowed under marriagemust be spent on research and demonstration
promotion initiatives.promotion grants (see above). (Sets aside $2projects, or for providing technical assistance, in
million yearly for demonstration projects forconnection with activities allowed under
coordination of child welfare and TANF servicesmarriage promotion grants (see above). [Section
to tribal families at risk of child abuse or neglect.)114(a)]
Provides that funds appropriated for FY2003 shall
remain available through FY2004. [Section
iki/CRS-RL32210 115(a)]
s.orForbids Secretary to pay these research funds to
leakan entity that has not consulted with domestic
://wikiviolence experts in developing marriagepromotion programs (see above). [Section
http 114(a)]
State Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions
ate planEach state must outline (generally in a planAdds requirement that each state describe what itEssentially the same as House bill. [Section
entseffective for three fiscal years), how it intends to:will do to end dependence of needy families on101]

conduct a program providing cash assistance togovernment benefits and reducing poverty by
needy families with children and providingpromoting job preparation and work and;
parents with work and support services; requireencourage formation and maintenance of healthy,
caretaker recipients to engage in work (at statetwo-parent married families, encourage responsible
definition) after 24 months of aid or sooner, iffatherhood, and prevent and reduce the incidence
then judged work-ready; ensure that caretakersof out-of-wedlock pregnancies. Adds requirement
engage in work in accordance with the law; takethat each state describe any strategies that it is
steps deemed necessary by the state to restrict useundertaking to deal with (a) employment retention

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
and disclosure of information about recipients;and advancement for recipients; (b) efforts to
establish goals and take action to prevent/reducereduce teen pregnancy; (c) services for struggling
the incidence of out-of-wedlock pregnancies; andand noncompliant families and for clients with
conduct a program providing education andspecial problems; and (d) program integration,
training on the problem of statutory rape. Inincluding the extent to which employment and
addition, the plan must indicate whether the statetraining services are provided through the One-
intends to treat families moving into the stateStop Career Center System created under the
differently from others; indicate whether the stateWorkforce Investment Act of 1998. Requires each
intends to aid noncitizens; set forth objectivestate to describe strategies to improve program
criteria for benefit delivery and for fair andmanagement and performance. [Section 112].
equitable treatment; and provide that, unless the
governor opts out by notice to HHS, the state willStrikes provision requiring goals to reduce out-of-
iki/CRS-RL32210require a parent who has received TANF for twowedlock pregnancies and replaces it with
g/wmonths and is not work-exempt to participate inrequirement that states establish specific numerical
s.orcommunity service employment. In the plan theperformance goals, measures, measurement
leakstate must certify that it will operate a childmethodology, and plans to improve outcomes
://wikisupport enforcement program and a foster careregarding each of TANF’s four goals.
httpand adoption assistance program and provide
equitable access to Indians ineligible for aid underSpecifies that performance measures must be
a tribal plan. It must certify that it has establishedconsistent with criteria used by the Secretary in
standards against program fraud and abuse. Itestablishing targets for the performance
must specify which state agency or agencies willachievement bonus.
administer and supervise TANF. In addition, the
state may opt to certify that it has established andStrikes provision requiring community service
is enforcing procedures to screen and identifyafter two months of benefits unless state opts out.
recipients with a history of domestic violence, to[Section 112].

refer them to services, and to waive program
rules for some of them. [Section 402(a) of the

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
Authorizes states to administer and provide TANFRequires state plans to describe strategies andIf state is undertaking efforts to engage faith-
services through contracts with charitable,programs to engage religious organizations in thebased organizations in providing TANF-funded
religious, or private organizations and to payprovision of TANF-funded services. [Section 112]services or that otherwise relate to the charitable
recipients by means of certificates, vouchers, orchoice provision of PRWORA, requires state
other disbursement forms redeemable with theseplans to describe these strategies and programs.
organizations. Stipulates that any religious[Section 101(a)]
organization with a contract to provide welfare
services shall retain independence from
government and requires states to provide an
alternative provider for a beneficiary who objects
to the religious character of the designated
organization. [Section 104 of PRWORA]
g/wStates must certify that they will provide equitableRequires tribal family assistance plans to provideSame as House bill. [Section 101(c)]
s.oraccess to TANF to Indians who are ineligible forassurance that the state in which the tribe is located
leaktribal family assistance programs. [Section 402(a)has been consulted regarding the plan and its
://wikiof the SSA]design. [Section 112]
httpRequires plan to describe how the state intends toSame as House bill. [Section 101(c)]
encourage equitable treatment of healthy, married
two-parent families under TANF. [Section 103(a)]
No provision.Requires the plan to include a report detailing
progress toward full engagement. [Section
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)]

