---
kind: "section"
citation: "42 U.S.C. § 603"
title: "42"
title_heading: "The Public Health and Welfare"
number: "603"
heading: "Grants to States"
release: "119-102"
url: "https://uscodex.org/usc/42/603"
units:
  - "Chapter 7 — Social Security"
  - "Subchapter IV — Grants to States for Aid and Services to Needy Families with Children and for Child-Welfare Services"
  - "Part A — Block Grants to States for Temporary Assistance for Needy Families"
---

# §603. Grants to States

- (a) **Grants—**
  - (1) **Family assistance grant—**
    - (A) **In general—** Each [eligible State](/usc/42/602.md?p=a) shall be entitled to receive from the [Secretary](/usc/42/1301.md?p=a-6), for each of [fiscal years](/usc/42/619.md?p=3) 2017 and 2018, a [grant](/usc/42/1397j.md?p=10) in an amount equal to the [State](/usc/42/619.md?p=5) [family assistance grant](/usc/42/1308.md?p=c-3).
    - (B) **State family assistance grant—** The [State](/usc/42/619.md?p=5) [family assistance grant](/usc/42/1308.md?p=c-3) payable to a [State](/usc/42/619.md?p=5) for a [fiscal year](/usc/42/619.md?p=3) shall be the amount that bears the same ratio to the amount specified in subparagraph (C) of this paragraph (as in effect just before February 22, 2012), reduced by the percentage specified in [section 613(h)(1) of this title](/usc/42/613.md?p=h-1) with respect to the [fiscal year](/usc/42/619.md?p=3), as the amount required to be paid to the [State](/usc/42/619.md?p=5) under this paragraph (as so in effect) for [fiscal year](/usc/42/619.md?p=3) 2002 (determined without regard to any reduction pursuant to section [609](/usc/42/609.md) or [612(a)(1)](/usc/42/612.md?p=a-1) of this title) bears to the total amount required to be paid under this paragraph for [fiscal year](/usc/42/619.md?p=3) 2002 (as so determined).
    - (C) **Appropriation—** Out of any money in the Treasury of the [United States](/usc/42/1301.md?p=a-2) not otherwise appropriated, there are appropriated for each of [fiscal years](/usc/42/619.md?p=3) 2017 and 2018 $16,566,542,000 for [grants](/usc/42/1397j.md?p=10) under this paragraph.
  - (2) **Healthy marriage promotion and responsible fatherhood grants—**
    - (A) **In general—**
      - (i) **Use of funds—** Subject to subparagraphs [(B)](#a-2-B), [(C)](#a-2-C), and [(E)](#a-2-E), the [Secretary](/usc/42/1301.md?p=a-6) may use the [funds](/usc/42/12854.md?p=3) made available under [subparagraph (D)](#a-2-D) for the purpose of conducting and supporting research and [demonstration projects](/usc/42/16281.md?p=d-2) by public or [private entities](/usc/42/12181.md?p=6), and providing technical assistance to [States](/usc/42/619.md?p=5), [Indian tribes](/usc/42/619.md?p=4-A) and [tribal organizations](/usc/42/619.md?p=4-A), and such other entities as the [Secretary](/usc/42/1301.md?p=a-6) may specify that are receiving a [grant](/usc/42/1397j.md?p=10) under another provision of this part.
      - (ii) **Limitations—** The [Secretary](/usc/42/1301.md?p=a-6) may not award [funds](/usc/42/12854.md?p=3) made available under this paragraph on a noncompetitive basis, and may not provide any such [funds](/usc/42/12854.md?p=3) to an entity for the purpose of carrying out [healthy marriage promotion activities](#a-2-A-iii) or for the purpose of carrying out [activities promoting responsible fatherhood](#a-2-C-ii) unless the entity has submitted to the [Secretary](/usc/42/1301.md?p=a-6) an application (or, in the case of an entity seeking funding to carry out [healthy marriage promotion activities](#a-2-A-iii) and [activities promoting responsible fatherhood](#a-2-C-ii), a combined application that contains assurances that the entity will carry out such activities under separate [programs](/usc/42/274l–1.md?p=4) and shall not combine any [funds](/usc/42/12854.md?p=3) awarded to carry out either such activities) which—
        - (I) describes—
          - (aa) how the [programs](/usc/42/274l–1.md?p=4) or activities proposed in the application will address, as appropriate, issues of [domestic violence](/usc/42/10402.md?p=3); and
          - (bb) what the applicant will do, to the extent relevant, to ensure that participation in the [programs](/usc/42/274l–1.md?p=4) or activities is voluntary, and to inform potential participants that their participation is voluntary; and
        - (II) contains a commitment by the entity—
          - (aa) to not use the [funds](/usc/42/12854.md?p=3) for any other purpose; and
          - (bb) to consult with experts in [domestic violence](/usc/42/10402.md?p=3) or relevant community [domestic violence](/usc/42/10402.md?p=3) coalitions in developing the [programs](/usc/42/274l–1.md?p=4) and activities.
      - (iii) **Healthy marriage promotion activities—** In [clause (ii)](#a-2-A-ii), the term “healthy marriage promotion activities” means the following:
        - (I) Public advertising campaigns on the value of marriage and the skills needed to increase marital stability and health.
        - (II) Education in high [schools](/usc/42/6372.md?p=1) on the value of marriage, relationship skills, and budgeting.
        - (III) Marriage education, marriage skills, and relationship skills [programs](/usc/42/274l–1.md?p=4), that may include parenting skills, financial management, conflict resolution, and job and career advancement.
        - (IV) Pre-marital education and marriage skills [training](/usc/42/285e–2.md?p=b-2) for engaged couples and for couples or individuals interested in marriage.
        - (V) Marriage enhancement and marriage skills [training](/usc/42/285e–2.md?p=b-2) [programs](/usc/42/274l–1.md?p=4) for married couples.
        - (VI) Divorce reduction [programs](/usc/42/274l–1.md?p=4) that teach relationship skills.
        - (VII) Marriage mentoring [programs](/usc/42/274l–1.md?p=4) which use married couples as role models and mentors in at-risk communities.
        - (VIII) [Programs](/usc/42/274l–1.md?p=4) to reduce the disincentives to marriage in means-tested aid [programs](/usc/42/274l–1.md?p=4), if offered in conjunction with any activity described in this subparagraph.
    - (B) **Limitation on use of funds for demonstration projects for coordination of provision of child welfare and TANF services to tribal families at risk of child abuse or neglect—**
      - (i) **In general—** Of the amounts made available under [subparagraph (D)](#a-2-D) for a [fiscal year](/usc/42/619.md?p=3), the [Secretary](/usc/42/1301.md?p=a-6) may not award more than $2,000,000 on a competitive basis to [fund](/usc/42/12854.md?p=3) [demonstration projects](/usc/42/16281.md?p=d-2) designed to test the effectiveness of [tribal governments](/usc/42/804.md?p=d-3) or tribal consortia in coordinating the provision to tribal [families](/usc/42/12704.md?p=11) at risk of [child](/usc/42/675.md?p=8-A) [abuse](/usc/42/1397j.md?p=1) or [neglect](/usc/42/1397j.md?p=16) of [child](/usc/42/675.md?p=8-A) welfare services and services under tribal [programs](/usc/42/274l–1.md?p=4) funded under this part.
      - (ii) **Limitation on use of funds—** A [grant](/usc/42/1397j.md?p=10) made pursuant to [clause (i)](#a-2-B-i) to such a [project](/usc/42/11360.md?p=20) shall not be used for any purpose other than—
        - (I) to improve case management for [families](/usc/42/12704.md?p=11) eligible for assistance from such a tribal [program](/usc/42/274l–1.md?p=4);
        - (II) for [supportive services](/usc/42/3002.md?p=54) and assistance to tribal [children](/usc/42/256e.md?p=g-2) in out-of-home placements and the tribal [families](/usc/42/12704.md?p=11) caring for such [children](/usc/42/256e.md?p=g-2), [including](/usc/42/1301.md?p=b) [families](/usc/42/12704.md?p=11) who adopt such [children](/usc/42/256e.md?p=g-2); and
        - (III) for prevention services and assistance to tribal [families](/usc/42/12704.md?p=11) at risk of [child](/usc/42/675.md?p=8-A) [abuse](/usc/42/1397j.md?p=1) and [neglect](/usc/42/1397j.md?p=16).
      - (iii) **Reports—** The [Secretary](/usc/42/1301.md?p=a-6) may require a [recipient](/usc/42/2996a.md?p=6) of [funds](/usc/42/12854.md?p=3) awarded under this subparagraph to provide the [Secretary](/usc/42/1301.md?p=a-6) with such information as the [Secretary](/usc/42/1301.md?p=a-6) deems relevant to enable the [Secretary](/usc/42/1301.md?p=a-6) to facilitate and oversee the [administration](/usc/42/1301.md?p=a-10) of any [project](/usc/42/11360.md?p=20) for which [funds](/usc/42/12854.md?p=3) are provided under this subparagraph.
    - (C) **Limitation on use of funds for activities promoting responsible fatherhood—**
      - (i) **In general—** Of the amounts made available under [subparagraph (D)](#a-2-D) for a [fiscal year](/usc/42/619.md?p=3), the [Secretary](/usc/42/1301.md?p=a-6) may not award more than $75,000,000 on a competitive basis to [States](/usc/42/619.md?p=5), territories, [Indian tribes](/usc/42/619.md?p=4-A) and [tribal organizations](/usc/42/619.md?p=4-A), and public and nonprofit community entities, [including](/usc/42/1301.md?p=b) religious organizations, for [activities promoting responsible fatherhood](#a-2-C-ii).
      - (ii) **Activities promoting responsible fatherhood—** In this paragraph, the term “activities promoting responsible fatherhood” means the following:
        - (I) Activities to promote marriage or sustain marriage through activities such as counseling, mentoring, disseminating information about the benefits of marriage and 2-[parent](/usc/42/1396a.md?p=k-3) involvement for [children](/usc/42/256e.md?p=g-2), enhancing relationship skills, education regarding how to control aggressive behavior, disseminating information on the [causes](/usc/42/9908.md?p=c-2) of [domestic violence](/usc/42/10402.md?p=3) and [child](/usc/42/675.md?p=8-A) [abuse](/usc/42/1397j.md?p=1), marriage preparation [programs](/usc/42/274l–1.md?p=4), premarital counseling, marital [inventories](/usc/42/4370m.md?p=14), skills-based marriage education, financial planning seminars, [including](/usc/42/1301.md?p=b) improving a [family](/usc/42/290ff–4.md?p=d-2)’s ability to effectively manage [family](/usc/42/290ff–4.md?p=d-2) business affairs by means such as education, counseling, or mentoring on matters related to [family](/usc/42/290ff–4.md?p=d-2) finances, [including](/usc/42/1301.md?p=b) household management, budgeting, banking, and handling of financial transactions and home maintenance, and divorce education and reduction [programs](/usc/42/274l–1.md?p=4), [including](/usc/42/1301.md?p=b) mediation and counseling.
