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

CRS Report for Congress
TANF Reauthorization: Side-by-Side Comparison
of Current Law, S. 667, and H.R. 240
(TANF Provisions)
Updated September 26, 2005
Gene Falk
Domestic Social Policy Division

Congressional Research Service ˜ The Library of Congress

TANF Reauthorization: Side-by-Side Comparison of
Current Law, S. 667, and H.R. 240 (TANF Provisions)
The 109th Congress is considering legislation to reauthorize the block grant of
Temporary Assistance for Needy Families (TANF) for five years. Congress has
inconclusively debated long-term TANF authorizations since 2002, instead adopting
short-term extensions. The latest extension (P.L. 109-19) funds the program through
December 31, 2005. Thus far in the 109th Congress, the Senate Finance Committee
has reported S. 667 (S.Rept. 109-51). A bill introduced by House Republican
leaders, H.R. 240, has received approval from the House Ways and Means
Committee’s Subcommittee on Human Resources.
S. 667 and H.R. 240 are very similar in terms of how they would continue
funding under the TANF program. Both bills extend basic TANF funding at current
levels ($16.6 billion for the 50 states, the District of Columbia, and the territories)
through FY2010 and extend supplemental grants provided to 17 states through
FY2009. Both bills provide new, categorical grants for marriage promotion activities
totaling $200 million per year financed through a reduction in current TANF bonuses
to states. The major difference in the TANF funding provisions of the two bills is
how they provide extra contingency (recession-related) funding to the states. H.R.
240 essentially extends the current law fund that provides matching grants to states
experiencing high and increased unemployment rates and food stamp caseloads. S.
667 eliminates the requirement that states expend additional money to access
contingency funds, and instead bases extra funding on the cost of increased caseloads
for states that meet revised unemployment or food stamp caseload criteria.
The two bills would substantially revise the TANF work participation standards
that states must meet. Under current law, 50% of TANF families with an adult or
minor household head must participate, though the 50% rate is reduced by caseload
reductions that have occurred since welfare reform. Both S. 667 and H.R. 240 would
raise this standard to 70%, though under both bills the standard could be reduced
through credits (though the credits differ between the two bills). Both also eliminate
a separate 90% participation rate requirement for two-parent families. Both bills
would raise the minimum hours required of family members in order to be considered
full participants, though H.R. 240 would raise them by more than would S. 667. The
bills also differ in the activities countable toward the participation standards: H.R.
240 narrows the list of activities countable, requiring recipients to spend at least 24
hours in work, community service, or work experience programs except for a short
(usually three-month) period when states may themselves define what counts as
“activities.” S. 667 keeps all activities under current law as countable, and allows
states to count a wider range of activities for three months (more under some
Both bills contain non-TANF provisions relating to child support enforcement,
responsible “fatherhood” programs, and transitional medical assistance (not
addressed herein). This report will be updated as S. 667 and H.R. 240 move through
the legislative process.

In troduction ......................................................1
Summary of the Similarities and Differences Between the Two Bills.........1
TANF Funding Provisions.......................................2
Basic Funding............................................2
Supplemental Grants.......................................2
Contingency Funds........................................2
Uses of Grants and Program Requirements......................3
Work Requirements............................................3
Participation Standards.....................................4
Hours Standards...........................................4
Creditable Activities.......................................5
Marriage Promotion Grants and Family Formation Issues..............6
Other TANF Provisions.........................................6
Detailed Comparison of TANF Provisions of S. 667 and H.R. 240...........7
Short Title, Findings, and Statement of TANF Goals and Purposes...........8
Short Title.......................................................8
Findings .........................................................8
TANF Goals and Purposes...........................................8
TANF Financing Provisions.........................................9
State Family Assistance Grants.......................................9
Supplemental Grant for Population Increases in Certain States..............9
Bonus to Reward Employment Achievement...........................10
Bonus to Reward Reductions in Out-of-wedlock Births...................11
Contingency Fund................................................11
Needy State Eligibility Criteria..................................11
Financial Eligibility Requirements...............................12
Contingency Fund Grant Amounts...............................13
Tribal Eligibility for Contingency Funds...........................13
Additional Grants.................................................13
Social Service Capitalization....................................13
Car Ownership Grants.........................................14
Transitional Jobs/business Links Grants...........................14
Domestic Violence Prevention Grants.............................15

Repeal of Federal Loan Fund........................................16
Maintenance of Effort.............................................16
Funding for Child Care............................................17
Puerto Rico..................................................17
Use of Funds....................................................17
General Rules................................................17
Transfer of funds.............................................17
Carryover of Funds...............................................18
Use of Funds for Education.....................................18
Direct Funding and Administration by Indian Tribes.....................18
Tribal Work Programs.........................................18
Tribal Capacity Grants.........................................19
Work Participation Requirements and Standards........................19
Universal Engagement and Family Self-sufficiency Plan Requirements......19
Sanctions Against Individuals for Work Refusal ........................22
Work Participation Standards.......................................23
Caseload Reduction Credit.....................................24
Employment Credit...........................................24
Study of the Employment Credit.................................26
Calculation of Participation Rates................................27
Infant Exemption from the Work Participation Rate..................27
Excluding Families in Their First Month of Assistance from
the Work Participation Rate.................................27
Treatment of Sanctioned Families in the Work Participation Rate.......27
Penalty for Failing Participation Rate.............................27
Countable Activities...............................................28
“Core” Activities.............................................28
Qualified Activities...........................................29
Supplemental Activities........................................29
Postsecondary Education.......................................30
Special Rules for Rehabilitative Activities.........................31
Caring for a Disabled Family Member............................31
Work Activities in Indian Areas of High Joblessness.................31
Numerical Limits on Vocational Education and Teen Parents..........32
Required Hours of Work Activity....................................32
Special Rule for Teen Parents...................................33
Partial Work Credit...........................................33
Extra Work Credit............................................33

Other Requirements with Respect to Families Receiving Assistance.........34
Drug Testing....................................................34
Eligibility for Teen Parents.........................................35
Displacement of Regular Workers....................................35
Marriage Promotion...............................................36
TANF Goals and Purposes..........................................36
Funding for Marriage Promotion Matching Grants.......................37
Allowable Activities for Marriage Promotion Grants .................37
Domestic Violence Provisions...................................38
Requirements for Voluntary Participation..........................38
Performance Goals/reporting Requirements........................39
Research and Demonstrations on Marriage Promotion....................40
Provisions to Address Domestic Violence and Voluntary Participation
Issues for Research Funds..................................40
State Plans, Data Reporting, Research (Other than Marriage Promotion)
and Other Provisions..........................................41
State Plan Requirements.......................................41
Participation of Faith-based Organizations in Provision of Services.....42
State Plan Requirement for Community Service after Two Months......42
Measurable Performance Goals..................................43
Program Strategies............................................43
Description of State Assistance Programs..........................43
Indian and Tribal Issues........................................44
Two-parent Families..........................................44
Description of Additional State Options for the Work Requirements.....44
Standard Form...............................................45
Performance Measures.........................................45
Rankings of States............................................46
Data Collection and Reporting.......................................47
Data Reporting on Work Participation............................48
Data Reporting on Indians......................................48
Reporting on Families Leaving TANF............................48
Reports for Families Receiving TANF-funded Child Care.............49
Monthly State Reports.........................................49
Annual State Reports..........................................49
HHS Reports....................................................50
Information on Indians in the TANF Annual Report..................51
Single Audit Reports..............................................51

Research, Evaluations, and National Studies............................51
Research on State Programs.....................................51
Indicators of Child Well-being..................................52
Research on Tribal Social Services Issues..........................52
Census Bureau Study..........................................52
Teen Pregnancy Resource Center....................................53
Best Practices for Dealing with Domestic Violence......................54
Waivers and Program Coordination ..................................54
State Option to Make TANF Programs Mandatory Partners with
One-stop WIA Centers.........................................57
Sense of the Congress.............................................57
Enforcing Support of Immigrants by Sponsors..........................57
List of Tables
Table 1. Comparison of Current Law with S. 667 and H.R. 240
(TANF Provisions).............................................8

TANF Reauthorization: Side-by-Side
Comparison of Current Law, S. 667, and
H.R. 240 (TANF Provisions)
The 109th Congress is considering legislation to reauthorize the block grant of
Temporary Assistance for Needy Families (TANF) for five years. The 108th
Congress and its predecessor, the 107th Congress, both inconclusively debated a long-
term authorization for TANF and related programs. The program has received 11
short-term extensions since the original funding authority for TANF expired on
September 30, 2002. The latest extension ( P.L. 109-68) funds the program through
December 31, 2005.
The Senate Finance Committee has reported an original bill, S. 667 (S.Rept.
109-51). H.R. 240, introduced by House Republican leaders and making its way
through House committees of jurisdiction, is similar to bills that passed the House
in 2002 and 2003. That bill was approved by the House Ways and Means
Committee’s Subcommittee on Human Resources on March 15, and awaits full
committee action, as well as consideration by other committees that have
jurisdictions over parts of the bill.1
Summary of the Similarities and Differences
Between the Two Bills
S. 667 and H.R. 240 have many similarities, with both extending basic TANF
funding at current levels through FY2010 and incorporating President Bush’s
proposal to provide categorical “marriage promotion” grants. Both bills also raise
TANF work participation standards, though the two differ in terms of how much
more work would be required and what activities count toward the participation
standards. This report provides a comparison of the TANF provisions of S. 667 and
H.R. 240. It does not address non-TANF provisions of both bills, such as revisions
to the Child Care and Development Fund, Child Support Enforcement, Abstinence
Education, and transitional Medicaid. One of the key differences between S. 667 and
H.R. 240 is the level of funding for child care. S. 667 would add $6 billion over five

1 In addition to the House Ways and Means Committee, H.R. 240 was referred to the House
Committees on Energy and Commerce, Education and the Workforce, Agriculture, and
Financial Services.

years to current levels of mandatory child care funding. H.R. 240 would add $1
billion over five years above current levels of mandatory child care funding.
TANF Funding Provisions
S. 667 and H.R. 240 have very similar funding provisions, although they do
differ in some details. The major difference in the funding provision between the
two bills is that S. 667 would completely revamp the TANF contingency (recession)
funds, while H.R. 240 would make relatively minor revisions to the fund.
Basic Funding. The 1996 welfare reform law (P.L. 104-193) entitled states
to a basic TANF block grant equal to peak expenditures in the pre-1996 welfare
programs during the FY1992 to FY1995 period. It also established a maintenance
of effort (MOE) requirement that states continue to spend at least 75% (80% if a state
failed TANF work participation requirements) of what they spent in these programs
in FY1994. Cash welfare caseloads were at their peak in the mid-1990s; both the
basic TANF grant and the MOE are legislatively fixed: they did not change when
cash welfare caseloads declined in the mid- and late-1990s, nor did they increase
when caseloads in some states increased during the recent economic slump. Neither
the basic TANF block grant nor the MOE have been adjusted for inflation.
Both S. 667 and H.R. 240 would continue both the basic block grant and the
MOE at their current funding levels (without inflation or caseload adjustment)
through FY2010.
Supplemental Grants. During the consideration of legislation that led to the
1996 welfare law, fixed funding based on historical expenditures was thought to
disadvantage two groups of states: (1) those that experience relatively high
population growth; and (2) those that had historically low grant levels relative to
poverty in the state. Therefore, additional funding in the form of supplemental grants
was provided to states that met criteria of high population growth and/or low historic
grants per poor person. Supplemental grants have been provided to 17 states:
Alabama, Alaska, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Louisiana,
Mississippi, Montana, New Mexico, Nevada, North Carolina, Tennessee, Texas, and
Currently, supplemental grants total $319 million per year. Both S. 667 and
H.R. 240 would continue supplemental grants for the same 17 states at the current
funding level through FY2009 (unlike other grants, which expire in FY2010).
Contingency Funds. The fixed basic grant under TANF also led to concerns
of inadequate funding during economic downturns. TANF includes a contingency
fund, which is designed to provide extra matching grants to states that meet criteria
of economic need (based on unemployment rates and food stamp caseloads) and have
state expenditures in excess of their FY1994 level.
The two bills differ substantially in their revisions to the TANF contingency
fund. H.R. 240 would continue the fund on existing rules, with some relatively
minor modifications: allowing some additional state spending to count toward