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
No provision.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 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 available to the public proposed plan states
also must make TANF state plans in effect for
any fiscal year available to the public, by the
iki/CRS-RL32210above means. [Section 101(b)].
s.oranceNo provision. (However for the purpose ofRequires the Secretary, in consultation with theSame provision. [Section 101(d)]
leakeasuresawarding performance bonuses, the Secretary is tostates, to develop uniform performance measures
://wikidevelop a formula in consultation with thenational Governors Association and the Americanto judge the effectiveness and improvement of stateprograms in accomplishing TANF purposes.
httpPublic Welfare Association.)[Section 112(c)]
nkings of statesDirects HHS Secretary to rank states in order ofDeletes “long-term” qualifier from private jobSame as House bill except that it adds three other
success in moving recipients into long-termmeasure. Adds employment retention and abilitynew ranking factors: the degree to which
private jobs and reducing the proportion of out-to increase wages to factors used for rankings.recipients have workplace attachment and
of-wedlock births and in both cases to review[Section 112(d)]advancement, reducing the overall welfare
programs of the three states with highest andcaseload, and, when a practicable method of
lowest ratings. [Section 413(d) and(e) of the SSA]calculation becomes practicable, diverting
persons from making formal applications to
TANF. [Section 101(e)]
No provision.In ranking states, Secretary must take into
account the average number of minor children
living at home in families with income below the

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
poverty line and the amount of TANF funding
provided to each state for these families.
[Section 101(e)]
States are required to collect monthly, and reportRequires quarterly reports to cover families inSame as House bill. [Section 112(a)]

quarterly, disaggregated case record informationMOE-funded separate state programs, as well as
(but may use sample case record information forthose in TANF state programs. Permits the
this purpose) about recipient families in theSecretary to limit use of sampling by designating
TANF program. [Section 411(a) of the SSA]core elements that must be reported for all families.
Required family information includes:[Section 113(a)]
— county of residence,
— whether a member received disability benefits,
iki/CRS-RL32210 — ages of members,
g/w size of family and the relation of each member
s.orto the family head,
leak — employment status and earnings of the
://wikiemployed adult, — marital status of adults;
http — 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 two-parent
and one-parent families);
— total dollar value of assistance given;
— total number of families and persons aided by
welfare-to-work grants (and the number whose
participation ended during a month);
number of noncustodial parents who
participated in work activities;
— for each teenager, whether he/she is the parent
of a child in the family.

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
— race and educational level of each adult;Adds race and educational level of each minorSame as House bill.
— race and educational level of each child;parent. Deletes educational level of each child.
— whether the family received subsidizedStrikes “if the latter two, the amount.”
housing medicaid, food stamps, or subsidized
child care (and if the latter two, the amount);
— number of months that the family receivedStrikeseach type” of aid and requires the reason;Same as House bill.
each type of aid under the program;if applicable, for extending aid beyond 60 months.
number of hours per week, if any, that adultsAdds to reported activity list: training and otherSame as House bill.
participated in specified activities (education,activities directed at TANF purposes. Adds and
subsidized private jobs; unsubsidized jobs, public(job) placement to job search. Omits job skills
sector jobs, work experience, or communitytraining and vocational education. Specifies that
service, job search, job skills training or on-thework experience and community service are
job training, vocational education);supervised.”
iki/CRS-RL32210From a sample of closed cases, the quarterlyDeletes marriage.Same as House bill.
g/wreport is to give the number of case closures
s.orbecause of employment, marriage, time limit,
leaksanction, or state policy.
://wiki — information needed to calculate participationAdds information needed to calculate progressSame as House bill.
httprates;toward universal engagement.
— type and amount of assistance received underDeletes type of assistance.Same as House bill.
the program; including the amount of and reason
for any reduction of assistance;
Requires new information on recipient families inSame as House bill.

the quarterly report:
— the date the family first received aid on the
basis of its most recent application;
— whether a self-sufficiency plan is established
for the family;
— the marital status of the parents of any child in
the family at the birth of the child, and if the