        - (II) Activities to promote responsible parenting through activities such as counseling, mentoring, and mediation, disseminating information about good parenting [practices](/usc/42/17061.md?p=19), skills-based parenting education, encouraging [child](/usc/42/675.md?p=8-A) support payments, and other methods.
        - (III) Activities to foster economic stability by helping fathers improve their economic status by providing activities such as work first services, job search, job [training](/usc/42/285e–2.md?p=b-2), subsidized employment, job retention, job enhancement, and encouraging education, [including](/usc/42/1301.md?p=b) career-advancing education, dissemination of employment materials, coordination with existing employment services such as welfare-to-work [programs](/usc/42/274l–1.md?p=4), referrals to local employment [training](/usc/42/285e–2.md?p=b-2) [initiatives](/usc/42/19131.md?p=1), and other methods.
        - (IV) Activities to promote responsible fatherhood that are conducted through a contract with a nationally recognized, nonprofit fatherhood promotion organization, such as the development, promotion, and distribution of a media campaign to encourage the appropriate involvement of [parents](/usc/42/675.md?p=2) in the life of any [child](/usc/42/675.md?p=8-A) and specifically the issue of responsible fatherhood, and the development of a national clearinghouse to assist [States](/usc/42/619.md?p=5) and communities in efforts to promote and support marriage and responsible fatherhood.
    - (D) **Appropriation—** Out of any money in the Treasury of the [United States](/usc/42/1301.md?p=a-2) not otherwise appropriated, there are appropriated for each of [fiscal years](/usc/42/619.md?p=3) 2017 and 2018 for expenditure in accordance with this paragraph—
      - (i) $75,000,000 for awarding [funds](/usc/42/12854.md?p=3) for the purpose of carrying out [healthy marriage promotion activities](#a-2-A-iii); and
      - (ii) $75,000,000 for awarding [funds](/usc/42/12854.md?p=3) for the purpose of carrying out [activities promoting responsible fatherhood](#a-2-C-ii).

      If the [Secretary](/usc/42/1301.md?p=a-6) makes an award under [subparagraph (B)(i)](#a-2-B-i) for [fiscal year](/usc/42/619.md?p=3) 2017 or 2018, the [funds](/usc/42/12854.md?p=3) for such award shall be taken in equal portion from the amounts appropriated under clauses [(i)](#a-2-D-i) and [(ii)](#a-2-D-ii).

    - (E) **Preference—** In awarding [funds](/usc/42/12854.md?p=3) under this paragraph for [fiscal year](/usc/42/619.md?p=3) 2011, the [Secretary](/usc/42/1301.md?p=a-6) shall give preference to entities that were awarded [funds](/usc/42/12854.md?p=3) under this paragraph for any prior [fiscal year](/usc/42/619.md?p=3) and that have demonstrated the ability to successfully carry out the [programs](/usc/42/274l–1.md?p=4) funded under this paragraph.
  - (3) **Supplemental grant for population increases in certain States—**
    - (A) **In general—** Each qualifying [State](#a-3-D-iii) shall, subject to [subparagraph (F)](#a-3-F), be entitled to receive from the [Secretary](/usc/42/1301.md?p=a-6)—
      - (i) for [fiscal year](/usc/42/619.md?p=3) 1998 a [grant](/usc/42/1397j.md?p=10) in an amount equal to 2.5 percent of the total amount required to be paid to the [State](#a-3-D-iii) under former section 603 of this title (as in effect during [fiscal year](/usc/42/619.md?p=3) 1994) for [fiscal year](/usc/42/619.md?p=3) 1994; and
      - (ii) for each of [fiscal years](/usc/42/619.md?p=3) 1999, 2000, and 2001, a [grant](/usc/42/1397j.md?p=10) in an amount equal to the sum of—
        - (I) the amount (if any) required to be paid to the [State](#a-3-D-iii) under this paragraph for the immediately preceding [fiscal year](/usc/42/619.md?p=3); and
        - (II) 2.5 percent of the sum of—
          - (aa) the total amount required to be paid to the [State](#a-3-D-iii) under former section 603 of this title (as in effect during [fiscal year](/usc/42/619.md?p=3) 1994) for [fiscal year](/usc/42/619.md?p=3) 1994; and
          - (bb) the amount (if any) required to be paid to the [State](#a-3-D-iii) under this paragraph for the [fiscal year](/usc/42/619.md?p=3) preceding the [fiscal year](/usc/42/619.md?p=3) for which the [grant](/usc/42/1397j.md?p=10) is to be made.
    - (B) **Preservation of grant without increases for States failing to remain qualifying States—** Each [State](#a-3-D-iii) that is not a qualifying [State](#a-3-D-iii) for a [fiscal year](/usc/42/619.md?p=3) specified in [subparagraph (A)(ii)](#a-3-A-ii) but was a qualifying [State](#a-3-D-iii) for a prior [fiscal year](/usc/42/619.md?p=3) shall, subject to [subparagraph (F)](#a-3-F), be entitled to receive from the [Secretary](/usc/42/1301.md?p=a-6) for the specified [fiscal year](/usc/42/619.md?p=3), a [grant](/usc/42/1397j.md?p=10) in an amount equal to the amount required to be paid to the [State](#a-3-D-iii) under this paragraph for the most recent [fiscal year](/usc/42/619.md?p=3) for which the [State](#a-3-D-iii) was a qualifying [State](#a-3-D-iii).
    - (C) **Qualifying State—**
      - (i) **In general—** For purposes of this paragraph, a [State](#a-3-D-iii) is a qualifying [State](#a-3-D-iii) for a [fiscal year](/usc/42/619.md?p=3) if—
        - (I) the level of welfare spending per poor [person](/usc/42/1301.md?p=a-3) by the [State](#a-3-D-iii) for the immediately preceding [fiscal year](/usc/42/619.md?p=3) is less than the [national average level of State welfare spending per poor person](#a-3-D-ii) for such preceding [fiscal year](/usc/42/619.md?p=3); and
        - (II) the population growth rate of the [State](#a-3-D-iii) (as determined by the Bureau of the Census) for the most recent [fiscal year](/usc/42/619.md?p=3) for which information is available exceeds the average population growth rate for all [States](#a-3-D-iii) (as so determined) for such most recent [fiscal year](/usc/42/619.md?p=3).
      - (ii) **State must qualify in fiscal year 1998—** Notwithstanding [clause (i)](#a-3-C-i), a [State](#a-3-D-iii) shall not be a qualifying [State](#a-3-D-iii) for any [fiscal year](/usc/42/619.md?p=3) after 1998 by reason of [clause (i)](#a-3-C-i) if the [State](#a-3-D-iii) is not a qualifying [State](#a-3-D-iii) for [fiscal year](/usc/42/619.md?p=3) 1998 by reason of [clause (i)](#a-3-C-i).
      - (iii) **Certain States deemed qualifying States—** For purposes of this paragraph, a [State](#a-3-D-iii) is deemed to be a qualifying [State](#a-3-D-iii) for [fiscal years](/usc/42/619.md?p=3) 1998, 1999, 2000, and 2001 if—
        - (I) the level of welfare spending per poor [person](/usc/42/1301.md?p=a-3) by the [State](#a-3-D-iii) for [fiscal year](/usc/42/619.md?p=3) 1994 is less than 35 percent of the [national average level of State welfare spending per poor person](#a-3-D-ii) for [fiscal year](/usc/42/619.md?p=3) 1994; or
        - (II) the population of the [State](#a-3-D-iii) increased by more than 10 percent from April 1, 1990 to July 1, 1994, according to the population estimates in publication CB94–204 of the Bureau of the Census.
    - (D) **Definitions—** As used in this paragraph:
      - (i) **Level of welfare spending per poor person—** The term “level of State welfare spending per poor person” means, with respect to a [State](#a-3-D-iii) and a [fiscal year](/usc/42/619.md?p=3)—
        - (I) the sum of—
          - (aa) the total amount required to be paid to the [State](#a-3-D-iii) under former section 603 of this title (as in effect during [fiscal year](/usc/42/619.md?p=3) 1994) for [fiscal year](/usc/42/619.md?p=3) 1994; and
          - (bb) the amount (if any) paid to the [State](#a-3-D-iii) under this paragraph for the immediately preceding [fiscal year](/usc/42/619.md?p=3); divided by
        - (II) the number of individuals, according to the 1990 decennial census, who were residents of the [State](#a-3-D-iii) and whose [income](/usc/42/292s.md?p=c-4) was below the [poverty line](/usc/42/1395w–114.md?p=a-3-C-ii).
      - (ii) **National average level of State welfare spending per poor person—** The term “national average level of State welfare spending per poor person” means, with respect to a [fiscal year](/usc/42/619.md?p=3), an amount equal to—
        - (I) the total amount required to be paid to the [States](#a-3-D-iii) under former section 603 of this title (as in effect during [fiscal year](/usc/42/619.md?p=3) 1994) for [fiscal year](/usc/42/619.md?p=3) 1994; divided by
        - (II) the number of individuals, according to the 1990 decennial census, who were residents of any [State](#a-3-D-iii) and whose [income](/usc/42/292s.md?p=c-4) was below the [poverty line](/usc/42/1395w–114.md?p=a-3-C-ii).
      - (iii) **State—** The term “State” means each of the 50 States of the [United States](/usc/42/1301.md?p=a-2) and the District of Columbia.
    - (E) **Appropriation—** Out of any money in the Treasury of the [United States](/usc/42/1301.md?p=a-2) not otherwise appropriated, there are appropriated for [fiscal years](/usc/42/619.md?p=3) 1998, 1999, 2000, and 2001 such sums as are necessary for [grants](/usc/42/1397j.md?p=10) under this paragraph, in a total amount not to exceed $800,000,000.