meeting the FY1994 funding level threshold and modifications to increase grants for
states that qualify for funds for only part of the year.
S. 667 fully revamps the contingency fund. It would eliminate the requirement
that states increase expenditures from their own funds above the regular TANF MOE
level and eliminate the matching requirements. Instead, it requires that unspent
TANF balances be below a certain threshold to qualify for contingency funds. S. 667
would base contingency grants on a portion of the estimated cost of increased cash
assistance caseloads. It also would revise the criteria of economic need for a state.
Uses of Grants and Program Requirements. Federal TANF grants and
MOE funds can be used for a wide range of benefits, services, and activities to assist
low-income families with children and to further TANF goals of reducing out-of-
wedlock births and promoting two-parent families. TANF grants can also be
transferred to other block grant programs: up to 30% of the grant can be transferred
to the Child Care and Development Fund (CCDF) and to the Social Services Block
Grant. The limit on transfers to SSBG alone is set at 4.25% (though annual
appropriations have restored the SSBG transfer limit to its original limit of 10% set
in the 1996 welfare law). Within the overall 30% limit, federal TANF funds may
also be used as the state match for federal reverse commuter grants if the program
benefits welfare families.
Both bills would set the SSBG transfer limit permanently at 10%. H.R. 240
would raise the overall transfer limit to 50%; S. 667 would retain the current 30%
transfer limit.
Both bills include provisions to ease some rules regarding use of TANF funds.
Both S. 667 and H.R. 240 would:
!Allow states to use carryover TANF funds for any TANF benefit and
service. Current law restricts the use of carryover funds for the
provision of “assistance.”
!Narrow the definition of “assistance” to exclude all child care and
transportation aid. TANF funds spent on assistance trigger certain
program requirements, such as work requirements, time limits,
assignment of child support payments, and data reporting
requirements. Under current regulations, child care and
transportation aid for nonworking families is counted as assistance
and triggers these requirements. The bills would eliminate such aid
from the definition of “assistance,” freeing from these requirements
nonworking families that receive only child care or transportation
Work Requirements
Both S. 667 and H.R. 240 incorporate the Bush Administration’s “universal
engagement” proposal, which requires states to develop a self-sufficiency plan for all
TANF adult recipients to monitor progress toward that plan. H.R. 240 also requires

states to end benefits (“full family sanction”) for families that fail to comply with
work participation rules.
Both S. 667 and H.R. 240 would substantially revise TANF work participation
standards. Both bills would raise work participation standards that states must meet
from the current law’s standard of 50% to 70%, raise the required hours of working
to receive full credit and provide partial credit for participating families that do not
meet the full credit standard, and revise the list of activities that recipients may
participate in for states to receive credit toward TANF standards. However, the bills
differ in how they do these three things.
Participation Standards. Current law requires states to have a specified
percentage of their families with an adult recipient (or minor head of household)
participating in creditable work activities. The current participation standard is 50%.
States are subject to an additional participation rate standard for two-parent families,
currently 90%. The participation rate standards may be reduced for caseload
reductions (not attributable to policy changes) that occurred before enactment of
welfare reform (FY1995). This “caseload reduction credit” has had a large effect on
participation standards, reducing the standard considerably from its statutory rate.
In FY2003, the standard was reduced to 0% for 20 states.
Both S. 667 and H.R. 240 raise the work participation standard for all families
to 70% by FY2010, and eliminate the separate standard for two-parent families. Both
bills also change the credits that reduce these standards from their statutory rate (i.e.,
reduce the 70% standard to a lower rate), but they do so in different ways. H.R. 240
retains, but revises, the current law caseload reduction credit so that caseload change
is measured from a more recent year (rather than the pre-welfare reform caseload
level of 1995). Ultimately, caseload reduction would be measured based on the most
recent four years. The House bill also includes a provision to give an additional
credit to states that achieved a caseload reduction of 60% or more from FY1995 to
S. 667 retains the current caseload reduction credit for FY2006 and FY2007, but
beginning in FY2008 would replace the caseload reduction credit with a credit for
employed welfare leavers. The bill would also cap all credits against the
participation standard, so that the minimum effective standard would be 10% in
FY2006, 20% in FY2007, 30% in FY2008, 40% in FY2009, and 50% in FY2010.
There is no such minimum effective standard in H.R. 240.
Hours Standards. Current law requires that a family be considered
participating only if it participates for a minimum number of hours per week in a
month. Under current law, 20 hours is required for single parents with a pre-school
child (under the age of 6), and 30 hours is required for other families. Higher hours
are set for the purposes of the two-parent work participation rate.
Both S. 667 and H.R. 240 raise the hours standards. H.R. 240 incorporates a 40-
hour workweek standard for full credit, but would also provide “partial” credit for
families with at least 24 hours of participation. No special lower-hour standard
would be provided for single parents with preschoolers.

S. 667 also raises the hours standard for full credit, but to a lesser extent than
proposed in the House-passed bill. Single parents with a pre-school child would be
given full credit for participation at 24 hours per week, and other single-parent
families would be given full credit at 34 hours per week. Partial credit for single
parent families would be provided at 20 hours per week. Higher hours requirements
would apply to two-parent families.
Creditable Activities. Current law lists 12 activities that may be counted
toward TANF work participation standards. The bulk of countable participation is
in a subset of “core” activities focused on work, time-limited job search (countable
for six weeks in a fiscal year, 12 weeks if criteria of economic need are met), 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.
H.R. 240 and S. 667 differ significantly on the types of activities countable as
core activities toward the participation standards. H.R. 240 narrows the list of core
activities by eliminating job search and vocational education. Instead, the bill would
give states almost total discretion to define activities that would be countable for
three months in a 24-month period (four months to complete training), but once those
months are exhausted, the only activities that would count toward the work
participation standards are work, on-the-job training, community service, or work
experience. Moreover, since job search and vocational education would be countable
as sole or primary activities only during the three (or four) months that the state
would have discretion, any weeks of participation in job search reduce the number
of weeks that vocational education counts toward the participation standards.
On the other hand, S. 667 retains the current law list of core activities. It too
provides states additional discretion by permitting states to count an expanded list of
activities for three months in a 24-month period (longer for rehabilitative activities).
However, this additional discretion is provided in addition to, rather than instead of,
six weeks of job search and 12 months of vocational educational training, which are
retained as “core” activities.
Both H.R. 240 and S. 667 would give states additional discretion in defining
activities countable once a family has met the “core” work requirement (generally,
24 hours per week in core activities). H.R. 240 would allow states to define activities
for families with at least 24 hours in core activities; S. 667 would allow states to
count an expanded set of activities for single-parent families with at least 24 hours
per week in core activities.
S. 667 includes some additional options for counting participation in activities
toward TANF work standards. It would allow states to have up to 10% of their
caseload enrolled in a special program of two- or four-year undergraduate education
or vocational educational training. This program is modeled after the “Parents as
Scholars” program that has operated in Maine using TANF MOE funds. It also
allows for participation in rehabilitative activities for disabled persons (including

treatment of drug and alcohol abuse) if they combine rehabilitation with at least 10
hours of “core” activities and if the state develops a collaborative relationship
between agencies and entities providing rehabilitative services and the state TANF
agency. Additionally, S. 667 allows caring for a disabled family member to count as
a work activity under certain circumstances.
Marriage Promotion Grants and Family Formation Issues
Current law allows states to use TANF funds for any activity “reasonably
calculated” to achieve a TANF purpose. One of the statutory purposes of TANF is
to end dependency of needy parents on government benefits, and one of the stated
means to end such dependency is “marriage.” Another of the statutory purposes of
TANF is to promote the formation and maintenance of two-parent families.
“Promoting marriage” is a currently allowable use of TANF funds.
Both S. 667 and H.R. 240 would carve out special “marriage promotion grants”
from existing TANF funding. Both bills include $100 million in competitively
awarded matching funds for states, territories, and tribes for marriage promotion
activities. The bills would allow states to use other federal TANF funds or state
funds as the match for these new marriage promotion grants.
Both bills also would provide an additional $100 million for research and
demonstrations. H.R. 240 would require that these funds be used “primarily” for
marriage promotion; S. 667 would require that 80% of these funds be used for
marriage promotion.
Marriage promotion activities listed in both bills are: public advertising
campaigns on the value of marriage and skills needed to increase marital stability and
health; education in high schools on the value of marriage; marriage education and
marriage and relationship skills programs for nonmarried parents or expectant
parents; pre-marital education on marriage for engaged couples; marriage
enhancement and marriage skills training for married couples; divorce education
programs; and marriage mentoring programs. Programs to reduce the disincentives
to marriage in need-based programs could be funded from these grants only if offered
in conjunction with other marriage activities.
Although the two bills provide similar funding for “marriage promotion”
activities, they differ significantly in the details of their provisions authorizing these
grants. S. 667 has additional language requiring that organizations familiar with
domestic violence issues be consulted in developing marriage promotion projects and
language to clarify that marriage promotion activities are to be voluntary. S. 667 also
prohibits states from sanctioning recipients who do not participate in marriage
promotion activities.
Other TANF Provisions
Both S. 667 and H.R. 240 would make additional amendments to TANF
provisions regarding state plans, data reporting, tribal TANF programs, and other
provisions of TANF law. These provisions are included in the detailed bill

comparison table shown below. Among the other TANF provisions addressed in the
reauthorization bills:
!H.R. 240 (as amended by the House Ways and Means Subcommittee
on Human Resources) would require states to conduct drug tests on
applicants and recipients of TANF assistance if the state believes the
individual has recently used drugs. Positive drug tests would lead
to a required sanction of the family’s benefit, potentially ending
benefits to the family for up to three years.
!S. 667 includes authorizations for additional special-purpose
(categorical) grants other than marriage promotion grants that would
be added to the TANF block grant. These grants include those to
allow states to operate programs to purchase cars; transitional
jobs/business link grants for model employment and training
programs for TANF recipients with barriers; grants for organizations
that create “self-sustaining” social services (e.g., Goodwill
Industries); and domestic violence grants.
!S. 667 allows states to provide assistance for teen parents not living
with an adult for up to 60 days, to provide a period for the teen to
come into compliance with the current law requirement to live at
home or in an adult-supervised setting.
!S. 667 includes several provisions relating to tribal welfare
programs, including a $5 million per year increase in funding for
tribal work programs, an $80 million (over five years) grant for
tribes for activities that aim to increase their capacity to operate
TANF programs, and tribal eligibility for TANF contingency and
bonus funds. H.R. 240 funds tribal TANF programs and work
program at current levels through FY2010 and makes tribal
organizations eligible for TANF bonuses.
Detailed Comparison of TANF Provisions
of S. 667 and H.R. 240
Table 1 provides a detailed comparison of the TANF provisions of S. 667 and
H.R. 240. The table provides references to current law provisions in the Social
Security Act (SSA). It also denotes the section number in each of the bills in which
the provision is found.

Table 1. Comparison of Current Law with S. 667 and H.R. 240 (TANF Provisions)
H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
rt Title, Findings, and Statement of TANF Goals and Purposes
rt TitleThe Personal Responsibility and WorkThe Personal Responsibility and IndividualThe Personal Responsibility, Work, and Family
Opportunity Reconciliation Act of 1996 (P.L.Development for Everyone Act (PRIDE).Promotion Act of 2005.
ndingsP.L. 104-193, the Personal Responsibility andNo provision.Makes a series of findings related to: (1) the
Work Opportunity Reconciliation Act of 1996,success of the 1996 law in moving families
iki/CRS-RL32834made a series of findings related to marriage,from welfare to work and reducing child
g/wresponsible parenthood, trends in welfarepoverty; (2) progress made by the nation in
s.orreceipt and the relationship between welfarereducing teen pregnancy and births, slowing
leakreceipt and nonmarital parenthood, and trendsin and negative consequences of nonmarital andincreases in nonmarital births, and improvingchild support collections and paternity
://wikiteen births. [Section 101 of PRWORA]establishment; (3) the flexibility provided bythe 1996 law for states to develop innovative
httpprograms; (4) further progress to be made in
promoting work, strengthening families, and
enhancing state flexibility to build on the
success of welfare reform; and (5) establishing
the sense of Congress that increasing success in
moving families from welfare to work and
promoting healthy marriage and other means of
improving child well-being are important
government interests and the policies in federal
TANF law (as amended by this bill) are
intended to serve those ends. [Section 4]
NF Goals and PurposesThe purpose of TANF is to increase stateRevises goal no. 4 to “encourage the formationThe overall purpose of TANF is to improve
flexibility in operating a program designed to:and maintenance of healthy two-parent marriedchild well-being by increasing state flexibility
(1) assist needy families so that children mayfamilies, and encourage responsiblein operating a program designed to: (1) provide
live in their homes or those of relatives; (2) endfatherhood. [New language in italics] [Sectionassistance and services to needy families so that
dependence of needy parents on government103(d)]children may live in their homes or those of

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
benefits; (3) reduce out-of-wedlockrelatives, (2) end dependence of needy families
pregnancies; and (4) encourage the formationon government benefits and reduce poverty; (3)
and maintenance 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
healthy, two-parent married families, and
encourage responsible fatherhood. [New
language in italics] [Section 101]
NF Financing Provisions
iki/CRS-RL32834ate Family AssistanceantsProvides capped grants (entitlements to statesand territories). Nationally, annual familyRetains basic block grants, and extends themthrough 2010 at current funding levels.Same as S. 667. [Section 102(b)]
g/wassistance grants total $16.567 billion for theAppropriates $16.567 billion annually for
s.orstates, the District of Columbia (D.C.), and thefamily assistance grants to the states, D.C., and
leakterritories. Each jurisdiction’s annual grantthe territories. Provides that the annual grant of
equals the same share of the national total as ineach jurisdiction shall equal its FY2002
://wikiFY2002. [(Section 403(a)(1) of the SSA]proportion of the national grant total. [Section
http 102(a)]
Also provides matching grants for the territoriesExtends funding for matching grants to theSame as S. 667. [Section 102(c)]
(Section 1108(b) of the SSA).territories through FY2010. [Section 102(b)]
ental Grant forSupplemental grants for (17) states with lowExtends supplemental grants for FY2006Same as S. 667. [Section 104]

ncreases inhistoric federal grants per poor person and/orthrough FY2009, at current funding levels
high population growth. Grants grew each($319 million). [Section 104]
year, from $79 million in FY1998 to $319
million in FY2001. Grants frozen at $319
million since FY2001. [Section 403(a)(3) of