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
parents were not then married, whether the
paternity of the child has been established.
Requires quarterly reports to include the number ofSame as House bill. [Section 112(c)]
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 113(c)]
e of sample dataFor quarterly reports, permits states to submitAuthorizes Secretary to designate core dataSame as House bill. [Section 112(b)]
disaggregated case record data information on aelements that must be reported for all families.
sample of families. [Section 411(a) of the SSA][Section 113(b)]
nthly stateNo provision.Requires states to submit monthly reports on theSame as House bill except that it also requires
iki/CRS-RL32210portsnumber of families and persons receivingmonthly reports on the number of families and
g/wassistance. [Section 113(e)]persons receiving assistance under separate state
s.orprograms funded with MOE dollars. [Section
://wikil state reportsRegulations require states to annually submit aRequires states to submit an annual report onSame as House bill. [Section 112(e)]
httpprogram report (by December 31 of each year)characteristics of the state TANF program and
providing financial eligibility rules for allother state programs funded with MOE funds.
programs funded by TANF or state MOE funds.Required information: program name and purpose,
For each MOE program, reports are to include thedescription of program activities, sources of
name, purpose, and eligibility criteria.funding, number of beneficiaries, sanction policies,
and any work requirements. [Section 113(e)]
Beginning with FY2005, states must submit toSame as House bill. [Section 112(e)]
HHS an annual report on achievement and
improvement under numerical performance goals
and measures.
entsThe HHS Secretary shall prescribe regulations toThe HHS Secretary shall prescribe regulationsSame as House bill. [Section 112(d)]

define data elements for required state reports andneeded to define data elements and to collect

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
shall consult with the Secretary of Labor innecessary data and shall consult with the National
defining data elements regarding programsGovernors Association, the American Public
operated with welfare-to-work funds.Human Services Association, the National
Conference of State Legislatures, and others in
defining the data elements. [Section 113(d)]
reportsRequires the HHS Secretary to make annualSets July 1 of each fiscal year as the deadline forSame as House bill. [Section 112(f)]
reports to Congress that include state progress inthe report. Deletes applicant families from the
meeting TANF objectives (increasingreport. Adds requirement to report on
employment and earnings of needy families andcharacteristics of MOE-funded programs. [Section
child support collections, and decreasing out-of-113(f)]
wedlock pregnancies and child poverty),
demographic and financial characteristics of
applicants, recipients, and ex-recipients;
characteristics of each TANF program; and trends
iki/CRS-RL32210in employment and earnings of needy families
g/wwith children.
leakRequires the HHS Secretary to submit to four
committees of Congress annual reports on
://wikispecified matters about three groups: children
httpwhose 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
le audit reportsTANF payments to states are subject to the SingleThe Secretary, within three months of receiving anNo provision.

Audit Act.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

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
uations, and
tional studies
search on stateRequires HHS Secretary to conduct research onContinues these provisions and appropriates $15Same as House bill. [Section 114(b)]
ogramseffects, costs, and benefits of state programs.million annually for them through FY2008.
Provides that Secretary may help states develop[Section 115]
innovative approaches to employing TANF
recipients and shall evaluate them. For six years,
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 provisions and
appropriated research funds on a less prescriptive
basis under Section 1110 of the Social Security
iki/CRS-RL32210Act, which deals with cooperative research and
g/wdemonstration projects.)
leakuDirects the Census Bureau to expand the SurveyAppropriates $10 million annually for FY2004Same as House bill. [Section 115(a) and (c)]
yof Income and Program Participation (SIPP) tothrough FY2008 to the Census Bureau. Directs theprovision.

://wikiobtain data with which to evaluate TANF’sBureau to implement or enhance a longitudinal
httpimpact on random national sample of recipients.survey of program participation to permit
Appropriates $10 million annually for sevenassessment of outcomes of continued reform on the
years. [Section 414 of the SSA]economic and child well-being of low-income
families with children, including those who
received TANF-funded aid or services. Survey
content should include information needed to
examine the issues of out-of-wedlock childbearing,
marriage, welfare dependency, beginning and
ending of spells of assistance, work, earnings, and
employment stability. To the extent possible,
survey is to provide state representative samples.
Funds are to remain available through FY2008 for
this survey. [Section 116(a)]