    - (F) **Grants reduced pro rata if insufficient appropriations—** If the amount appropriated pursuant to this paragraph for a [fiscal year](/usc/42/619.md?p=3) (or portion of a [fiscal year](/usc/42/619.md?p=3)) is less than the total amount of payments otherwise required to be made under this paragraph for the [fiscal year](/usc/42/619.md?p=3) (or portion of the [fiscal year](/usc/42/619.md?p=3)), then the amount otherwise payable to any [State](#a-3-D-iii) for the [fiscal year](/usc/42/619.md?p=3) (or portion of the [fiscal year](/usc/42/619.md?p=3)) under this paragraph shall be reduced by a percentage equal to the amount so appropriated divided by such total amount.
    - (G) **Budget scoring—** Notwithstanding [section 907(b)(2) of title 2](/usc/2/907.md?p=b-2), the baseline shall assume that no [grant](/usc/42/1397j.md?p=10) shall be made under this paragraph after [fiscal year](/usc/42/619.md?p=3) 2001.
    - (H) **Reauthorization—** Notwithstanding any other provision of this paragraph—
      - (i) any [State](#a-3-D-iii) that was a qualifying [State](#a-3-D-iii) under this paragraph for [fiscal year](/usc/42/619.md?p=3) 2001 or any prior [fiscal year](/usc/42/619.md?p=3) shall be entitled to receive from the [Secretary](/usc/42/1301.md?p=a-6) for each of [fiscal years](/usc/42/619.md?p=3) 2002 and 2003 a [grant](/usc/42/1397j.md?p=10) in an amount equal to the amount required to be paid to the [State](#a-3-D-iii) under this paragraph for the most recent [fiscal year](/usc/42/619.md?p=3) in which the [State](#a-3-D-iii) was a qualifying [State](#a-3-D-iii);
      - (ii) [subparagraph (G)](#a-3-G) shall be applied as if “[fiscal year](/usc/42/619.md?p=3) 2011” were substituted for “[fiscal year](/usc/42/619.md?p=3) 2001”;[^1]
      - (iii) out of any money in the Treasury of the [United States](/usc/42/1301.md?p=a-2) not otherwise appropriated, there are appropriated for each of [fiscal years](/usc/42/619.md?p=3) 2002 and 2003 such sums as are necessary for [grants](/usc/42/1397j.md?p=10) under this subparagraph.
  - (4) **Bonus to reward high performance States—**
    - (A) **In general—** The [Secretary](/usc/42/1301.md?p=a-6) shall make a [grant](/usc/42/1397j.md?p=10) pursuant to this paragraph to each [State](/usc/42/619.md?p=5) for each [bonus year](#a-4-E-i) for which the [State](/usc/42/619.md?p=5) is a [high performing State](#a-4-E-ii).
    - (B) **Amount of grant—**
      - (i) **In general—** Subject to clause (ii) of this subparagraph, the [Secretary](/usc/42/1301.md?p=a-6) shall determine the amount of the [grant](/usc/42/1397j.md?p=10) payable under this paragraph to a [high performing State](#a-4-E-ii) for a [bonus year](#a-4-E-i), which shall be based on the score assigned to the [State](/usc/42/619.md?p=5) under [subparagraph (D)(i)](#a-4-D-i) for the [fiscal year](/usc/42/619.md?p=3) that immediately precedes the [bonus year](#a-4-E-i).
      - (ii) **Limitation—** The amount payable to a [State](/usc/42/619.md?p=5) under this paragraph for a [bonus year](#a-4-E-i) shall not exceed 5 percent of the [State](/usc/42/619.md?p=5) [family assistance grant](/usc/42/1308.md?p=c-3).
    - (C) **Formula for measuring State performance—** Not later than 1 year after August 22, 1996, the [Secretary](/usc/42/1301.md?p=a-6), in consultation with the National [Governors](/usc/42/6372.md?p=1)’ Association and the American Public Welfare Association, shall develop a formula for measuring [State](/usc/42/619.md?p=5) performance in operating the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part so as to achieve the goals set forth in [section 601(a) of this title](/usc/42/601.md?p=a).
    - (D) **Scoring of State performance; setting of performance thresholds—** For each [bonus year](#a-4-E-i), the [Secretary](/usc/42/1301.md?p=a-6) shall—
      - (i) use the formula developed under [subparagraph (C)](#a-4-C) to assign a score to each [eligible State](/usc/42/602.md?p=a) for the [fiscal year](/usc/42/619.md?p=3) that immediately precedes the [bonus year](#a-4-E-i); and
      - (ii) prescribe a performance threshold in such a manner so as to ensure that—
        - (I) the average annual total amount of [grants](/usc/42/1397j.md?p=10) to be made under this paragraph for each [bonus year](#a-4-E-i) equals $200,000,000; and
        - (II) the total amount of [grants](/usc/42/1397j.md?p=10) to be made under this paragraph for all [bonus years](#a-4-E-i) equals $1,000,000,000.
    - (E) **Definitions—** As used in this paragraph:
      - (i) **Bonus year—** The term “bonus year” means [fiscal years](/usc/42/619.md?p=3) 1999, 2000, 2001, 2002, and 2003.
      - (ii) **High performing State—** The term “high performing State” means, with respect to a [bonus year](#a-4-E-i), an [eligible State](/usc/42/602.md?p=a) whose score assigned pursuant to [subparagraph (D)(i)](#a-4-D-i) for the [fiscal year](/usc/42/619.md?p=3) immediately preceding the [bonus year](#a-4-E-i) equals or exceeds the performance threshold prescribed under [subparagraph (D)(ii)](#a-4-D-ii) for such preceding [fiscal year](/usc/42/619.md?p=3).
    - (F) **Appropriation—** Out of any money in the Treasury of the [United States](/usc/42/1301.md?p=a-2) not otherwise appropriated, there are appropriated for [fiscal years](/usc/42/619.md?p=3) 1999 through 2003 $1,000,000,000 for [grants](/usc/42/1397j.md?p=10) under this paragraph.
  - (5) **Welfare-to-work grants—**
    - (A) **Formula grants—**
      - (i) **Entitlement—** A [State](/usc/42/619.md?p=5) shall be entitled to receive from the [Secretary](/usc/42/1301.md?p=a-6) of Labor a [grant](/usc/42/1397j.md?p=10) for each [fiscal year](/usc/42/619.md?p=3) specified in subparagraph (H) of this paragraph for which the [State](/usc/42/619.md?p=5) is a welfare-to-work [State](/usc/42/619.md?p=5), in an amount that does not exceed the lesser of—
        - (I) 2 times the total of the expenditures by the [State](/usc/42/619.md?p=5) (excluding [qualified State expenditures](/usc/42/609.md?p=a-7-B-i-V) (as defined in [section 609(a)(7)(B)(i) of this title](/usc/42/609.md?p=a-7-B-i)) and any expenditure described in subclause (I), (II), or (IV) of [section 609(a)(7)(B)(iv) of this title](/usc/42/609.md?p=a-7-B-iv)) during the period permitted under subparagraph (C)(vii) of this paragraph for the expenditure of [funds](/usc/42/12854.md?p=3) under the [grant](/usc/42/1397j.md?p=10) for activities described in subparagraph (C)(i) of this paragraph; or
        - (II) the allotment of the [State](/usc/42/619.md?p=5) under clause (iii) of this subparagraph for the [fiscal year](/usc/42/619.md?p=3).
      - (ii) **Welfare-to-work State—** A [State](/usc/42/619.md?p=5) shall be considered a welfare-to-work [State](/usc/42/619.md?p=5) for a [fiscal year](/usc/42/619.md?p=3) for purposes of this paragraph if the [Secretary](/usc/42/1301.md?p=a-6) of Labor determines that the [State](/usc/42/619.md?p=5) meets the following requirements:
        - (I) The [State](/usc/42/619.md?p=5) has submitted to the [Secretary](/usc/42/1301.md?p=a-6) of Labor and the [Secretary](/usc/42/1301.md?p=a-6) of Health and Human Services (in the form of an addendum to the [State](/usc/42/619.md?p=5) plan submitted under [section 602 of this title](/usc/42/602.md)) a plan which—
          - (aa) describes how, consistent with this subparagraph, the [State](/usc/42/619.md?p=5) will use any [funds](/usc/42/12854.md?p=3) provided under this subparagraph during the [fiscal year](/usc/42/619.md?p=3);
          - (bb) specifies the formula to be used pursuant to [clause (vi)](#a-5-A-vi) to distribute [funds](/usc/42/12854.md?p=3) in the [State](/usc/42/619.md?p=5), and describes the process by which the formula was developed;
          - (cc) contains evidence that the plan was developed in consultation and coordination with appropriate entitites[^2] in sub-[State](/usc/42/619.md?p=5) areas;
          - (dd) contains assurances by the [Governor](/usc/42/6372.md?p=1) of the [State](/usc/42/619.md?p=5) that the [private industry council](#a-5-D-ii) (and any alternate [agency](/usc/42/1397n–12.md?p=1) designated by the [Governor](/usc/42/6372.md?p=1) under [item (ee)](#a-5-A-ii-I-ee)) for a [service delivery area](#a-5-D-iii) in the [State](/usc/42/619.md?p=5) will coordinate the expenditure of any [funds](/usc/42/12854.md?p=3) provided under this subparagraph for the benefit of the [service delivery area](#a-5-D-iii) with the expenditure of the [funds](/usc/42/12854.md?p=3) provided to the [State](/usc/42/619.md?p=5) under [paragraph (1)](#a-1);
          - (ee) if the [Governor](/usc/42/6372.md?p=1) of the [State](/usc/42/619.md?p=5) desires to have an [agency](/usc/42/1397n–12.md?p=1) other than a [private industry council](#a-5-D-ii) administer the [funds](/usc/42/12854.md?p=3) provided under this subparagraph for the benefit of 1 or more [service delivery areas](#a-5-D-iii) in the [State](/usc/42/619.md?p=5), contains an application to the [Secretary](/usc/42/1301.md?p=a-6) of Labor for a waiver of [clause (vii)(I)](#a-5-A-vii-I) with respect to the area or areas in order to permit an alternate [agency](/usc/42/1397n–12.md?p=1) designated by the [Governor](/usc/42/6372.md?p=1) to so administer the [funds](/usc/42/12854.md?p=3); and
          - (ff) describes how the [State](/usc/42/619.md?p=5) will ensure that a [private industry council](#a-5-D-ii) to which information is disclosed pursuant to section 603(a)(5)(K)[^3] or 654A(f)(5) of this title has procedures for safeguarding the information and for ensuring that the information is used solely for the purpose described in that section.