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
nus to RewardHigh-performance bonus of $200 million perReplaces the high-performance bonus with aReplaces the high-performance bonus with a
ployment Achievementyear on average. [Section 403(a)(4) of thebonus to reward employment achievement.bonus to reward employment achievement.
SSA]Employment achievement bonuses would totalAverage total bonuses would be $100 million
$50 million for each of FY2006 throughfor each of FY2006 through FY2011. [Section
FY2008, and $100 for each of FY2009 through105]
FY2011. [Section 105]
Maximum bonus for a state equals 5% of itsMaximum bonus for a state equals 5% of itsSame as S. 667. [Section 105]
family assistance grant.family assistance grant. [Section 105]
Bonus based on achievement of TANF goals,Bonus to be based on absolute and relativeBonus to be based on absolute and relative
iki/CRS-RL32834with formula developed by the Department ofprogress toward the goal of workforceprogress toward goals of job entry, job
g/wHealth and Human Services (HHS) inattachment and advancement. [Section 105]retention, and increased earnings. Formula to
s.orconsultation with the National GovernorsAssociation and the American Public Humanbe developed by HHS, in consultation with thestates. [Section 105]
leakServices Association. For FY1999-FY2001
://wikiperformance, formula consisted of three work-related measures (job entry, job retention, and
httpearnings gain). For FY2002 and later years,
formula adds family formation outcomes, child
care affordability, and coverage by food stamps
and Medicaid/SCHIP. [Section 403(a)(4) of the
Makes tribes eligible for the bonus, settingMakes tribal organizations eligible for the
aside 2% of total employment achievementbonus and directs the Secretary to consult with
bonus dollars for them, and directs thetribal organizations regarding criteria for their
Secretary to consult with them regardingawards. [Section 105]
criteria for their awards. [Section 105]
Reduces FY2005 high-performance bonusReduces the FY2005 high-performance bonus
amount to $0. [Section 702]amount to $100 million. [Section 122]
No provision.Provides that appropriated amounts unspent (as
of the date of enactment) for high-performance
bonuses will be available through FY2005 for
payment of high-performance bonuses for
bonus year 2005 — on terms in effect before
repeal of that bonus. [Section 105]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
For FY2006 and FY2007, employmentFor FY2006, employment achievement bonus
achievement bonus may be based on threemay be based on three components of the
components of the repealed high-performancerepealed high-performance bonus — job entry
bonus — job entry rate, job retention rate, andrate, job retention rate, and earnings gain rate.
earnings gain rate. [Section 105][Section 105]
nus to RewardAppropriated $100 million yearly for bonusesRepeals the bonus beginning in FY2006, andRepeals the bonus beginning in FY2005, and
uctions in Out-of-to the five states with the largest percentageuses the $100 million per year to fund grantsuses the $100 million per year to fund grants
dlock Birthsdecline (over recent two years) in the out-of-for marriage promotion activities (see Matchingfor marriage promotion activities. [Section
wedlock birth ratio. To qualify, states had toGrants for Marriage Promotion, below).103(b)]
iki/CRS-RL32834reduce their abortion rate to below that ofFY1995. [Section 403(a)(2) of the SSA][Section 103(b)]
s.orntingency FundCapped matching grants (maximum $2 billion)Appropriates such sums as are needed forAppropriates such sums as needed for
leakprovided in case of recession. To qualify forcontingency fund grants, up to $2 billion overcontingency fund grants, up to $2 billion over
contingency dollars, states must be “needy andfive years, FY2006-FY2010. To qualify forfive years, FY2006-FY2010. To qualify for
://wikimust spend under the TANF program a sum ofcontingency grants, a state must be “needy,contingency grants, states must be needy and
httptheir own dollars equal to their pre-TANFhave sufficiently low TANF balances, and havemust spend under the TANF program a sum of
spending. [Section 403(b) of the SSA]an increase in its assistance caseload of overtheir own dollars equal to their pre-TANF
5%. sp e nd i ng.
y State EligibilityThe law provides two needy state triggers: ( 1)To trigger on as needy, a state must (1) have anRetains current law needy state triggers, but
an unemployment rate for a three-month periodincrease (due in large measure to economicrevises the food stamp trigger, requiring that
that is at least 6.5% and is 10% or more aboveconditions) of 5% in the monthly averagethe FY1994-FY1995 caseload base be
the rate for the corresponding period in eitherunduplicated number of families receivingreadjusted for policy changes made after
of the two preceding calendar years; or (2) aassistance under its TANF program in the mostpassage of 1996 welfare law. [Section 106(c)]

food stamp caseload increase of 10% over therecently concluded three-month period with
FY1994-FY1995 level (adjusted for the impactdata, compared with the corresponding period
of immigrant and food stamp constraints in thein either of the two most recent preceding fiscal
1996 welfare law). [Section 403(b)(5) of theyears, and (2) meet one of three other
SSA]conditions. They are: (a) for the most recent
three-month period with data, the average rate
of seasonally adjusted total unemployment
must be at least 1.5 percentage points or 50%
higher than in the corresponding period in
either of the two most recent preceding fiscal
years; (b) for the most recent 13 weeks with

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
data, the average rate of insured unemployment
must be at least one percentage point higher
than in the corresponding period in either of the
two most recent fiscal years; or, (c) for the most
recently concluded three-months with national
data, the monthly average number of food
stamp recipient households, as of the last day of
each month, must exceed by at least 15% the
corresponding caseload number in the
comparable period in either of the two most
iki/CRS-RL32834recent preceding fiscal years, provided the HHSSecretary and the Secretary of Agriculture
g/wagree that the increased caseload was due, in
s.orlarge measure, to economic conditions rather
leakthan to policy change. A state that initially
://wikiqualifies as needy because of its TANFcaseload plus its food stamp caseload would
httpcontinue to be considered needy as long as the
state met the original qualifying conditions. A
state that initially qualified as needy because of
its TANF caseload plus its total or insured
unemployment rate would not trigger off until
its unemployment rate fell below the original
qualifying level (disregarding seasonal
variations in the case of the insured
unemployment rate). [Section 106(b)]
ncial EligibilityBefore drawing contingency grants, a stateEliminates the requirements that a state spendRetains current law requirements that states
quirementsmust expend within the TANF program 100%100% of what it spent in FY1994 and provideexpend 100% of what they spent on TANF
of what it spent on TANF predecessormatching funds. Instead, requires that unspentprecessor programs in FY1994 and provide
programs in FY1994. Both TANF spendingbalances be 30% or less of cumulative TANFmatching funds. Allows states to count
and FY1994 base spending exclude child caregrants to be eligible for contingency funds.spending in separate state maintenance of effort
expenditures. States then must provide[Section 106(b)]programs toward these spending requirements.
matching funds to draw down contingencyState child care spending also would count
grants (see Contingency Grant Amounts,toward this requirement, but would also be
below). [Section 403(b)(5) and Sectionadded to base FY1994 spending. [Section
409(a)(10) of the SSA]106(d) and 106(e)]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
ntingency Fund GrantPayments are capped at 20% of a state’s basicA state’s total contingency grant could notRetains current law's 20% maximum grant,
ountsTANF grant. A maximum advance grant ofexceed 10% of its family assistance grant. Theadvance grant, and annual grant based on the
one-twelfth of its total maximum grant iscontingency fund grant equals the state’sMedicaid matching rate times expenditures
allowed in a given month. [Section 403(b)(3)]federal Medicaid matching rate times themade in excess of 100% of the FY1994 level.
benefit cost of an increase in the TANF familyEliminates the proration of the annual grant for
A states annual contingency fund grant amountcaseload above 5% in the most recentlypart-year eligibility for contingency funds.
is the Medicaid matching rate timesconcluded three-month period with data,[Section 106(d)]
expenditures it made in excess of 100% ofcompared with the corresponding period in
FY1994 expenditures. This annual amount iseither of the two most recent preceding fiscal
prorated for the number of months the state isyears. (The remaining cost of the increased
iki/CRS-RL32834eligible for continency grants. If a statereceived advance grants that are greater thancaseload would have to be paid with state fundsor other federal TANF funds.) [Section 106(a)]
g/wthe annual amount for which it is entitled, the
s.orstate must remit any excess back to the federal
leakTreasury. [Section 403(b)(6)]
://wikial Eligibility forNo provision. Tribes are not eligible forSets aside $25 million of the contingency fundNo provision (retains current law).
httpntingency Fundscontingency fund.appropriation for grants to Indian tribes withapproved tribal TANF plans. The Secretary of
HHS, in consultation with tribes, shall
determine the criteria for access to the fund.
[Section 106(a)]
ditional Grants
cial ServiceNo provision.Authorizes appropriation of $40 million forNo provision.

pitalizationeach of FY2006-FY2010 for grants to entities
for the purpose of capitalizing and developing
the role of sustainable social services needed
for success in moving TANF recipients to
work. Requires applicants to describe their
strategy for developing a program that
generates its own source of on-going revenue
while assisting TANF recipients.
Administrative costs could not exceed 15%
(except for computerization and information
technology needed for tracking or monitoring
required by TANF), but none of the other

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
statutory rules regarding use of TANF funds
would apply. Requires evaluation and report to
Congress. [Section 119(a)]
r Ownership GrantsNo provision.Authorizes appropriation of $25 million forNo provision.
each of FY2006-FY2010 for grants for low-
income car ownership. Purposes: to improve
employment opportunities of low-income
families and provide incentives to states, Indian
tribes, localities, and nonprofit groups to
develop and administer programs that promote
iki/CRS-RL32834car ownership by low-income families. No
g/wmore than 5% of the funds could be used for
s.oradministrative costs of the Secretary in carrying
leakout this program. Requires evaluation.
[Section 119(b)]
httpansitional Jobs/businessNo provision.Authorizes appropriations of $200 million forNo provision.

ks Grantseach of FY2006-FY2010 for business links and
transitional jobs programs. Grants are to be
awarded jointly by the Secretaries of HHS and
Labor to fund programs to promote “business
linkages” and the “transitional jobs.” Business
linkages are programs designed to improve the
wages of eligible individuals by improving jobs
skills in partnership with employers and
providing supports and services at or near the
worksite. Eligible grantees are private
organizations, local workforce investment
boards, states, localities, Indian tribes, and
employers. Individuals eligible to be served by
these programs are TANF recipients, former
recipients, individuals with a disability, or
noncustodial parents having difficulty in paying
child support obligations who also have limited
proficiency in the English language or other
barriers to employment.

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
Transitional jobs programs combine
subsidized, time-limited, wage-paying
supported work in the public or nonprofit
sectors with skill development and activities to
remove barriers to employment. Eligible
grantees are private organizations, local
workforce investment boards, states, localities,
and Indian tribes. Individuals eligible to be
served by these programs are TANF recipients,
former recipients, individuals with a disability,
iki/CRS-RL32834or noncustodial parents having difficulty inpaying child support obligations who also have
g/wlimited proficiency in the English language or
s.orother barriers to employment.
://wikiRequires a minimum of 40% of fundsappropriated be used for business linkages and
httpalso a minimum of 40% be used for transitional
jobs. Benefits and services provided under
these programs are not considered assistance.
The bill also requires an evaluation, and sets
aside $3 million for the Secretaries to produce
assessments of these programs. [Section
estic ViolenceNo provision.Authorizes $20 million per year for FY2006No provision.

evention Grantsthrough FY2010 for competitive matching
grants (at a 75% federal matching rate) to
states, Indian tribes, and tribal organizations for
the development and dissemination of best
practices for addressing domestic violence;
implementing voluntary skills programs,
including caseworker training, technical
assistance, and voluntary services for victims of
domestic violence; programs of relationship
and financial management skills; and broad-
based income support as a means to reduce