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
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)
l AccountingDirects the General Accounting Office to study theNo provision.
tudycombined effect of the phase-out rates for federal
programs that provide support to low-income
persons and families moving from welfare to work,
at all earning levels up to $35,000 per year, for at
least five states, including Wisconsin and
California. Study is to include any potential
iki/CRS-RL32210disincentives to marry or achieve independence
g/wthat are created by the combined phase-out rates.
s.orReport is due to Congress not later than one year
leakafter enactment. [Section 116(b)]
://wiki andPermits the HHS Secretary to waive complianceCreatessuperwaiver” authority for states (orCreatessuperwaiver” authority for up to 10
httpogramwith requirements for TANF state plans (and forportions of a state) to coordinate rules of specifiedstates (including any portion of a state) to
inationchild support plans), but not for any other part ofprograms for low-income families. Covers thesecoordinate rules of three specified programs for
TANF law (including work standards, time limits,10 programs and activities: TANF, Welfare-to-low-income families (all under jurisdiction of the
funding rules, and penalties). [Section 1115 ofWork grants, SSBG, Job Opportunities for Low-Finance Committee): TANF, SSBG, child care
the SSA]Income Individuals (JOLI), Title I of WIAentitlement funds. Essentially the same as in the
(excluding JOB Corps), Adult Education andHouse bill are most provisions, including:
Family Literacy Act, CCDBG, U.S. Housing Actapplication procedures, rules for cost neutrality,
(excepting Section 8 rental assistance and set-non-waivable provisions, program purposes, and
asides for the elderly and disabled), Homelessproject duration. Evaluation rules are more
Assistance Act; and the food stamp program.detailed. Applicants must give assurances that
Specified provisions (including non-financial foodthey will obtain an evaluation by an independent
stamp rules and any funding restriction in ancontractor and that random assignment of clients
appropriations act) could not be waived. Also non-to services and control groups will be used to the
waivable: Civil rights provisions, programmaximum extent feasible. [Section 114(c)]

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
purposes or goals, state spending requirements,
health or safety rules, labor standards, and others
Funds could not be transferred from one account to
another, and projects could not increase federal
costs. Waivers would be valid for up to five years.
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
iki/CRS-RL32210within 90 days. Requires annual reports to
g/wCongress. Applicants must give assurance that
s.orthey will conduct ongoing and final evaluations.
leak[Section 601]
://wikiAuthorizes five states to replace food stamps withNo provision..
httpdemonstrations of food assistance block grant
projects. [Section 602]
Not later than six months after enactment, requiresNo provision.

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)]

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
finition ofReceipt of assistance by a parent or otherDefinesassistance” to mean payment, by cash,Same as House bill. [Section 117]
ance caretaker relative triggers work and time limitvoucher, or other means, to or for an individual or
rules. Law does not define the term. Byfamily to meet a subsistence need, but not
regulation, assistance is defined as ongoing aid toincluding costs of transportation or child care. It
meet basic needs, plus support services such asexcludes non-recurrent short-term benefits.
child care and transportation subsidies, for[Section 117]
unemployed recipients. It excludes non-recurrent
short term benefits.
Federally-funded “assistance” to a family with an
adult is limited to 60 months; states may impose
shorter time limits. By regulation, assistance is
defined as ongoing aid to meet basic needs, plus
support services such as child care and
transportation subsidies, for unemployed
iki/CRS-RL32210recipients. It excludes non-recurrent short term
g/wb e ne fits.
leakMakes a number of technical corrections to currentSame as House bill [Section 120]
law. [Section 118]
ate option toThe Workforce Investment Act (WIA) makesMakes state TANF programs mandatory partnersNo provision.
ake TANFTANF an optional partner with one-stopwith one-stop employment training centers
ogramsemployment training centers.established under the Workforce Investment Act
andatory partnersunless the governor of a state decides otherwise
th one-stop WIAand so notifies the Secretaries of Health and
Human Services and Labor. [Section 120].
f theProvides that it is the sense of Congress that a stateNo provision.

swelfare-to-work program should include
mentoring. [Section 121]

Current lawH.R. 4 (House-passed)H.R. 4 (Senate Finance Committee)
orcing supportRequires sponsors of immigrants to sign a legallyNot later than March 31, 2004, requires the HHSNo provision.
mmigrants byenforceable affidavit of support. Deems allSecretary, in consultation with the Attorney
nsorsincome and resources of a sponsor (and theGeneral, to submit a report on the enforcement of
sponsor’s spouse) as available to the sponsoredaffidavits of support and sponsor deeming required
alien until he or she becomes naturalized orby P.L. 104-193. [Section 115(c)]
meets a work test. [Sections 421 and 423 of the
ension throughExcept as otherwise provided in this Act and theNo longer relevant.

2003amendments 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 FY2003, in the manner authorized, and at
the level provided, for FY2002. [Section 122].