        - (II) The [State](/usc/42/619.md?p=5) has provided to the [Secretary](/usc/42/1301.md?p=a-6) of Labor an estimate of the amount that the [State](/usc/42/619.md?p=5) intends to expend during the period permitted under subparagraph (C)(vii) of this paragraph for the expenditure of [funds](/usc/42/12854.md?p=3) under the [grant](/usc/42/1397j.md?p=10) (excluding expenditures described in [section 609(a)(7)(B)(iv) of this title](/usc/42/609.md?p=a-7-B-iv) (other than [subclause (III)](#a-5-A-ii-III) thereof)) pursuant to this paragraph.
        - (III) The [State](/usc/42/619.md?p=5) has agreed to negotiate in good faith with the [Secretary](/usc/42/1301.md?p=a-6) of Health and Human Services with respect to the substance and funding of any evaluation under [section 613(j) of this title](/usc/42/613.md), and to cooperate with the conduct of any such evaluation.
        - (IV) The [State](/usc/42/619.md?p=5) is an [eligible State](/usc/42/602.md?p=a) for the [fiscal year](/usc/42/619.md?p=3).
        - (V) The [State](/usc/42/619.md?p=5) certifies that [qualified State expenditures](/usc/42/609.md?p=a-7-B-i-V) (within the meaning of [section 609(a)(7) of this title](/usc/42/609.md?p=a-7)) for the [fiscal year](/usc/42/619.md?p=3) will be not less than the [applicable percentage](/usc/42/609.md?p=a-7-B-ii) of historic [State](/usc/42/619.md?p=5) expenditures (within the meaning of [section 609(a)(7) of this title](/usc/42/609.md?p=a-7)) with respect to the [fiscal year](/usc/42/619.md?p=3).
      - (iii) **Allotments to welfare-to-work States—**
        - (I) **In general—** Subject to this clause, the allotment of a welfare-to-work [State](/usc/42/619.md?p=5) for a [fiscal year](/usc/42/619.md?p=3) shall be the [available amount](#a-5-A-iv) for the [fiscal year](/usc/42/619.md?p=3), multiplied by the [State percentage](#a-5-A-v) for the [fiscal year](/usc/42/619.md?p=3).
        - (II) **Minimum allotment—** The allotment of a welfare-to-work [State](/usc/42/619.md?p=5) (other than Guam, the Virgin Islands, or American Samoa) for a [fiscal year](/usc/42/619.md?p=3) shall not be less than 0.25 percent of the [available amount](#a-5-A-iv) for the [fiscal year](/usc/42/619.md?p=3).
        - (III) **Pro rata reduction—** Subject to [subclause (II)](#a-5-A-iii-II), the [Secretary](/usc/42/1301.md?p=a-6) of Labor shall make pro rata reductions in the allotments to [States](/usc/42/619.md?p=5) under this clause for a [fiscal year](/usc/42/619.md?p=3) as necessary to ensure that the total of the allotments does not exceed the [available amount](#a-5-A-iv) for the [fiscal year](/usc/42/619.md?p=3).
      - (iv) **Available amount—** As used in this subparagraph, the term “available amount” means, for a [fiscal year](/usc/42/619.md?p=3), the sum of—
        - (I) 75 percent of the sum of—
          - (aa) the amount specified in [subparagraph (H)](#a-5-H) for the [fiscal year](/usc/42/619.md?p=3), minus the total of the amounts reserved pursuant to subparagraphs [(E)](#a-5-E), [(F)](#a-5-F), and [(G)](#a-5-G) for the [fiscal year](/usc/42/619.md?p=3); and
          - (bb) any amount reserved pursuant to [subparagraph (E)](#a-5-E) for the immediately preceding [fiscal year](/usc/42/619.md?p=3) that has not been obligated; and
        - (II) any [available amount](#a-5-A-iv) for the immediately preceding [fiscal year](/usc/42/619.md?p=3) that has not been obligated by a [State](/usc/42/619.md?p=5), other than [funds](/usc/42/12854.md?p=3) reserved by the [State](/usc/42/619.md?p=5) for distribution under [clause (vi)(III)](#a-5-A-vi-III) and [funds](/usc/42/12854.md?p=3) distributed pursuant to [clause (vi)(I)](#a-5-A-vi-I) in any [State](/usc/42/619.md?p=5) in which the [service delivery area](#a-5-D-iii) is the [State](/usc/42/619.md?p=5).
      - (v) **State percentage—** As used in [clause (iii)](#a-5-A-iii), the term “State percentage” means, with respect to a [fiscal year](/usc/42/619.md?p=3), ½ of the sum of—
        - (I) the percentage represented by the number of individuals in the [State](/usc/42/619.md?p=5) whose [income](/usc/42/292s.md?p=c-4) is less than the [poverty line](/usc/42/1395w–114.md?p=a-3-C-ii) divided by the number of such individuals in the [United States](/usc/42/1301.md?p=a-2); and
        - (II) the percentage represented by the number of [adults](/usc/42/619.md?p=1) who are [recipients](/usc/42/2996a.md?p=6) of assistance under the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part divided by the number of [adults](/usc/42/619.md?p=1) in the [United States](/usc/42/1301.md?p=a-2) who are [recipients](/usc/42/2996a.md?p=6) of assistance under any [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part.
      - (vi) **Procedure for distribution of funds within States—**
        - (I) **Allocation formula—** A [State](/usc/42/619.md?p=5) to which a [grant](/usc/42/1397j.md?p=10) is made under this subparagraph shall devise a formula for allocating not less than 85 percent of the amount of the [grant](/usc/42/1397j.md?p=10) among the [service delivery areas](#a-5-D-iii) in the [State](/usc/42/619.md?p=5), which—
          - (aa) determines the amount to be allocated for the benefit of a [service delivery area](#a-5-D-iii) in proportion to the number (if any) by which the population of the area with an [income](/usc/42/292s.md?p=c-4) that is less than the [poverty line](/usc/42/1395w–114.md?p=a-3-C-ii) exceeds 7.5 percent of the total population of the area, relative to such number for all such areas in the [State](/usc/42/619.md?p=5) with such an excess, and accords a weight of not less than 50 percent to this factor;
          - (bb) may determine the amount to be allocated for the benefit of such an area in proportion to the number of [adults](/usc/42/619.md?p=1) residing in the area who have been [recipients](/usc/42/2996a.md?p=6) of assistance under the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part (whether in effect before or after the amendments made by section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied to the [State](/usc/42/619.md?p=5)) for at least 30 months (whether or not consecutive) relative to the number of such [adults](/usc/42/619.md?p=1) residing in the [State](/usc/42/619.md?p=5); and
          - (cc) may determine the amount to be allocated for the benefit of such an area in proportion to the number of unemployed individuals residing in the area relative to the number of such individuals residing in the [State](/usc/42/619.md?p=5).
        - (II) **Distribution of funds—**
          - (aa) **In general—** If the amount allocated by the formula to a [service delivery area](#a-5-D-iii) is at least $100,000, the [State](/usc/42/619.md?p=5) shall distribute the amount to the entity administering the [grant](/usc/42/1397j.md?p=10) in the area.
          - (bb) **Special rule—** If the amount allocated by the formula to a [service delivery area](#a-5-D-iii) is less than $100,000, the sum shall be available for distribution in the [State](/usc/42/619.md?p=5) under [subclause (III)](#a-5-A-vi-III) during the [fiscal year](/usc/42/619.md?p=3).
        - (III) **Projects to help long-term recipients of assistance enter unsubsidized jobs—** The [Governor](/usc/42/6372.md?p=1) of a [State](/usc/42/619.md?p=5) to which a [grant](/usc/42/1397j.md?p=10) is made under this subparagraph may distribute not more than 15 percent of the [grant funds](/usc/42/5106a.md?p=f-1-B) (plus any amount required to be distributed under this subclause by reason of [subclause (II)(bb)](#a-5-A-vi-II-bb)) to [projects](/usc/42/11360.md?p=20) that appear likely to help long-term [recipients](/usc/42/2996a.md?p=6) of assistance under the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part (whether in effect before or after the amendments made by section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied to the [State](/usc/42/619.md?p=5)) enter unsubsidized employment.
      - (vii) **Administration—**
        - (I) **Private industry councils—** The [private industry council](#a-5-D-ii) for a [service delivery area](#a-5-D-iii) in a [State](/usc/42/619.md?p=5) shall have sole authority, in coordination with the chief elected official (as defined in [section 3](/usc/42/3.md) of the Workforce Innovation and Opportunity Act [[29 U.S.C. 3102](/usc/29/3102.md)]) of the area, to expend the amounts distributed under [clause (vi)(II)(aa)](#a-5-A-vi-II-aa) for the benefit of the [service delivery area](#a-5-D-iii), in accordance with the assurances described in [clause (ii)(I)(dd)](#a-5-A-ii-I-dd) provided by the [Governor](/usc/42/6372.md?p=1) of the [State](/usc/42/619.md?p=5).
        - (II) **Enforcement of coordination of expenditures with other expenditures under this part—** Notwithstanding subclause (I) of this clause, on a determination by the [Governor](/usc/42/6372.md?p=1) of a [State](/usc/42/619.md?p=5) that a [private industry council](#a-5-D-ii) (or an alternate [agency](/usc/42/1397n–12.md?p=1) described in [clause (ii)(I)(dd)](#a-5-A-ii-I-dd)) has used [funds](/usc/42/12854.md?p=3) provided under this subparagraph in a manner inconsistent with the assurances described in [clause (ii)(I)(dd)](#a-5-A-ii-I-dd)—
          - (aa) the [private industry council](#a-5-D-ii) (or such alternate [agency](/usc/42/1397n–12.md?p=1)) shall remit the [funds](/usc/42/12854.md?p=3) to the [Governor](/usc/42/6372.md?p=1); and
          - (bb) the [Governor](/usc/42/6372.md?p=1) shall apply to the [Secretary](/usc/42/1301.md?p=a-6) of Labor for a waiver of subclause (I) of this clause with respect to the [service delivery area](#a-5-D-iii) or areas involved in order to permit an alternate [agency](/usc/42/1397n–12.md?p=1) designated by the [Governor](/usc/42/6372.md?p=1) to administer the [funds](/usc/42/12854.md?p=3) in accordance with the assurances.