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
domestic violence. Grantees must consult with
organizations with demonstrated expertise in
providing aid to victims of domestic violence.
Requires the Secretary of HHS to evaluate
activities under this grant. [Section 114(e)]
peal of Federal LoanProvides a $1.7 billion revolving and interest-Repeals the loan fund. [Section 108]Same as S. 667. [Section 108]
bearing federal loan fund for state welfare
programs. [Section 406 of the SSA]
iki/CRS-RL32834aintenance of EffortEstablishes a maintenance-of-effort (MOE)requirement that states spend at least 75% ofContinues MOE requirement through FY2010,but raises the MOE percentage to 80% if theSame as S. 667. [Section 111]
g/wwhat was spent from state funding in FY1994state failed TANF work participation standards
s.oron programs replaced by TANF. Nationally,of the preceding fiscal year. [Section 111(a)]
leakthis sum is $10.4 billion. (MOE rises to 80% if
state fails a work participation standard; see
://wikiabove.) [Section 409(a)(7) of the SSA]
Defines state expenditures to reduce out-of-Defines all state expenditures to reduce out-of-
wedlock births and promote marriage andwedlock births and promote marriage and
responsible fatherhood (including spending onresponsible fatherhood (including spending on
behalf of non-needy families) as countablebehalf of non-needy families) as countable
toward required MOE state spending. Subjectstoward required MOE state spending. [Section
this spending to two requirements applicable to103(c)]
MOE funds: (1) for activities not a part of the
pre-1996 welfare program, expenditures must
be above FY1995 levels to be countable toward
the MOE; and (2) expenditures used to
compensate for federal penalties are not
countable toward the MOE. [Section 103(d)]
TANF funds used as the state match forProvides that spending (as the state match)
marriage promotion grants shall not befrom federal marriage promotion grants shall
considered state spending countable toward thenot be treated as state spending toward MOE
MOE requirement. [Section 103(b)].requirements. [Section 111(b)]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
for Child CarePRWORA created a mandatory child care blockFor mandatory child care, increases funding byFor mandatory child care, increases funding by
grant and appropriated $13.9 billion for it over$6 billion over five years (FY2006-FY2010).$1 billion over five years (FY2006-FY2010).
six years. [Section 418 of the SSA][Section 116(a)][Section 208]
to RicoPuerto Rico and the territories do not qualifySets aside 1.5% of supplemental mandatoryNo provision.
for mandatory child care funds. (Funding forfunding for the Commonwealth of Puerto Rico
child care is available from TANF and Sectionand 0.5% for the other territories. [Section
1108(b) funds).116(b)]
f Funds
iki/CRS-RL32834l RulesStates may use funds in any manner reasonablycalculated to accomplish the TANF purpose.No provision (maintains current law).Same as S. 667. (No provision, retains currentlaw.)
g/w[Section 404 of the SSA]
leakStates may use funds in any manner that theyNo provision (maintains current law).States may use funds for any purposes or
were authorized to use pre-TANF funds.activities for which they were authorized to use
://wiki[Section 404 of the SSA]pre-TANF funds. [Section 107(a)]
httpA state may treat a family that has resided inStrikes provision permitting different treatmentSame as S. 667. [Section 107(b)]
the state for fewer than 12 months under theof families migrating into the state — found
welfare rules of the state where they formerlyunconstitutional. [Section 107(a)]
lived. [Section 404 of the SSA]
ansfer of fundsStates may transfer up to 30% of TANF fundsRetains overall transfer limit at 30%. Sets limitIncreases the overall ceiling on transfers to
to the Child Care and Development Blockon SSBG transfers at 10% (original limit in50%. [Section 107(c)] Sets limit on SSBG
Grant (CCDBG) and the Title XX Social1996 law). [Section 107(b)]transfers at 10% for FY2006 and each year
Services Block Grant (SSBG). Specifies that athereafter. [Section 107(d)]

maximum of 4.25% of total transfers may go to
SSBG, effective in FY2001 (but year-by-year
Congress has restored the original 10% limit).
Also allows states to use TANF funds, within
the overall 30% transfer limit, as matching
funds for the job access transportation program
for TANF recipients, ex-recipients, and persons
at risk of becoming income-eligible for TANF.
[Section 404 of the SSA]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
rryover of FundsAmounts may be spent without fiscal year limitAllows use of carryover funds from TANFSame as S. 667. [Section 107(e)]
for assistance” (chiefly ongoing cash aid). Forgrants for any benefit or service without fiscal
other benefits and services (“nonassistance”)year limitation. Permits a state or tribe to
amounts must be obligated in the year of awarddesignate some TANF funds as a contingency
and spent in the following year. [Section 404reserve. [Section 107(c)]
of the SSA]
f Funds forStates may use funds for educational activitiesAllows states to use TANF funds to establish anNo provision.
ucation(to promote a TANF goal or because theseundergraduate two- or four-year degree
activities were allowed under pre-1996 law).postsecondary program sometimes known as
However, only three educational activities mayParents as Scholars (PAS) or a vocational
iki/CRS-RL32834be counted toward state work participationeducational program. Following services could
g/wrates: high school attendance, educationbe provided in these undergraduate programs:
s.ordirectly related to work (both for high schoolchild care, transportation, payment for books
leakdropouts only) and vocational educationaltraining. Unless it is defined by the state asand supplies, other services provided underpolicies determined by the state to ensure
://wikivocational educational training, postsecondaryeducation is not a countable work activity.coordination and lack of duplication.Participants who are also TANF cash assistance
http[Section 407(d) of the SSA]recipients in these educational programs could
be counted toward state work participation
standards. See Countable Activities. [Section
andAllows Indian tribes to administer their ownContinues the authority for tribes to operateSame as S. 667. [Section 114(a)]
inistration by Indianfamily assistance (TANF) programs. EarmarksTANF programs through FY2010. [Section
ibessome TANF funds — amount equal to federal113(a)]
pre-TANF payments received by state
attributable to Indians — for administration by
tribes at their option. Sums used for tribal
family assistance programs are deducted from
state TANF grants. [Section 412(a) of the
ibal Work ProgramsAppropriates $7.6 million annually for workProvides $12.6 million annually for NEWExtends the authority and funding for NEW
and training activities (now known as Nativeprograms through FY2010. [Section 113(a)]programs at current levels ($7.6 million
Employment Works (NEW)) to tribes thatannually) through FY2010. [Section 114(b)]

operated a pre-TANF work and training
program. [Section 412(b) of the SSA]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
Tribes operating NEW programs may
incorporate these services into a plan under the
Indian Employment, Training and Related
Services Demonstration Act of 1992. This
permits the tribe to use a single plan, budget,
and reporting format for services incorporated
into the plan. [Section 113(c)]
ibal Capacity GrantsNo provision.Appropriates $80 million for the periodNo provision.
FY2006-FY2010 for a tribal TANF
iki/CRS-RL32834improvement fund. The fund could be used toprovide technical assistance to tribes, award
g/wcompetitive grants to tribes, and conduct
s.orresearch to improve knowledge about tribal
leakfamily assistance plans. [Section 113(b)]
://wikirk Participation Requirements and Standards
iversal EngagementState plan must require that a parent orRepeals the 24-month work trigger. RequiresSame as S. 667. [Section 109(a)]
amily Self-caretaker engage in work (as defined by thestate plans to outline how they intend to require
ficiency Planstate) after, at most, 24 months of assistance.parents and caretakers to engage in work or
ents[Section 402(a)(1)(ii) of the SSA]. Note: Thisalternative sufficiency activities, as defined by
requirement is not enforced by a specificthe state while observing the ban on
penalty. (States may, but need not, establish anpenalizing work refusal by a single parent of a
individual responsibility plan for each family inpreschool child who is unable to obtain needed
consultation with the recipient.) [Sectionchild care for specified reasons — and to
408(b)(2) of the SSA]require families to engage in activities in
accordance with family self-sufficiency plans.
[Section 110(a)]
States must make an initial assessment of theRequires states to make an initial screening andRequires states, in a manner they deem
skills, prior work experience, and employabilityassessment, in a manner they deem appropriate,appropriate, to assess the skills, work
of each recipient 18 or older or those who hasof the skills, work experience, education, workexperience, and employability of each work-
not completed high school within 30 days.readiness, work barriers and employability ofeligible person (see definition below) and
[Section 408(b)(1) of the SSA]each adult or minor child head of householdrequires states to develop a family self-
recipient who has attained age 18 or who hassufficiency plan for each family with such a
not completed high school and to assess, in aperson. Plans must be established within 60

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
manner they deem appropriate, the workdays of opening a case (within 12 months for
support and other assistance and family supportfamilies enrolled at the time of enactment).
services for which families are eligible and the[Section 109(b)]

well-being of the familys children and, where
appropriate, activities or resources to improve
their well-being. Requires states, in a manner
they deem appropriate, to establish a self-
sufficiency plan for each family.
Required plan contents: activities designed
iki/CRS-RL32834to assist the family achieve their maximumdegree of self-sufficiency; requirement that the
g/wrecipient participate in activities in accordance
s.orwith the plan; supportive services that the state
leakintends to provide; steps to promote child well-
://wikibeing and, when appropriate, adolescent well-being; information about work support
httpassistance for which the family may be eligible
(such as food stamps, medicaid, SCHIP, federal
or state funded child care — including that
provided under the Child Care and
Development Block Grant and the Social
Services Block Grant, EITC, low-income home
energy assistance, WIC, WIA program, and
housing assistance). The state must monitor the
participation of adults and minor child
household heads in the self-sufficiency plans
and regularly review the 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

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
within one year after enactment (for families
then receiving TANF). For families not
enrolled on the date of enactment, the deadline
for self-sufficiency plans is the later of 60 days
after the family first receives assistance on the
basis of its most recent application, or one year
after enactment. Provides that nothing in the
self-sufficiency plan provisions shall be
construed to establish a private right or cause of
action against a state for failure to comply with
iki/CRS-RL32834the provisions or to limit claims that might beavailable under other federal or state laws.
g/wRequires the Government Accountability Office
s.orto submit a report to the Ways and Means and
leakFinance Committees evaluating the
://wikiimplementation of the universal engagementprovisions of the bill. [Section 110(a)]
Imposes a penalty on states for failure toImposes a penalty on state for failure to
establish self-sufficiency plans by revising theestablish self-sufficiency plan by revising the
penalty provision for failure to meet TANFpenalty provision for failure to achieve work
work participation standards. Provides failureparticipation standard. Provides failure to
to comply with self-sufficiency requirementscomply with self-sufficiency requirements
and/or achieve work participation standardsand/or achieve work participation standards
would result in a penalty of up to a 5%would result in a penalty of up to a 5%
reduction in the TANF grant for the firstreduction in the TANF grant for the first
violation (more for subsequent violations),violation (more for subsequent violations).
based on the degree of substantial(The bill does not contain the “substantial
noncompliance. The Secretary is directed tononcompliance” language of S. 667.) [Section
take various factors into account in setting the109(b)] See Penalty for Failing Participation
penalty. These factors include the number orRate, below.

percentage of families for whom a self-
sufficiency plan is not established in a timely
fashion, duration of delays, whether the failures
are isolated and nonrecurring, and the existence
of systems to ensure establishment and
monitoring of plans. Penalty may be reduced if

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
the failure is due to circumstances that caused
the state to meet the criteria for contingency
funds or is due to extraordinary circumstances
such as a natural disaster or regional recession.
Requires Secretary, in a written report to
Congress, to justify any waiver or penalty
reduction due to extraordinary circumstances.
[Section 110(a)]
nctions AgainstIf person in a family receiving TANF assistanceNo provision (maintains current law).If a person in a family receiving TANF
iki/CRS-RL32834iduals for Workl refuses to engage in required work, the stateshall reduce aid to the family pro rata (or more,assistance fails to engage in required activitiesand the family does not otherwise engage in
g/wat state option) with respect to the period ofactivities in accordance with its self-sufficiency
s.orwork refusal, or shall discontinue aid, subject toplan, the state must impose a penalty as
leakgood cause and other exceptions that the statefollows: (a) If the failure is partial and does not
://wikimay establish. [Section 407(e) of the SSA]last longer than one month, the state mustreduce assistance to the family pro rata (or
httpmore, at state option) with respect to any period
of failure during the month, or shall end all
assistance to the family, subject to good cause
exceptions that the state may establish; (b) If
the failure is total and persists for at least two
consecutive months, the state must end all cash
payments to the family, including state-funded
MOE payments, for at least one month and
thereafter until the person participates, subject
to good cause exceptions that the state may
establish. Exception: If a state constitution or
a state statute enacted before 1966 obligated
local government to provide assistance to needy
parents and children, the state has one year to
comply with this requirement. [Section 110(f)]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
Exception: a state may not penalize a singleNo provision (retains current law).Same as S. 667.
parent caring for a child under age 6 for refusal
to work if the parent has a demonstrated
inability to obtain needed child care that is
appropriate, suitable, and affordable. [Section
407(e) of the SSA]
rk ParticipationA state must engage a specified percentage ofA state must engage a specified percentage ofA state must engage a specified percentage of
andardsfamilies containing adult or teen parentfamilies containing adult or minor heads offamilies with a work-eligible person in direct
recipients in creditable work activities. Sincehouseholds in the assistance unit in creditablework or alternative self-sufficiency activities
iki/CRS-RL32834FY2002, the participation standard has been50% for all families (and since FY1999 it hasactivities. Participation standards are:chosen by the state. Participation standards aresame as S. 667. A work-eligible person is
g/wbeen 90% for the two-parent component of the50% in FY2006defined as a household head who is in the
s.orcaseload). [Section 407(a) of the SSA]55% in FY2007assistance unit, or would be in the unit if not
leak60% in FY2008sanctioned. [Section 110(b)]
://wiki65% in FY200970% in FY2010.
[Section 109(b)]
Required participation rates may be reduced byRequired participation rates may be reduced byRequired participation rates may be reduced by
a caseload reduction credit (see below).caseload reduction or employment credits, butcaseload reduction and “superachiever” credits
a cap is placed on these credits. Employment(see below).

credits (or caseload reduction credits or a
combination of the two) may not reduce
participation standards below:
10% in FY2006
20% in FY2007
30% in FY2008
40% in FY2009
50% in FY2010.
[Section 109(c)]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
Effective October 1, 2002, eliminates theEffective October 1, 2005, eliminates the
separate standard for two-parent families. Alsoseparate standard for two-parent families.
forgives states penalized for failing the two-[Section 110(a)]
parent standard in FY2002-FY2004. [Section
seload Reduction CreditWork participation standards are reduced by aRetains current law caseload reduction creditMeasures caseload reduction from a moving
caseload reduction credit: for each percentfor FY2006 and FY2007 (subject to the limitsbase year (rather than from FY1995) and
decline in the caseload from the FY1995 levelshown above). Effective October 1, 2007,shortens the measuring interval. Also changes
(not attributable to policy changes), the workreplaces the caseload reduction credit with anthe eligibility criteria base year from FY1995 to
iki/CRS-RL32834participation standard is reduced by onepercentage point. [Section 407(3) of the SSA]employment credit (subject to limits shownabove). [Section 109(d)]the new moving base. For FY2006, the creditis based on the percent decline in the caseload
g/wfrom FY1996 (not due to changes in eligibility
s.orcriteria from FY1996); for FY2007, the base
leakyear is FY1998; for FY2008, FY2001. For
://wikiFY2009 and every year thereafter, themeasuring interval is three years. [Section
http 110(c)]
No provision.Establishes a “superachiever” caseload
reduction credit for a state with a reduction in
FY2001 of at least 60% (for any reason) from
FY1995 level. Places a cap on this credit (20
percentage points for FY2008, lesser amounts
for earlier years). [Section 110(d)]
ployment CreditNo provision.Establishes a percentage point “employment”No provision.

credit against the work participation standard
(subject to limits described above). Essentially,
the credit equals a multiple of the percentage of
TANF families in a month who leave ongoing
cash assistance with a job. It is calculated by
dividing (a) twice the quarterly average
unduplicated number of families with an adult
or minor head of household recipient who
leaves welfare and was employed in the
following quarter; by (b) the average monthly

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
number of families with an adult or minor head
of household recipient who received assistance
during a recent four-quarter period. At state
option, calculations could include in the
numerator: (1) twice the quarterly average
number of families that received non-recurring
short-term benefits rather than ongoing cash
and who earned at least $1,000 in the quarter
after receiving the benefit, and (2) twice the
quarterly average number of families that
iki/CRS-RL32834included an adult who received substantial childcare or transportation assistance and earned at
g/wleast $1,000 in the quarter. If both these
s.oroptions were taken, the denominator would be
leakincreased by twice the number of families that
://wikireceived non-recurring short-term benefitsduring the year and by twice the quarterly
httpaverage number of families with an adult who
received substantial child care or transportation
assistance. In consultation with directors of
state TANF programs, the Secretary is to define
substantial child care or transportation
assistance, specifying a threshold for each type
of aid — a dollar value or a time duration. The
definition must take account of large one-time
transition payments. [Section 109(d)]
Gives extra credit as 1.5 families — to a
family whose earnings during the preceding
fiscal year equaled at least 33% of the state’s
average wage. [Section 109(d)]
Authorizes and requires the HHS Secretary to
use information in the National Directory of
New Hires to calculate state employment
credits. If the TANF leaver’s employer is not
required to report new hires, the Secretary must

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
use quarterly wage information submitted by
the state. To calculate employment credits for
families who received non-recurring short term
benefits and for those who received substantial
child care and transportation assistance, the
Secretary is to use other required data. By
August 31 of each year, the HHS Secretary
must notify each state of the amount of the
employment credit that will be used in
calculating participation rates for the
iki/CRS-RL32834immediately succeeding fiscal year. [Section109(d)]
s.orSets October 1, 2007 as the effective date for
leakreplacement of the caseload reduction credit by
://wikithe employment credit, but permits states tohave a one-year delay. If a state makes this
httpchoice, its adjusted work participation standard
for FY2008 shall be determined by using both
the caseload reduction credit and the
employment credit (one-half credit for each).
[Section 109(d)]
udy of the EmploymentNo provision.Requires the Secretary of HHS to conduct aNo provision.

ditstudy of the design of the employment credit
and report to the Senate Finance Committee
and House Ways and Means Committee by
September 30, 2009. [Section 109(d)]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
lculation ofThe monthly participation rate, expressed as aSimilar to current law, except that states areParticipation rates equal the share of hours
rticipation Ratespercentage, equals (a) the number of allgiven partial, full, or extra credit for familiesspent in creditable activities out of a potential
recipient families in which an individual isdepending on the average number of hours pertotal of 160 hours monthly per counted family.
engaged in work activities for the month,week in which they engage in activities. (SeeMonthly participation rate, expressed as a
divided by (b) the number of recipient familiesHours, below).percentage, is (a) the total number of countable
with an adult recipient or minor head ofhours, divided by (b) 160 times the number of
household. The annual participation rate,counted families for the month. [Section
which is compared against the participation110(b)]
standard, is the average of the monthly
participation rates. [SSA, Section 407(b)(1)]
iki/CRS-RL32834ant Exemption from theStates may exempt the parent of a child underPermits states to exclude all families withSimilar to S. 667, but does not include the 12-
g/wrk Participation Rateage 1 from work and exclude them from theinfants (not just single parent families) frommonth in a lifetime limit on this exclusion.
s.orcalculation of work participation rates.work participation calculations on a case-by-[Section 110(b)]
leakExclusion is limited to 12 months in a lifetime.case basis. Limits this exclusion to 12 months
://wiki[SSA, Section 407(b)(5)]in a lifetime. [Section 109(e)]
httpcluding Families inNo provision.Permits states to exclude a new group fromSimilar to S. 667, but does not specify that the
eir First Month ofwork participation calculations — families inexclusion is to be made on a case-by-case basis.
nce from the Workfirst month of assistance. Determination is[Section 110(b)]
rticipation Ratemade on a case-by-case basis. [Section 109(e)]
tment of SanctionedStates may exclude from the work participationNo provision, retains current law.Same as S. 667. [Section 110(b)]
milies in the Workrate calculation families subject to sanctions for
rticipation Raterefusal to comply with work requirements.
Exclusion is limited to three months in a 12-
month period. [Section 407(b)(1) of the SSA]
lty for FailingParticipation rates are enforced by a penalty onProvides that penalty (beginning for FY2007)No provision, retains current law.

rticipation Ratestates: loss of 5% of the state’s basic grant formust be based on the degree of substantial
first year of violation (higher penalty for repeatnoncompliance. Directs the Secretary to take
violations). Penalty must be based on theinto account factors such as the degree to which
degree of noncompliance and may be reducedthe state missed the participation rate, the
if the noncompliance is due to circumstanceschange in the number of persons engaged in
that made the state needy under the contingencywork since the prior year, and the number of
fund definition or due to extraordinaryconsecutive years in which the state failed to
circumstances such as a natural disaster orachieve the work rate. Penalty may be reduced

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
regional recession. State must replace theif the failure is due to circumstances that caused
amount of federal penalty funds with its ownthe state to meet the criteria for contingency
funds. [Section 409(a)(3) of SSA] In addition,funds or is due to extraordinary circumstances
the state’s MOE spending requirement risessuch as a natural disaster or regional recession.
from 75% to 80% of its historic level.Requires Secretary, in a written report to
Congress, to justify any waiver or penalty
reduction due to extraordinary circumstances.
[Section 110(a)]
States that fail to meet work participationIf the Secretary accepts a state’s correctiveNo provision.
iki/CRS-RL32834standards may file a corrective compliance planwith the Secretary of HHS. The correctivecompliance plan for failure to meet workparticipation standards and the state has at least
g/wcompliance plan outlines what the states will doa 5 percentage point improvement in its work
s.orto correct or discontinue its failure to meet theparticipation rate over the previous year, the
leakstandards. The Secretary may not impose theSecretary shall not impose a financial penalty
://wikipenalty if the state corrects the violation of thework standards. [Section 409(c) of the SSA]on the state. [Section 111(b)]
untable Activities
ore” Activities. Federal law lists nine priority activities thatRetains current law list of nine priorityLists sixdirect” work activities:
untable asmust account for most weekly hours:activities as “direct work” activities.-unsubsidized jobs;
le or Primary Work-unsubsidized jobs;-subsidized private jobs;
f Recipients.-subsidized private jobs;-subsidized public jobs;
-subsidized public jobs;-on-the-job training;
-work experience-supervised work experience, and
-on-the-job training; -supervised community service.
-job search (usual limit, six weeks per fiscal
year)[Section 110(e)]

-community service;
-vocational educational training (limited to
12 months in a lifetime);
-providing child care for participants in
community service programs.
[Section 407(d) of the SSA]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
lified Activities. No provision.For three months in a 24-month period, sevenFor three months within a 24-month period,
t Mayadditional activities may be substitute for, or bepersons participation in short-termqualified
stitute for, or be inin conjunction with, direct work activities:activities chosen by the state to promote self-
njunction with, Core-postsecondary education;sufficiency may substitute for or be in
or a Limited-adult literacy programs or activities;conjunction with direct work activities
iod of Time.-substance abuse counseling or treatment(examples listed in the bill are substance abuse
(including drug or alcohol abuse counselingcounseling or treatment; rehabilitation
or treatment);treatment and services; work-related education
-programs or activities designed to removeor training directly enabling the family member
work barriers, as defined by the state;for work; and job search or job readiness
iki/CRS-RL32834-work activities authorized under any waiverfor any state that was continued underassistance). [Section 110(e)]
g/wSection 415 before the date of enactment of
s.orthis bill;
leak-money management classes; and
://wiki-parenting skills classes.
http[Section 109(c)]
plemental Activities. For most recipients, hours of participation inRetain current law list of three supplementalStates may define any other activity as
untablethese activities are countable only inactivities, and adds: marriage education,countable (generally for non-core hours) so
lly Only inconjunction with participation in prioritymarriage skills training, conflict resolution, andlong as it leads to self-sufficiency and is
njunction with “Core”activities (and with a minimum number ofprograms to promote marriage. [Sectionconsistent with the purposes of TANF.
Qualified Activities.hours in priority activities). Federal law lists109(g)] Also permits states to count all[Section 110(e)]

three such activities:qualified activities” (see above), as well as job
search and vocational educational training
--job skills training directly related to(beyond the usual time limits) as supplemental
employment;activities once a family has the minimum
--education directly related to employment;number of hours ofdirect work” participation.
and[Section 109(g)]
--progress toward completion of secondary
[Section 407(d) of the SSA] See Required
Hours of Work, below.

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
tsecondary EducationNo provision. Postsecondary education notThree months of postsecondary education isNo provision. However, postsecondary
classified asvocational educational training”countable as a qualified activity” (see above).education may be a state-defined “qualified” or
is not countable toward TANF worksupplemental” activity.

participation standards.Allows states to establish a program (under
Section 107) of undergraduate postsecondary
education (parents as scholars) or vocational
educational training for TANF recipients,
former recipients, and other low income
parents. For TANF recipients, hours of
participation in the program would be
iki/CRS-RL32834countable toward meeting state workrequirements. Students could also receive
g/wcredit for hours spent in one of the nine direct”
s.orwork activities of current law or in work study,
leakpracticums, internships, clinical placements,
://wikilaboratory or field work, or other activities thatwould enhance their employability, as
httpdetermined by the state, or in study time (at the
rate of not less than one hour for every hour of
class time and not more than two hours for
every hour of class time). Students’ total time
in education, core work, work study, laboratory
or field work, study time, etc., would be
countable against hours requirements. Also,
students could be credited as one working
family if, in addition to complying with the
full-time educational participation requirements
of their educational program, they engaged in
one of the countable work activities above for
at least the following number of hours: six
hours weekly in the first year, eight hours in the
second year, 10 hours in the third year, and 12
hours in the fourth and any later year. For good
cause, states could modify these hour
requirements. To be eligible for these
programs, recipients would be required to
maintain satisfactory academic progress (as

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
defined by the institution operating the
program). With good cause exceptions,
participants would be required to complete
requirements of a degree or vocational
educational training program within the normal
time frame for full-time students. [Section
ules forNo provision.Recipients engaged in qualified activitiesNo provision.
bilitative Activitiesconsidered rehabilitative (adult basic education,
iki/CRS-RL32834or substance abuse treatment) for three months,may have an additional three months (known as
g/wthe 3+3 program) of participation in those
s.oractivities counted if combined with direct work
leakactivities. [Section 109(f)]
://wikiAdditionally, if a recipient has treatment of
httpdisabilities or substance abuse in her family
self-sufficiency plan and the state has
developed collaborative relationships with
rehabilitation agencies, the recipient may
continue to have participation in such activities
countable without time limit if combined with
a minimum of 10 hours of participation in a
direct work activity. [Section 110(b)]
ring for a DisabledNo provision.Permits a state to deem a single parent caringNo provision.
mily Memberfor a dependent with a physical or mental
impairment to be meeting all or part of the
familys work requirement. [Section 109(f)]
rk Activities in IndianNo provisions.Permits a state to define countable workNo provision.