        - (III) **Authority to permit use of alternate administering agency—** The [Secretary](/usc/42/1301.md?p=a-6) of Labor shall approve an application submitted under [clause (ii)(I)(ee)](#a-5-A-ii-I-ee) or subclause (II)(bb) of this clause to waive subclause (I) of this clause with respect to 1 or more [service delivery areas](#a-5-D-iii) if the [Secretary](/usc/42/1301.md?p=a-6) determines that the alternate [agency](/usc/42/1397n–12.md?p=1) designated in the application would improve the effectiveness or efficiency of the [administration](/usc/42/1301.md?p=a-10) of amounts distributed under [clause (vi)(II)(aa)](#a-5-A-vi-II-aa) for the benefit of the area or areas.
      - (viii) **Data to be used in determining the number of adult TANF recipients—** For purposes of this subparagraph, the number of [adult](/usc/42/619.md?p=1) [recipients](/usc/42/2996a.md?p=6) of assistance under a [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part for a [fiscal year](/usc/42/619.md?p=3) shall be determined using data for the most recent 12-month period for which such data is available before the beginning of the [fiscal year](/usc/42/619.md?p=3).
      - (ix) **Reversion of unallotted formula funds—** If at the end of any [fiscal year](/usc/42/619.md?p=3) any [funds](/usc/42/12854.md?p=3) available under this subparagraph have not been allotted due to a determination by the [Secretary](/usc/42/1301.md?p=a-6) that any [State](/usc/42/619.md?p=5) has not met the requirements of [clause (ii)](#a-5-A-ii), such [funds](/usc/42/12854.md?p=3) shall be transferred to the General [Fund](/usc/42/12854.md?p=3) of the Treasury of the [United States](/usc/42/1301.md?p=a-2).
    - (B) **Competitive grants—**
      - (i) **In general—** The [Secretary](/usc/42/1301.md?p=a-6) of Labor shall award [grants](/usc/42/1397j.md?p=10) in accordance with this subparagraph, in [fiscal years](/usc/42/619.md?p=3) 1998 and 1999, for [projects](/usc/42/11360.md?p=20) proposed by [eligible applicants](#a-5-B-ii), based on the following:
        - (I) The effectiveness of the proposal in—
          - (aa) expanding the base of knowledge about [programs](/usc/42/274l–1.md?p=4) aimed at moving [recipients](/usc/42/2996a.md?p=6) of assistance under [State](/usc/42/619.md?p=5) [programs](/usc/42/274l–1.md?p=4) funded under this part who are least job ready into unsubsidized employment.[^4]
          - (bb) moving [recipients](/usc/42/2996a.md?p=6) of assistance under [State](/usc/42/619.md?p=5) [programs](/usc/42/274l–1.md?p=4) funded under this part who are least job ready into unsubsidized employment; and
          - (cc) moving [recipients](/usc/42/2996a.md?p=6) of assistance under [State](/usc/42/619.md?p=5) [programs](/usc/42/274l–1.md?p=4) funded under this part who are least job ready into unsubsidized employment, even in labor markets that have a shortage of low-skill jobs.
        - (II) At the discretion of the [Secretary](/usc/42/1301.md?p=a-6) of Labor, any of the following:
          - (aa) The history of success of the applicant in moving individuals with multiple barriers into work.
          - (bb) Evidence of the applicant’s ability to leverage private, [State](/usc/42/619.md?p=5), and local resources.
          - (cc) Use by the applicant of [State](/usc/42/619.md?p=5) and local resources beyond those required by [subparagraph (A)](#a-5-A).
          - (dd) Plans of the applicant to coordinate with other organizations at the local and [State](/usc/42/619.md?p=5) level.
          - (ee) Use by the applicant of current or former [recipients](/usc/42/2996a.md?p=6) of assistance under a [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part as mentors, case managers, or service providers.
      - (ii) **Eligible applicants—** As used in [clause (i)](#a-5-B-i), the term “eligible applicant” means a [private industry council](#a-5-D-ii) for a [service delivery area](#a-5-D-iii) in a [State](/usc/42/619.md?p=5), a political subdivision of a [State](/usc/42/619.md?p=5), or a [private entity](/usc/42/12181.md?p=6) applying in conjunction with the [private industry council](#a-5-D-ii) for such a [service delivery area](#a-5-D-iii) or with such a political subdivision, that submits a proposal developed in consultation with the [Governor](/usc/42/6372.md?p=1) of the [State](/usc/42/619.md?p=5).
      - (iii) **Determination of grant amount—** In determining the amount of a [grant](/usc/42/1397j.md?p=10) to be made under this subparagraph for a [project](/usc/42/11360.md?p=20) proposed by an applicant, the [Secretary](/usc/42/1301.md?p=a-6) of Labor shall provide the applicant with an amount sufficient to ensure that the [project](/usc/42/11360.md?p=20) has a reasonable opportunity to be successful, taking into account the number of long-term [recipients](/usc/42/2996a.md?p=6) of assistance under a [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part, the level of unemployment, the job opportunities and job growth, the poverty rate, and such other factors as the [Secretary](/usc/42/1301.md?p=a-6) of Labor deems appropriate, in the area to be served by the [project](/usc/42/11360.md?p=20).
      - (iv) **Consideration of needs of rural areas and cities with large concentrations of poverty—** In making [grants](/usc/42/1397j.md?p=10) under this subparagraph, the [Secretary](/usc/42/1301.md?p=a-6) of Labor shall consider the needs of rural areas and [cities](/usc/42/12902.md?p=11) with large concentrations of residents with an [income](/usc/42/292s.md?p=c-4) that is less than the [poverty line](/usc/42/1395w–114.md?p=a-3-C-ii).
      - (v) **Funding—** For [grants](/usc/42/1397j.md?p=10) under this subparagraph for each [fiscal year](/usc/42/619.md?p=3) specified in [subparagraph (H)](#a-5-H), there shall be available to the [Secretary](/usc/42/1301.md?p=a-6) of Labor an amount equal to the sum of—
        - (I) 25 percent of the sum of—
          - (aa) the amount specified in [subparagraph (H)](#a-5-H) for the [fiscal year](/usc/42/619.md?p=3), minus the total of the amounts reserved pursuant to subparagraphs [(E)](#a-5-E), [(F)](#a-5-F), and [(G)](#a-5-G) for the [fiscal year](/usc/42/619.md?p=3); and
          - (bb) any amount reserved pursuant to [subparagraph (E)](#a-5-E) for the immediately preceding [fiscal year](/usc/42/619.md?p=3) that has not been obligated; and
        - (II) any amount available for [grants](/usc/42/1397j.md?p=10) under this subparagraph for the immediately preceding [fiscal year](/usc/42/619.md?p=3) that has not been obligated.
    - (C) **Limitations on use of funds—**
      - (i) **Allowable activities—** An entity to which [funds](/usc/42/12854.md?p=3) are provided under this paragraph shall use the [funds](/usc/42/12854.md?p=3) to move individuals into and keep individuals in lasting unsubsidized employment by means of any of the following:
        - (I) The conduct and [administration](/usc/42/1301.md?p=a-10) of community service or work experience [programs](/usc/42/274l–1.md?p=4).
        - (II) Job creation through public or private sector employment wage subsidies.
        - (III) On-the-job [training](/usc/42/285e–2.md?p=b-2).
        - (IV) Contracts with public or private providers of readiness, placement, and post-employment services, or if the entity is not a [private industry council](#a-5-D-ii) or workforce investment [board](/usc/42/10261.md?p=2), the direct provision of such services.
        - (V) Job vouchers for placement, readiness, and postemployment services.
        - (VI) Job retention or support services if such services are not otherwise available.
        - (VII) Not more than 6 months of vocational educational or job [training](/usc/42/285e–2.md?p=b-2).

      Contracts or vouchers for job placement services supported by such [funds](/usc/42/12854.md?p=3) must require that at least ½ of the payment occur after an [eligible individual](/usc/42/239.md?p=a-6) placed into the workforce has been in the workforce for 6 months.

      - (ii) **General eligibility—** An entity that operates a [project](/usc/42/11360.md?p=20) with [funds](/usc/42/12854.md?p=3) provided under this paragraph may expend [funds](/usc/42/12854.md?p=3) provided to the [project](/usc/42/11360.md?p=20) for the benefit of [recipients](/usc/42/2996a.md?p=6) of assistance under the [program](/usc/42/274l–1.md?p=4) funded under this part of the [State](/usc/42/619.md?p=5) in which the entity is located who—
        - (I) has received assistance under the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part (whether in effect before or after the amendments made by section 103 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first apply to the [State](/usc/42/619.md?p=5)) for at least 30 months (whether or not consecutive); or
        - (II) within 12 months, will become ineligible for assistance under the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part by reason of a durational limit on such assistance, without regard to any exemption provided pursuant to [section 608(a)(7)(C) of this title](/usc/42/608.md?p=a-7-C) that may apply to the individual.
      - (iii) **Noncustodial parents—** An entity that operates a [project](/usc/42/11360.md?p=20) with [funds](/usc/42/12854.md?p=3) provided under this paragraph may use the [funds](/usc/42/12854.md?p=3) to provide services in a form described in [clause (i)](#a-5-C-i) to noncustodial [parents](/usc/42/675.md?p=2) with respect to whom the requirements of the following subclauses are met:
        - (I) The noncustodial [parent](/usc/42/1396a.md?p=k-3) is unemployed, underemployed, or having difficulty in paying [child](/usc/42/675.md?p=8-A) support obligations.
        - (II) At least 1 of the following applies to a [minor child](/usc/42/619.md?p=2) of the noncustodial [parent](/usc/42/1396a.md?p=k-3) (with preference in the determination of the noncustodial [parents](/usc/42/675.md?p=2) to be provided services under this paragraph to be provided by the entity to those noncustodial [parents](/usc/42/675.md?p=2) with minor children who meet, or who have custodial [parents](/usc/42/675.md?p=2) who meet, the requirements of [item (aa)](#a-5-C-iii-II-aa)):
          - (aa) The [minor child](/usc/42/619.md?p=2) or the custodial [parent](/usc/42/1396a.md?p=k-3) of the [minor child](/usc/42/619.md?p=2) meets the requirements of subclause [(I)](#a-5-C-ii-I) or [(II)](#a-5-C-ii-II) of clause (ii).
          - (bb) The [minor child](/usc/42/619.md?p=2) is eligible for, or is receiving, benefits under the [program](/usc/42/274l–1.md?p=4) funded under this part.
          - (cc) The [minor child](/usc/42/619.md?p=2) received benefits under the [program](/usc/42/274l–1.md?p=4) funded under this part in the 12-month period preceding the date of the determination but no longer receives such benefits.