eas of High Joblessnessactivities for persons complying with a family
self sufficiency plan and living in areas of
Indian country or an Alaskan native village
with high “joblessness.” To qualify for this

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
option, the state must include in its TANF plan
a description of its policies for these areas.
Also, as noted above, allows states to define
work-barrier removal activities and to adopt
activities authorized under any waiver for any
state that was continuing before the date of
enactment. [Section 109(f)]
erical Limits onNo more than 30% of persons credited withContinues the 30% cap, but provides that itNo provision.
iki/CRS-RL32834cational Education andwork may consist of persons participating indoes not apply to persons in a 3+3 program
g/wentsvocational educational training or may be teenreceiving qualified rehabilitative services or to
s.orparents who are deemed to be working becausepersons engaging in vocational educational
leakof satisfactory attendance at secondary schooltraining as a supplementary activity after
or because of spending 20 hours weekly inmeeting the 24-hourdirect workrequirement.
://wikieducation directly related to employment. [Section 109(f)]
http[Section 407(c)(2)(D) of SSA]
ours of WorkGenerally, to count toward the all-family rate,Establishes standard TANF work weeks asEstablishes a 160-hour-per-month work
ityaverage weekly participation of 30 hours (20follows: 24 hours for a single parent with astandard. [Section 110(b)]
hours in priority work activities) is required.child under age 6; 34 hours for a single parent
However, in the case of single parents with awith a child over 6 (with 24 hours in a priorityGenerally, states must engage all families with
preschool age child (who constitute half of allactivity) 39 hours for a two-parent family (buta “work- eligible” member in a direct work
TANF cases), the hours requirement is 20 per55 hours if that family receives federallyactivity or alternative self-sufficiency activity
week. For two-parent families the standard isfunded child care) — with most hours in afor an average of 40 hours weekly (the actual
35 hours (30 in priority work activity), butpriority activity. Families meeting the standardstandard is 160 hours per month, equal to a
increases to 55 hours (50 in priority activities)are counted as one family in calculating theweekly average of 37 hours) — of which 24
if the family receives federally-subsidized childstate’s work participating rate. Thosehours must be in one of the direct work
care. [Section 407(c)(1) of the SSA] For aexceeding the standard receive extra credit, andactivities listed in the law and up to 16 hours
single parent caring for a child under age 6, 20some who fall short of the standard receivemay be in a TANF-purposeful activity chosen
hours of participation satisfies the standard.partial credit (see below). Average weeklyby the state. [Section 110(e)]

[Section 407(c)(2)(B) of the SSA]hours are computed by dividing monthly hours
of participation by 4. [Section 109(f)]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
ule for TeenTeen parents are deemed to meet the weeklyCounted as one working family is a teen parentEssentially the same as current law. Teen
entshour participation standard by maintainingwho maintains satisfactory school attendance orparents are deemed to satisfy the (40-hour
satisfactory attendance in secondary school (orparticipates in education directly related toweekly) work rule by virtue of satisfactory
the equivalent in the month) or by participatingemployment for an average of 20 hours weekly.school attendance (or the equivalent in the
in education directly related to employment for[Section 109(f)]month) or by participating in education directly
an average of 20 hours weekly. [Sectionrelated to employment for an average of 20
407(c)(2)(C) of the SSA]hours weekly [Section 110(e)].
rtial Work CreditNone.Families who meet core work requirements butFamilies who meet the 24-hour weekly direct
iki/CRS-RL32834fail the full standard receive partial credit aswork requirement but fail the 40-hour standard,
g/wfollows: Credited as .675 of a family are singlereceive pro-rata credit for all hours worked (but
s.orparent families (with or without a child underzero credit unless meet the 24-hour direct work
leaksix) who have 20-23 hours of work and two-rule). [Section 110(b)]
parent families with 26-29 hours of work (40-
://wiki44 hours if they receive federally subsidized
httpchild care). Counted as .75 of a family are
single parent families without a preschool child
who work 24-29 hours and two-parent families
with 30-34 hours (45-50 if they receive child
care). Counted as .875 of a family are single
parent families without a preschool child who
work 30-33 hours and two-parent families who
work 35-38 hours (51-54 hours if they receive
child care). [Section 109(f)]
tra Work CreditNone.Families that exceed the standard hourly workCounts all hours worked above the 40-hour full
requirement receive extra credit, as follows.weekly standard, provided 24 hours are spent in
Credited as 1.05 of a family are single-parentdirect work (or, for a limited time, in certain
families who work 35-37 hours and two-parentother qualified activities) and no more than 16
families who work 40-42 hours (56-58 hours ifhours are in non-priority activities. [Section
they receive child care). Credited as 1.08 of a110(c)]

family are single-parent families who work 38

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
or more hours and two-parent families who
work 43 or more hours (59 or more hours if
they receive child care). [Section 109(f)]
ents with Respect to Families Receiving Assistance
TestingStates are given the authority to test welfareNo provision (retains current law).States are required to test applicants and
recipients for use of controlled substances andrecipients of TANF for use of drugs if the state
sanction recipients who test positive forhas a reason to believe he or she has recently
iki/CRS-RL32834controlled substances. [Section 902 of thePersonal Responsibility and Work Opportunityused a controlled substance. If the applicant orrecipient tests positive for drug use, or if the
g/wReconciliation Act.]state otherwise determines that he or she has
leakrecently used drugs, the state must ensure that
the family self-sufficiency plan addresses the
://wikiuse of the substance; suspend cash assistance to
httpthe family until a subsequent test shows no drug
use; and require the applicant or recipient to
undergo periodic drug tests (every 90 or 60
days) as a condition of receiving cash
Requires states to end benefits to the family for
three years if the recipient fails the drug test at
least three consecutive times (states may set a
laxer requirement, allowing failure of the drug
test for up to six consecutive times).
The Secretary of HHS is required to penalize a
state that does not comply with this
requirement. The penalty is a minimum of 5%
of the state’s block grant, and a maximum of
10% of the state’s block grant, with the

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
Secretary determining the exact penalty
amount. [Section 123]
ibility for TeenFederal TANF funds cannot be used to assist anPermits states to use federal TANF funds toNo provision (retains current law).
unmarried teen parent (under the age of 18)assist an unmarried teen parent for up to 60
who does not reside in the home of her parentsdays. Adds transitional living youth projects to
or in another adult supervised setting. Thethe accepted living situations for a teen parent
State must assist such a teen parent in locatingreceiving TANF assistance. [Section 110(b)]
a second chance home, maternity home, or
iki/CRS-RL32834other appropriate adult-supervised supportive
g/wliving arrangement unless the state determines
s.orthat the individual’s living arrangement is
://wikiplacement of RegularA recipient may fill a vacant employmentProvides that an adult recipient cannot displaceNo provision (retains current law).

httpersposition. However, no adult in a work activityany employee or position (including partial
that is funded in whole or in part by federaldisplacement), fill any unfilled vacancy, or
funds may be employed or assigned whenperform work when any individual is on layoff
another person is on layoff from the same orfrom the same job or substantially equivalent
any substantially equivalent job, or if thejob. TANF work activities cannot impair
employer has ended the employment of anyexisting contracts or services; be inconsistent
regular employee or otherwise caused anwith any law, regulation, collective bargaining
involuntary reduction in its workforce in orderagreement; or infringe on the recall rights or
to fill a vacancy with a TANF recipient. Thesepromotional opportunities of any worker.
provisions do not preempt any provision ofTANF work activities must be in addition to
state or local law that provides greaterany activity that would otherwise be available
protection against displacement. States areand not supplant the hiring of a non-TANF
required to have a grievance procedure toworker.
resolve complaints of displacement of
permanent employees.Requires states to have a grievance procedure
for resolving complaints, including the
opportunity for a hearing, and sets time

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
standards for the process. It provides remedies
for a violation of the non-displacement
provisions, including termination and
suspension of payments, prohibition on
placement of the participant, reinstatement of
the employee, or other relief to make the
aggrieved employee whole. These provisions
do not preempt or supersede any state or local
law that provides greater protection. [Section
iki/CRS-RL32834 119(c)]
s.orard of MonthsFederal TANF grants may not be used to aid aModifies this exclusion, providing that monthsNo provision (retains current law).
leakward the TANF Timefamily with an adult who has received 60in which an adult lives in Indian Country with
it for Months Livingmonths of assistance. Months in which an adulta jobless rate among adult recipients of 40% or
://wikin Country Areaslives in Indian Country with a jobless rate ofmore are not countable toward the time limit.
httpth Joblessness50% or more are not counted toward the 60The 40% threshold is dropped down to 35% if
month time limit.the state meets any of the needy state criteria
under the contingency fund or if the tribe meets
criteria for contingency funds. Modifications
do not apply to Alaska. [Section 110(c)]
arriage Promotion
NF Goals and PurposesTwo purposes relate to marriage. One goal is toThe stated purpose of promoting the formationThe stated purpose of promoting the formation
end dependency of needy parents onand maintenance of two-parent families isand maintenance of two-parent families is
government benefits, with one of the statedmodified to read: encourage the formation andmodified to read: encourage the formation and
means of accomplishing the goal specified asmaintenance of healthy two-parent marriedmaintenance of healthy, two-parent married
marriage. A second purpose is to encourage thefamilies, and encourage responsiblefamilies, and encourage responsible
formation and maintenance of two-parentfatherhood. [New language in italics] [Sectionfatherhood. [Section 101]

fa milies. 103(e)]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
for MarriageNo provision for special grants. States may useAppropriates $100 million annually for FY2006Appropriates $100 million annually for FY2005
omotion MatchingTANF block grants to promote formation andthrough FY2010 for 50% competitive matchingthrough FY2010 for 50% competitive matching
antsmaintenance of two-parent families (programgrants to states, Indian tribes, and tribalgrants to states, territories, and tribal
goal no. 4) and to promote marriage as a meansorganizations for programs to promote andorganizations for programs to promote and
of ending dependence on government benefitssupport healthy married two-parent families.support healthy, married two-parent families
(goal no. 2).[Section 103(b)]Similar to S. 667, but does not include “Indian
tribes” as a potential grant recipient. [Section
iki/CRS-RL32834Makes funds appropriated for each of FY2006Makes funds appropriated for FY2005 available
g/wthrough FY2010 available to the Secretary untilto the Secretary through FY2006. [Section
s.orexpended. Also, permits grantees to use funds103(b)]
leakwithout fiscal year deadline. [Section 103(b)]
://wikiProvides that federal TANF funds used forProvides that federal TANF funds used for
httpmarriage promotion may be treated as statemarriage promotion must be treated as state
matching funds for marriage promotion grantsmatching funds for marriage promotion grants.
[Section 103(b)][(Section 111(b)(1)] See Maintenance of
Effort for treatment of TANF spending on
behalf of marriage promotion. [Section 103(c)]
Provides that general rules governing uses ofNo provision.
TANF block grant funds (other than
administrative limit) shall not apply to marriage
promotion grants. [Section 103(b)]
wable Activities forNo provision. (TANF and MOE funds may beGrants may be used for: advertisingGrants may be used for: advertising
riage Promotionused for marriage promotion activities.)campaigns; education in high schools;campaigns; education in high schools; marriage
ntsvoluntary marriage education, marriage skillseducation, marriage skills and relationship
and relationship skills programs that mayskills programs that may include parenting
include parenting skills, financial management,skills, financial management, conflict
conflict resolution, and job and careerresolution, and job and career advancement for
advancement for non-married pregnant womennon-married pregnant women and expectant

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
and expectant fathers; voluntary pre-maritalfathers; pre-marital education and marriage
education and marriage skills training forskills training for engaged couples and
engaged couples and individuals and couplesindividuals and couples interested in marriage;
interested in marriage; voluntary marriagemarriage enhancement and marriage skills
enhancement and marriage skills trainingtraining programs for married couples; divorce
programs for married couples; voluntaryreduction programs; marriage mentoring
divorce reduction programs; voluntary marriageprograms; programs to reduce marriage
mentoring programs; programs to reducedisincentives in means-tested programs, if
marriage disincentives in means-testedoffered in conjunction with any other listed
iki/CRS-RL32834programs, if offered in conjunction with anyactivity. [Section 103(b)]
g/wother listed activity. [Section 103(b)]
leakestic ViolenceNo provision.Forbids award of a grant unless the applicantNo provision.
visionshas consulted with organizations that have
://wikidemonstrated expertise in working with
httpsurvivors of domestic violence; the application
describes how the program/activities will deal
with issues of domestic violence; establishes
written protocols that provide for the
identification of instances and risks of domestic
violence; specifies procedures for making
service referrals and providing protections.
[Section 103(b)]
quirements forNo provision.Requires that participation in marriageNo provision.

luntary Participationpromotion activities (other than media
campaigns and high school education) is
voluntary. Requires that the application for the
grant describe what the grantee will do to
ensure that participation in programs and
activities is voluntary.

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
States, Indian tribes, or tribal organizations that
carry out marriage promotion activities are
required to assure the Secretary of HHS that
recipients who elect to participate in marriage
promotion activities are informed that
participation is voluntary, that they may choose
to disenroll from the program at any time, and
they may be reassigned to other activities.
iki/CRS-RL32834Recipients of cash assistance may not be
g/wsanctioned for withdrawing from, or failing to
s.orparticipate in marriage promotion activities.
leak[Section 103(b)]
://wikiformanceNo provision.Requires grantees to establish performanceNo provision.

https/reportinggoals that clarify the primary objective of
quirementsfunded programs is to increase the incidence
and quality of healthy marriages and not solely
to expand the number or percentage of married
coup les.
Requires grantees to submit annual reports to
the Secretary of HHS that describe the written
protocols established to identify domestic
violence, identify who was consulted in the
development of the protocols, describe who
provided training for grantees on domestic
violence, and describe implementation issues
with respect to domestic violence.
The Secretary of HHS is required to submit a
report to Congress every six months providing:

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
the name of each program or activity funded
with marriage promotion grants; description of
types of services offered under the program;
criteria for the selection of programs or
activities funded with the grant; total number of
individuals served by the programs; total
number of individuals who completed the
program; and total number of individuals who
did not complete the program; and summaries
iki/CRS-RL32834of written domestic violence protocols, who the
g/wgrantees consulted with regard to domestic
s.orviolence, and training provided to grantees on
leakdomestic violence. [Section 103(b)]
://wikiearch andNo special provision to fund research orAppropriates $100 million each for FY2005Appropriates $102 million each for FY2005
httponstrations ondemonstrations. However, available TANFthrough FY2010 for research andthrough FY2010 for research and
arriage Promotionresearch funds (see Research anddemonstration projects and for technicaldemonstration projects and for technical
Demonstrations, below) and other researchassistance to states, tribal organizations, andassistance to states, tribal organizations, and
funds provided to the Department of Health andother entities chosen by the Secretary.other entities chosen by the Secretary.
Human Service may be used to evaluateSpecifies that 80% of these funds must be spentSpecifies that these funds must be spent
marriage promotion initiatives.on research and demonstration projects, or forprimarily on activities allowed under marriage
providing technical assistance, in connectionpromotion grants (see above). (Sets aside $2
with activities allowed under marriagemillion yearly for demonstration projects for
promotion grants (see above). Provides that allcoordination of child welfare and TANF
appropriated funds shall remain available untilservices to tribal families at risk of child abuse
expended. [Section 114(a)]or neglect.) Provides that funds appropriated
for FY2005 shall remain available through
FY2006. [Section 115(a)]
visions to AddressNo provision.Forbids Secretary to pay these research funds toNo provision.

estic Violence andan entity that has not consulted with
luntary Participationorganizations that have demonstrated expertise
s for Research Fundsin working with survivors of domestic violence;
describe in the application for a grant how the

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
programs or activities will appropriately
address domestic violence; establish written
protocols to help identify instances or risks of
domestic violence; specify procedures for
making service referrals; establish performance
goals for the program; and submit reports
annually to the Secretary of HHS (see marriage
promotion grants, above).
iki/CRS-RL32834Requires applications for the grant todescribe what the grantee will do to assure that
s.orparticipation in marriage promotion activities is
leakvoluntary, and inform potential recipients that
their participation is voluntary. [Section 114(a)]
://wikiate Plans, Data Reporting, Research (Other than Marriage Promotion) and Other Provisions
httpentsEach state must outline (generally in a planAdds requirement that each state must describe
effective for three fiscal years), how it intendswhat it will do to end dependence of needy
to: conduct a program providing cashfamilies on government benefits and reduce
assistance to needy families with children andpoverty by promoting job preparation and work
providing parents with work and supportand; encourage formation and maintenance of
services; require caretaker recipients to engagehealthy, two-parent married families, encourage
in work (at state definition) after 24 months ofresponsible fatherhood, and prevent and reduce
aid or sooner, if then judged work-ready;the incidence of out-of-wedlock pregnancies.
ensure that caretakers engage in work in[Section 112].

accordance with the law; take steps deemed
necessary by the state to restrict use and
disclosure of information about recipients; and
conduct a program providing education and
training on the problem of statutory rape. In
addition, the plan must indicate whether the
state intends to treat families moving into the
state differently from others; indicate whether

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
the state intends to aid noncitizens; set forth
objective criteria for benefit delivery and for
fair and equitable treatment. In the plan the
state must certify that it will operate a child
support enforcement program and a foster care
and adoption assistance program and provide
equitable access to Indians ineligible for aid
under a tribal plan. It must certify that it has
established standards against program fraud and
iki/CRS-RL32834abuse. It must specify which state agency or
g/wagencies will administer and supervise TANF.
s.orIn addition, the state may opt to certify that it
leakhas established and is enforcing procedures to
screen and identify recipients with a history of
://wikidomestic violence, to refer them to services,
httpand to waive program rules for some of them.
[Section 402(a) of the SSA]
rticipation of Faith-No state plan provision.If the state is undertaking strategies orThe state plan must describe strategies or
ed Organizations inprograms to engage faith-based organizations inprograms to engage faith-based organizations in
vision of Servicesthe delivery of TANF services, or thatthe delivery of TANF services, or that
otherwise relate to the charitable choiceotherwise relate to the charitable choice
provisions of P.L. 104-193, the state plan mustprovisions of P.L. 104-193. [Section 112(a)]
describe such strategies and programs. [Section
ate Plan Requirement forUnless the governor opts out by notice to HHS,Eliminates this requirement. [Section 101(a)]Same as S. 667. [Section 112(a)]

mmunity Service afterthe state will require a parent who has received
o MonthsTANF for two months and is not work-exempt
to participate in community service

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
urable PerformanceState plans must establish goals and take actionStates must establish measurable performanceState plans to include measurable performance
sto prevent/reduce the incidence of out-of-objectives for pursuing all TANF purposesobjectives for accomplishing ending
wedlock pregnancies.(current law only specifies establishment ofdependence of needy families on government
goals for reducing out-of-wedlockbenefits and reducing poverty (including
pregnancies). These goals are to giveobjectives consistent with the criteria for
consideration to those developed by theawarding Employment Achievement bonuses)
Secretary of HHS in establishing performanceand for encouraging the formation and
targets for the employment bonus (see above)maintenance of two-parent married families,
and additional criteria related to other TANFencouraging responsible fatherhood, and
iki/CRS-RL32834purposes developed by the Secretary (inreducing the incidence of out-of-wedlock
g/wconsultation with state groups).pregnancies. [Section 112(a)]
leakogram StrategiesStates plan is to describe strategies andSame as S. 667. [Section 112(a)]
programs the state is using or plans to use to
://wikiaddress employment retention and
httpadvancement for recipient of assistance; efforts
to reduce teen pregnancy; services for
struggling and noncompliant families; and
program integration, including the extent to
which employment and training services are
provided through One-Stop Career Centers
created under the Workforce Investment Act.
State plan is to describe strategies to improve
program management and performance.
[Section 101(a)]
scription of StateNo provision.Requires the state plan to include, to the extentNo provision.

sistance Programsapplicable, for each program that provides
assistance information on its: financial and
nonfinancial eligibility rules; amount of
assistance; and applicable time limits and time
limit rules. [Section 101(a)]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
ian and Tribal IssuesStates must certify that they will provideRequires that the state plan include aRequires tribal family assistance plans to
equitable access to TANF to Indians who aredescription of how the state will ensureprovide assurance that the state in which the
ineligible for tribal family assistance programs.equitable access to TANF to Indians who aretribe is located has been consulted regarding the
[Section 402(a) of the SSA]ineligible for tribal family assistance programs.plan and its design. [Section 112(b)]
States must certify that they will consult with
each Indian tribe regarding the state plan to
ensure equitable access, and provide each
member of an Indian tribe in the state who is
ineligible for aid from a tribal family assistance
iki/CRS-RL32834program with equitable access to TANF.
g/w[Section 113(d)] Requires that the
s.orcertifications include that tribal governments
leakhave been consulted in the development of the
://wikistate plan. [Section 101(a)]
http-parent FamiliesNo provision.Requires plan to describe how the state intendsSame as S. 667. [Section 101(c)]
to encourage equitable treatment of healthy,
married two-parent families under TANF.
[Section 101(c)]
tion of AdditionalNo provision.If state provides TANF-funded transportationNo provision.
te Options for the Workaid, requires certification by the governor that
quirementsstate and local transportation officials and
planning bodies have been consulted in
development of the plan. [Section 101(a)]
If a state counts caring for a disabled family
member as a work activity, the state must
describe how it will do so.
States opting to fund a post-secondary
education program (Parents as Scholars) are
required to file an addendum to the state plan

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
describing the programs eligibility criteria.
States opting to provide continuing
rehabilitative activities are required to file an
addendum to the state plan describing the
process for developing collaborative
relationships between governmental and private
entities and an assurance of regular contact
between the provider and the state.
iki/CRS-RL32834andard FormRequires the HHS Secretary to develop aNo provision.
g/wproposed Standard State Plan Form for use by
leakstates not later than nine months after date of
enactment of the bill. Requires states to use the
://wikistandard state plan form beginning in FY2007.
httpAllows states to delay submission of state plans
until FY2007.
Requires states to make drafts of proposed
plans (and plan amendments) available to the
public through a state-maintained Internet
website and through other means found
appropriate by the state. States also must make
TANF state plans in effect for any fiscal year
available to the public, by the above means.
[Section 101(b)].
ance MeasuresNo provision. (However for the purpose ofRequires the Secretary, in consultation with theSame as S. 667. [Section 112(c)]

awarding performance bonuses, the Secretary isstates, to develop uniform performance
to develop a formula in consultation with themeasures to judge the effectiveness and
National Governors Association and theimprovement of state programs in
American Public Welfare Association.)accomplishing TANF purposes. [Section

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
nkings of StatesDirects HHS Secretary to rank states in order ofRevises the employment measure to beDeletes “long-term” qualifier from private job
success in moving recipients into long-termunsubsidized employment.” Addsmeasure. Adds employment retention and
private jobs and reducing the proportion of out-employment retention and ability to increaseability to increase wages to factors used for
of-wedlock births and in both cases to reviewwages to factors used for rankings. Also, addsrankings. Also, adds three new ranking factors:
programs of the three states with highest andthree new ranking factors: the degree to whichthe degree to which recipients have workplace
lowest ratings. [Section 413(d) and(e) of therecipients have workplace attachment andattachment and advancement, reducing the
SSA]advancement, reducing the overall welfareoverall welfare caseload, and, when a method
caseload, and, when a practicable method ofof calculation becomes practicable, diverting
calculation becomes practicable, divertingpersons from making formal applications to
iki/CRS-RL32834persons from making formal applications toTANF. [Section 112(d)]
g/wTANF. [Section 101(e)]
leakIn ranking states, Secretary must take intoNo provision.

account the average number of minor children
://wikiliving at home in families with income below
httpthe poverty line, the child poverty rate, and the
amount of TANF funding provided to each
state for these families. [Section 101(e)]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
ta Collection andStates are required to collect monthly, andRequires quarterly reports to cover families inSame as S. 667. [Section 113(a)]
rtingreport quarterly, disaggregated case recordMOE-funded separate state programs, as well
information (but may use sample case recordas those in TANF state programs. Permits the
information for this purpose) about recipientSecretary to limit use of sampling by
families in the TANF program. [Section 411(a)designating core elements that must be reported
of the SSA] for all families.
Required family information includes: countyIn terms of data elements, adds race andSame as S. 667.

of residence; whether a member receivededucational level of each minor parent. Deletes
iki/CRS-RL32834disability benefits; ages of members; size ofeducational level of each child. Eliminates
g/wfamily and the relation of each member to thereporting of the amount of child care and food
s.orfamily head; employment status and earnings ofstamp benefits. Eliminates the requirement to
leakthe employed adult; marital status of adults; report on different types of TANF assistance
://wikiamount of unearned income received by familymembers; citizenship of family members;(conforms reporting with new, narrowerdefinition of assistance). Requires information
httpnumber of families and persons receiving aidon why a family is on the rolls in excess of 60
under TANF (including the number of two-months. Requires reporting on the date the
parent and one-parent families); total dollarfamily first received aid on the basis of its most
value of assistance given; total number ofrecent application and the marital status of the
families and persons aided by welfare-to-workparents of any child in the family at the birth of
grants (and the number whose participationthe child, and if the parents were not then
ended during a month); number of noncustodialmarried, whether the paternity of the child has
parents who participated in work activities; forbeen established. [Section 112(a)]
each teenager, whether he/she is the parent of a
child in the family; race and educational level
of each adult; race and educational level of
each child; whether the family received
subsidized housing medicaid, food stamps, or
subsidized child care (and if the latter two, the
amount); number of months that the family
received each type of aid under the program.