          - (dd) The [minor child](/usc/42/619.md?p=2) is eligible for, or is receiving, assistance under the Food and Nutrition Act of 2008 [[7 U.S.C. 2011](/usc/7/2011.md) et seq.], benefits under the supplemental security [income](/usc/42/292s.md?p=c-4) [program](/usc/42/274l–1.md?p=4) under subchapter XVI of this chapter, medical assistance under subchapter XIX of this chapter, or [child health assistance](/usc/42/1397ll.md?p=d-1) under subchapter XXI of this chapter.
        - (III) In the case of a noncustodial [parent](/usc/42/1396a.md?p=k-3) who becomes enrolled in the [project](/usc/42/11360.md?p=20) on or after November 29, 1999, the noncustodial [parent](/usc/42/1396a.md?p=k-3) is in compliance with the terms of an oral or written personal responsibility contract entered into among the noncustodial [parent](/usc/42/1396a.md?p=k-3), the entity, and (unless the entity demonstrates to the [Secretary](/usc/42/1301.md?p=a-6) that the entity is not capable of coordinating with such [agency](/usc/42/1397n–12.md?p=1)) the [agency](/usc/42/1397n–12.md?p=1) responsible for administering the [State](/usc/42/619.md?p=5) plan under part D, which was developed taking into account the employment and [child](/usc/42/675.md?p=8-A) support status of the noncustodial [parent](/usc/42/1396a.md?p=k-3), which was entered into not later than 30 (or, at the option of the entity, not later than 90) days after the noncustodial [parent](/usc/42/1396a.md?p=k-3) was enrolled in the [project](/usc/42/11360.md?p=20), and which, at a minimum, [includes](/usc/42/1301.md?p=b) the following:
          - (aa) A commitment by the noncustodial [parent](/usc/42/1396a.md?p=k-3) to cooperate, at the earliest opportunity, in the establishment of the paternity of the [minor child](/usc/42/619.md?p=2), through voluntary acknowledgement or other procedures, and in the establishment of a [child](/usc/42/675.md?p=8-A) support order.
          - (bb) A commitment by the noncustodial [parent](/usc/42/1396a.md?p=k-3) to cooperate in the payment of [child](/usc/42/675.md?p=8-A) support for the [minor child](/usc/42/619.md?p=2), which may include a [modification](/usc/42/7501.md?p=4) of an existing support order to take into account the ability of the noncustodial [parent](/usc/42/1396a.md?p=k-3) to pay such support and the participation of such [parent](/usc/42/1396a.md?p=k-3) in the [project](/usc/42/11360.md?p=20).
          - (cc) A commitment by the noncustodial [parent](/usc/42/1396a.md?p=k-3) to participate in employment or related activities that will enable the noncustodial [parent](/usc/42/1396a.md?p=k-3) to make regular [child](/usc/42/675.md?p=8-A) support payments, and if the noncustodial [parent](/usc/42/1396a.md?p=k-3) has not attained 20 years of age, such related activities may include completion of high [school](/usc/42/6372.md?p=1), a general equivalency degree, or other education directly related to employment.
          - (dd) A description of the services to be provided under this paragraph, and a commitment by the noncustodial [parent](/usc/42/1396a.md?p=k-3) to participate in such services, that are designed to assist the noncustodial [parent](/usc/42/1396a.md?p=k-3) obtain and retain employment, increase earnings, and enhance the financial and emotional contributions to the well-being of the [minor child](/usc/42/619.md?p=2).

        In order to protect custodial [parents](/usc/42/675.md?p=2) and [children](/usc/42/256e.md?p=g-2) who may be at risk of [domestic violence](/usc/42/10402.md?p=3), the preceding provisions of this subclause shall not be construed to affect any other provision of law requiring a custodial [parent](/usc/42/1396a.md?p=k-3) to cooperate in establishing the paternity of a [child](/usc/42/675.md?p=8-A) or establishing or enforcing a support order with respect to a [child](/usc/42/675.md?p=8-A), or entitling a custodial [parent](/usc/42/1396a.md?p=k-3) to refuse, for good [cause](/usc/42/9908.md?p=c-2), to provide such cooperation as a condition of assistance or benefit under any [program](/usc/42/274l–1.md?p=4), shall not be construed to require such cooperation by the custodial [parent](/usc/42/1396a.md?p=k-3) as a condition of participation of either [parent](/usc/42/1396a.md?p=k-3) in the [program](/usc/42/274l–1.md?p=4) authorized under this paragraph, and shall not be construed to require a custodial [parent](/usc/42/1396a.md?p=k-3) to cooperate with or participate in any activity under this clause. The entity operating a [project](/usc/42/11360.md?p=20) under this clause with [funds](/usc/42/12854.md?p=3) provided under this paragraph shall consult with [domestic violence](/usc/42/10402.md?p=3) prevention and [intervention](/usc/42/1397n–12.md?p=2) organizations in the development of the [project](/usc/42/11360.md?p=20).

      - (iv) **Targeting of hard to employ individuals with characteristics associated with long-term welfare dependence—** An entity that operates a [project](/usc/42/11360.md?p=20) with [funds](/usc/42/12854.md?p=3) provided under this paragraph may expend not more than 30 percent of all [funds](/usc/42/12854.md?p=3) provided to the [project](/usc/42/11360.md?p=20) for [programs](/usc/42/274l–1.md?p=4) that provide assistance in a form described in [clause (i)](#a-5-C-i)—
        - (I) to [recipients](/usc/42/2996a.md?p=6) of assistance under the [program](/usc/42/274l–1.md?p=4) funded under this part of the [State](/usc/42/619.md?p=5) in which the entity is located who have characteristics associated with long-term welfare dependence (such as [school](/usc/42/6372.md?p=1) dropout, teen pregnancy, or poor work history), [including](/usc/42/1301.md?p=b), at the option of the [State](/usc/42/619.md?p=5), by providing assistance in such form as a condition of receiving assistance under the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part;
        - (II) to [children](/usc/42/256e.md?p=g-2)—
          - (aa) who have attained 18 years of age but not 25 years of age; and
          - (bb) who, before attaining 18 years of age, were [recipients](/usc/42/2996a.md?p=6) of [foster care maintenance payments](/usc/42/675.md?p=4-A) (as defined in [section 675(4) of this title](/usc/42/675.md?p=4)) under part E or were in foster care under the responsibility of a [State](/usc/42/619.md?p=5);
        - (III) to [recipients](/usc/42/2996a.md?p=6) of assistance under the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part, determined to have significant barriers to self-sufficiency, pursuant to criteria established by the local [private industry council](#a-5-D-ii); or
        - (IV) to custodial [parents](/usc/42/675.md?p=2) with [incomes](/usc/42/292s.md?p=c-4) below 100 percent of the [poverty line](/usc/42/1395w–114.md?p=a-3-C-ii) (as defined in [section 9902(2) of this title](/usc/42/9902.md?p=2), [including](/usc/42/1301.md?p=b) any revision required by such section, applicable to a [family](/usc/42/290ff–4.md?p=d-2) of the size involved).

      To the extent that the entity does not expend such [funds](/usc/42/12854.md?p=3) in accordance with the preceding sentence, the entity shall expend such [funds](/usc/42/12854.md?p=3) in accordance with clauses [(ii)](#a-5-C-ii) and [(iii)](#a-5-C-iii) and, as appropriate, [clause (v)](#a-5-C-v).

      - (v) **Authority to provide work-related services to individuals who have reached the 5-year limit—** An entity that operates a [project](/usc/42/11360.md?p=20) with [funds](/usc/42/12854.md?p=3) provided under this paragraph may use the [funds](/usc/42/12854.md?p=3) to provide assistance in a form described in clause (i) of this subparagraph to, or for the benefit of, individuals who (but for [section 608(a)(7) of this title](/usc/42/608.md?p=a-7)) would be eligible for assistance under the [program](/usc/42/274l–1.md?p=4) funded under this part of the [State](/usc/42/619.md?p=5) in which the entity is located.
      - (vi) **Relationship to other provisions of this part—**
        - (I) **Rules governing use of funds—** The rules of [section 604 of this title](/usc/42/604.md), other than subsections (b), (f), and (h) of [section 604 of this title](/usc/42/604.md), shall not apply to a [grant](/usc/42/1397j.md?p=10) made under this paragraph.
        - (II) **Rules governing payments to States—** The [Secretary](/usc/42/1301.md?p=a-6) of Labor shall carry out the functions otherwise assigned by [section 605 of this title](/usc/42/605.md) to the [Secretary](/usc/42/1301.md?p=a-6) of Health and Human Services with respect to the [grants](/usc/42/1397j.md?p=10) payable under this paragraph.
        - (III) **Administration—** [Section 616 of this title](/usc/42/616.md) shall not apply to the [programs](/usc/42/274l–1.md?p=4) under this paragraph.
      - (vii) **Prohibition against use of grant funds for any other fund matching requirement—** An entity to which [funds](/usc/42/12854.md?p=3) are provided under this paragraph shall not use any part of the [funds](/usc/42/12854.md?p=3), nor any part of [State](/usc/42/619.md?p=5) expenditures made to match the [funds](/usc/42/12854.md?p=3), to fulfill any obligation of any [State](/usc/42/619.md?p=5), political subdivision, or [private industry council](#a-5-D-ii) to contribute [funds](/usc/42/12854.md?p=3) under [subsection (b)](#b) or [section 618 of this title](/usc/42/618.md) or any other provision of this chapter or other Federal law.
      - (viii) **Deadline for expenditure—** An entity to which [funds](/usc/42/12854.md?p=3) are provided under this paragraph shall remit to the [Secretary](/usc/42/1301.md?p=a-6) of Labor any part of the [funds](/usc/42/12854.md?p=3) that are not expended within 5 years after the date the [funds](/usc/42/12854.md?p=3) are so provided.
      - (ix) **Regulations—** Within 90 days after August 5, 1997, the [Secretary](/usc/42/1301.md?p=a-6) of Labor, after consultation with the [Secretary](/usc/42/1301.md?p=a-6) of Health and Human Services and the [Secretary](/usc/42/1301.md?p=a-6) of [Housing](/usc/42/1490p–2.md?p=r-3) and Urban Development, shall prescribe such regulations as may be necessary to implement this paragraph.
      - (x) **Reporting requirements—** The [Secretary](/usc/42/1301.md?p=a-6) of Labor, in consultation with the [Secretary](/usc/42/1301.md?p=a-6) of Health and Human Services, [States](/usc/42/619.md?p=5), and organizations that represent [State](/usc/42/619.md?p=5) or [local governments](/usc/42/8401a.md), shall establish requirements for the collection and maintenance of financial and participant information and the reporting of such information by entities carrying out activities under this paragraph.