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
The HHS Secretary shall prescribe regulations
needed to define data elements and to collect
necessary data and shall consult with the
National Governors Association, the American
Public Human Services Association, the
National Conference of State Legislatures, and
others. [Section 112(e)]
ta Reporting on WorkQuarterly reports are to include informationRequires that states report hours of participationAdds to reported activity list: training and
iki/CRS-RL32834rticipationrequired to compute TANF work participationin all activities that count toward meetingother activities directed at TANF purposes.
g/wrates. This includes number of hours per week,TANF participation standards as well as otherAdds and (job) placement to job search. Omits
s.orif any, that adults participated in specifiedwork and self-sufficiency activities. Alsojob skills training and vocational education.
leakactivities (education, subsidized private jobs,requires reporting on whether the family has aSpecifies that work experience and community
unsubsidized jobs, public sector jobs, workself-sufficiency plan established for it andservice are “supervised.” Also requires
://wikiexperience, or community service, job search,progress toward universal engagement. [Sectionreporting on whether the family has a self-
httpjob skills training or on-the job training,112(a)]sufficiency plan established for it and progress
vocational education). [Section 411(a) of thetoward universal engagement. [Section 113(a)]
ta Reporting on IndiansNo provision.Requires the quarterly report to includeNo provision.
information on the demographics and caseload
characteristics of Indians in state TANF and
MOE programs. [Section 113(e)]
orting on FamiliesFrom a sample of closed cases, the quarterlyDeletes reporting of families leaving TANFSame as S. 667. [Section 113(a)]

ng TANFreport is to give the number of case closuresbecause of marriage. [Section 112(a)]
because of employment, marriage, time limit,
sanction, or state policy. [Section 411(a) of the

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
Requires quarterly reports to include theSame as S. 667. [Section 113(c)]
number of families and persons who became
ineligible to receive TANF during the month
(broken down by the number that lost eligibility
because of earnings, changes in family
composition that result in higher earnings,
sanctions, time limits, or other specified
reasons). [Section 112(c)]
iki/CRS-RL32834orts for FamiliesNo provision. TANF data collection appliesApplies the reporting requirements of the ChildNo provision.
g/wNF-fundedonly to families receiving assistance.Care and Development Block Grant (CCDBG)
s.or Careto TANF-funded child care. Allows for a
leakwaiver process if the state is unable to comply
with this requirement. [Section 112(d)]
httpnthly State ReportsNo provision.Requires states to submit monthly reports onRequires states to submit monthly reports on
the number of families and persons receivingthe number of families and persons receiving
assistance from TANF and separate state MOEassistance from TANF. [Section 113(c)]
programs. [Section 112(f)]
l State ReportsRegulations require states to annually submit aRequires states to submit an annual report onSame as S. 667. [Section 113(e)]

program 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 MOERequired information: program name and
funds. For each MOE program, reports are topurpose, description of program activities,
include the name, purpose, and eligibilitysources of funding, number of beneficiaries,
criteria.sanction policies, and any work requirements.
[Section 112(f)]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
l Report onNo provision.Beginning with FY2007, states must submit toSame as S. 667. [Section 113(e)]
PerformanceHHS an annual report on achievement and
improvement under numerical performance
goals and measures.
Requires an annual report on progress towardNo provision.
full engagement.
ReportsRequires the HHS Secretary to make annualSets July 1 of each fiscal year as the deadlineSame as S. 667. [Section 113(f)]
iki/CRS-RL32834reports to Congress that include state progressin meeting TANF objectives (increasingfor the report. Deletes applicant families fromthe report. Adds requirement to report on
g/wemployment and earnings of needy families andcharacteristics of MOE-funded programs.
leakchild support collections, and decreasing out-[Section 112(g)]
of-wedlock pregnancies and child poverty),
://wikidemographic and financial characteristics of
httpapplicants, recipients, and ex-recipients;
characteristics of each TANF program; and
trends in employment and earnings of needy
families with children.
Requires the HHS Secretary to submit to four
committees of Congress annual reports on
specified matters about three groups: children
whose families lost TANF eligibility because of
a time limit, children born after enactment of
TANF to teen parents, and persons who became
teen parents after enactment. [Section 413(g)
of the SSA]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
ormation on Indians inNo provision.Requires the TANF annual report to includeNo provision.
ANF Annual Reportstate-specific information about the
demographics and caseload characteristics of
Indians in state TANF and MOE programs.
[Section 113(e)]
le Audit ReportsTANF payments to states are subject to theNo provision.The Secretary, within three months of receiving
Single Audit Act. [Section 409(a)(1)]an audit from a state, shall analyze it to identify
the extent and nature of problems related to the
iki/CRS-RL32834states oversight of contracts between
g/wnongovernmental entities and the state TANF
s.orprogram. [Section 113(g)]
search, Evaluations,
://wikitional Studies
search on StateRequires HHS Secretary to conduct research onContinues these provisions and appropriatesSame as S. 667. [Section 115(b)]

ogramseffects, costs, and benefits of state programs.$15 million annually for them through FY2010.
Provides that Secretary may help states develop[Section 114(b)]
innovative approaches to employing TANF
recipients and shall evaluate them.
Appropriates $15 million yearly and directs
how it shall be divided. [Section 413(h) of the
SSA.] (Note: In subsequent appropriation acts,
Congress has rescinded these funds and
appropriated research funds on a less
prescriptive basis under Section 1110 of the
Social Security Act, which deals with
cooperative research and demonstration
proj ects.)

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
icators of Child Well-No provision.Appropriates $10 million per year for FY2006No provision.
ngthrough FY2010 for the Secretary of HHS to,
through grants, contracts, and interagency
agreements, develop indicators of child well-
being for each state. Among other
requirements, the indicators are required to be
statistically representative at the state level,
consistent across states, and oversampled with
respect to low-income families with children.
iki/CRS-RL32834The Secretary is to establish an advisory panel
g/wto make recommendations regarding
s.orappropriate measures and statistical tools with
leakrespect to the indicators.
://wikisearch on Tribal SocialNo provision.Appropriates $2 million for FY2006 (availableSets aside $2 million annually for FY2006
httprvices Issuesuntil expended) to conduct research on tribalthrough FY2010 to be awarded on a
family assistance grants and efforts to reducecompetitive basis to fund demonstration
poverty among Indians. [Section 114(f)]projects designed to test the effectiveness of
tribal governments and consortia in
coordinating child welfare services to tribal
families at risk of child abuse or neglect.
[Section 115(a)]
ureau StudyDirects the Census Bureau to expand theAppropriates $10 million annually for FY2006Same as S. 667. [Section 116]

Survey of Income and Program Participationthrough FY2010 to the Census Bureau. Directs
(SIPP) to obtain data with which to evaluatethe Bureau to implement or enhance a
TANFs impact on random national sample oflongitudinal survey of program participation to
recipients. Appropriates $10 million annually.permit assessment of outcomes of continued
[Section 414 of the SSA]reform on the economic and child well-being of
low-income families with children, including
those who received TANF-funded aid or
services. Survey content should include

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
information needed to examine the issues of
out-of-wedlock childbearing, marriage, welfare
dependency, beginning and ending of spells of
assistance, work, earnings, and employment
stability. To the extent possible, survey is to
provide state representative samples. Funds are
to remain available through FY2010 for this
survey. [Section 115(a)]
iki/CRS-RL32834Requires the Secretary of Commerce to makeNo provision.
g/wreports to the Ways and Means and Finance
s.orCommittees on the well-being of children and
leakfamilies, based on data collected in the above
study. First report is due two years after
://wikienactment; the second one, five years after
httpenactment. [Section 115(b)]
ourceNo provision.Appropriates $5 million for FY2006 (to beNo provision.

available through FY2010) for the Secretary of
HHS to award a grant to a nationally
recognized, nonpartisan, nonprofit organization
(that meets stipulated requirements) to establish
and operate a national teen pregnancy
prevention resource center. The purpose of the
resource center is to improve the well-being of
children and families and encourage young
people to delay pregnancy until marriage. The
resource center will provide information and
technical assistance to states, Indian tribes,
local communities, and other private or public
organizations seeking to reduce rates of teen
pregnancy; support parents in their role in

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
preventing teen pregnancy; and assist the
entertainment media industry by encouraging
them to develop content and messages for teens
and adults that can help prevent teen
pregnancy. [Section 119(d)]
st Practices for DealingNo provision.Authorizes $10 million per year for FY2006No provision.
th Domestic Violencethrough FY2010 to develop and implement
program designed to address domestic violence.
iki/CRS-RL32834Programs shall include training for caseworkers
g/wadministering TANF; technical assistance;
s.orprovision of voluntary services for victims of
leakdomestic violence; and activities related to the
prevention of domestic violence. [Section
://wiki 103(c)]
aivers and ProgramPermits the HHS Secretary to waiveCreatessuperwaiver” authority for up to 10Similar rules as S. 667, except covers 10
inationcompliance with requirements for TANF statestates (including any portion of a state) toprograms and activities: TANF, Welfare-to-
plans (and for child support plans), but not forcoordinate rules of three specified programs forWork grants, SSBG, Job Opportunities for
any other part of TANF law (including worklow-income families (all under jurisdiction ofLow-Income Individuals (JOLI), Title I of WIA
standards, time limits, funding rules, andthe Finance Committee): TANF, SSBG, child(excluding Job Corps), Adult Education and
penalties). [Section 1115 of the SSA]care entitlement funds. Specified provisionsFamily Literacy Act, CCDBG, U.S. Housing
could not be waived including: civil rightsAct (excepting Section 8 rental assistance and
provisions, program purposes or goals, stateset-asides for the elderly and disabled),
spending requirements, health or safety rules,Homeless Assistance Act; and the Food Stamp
labor standards, and others. Cannot waiveprogram. Food stamp non-financial rules
funding restrictions in an appropriation act andcannot be waived. Requires an evaluation, but
funds cannot not be transferred from onenot a random assignment evaluation. [Section
account to another, and projects could not601]

increase federal costs. Waivers would be valid
for up to five years. Applicants must give
assurances that they will obtain an evaluation

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
by an independent contractor and that random
assignment of clients to services and control
groups will be used to the maximum extent
Purposes: supporting working persons and
families, helping families escape welfare
dependency, promoting child well-being, or
iki/CRS-RL32834helping build stronger families. Applications to
g/wwaive specific provisions of two or more
s.orprograms could be made by the head of a state
leakentity or a sub-state entity administering the
://wikiprograms. Waiver approval would be requiredby each relevant Secretary. In general, an
httpapplication would be deemed approved unless
disapproved within 90 days. Requires annual
reports to Congress. Applicants must give
assurance that they will conduct ongoing and
final evaluations
[Section 114(c)]
No provision.Authorizes five states to replace food stamps
with demonstrations of food assistance block
grant projects. [Section 602]

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
No provision.Not later than six months after enactment,
requires the Secretaries of HHS and Labor to
submit a joint report describing common or
conflicting data elements, definitions,
performance measures, and reporting
requirements in the Workforce Investment Act
and TANF law. [Section 115(d)]
finition of AssistanceReceipt of assistance by a parent or otherDefinesassistance” to mean payment, by cash,Same policy as S. 667 (different wording of the
iki/CRS-RL32834caretaker relative triggers work and time limitvoucher, or other means, to or for an individualprovision). [Section 117]

g/wrules. Law does not define the term. Byor family to meet a subsistence need, but not
s.orregulation, assistance is defined as ongoing aidincluding costs of transportation or child care.
leakto meet basic needs, plus support services suchIt excludes non-recurrent short-term benefits.
as child care and transportation subsidies, for[Section 117]
://wikiunemployed recipients. It excludes non-
httprecurrent short term benefits.
Federally-funded “assistance” to a family with
an adult is limited to 60 months; states may
impose shorter time limits. By regulation,
assistance is defined as ongoing aid to meet
basic needs, plus support services such as child
care and transportation subsidies, for
unemployed recipients. It excludes non-
recurrent short term benefits.

H.R. 240 (as approved by the House Ways
S. 667 (as reported by the Senate Financeand Means Subcommittee on Human
Current lawCommittee)Resources)
ate Option to MakeThe Workforce Investment Act (WIA) makesNo provision.Makes state TANF programs mandatory
NF ProgramsTANF an optional partner with one-stoppartners with one-stop employment training
andatory Partners withemployment training centers.centers established under the Workforce
top WIA CentersInvestment Act unless the governor of a state
decides otherwise and so notifies the
Secretaries of Health and Human Services and
Labor. [Section 120].
e of the CongressNo provision.Provides that it is the sense of Congress that a
iki/CRS-RL32834state welfare-to-work program should include
g/wmentoring. [Section 121]
leakorcing Support ofRequires sponsors of immigrants to sign aNot later than March 31, 2006, requires theSame as S. 667. [Section 115(c)]
migrants by Sponsorslegally enforceable affidavit of support. DeemsHHS Secretary, in consultation with the
://wikiall income and resources of a sponsor (and theAttorney General, to submit a report on the
httpsponsor’s spouse) as available to the sponsoredenforcement of affidavits of support and
alien until he or she becomes naturalized orsponsor deeming required by P.L. 104-193.
meets a work test. [Sections 421 and 423 of the[Section 115(c)]
Personal Responsibility and Work Opportunity
Reconciliation Act of 1996]
ension ThroughExcept as otherwise provided in this Act andSame as S. 667, except that the FY2005 high-
2005the amendments made by it, activitiesperformance bonus is set at $100 million.
authorized by the TANF part of the Social[Section 122]

Security Act (SSA) and by Section 1108(b) of
the SSA (TANF and child welfare in the
territories) shall continue through FY2005, in
the manner authorized, and at the level
provided, for FY2002. The FY2005 high-
performance bonus is eliminated. [Section 702]