    - (D) **Definitions—**
      - (i) **Individuals with income less than the poverty line—** For purposes of this paragraph, the number of individuals with an [income](/usc/42/292s.md?p=c-4) that is less than the [poverty line](/usc/42/1395w–114.md?p=a-3-C-ii) shall be determined for a [fiscal year](/usc/42/619.md?p=3)—
        - (I) based on the methodology used by the Bureau of the Census to produce and publish intercensal poverty data for [States](/usc/42/619.md?p=5) and counties (or, in the case of Puerto Rico, the Virgin Islands, Guam, and American Samoa, other poverty data selected by the [Secretary](/usc/42/1301.md?p=a-6) of Labor); and
        - (II) using data for the most recent year for which such data is available before the beginning of the [fiscal year](/usc/42/619.md?p=3).
      - (ii) **Private industry council—** As used in this paragraph, the term “private industry council” means, with respect to a [service delivery area](#a-5-D-iii), the private industry council or local workforce development [board](/usc/42/10261.md?p=2) established for the local workforce development area pursuant to title I of the Workforce Innovation and Opportunity Act [[29 U.S.C. 3111](/usc/29/3111.md) et seq.], as appropriate.
      - (iii) **Service delivery area—** As used in this paragraph, the term “service delivery area” shall have the meaning given such term for purposes of the Job [Training](/usc/42/285e–2.md?p=b-2) Partnership Act or.[^5]
    - (E) **Funding for Indian tribes—** 1 percent of the amount specified in [subparagraph (H)](#a-5-H) for [fiscal year](/usc/42/619.md?p=3) 1998 and $15,000,000 of the amount so specified for [fiscal year](/usc/42/619.md?p=3) 1999 shall be reserved for [grants](/usc/42/1397j.md?p=10) to [Indian tribes](/usc/42/619.md?p=4-A) under [section 612(a)(3) of this title](/usc/42/612.md?p=a-3).
    - (F) **Funding for evaluations of welfare-to-work programs—** 0.6 percent of the amount specified in [subparagraph (H)](#a-5-H) for [fiscal year](/usc/42/619.md?p=3) 1998 and $9,000,000 of the amount so specified for [fiscal year](/usc/42/619.md?p=3) 1999 shall be reserved for use by the [Secretary](/usc/42/1301.md?p=a-6) to carry out [section 613(j) of this title](/usc/42/613.md).
    - (G) **Funding for evaluation of abstinence education programs—**
      - (i) **In general—** 0.2 percent of the amount specified in [subparagraph (H)](#a-5-H) for [fiscal year](/usc/42/619.md?p=3) 1998 and $3,000,000 of the amount so specified for [fiscal year](/usc/42/619.md?p=3) 1999 shall be reserved for use by the [Secretary](/usc/42/1301.md?p=a-6) to evaluate [programs](/usc/42/274l–1.md?p=4) under [section 710 of this title](/usc/42/710.md), directly or through [grants](/usc/42/1397j.md?p=10), contracts, or interagency [agreements](/usc/42/1320b–8.md?p=a-3-A).
      - (ii) **Authority to use funds for evaluations of welfare-to-work programs—** Any such amount not required for such evaluations shall be available for use by the [Secretary](/usc/42/1301.md?p=a-6) to carry out [section 613(j) of this title](/usc/42/613.md).
      - (iii) **Deadline for outlays—** Outlays from [funds](/usc/42/12854.md?p=3) used pursuant to [clause (i)](#a-5-G-i) for evaluation of [programs](/usc/42/274l–1.md?p=4) under [section 710 of this title](/usc/42/710.md) shall not be made after [fiscal year](/usc/42/619.md?p=3) 2005.
      - (iv) **Interim report—** Not later than January 1, 2002, the [Secretary](/usc/42/1301.md?p=a-6) shall submit to the Congress an interim report on the evaluations referred to in [clause (i)](#a-5-G-i).
    - (H) **Appropriations—**
      - (i) **In general—** Out of any money in the Treasury of the [United States](/usc/42/1301.md?p=a-2) not otherwise appropriated, there are appropriated for [grants](/usc/42/1397j.md?p=10) under this paragraph—
        - (I) $1,500,000,000 for [fiscal year](/usc/42/619.md?p=3) 1998; and
        - (II) $1,400,000,000 for [fiscal year](/usc/42/619.md?p=3) 1999.
      - (ii) **Availability—** The amounts made available pursuant to [clause (i)](#a-5-H-i) shall remain available for such period as is necessary to make the [grants](/usc/42/1397j.md?p=10) provided for in this paragraph.
    - (I) **Worker protections—**
      - (i) **Nondisplacement in work activities—**
        - (I) **General prohibition—** Subject to this clause, an [adult](/usc/42/619.md?p=1) in a [family](/usc/42/290ff–4.md?p=d-2) receiving assistance attributable to [funds](/usc/42/12854.md?p=3) provided under this paragraph may fill a vacant employment position in order to engage in a work activity.
        - (II) **Prohibition against violation of contracts—** A work activity engaged in under a [program](/usc/42/274l–1.md?p=4) operated with [funds](/usc/42/12854.md?p=3) provided under this paragraph shall not violate an existing contract for services or a collective bargaining [agreement](/usc/42/1320b–8.md?p=a-3-A), and such a work activity that would violate a collective bargaining [agreement](/usc/42/1320b–8.md?p=a-3-A) shall not be undertaken without the written concurrence of the [labor organization](/usc/42/2000ff.md?p=2-C) and employer concerned.
        - (III) **Other prohibitions—** An [adult](/usc/42/619.md?p=1) participant in a work activity engaged in under a [program](/usc/42/274l–1.md?p=4) operated with [funds](/usc/42/12854.md?p=3) provided under this paragraph shall not be employed or assigned—
          - (aa) when any other individual is on layoff from the same or any substantially equivalent job;
          - (bb) if the employer has terminated the employment of any regular [employee](/usc/42/1320a–7h.md?p=e-7) or otherwise caused an involuntary reduction in its workforce with the intention of filling the vacancy so created with the participant; or
          - (cc) if the employer has caused an involuntary reduction to less than full time in hours of any [employee](/usc/42/1320a–7h.md?p=e-7) in the same or a substantially equivalent job.
      - (ii) **Health and safety—** Health and safety [standards](/usc/42/1320d.md?p=7) established under Federal and [State](/usc/42/619.md?p=5) law otherwise applicable to working conditions of [employees](/usc/42/1320a–7h.md?p=e-7) shall be equally applicable to working conditions of other participants engaged in a work activity under a [program](/usc/42/274l–1.md?p=4) operated with [funds](/usc/42/12854.md?p=3) provided under this paragraph.
      - (iii) **Nondiscrimination—** In addition to the protections provided under the provisions of law specified in [section 608(c) of this title](/usc/42/608.md?p=c), an individual may not be discriminated against by reason of gender with respect to participation in work activities engaged in under a [program](/usc/42/274l–1.md?p=4) operated with [funds](/usc/42/12854.md?p=3) provided under this paragraph.
      - (iv) **Grievance procedure—**
        - (I) **In general—** Each [State](/usc/42/619.md?p=5) to which a [grant](/usc/42/1397j.md?p=10) is made under this paragraph shall establish and maintain a procedure for grievances or complaints from [employees](/usc/42/1320a–7h.md?p=e-7) alleging [violations](/usc/42/2000e–16a.md?p=c) of [clause (i)](#a-5-I-i) and participants in work activities alleging [violations](/usc/42/2000e–16a.md?p=c) of clause [(i)](#a-5-I-i), [(ii)](#a-5-I-ii), or [(iii)](#a-5-I-iii).
        - (II) **Hearing—** The procedure shall include an opportunity for a hearing.
        - (III) **Remedies—** The procedure shall include remedies for [violation](/usc/42/2000e–16a.md?p=c) of clause [(i)](#a-5-I-i), [(ii)](#a-5-I-ii), or [(iii)](#a-5-I-iii), which may continue during the pendency of the procedure, and which may include—
          - (aa) suspension or termination of payments from [funds](/usc/42/12854.md?p=3) provided under this paragraph;
          - (bb) prohibition of placement of a participant with an employer that has violated clause [(i)](#a-5-I-i), [(ii)](#a-5-I-ii), or [(iii)](#a-5-I-iii);
          - (cc) where applicable, reinstatement of an [employee](/usc/42/1320a–7h.md?p=e-7), payment of lost wages and benefits, and reestablishment of other relevant terms, conditions and privileges of employment; and
          - (dd) where appropriate, other equitable relief.
        - (IV) **Appeals—**
          - (aa) **Filing—** Not later than 30 days after a grievant or [complainant](/usc/42/3602.md?p=j) receives an adverse decision under the procedure established pursuant to [subclause (I)](#a-5-I-iv-I), the grievant or [complainant](/usc/42/3602.md?p=j) may appeal the decision to a [State agency](/usc/42/1320a–7a.md?p=i-1) designated by the [State](/usc/42/619.md?p=5) which shall be independent of the [State](/usc/42/619.md?p=5) or local [agency](/usc/42/1397n–12.md?p=1) that is administering the [programs](/usc/42/274l–1.md?p=4) operated with [funds](/usc/42/12854.md?p=3) provided under this paragraph and the [State agency](/usc/42/1320a–7a.md?p=i-1) administering, or supervising the [administration](/usc/42/1301.md?p=a-10) of, the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part.
          - (bb) **Final determination—** Not later than 120 days after the [State agency](/usc/42/1320a–7a.md?p=i-1) designated under [item (aa)](#a-5-I-iv-IV-aa) receives a grievance or complaint made under the procedure established by a [State](/usc/42/619.md?p=5) pursuant to [subclause (I)](#a-5-I-iv-I), the [State agency](/usc/42/1320a–7a.md?p=i-1) shall make a final determination on the appeal.
      - (v) **Rule of interpretation—** This subparagraph shall not be construed to affect the authority of a [State](/usc/42/619.md?p=5) to provide or require workers’ compensation.
      - (vi) **Nonpreemption of State law—** The provisions of this subparagraph shall not be construed to preempt any provision of [State](/usc/42/619.md?p=5) law that affords greater protections to [employees](/usc/42/1320a–7h.md?p=e-7) or to other participants engaged in work activities under a [program](/usc/42/274l–1.md?p=4) funded under this part than is afforded by such provisions of this subparagraph.
    - (J) **Information disclosure—** If a [State](/usc/42/619.md?p=5) to which a [grant](/usc/42/1397j.md?p=10) is made under this section establishes safeguards against the use or disclosure of information about applicants or [recipients](/usc/42/2996a.md?p=6) of assistance under the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part, the safeguards shall not prevent the [State agency](/usc/42/1320a–7a.md?p=i-1) administering the [program](/usc/42/274l–1.md?p=4) from furnishing to a [private industry council](#a-5-D-ii) the names, addresses, telephone numbers, and identifying case number information in the [State](/usc/42/619.md?p=5) [program](/usc/42/274l–1.md?p=4) funded under this part, of noncustodial [parents](/usc/42/675.md?p=2) residing in the [service delivery area](#a-5-D-iii) of the [private industry council](#a-5-D-ii), for the purpose of identifying and contacting noncustodial [parents](/usc/42/675.md?p=2) regarding participation in the [program](/usc/42/274l–1.md?p=4) under this paragraph.
- (b) **Contingency Fund—**
  - (1) **Establishment—** There is hereby established in the Treasury of the [United States](/usc/42/1301.md?p=a-2) a [fund](/usc/42/12854.md?p=3) which shall be known as the “Contingency [Fund](/usc/42/12854.md?p=3) for [State](#b-7) Welfare [Programs](/usc/42/274l–1.md?p=4)” (in this section referred to as the “[Fund](/usc/42/12854.md?p=3)”).
  - (2) **Deposits into fund—** Out of any money in the Treasury of the [United States](/usc/42/1301.md?p=a-2) not otherwise appropriated, there are appropriated for [fiscal year](/usc/42/619.md?p=3) 2018 such sums as are necessary for payment to the [Fund](/usc/42/12854.md?p=3) in a total amount not to exceed $608,000,000.
  - (3) **Grants—**
    - (A) **Provisional payments—** If an [eligible State](/usc/42/602.md?p=a) submits to the [Secretary](/usc/42/1301.md?p=a-6) a request for [funds](/usc/42/12854.md?p=3) under this paragraph during an [eligible month](#b-4), the [Secretary](/usc/42/1301.md?p=a-6) shall, subject to this paragraph, pay to the [State](#b-7), from amounts appropriated pursuant to [paragraph (2)](#b-2), an amount equal to the amount of [funds](/usc/42/12854.md?p=3) so requested.
    - (B) **Payment priority—** The [Secretary](/usc/42/1301.md?p=a-6) shall make payments under [subparagraph (A)](#b-3-A) in the order in which the [Secretary](/usc/42/1301.md?p=a-6) receives requests for such payments.
    - (C) **Limitations—**
      - (i) **Monthly payment to a State—** The total amount paid to a [single](/usc/42/2304.md?p=m) [State](#b-7) under [subparagraph (A)](#b-3-A) during a month shall not exceed <sup>1</sup>⁄<sub>12</sub> of 20 percent of the [State](#b-7) [family assistance grant](/usc/42/1308.md?p=c-3).
      - (ii) **Payments to all States—** The total amount paid to all [States](#b-7) under [subparagraph (A)](#b-3-A) during [fiscal year](/usc/42/619.md?p=3) 2011 and 2012, respectively, shall not exceed the total amount appropriated pursuant to [paragraph (2)](#b-2) for each such [fiscal year](/usc/42/619.md?p=3).
  - (4) **“Eligible month” defined—** As used in [paragraph (3)(A)](#b-3-A), the term “eligible month” means, with respect to a [State](#b-7), a month in the 2-month period that begins with any month for which the [State](#b-7) is a needy [State](#b-7).
  - (5) **Needy State—** For purposes of [paragraph (4)](#b-4), a [State](#b-7) is a needy [State](#b-7) for a month if—
    - (A) the average rate of—
      - (i) total unemployment in such [State](#b-7) (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all [States](#b-7) are published equals or exceeds 6.5 percent; and
      - (ii) total unemployment in such [State](#b-7) (seasonally adjusted) for the 3-month period equals or exceeds 110 percent of such average rate for either (or both) of the corresponding 3-month periods ending in the 2 preceding calendar years; or
    - (B) as determined by the [Secretary](/usc/42/1301.md?p=a-6) of Agriculture (in the discretion of the [Secretary](/usc/42/1301.md?p=a-6) of Agriculture), the monthly average number of individuals (as of the last day of each month) participating in the supplemental nutrition assistance [program](/usc/42/274l–1.md?p=4) in the [State](#b-7) in the then most recently concluded 3-month period for which data are available exceeds by not less than 10 percent the lesser of—
      - (i) the monthly average number of individuals (as of the last day of each month) in the [State](#b-7) that would have participated in the supplemental nutrition assistance [program](/usc/42/274l–1.md?p=4) in the corresponding 3-month period in [fiscal year](/usc/42/619.md?p=3) 1994 if the amendments made by titles IV [[8 U.S.C. 1601](/usc/8/1601.md) et seq.] and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout [fiscal year](/usc/42/619.md?p=3) 1994; or
      - (ii) the monthly average number of individuals (as of the last day of each month) in the [State](#b-7) that would have participated in the supplemental nutrition assistance [program](/usc/42/274l–1.md?p=4) in the corresponding 3-month period in [fiscal year](/usc/42/619.md?p=3) 1995 if the amendments made by titles IV and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout [fiscal year](/usc/42/619.md?p=3) 1995.
  - (6) **Annual reconciliation—**
    - (A) **In general—** Notwithstanding [paragraph (3)](#b-3), if the [Secretary](/usc/42/1301.md?p=a-6) makes a payment to a [State](#b-7) under this subsection in a [fiscal year](/usc/42/619.md?p=3), then the [State](#b-7) shall remit to the [Secretary](/usc/42/1301.md?p=a-6), within 1 year after the end of the first subsequent period of 3 consecutive months for which the [State](#b-7) is not a needy [State](#b-7), an amount equal to the amount (if any) by which—
      - (i) the total amount paid to the [State](#b-7) under paragraph (3) of this subsection in the [fiscal year](/usc/42/619.md?p=3); exceeds
      - (ii) the product of—
        - (I) the Federal medical assistance percentage for the [State](#b-7) (as defined in [section 1396d(b) of this title](/usc/42/1396d.md?p=b), as such section was in effect on September 30, 1995);
        - (II) the [State](#b-7)’s [reimbursable expenditures](#b-6-B-i) for the [fiscal year](/usc/42/619.md?p=3); and
        - (III) <sup>1</sup>⁄<sub>12</sub> times the number of months during the [fiscal year](/usc/42/619.md?p=3) for which the [Secretary](/usc/42/1301.md?p=a-6) made a payment to the [State](#b-7) under such [paragraph (3)](#b-3).
    - (B) **Definitions—** As used in [subparagraph (A)](#b-6-A):
      - (i) **Reimbursable expenditures—** The term “reimbursable expenditures” means, with respect to a [State](#b-7) and a [fiscal year](/usc/42/619.md?p=3), the amount (if any) by which—
        - (I) countable [State](#b-7) expenditures for the [fiscal year](/usc/42/619.md?p=3); exceeds
        - (II) historic [State](#b-7) expenditures (as defined in [section 609(a)(7)(B)(iii) of this title](/usc/42/609.md?p=a-7-B-iii)), excluding any amount expended by the [State](#b-7) for [child](/usc/42/675.md?p=8-A) care under subsection (g) or (i) of [section 602 of this title](/usc/42/602.md) (as in effect during [fiscal year](/usc/42/619.md?p=3) 1994) for [fiscal year](/usc/42/619.md?p=3) 1994.
      - (ii) **Countable State expenditures—** The term “countable expenditures” means, with respect to a [State](#b-7) and a [fiscal year](/usc/42/619.md?p=3)—
        - (I) the [qualified State expenditures](/usc/42/609.md?p=a-7-B-i-V) (as defined in [section 609(a)(7)(B)(i) of this title](/usc/42/609.md?p=a-7-B-i) (other than the expenditures described in [subclause (I)(bb)](/usc/42/609.md?p=a-7-B-i-I-bb) of such section)) under the [State](#b-7) [program](/usc/42/274l–1.md?p=4) funded under this part for the [fiscal year](/usc/42/619.md?p=3); plus
        - (II) any amount paid to the [State](#b-7) under [paragraph (3)](#b-3) during the [fiscal year](/usc/42/619.md?p=3) that is expended by the [State](#b-7) under the [State](#b-7) [program](/usc/42/274l–1.md?p=4) funded under this part.
    - (C) **Adjustment of State remittances—**
      - (i) **In general—** The amount otherwise required by [subparagraph (A)](#b-6-A) to be remitted by a [State](#b-7) for a [fiscal year](/usc/42/619.md?p=3) shall be increased by the lesser of—
        - (I) the [total adjustment](#b-6-C-ii) for the [fiscal year](/usc/42/619.md?p=3), multiplied by the [adjustment percentage](#b-6-C-iii) for the [State](#b-7) for the [fiscal year](/usc/42/619.md?p=3); or
        - (II) the unadjusted net payment to the [State](#b-7) for the [fiscal year](/usc/42/619.md?p=3).
      - (ii) **Total adjustment—** As used in [clause (i)](#b-6-C-i), the term “total adjustment” means—
        - (I) in the case of [fiscal year](/usc/42/619.md?p=3) 1998, $2,000,000;
        - (II) in the case of [fiscal year](/usc/42/619.md?p=3) 1999, $9,000,000;
        - (III) in the case of [fiscal year](/usc/42/619.md?p=3) 2000, $16,000,000; and
        - (IV) in the case of [fiscal year](/usc/42/619.md?p=3) 2001, $13,000,000.
      - (iii) **Adjustment percentage—** As used in [clause (i)](#b-6-C-i), the term “adjustment percentage” means, with respect to a [State](#b-7) and a [fiscal year](/usc/42/619.md?p=3)—
        - (I) the unadjusted net payment to the [State](#b-7) for the [fiscal year](/usc/42/619.md?p=3); divided by
        - (II) the sum of the unadjusted net payments to all [States](#b-7) for the [fiscal year](/usc/42/619.md?p=3).
      - (iv) **Unadjusted net payment—** As used in this subparagraph, the term, “unadjusted net payment” means with respect to a [State](#b-7) and a [fiscal year](/usc/42/619.md?p=3)—
        - (I) the total amount paid to the [State](#b-7) under [paragraph (3)](#b-3) in the [fiscal year](/usc/42/619.md?p=3); minus
        - (II) the amount that, in the absence of this subparagraph, would be required by [subparagraph (A)](#b-6-A) or by [section 609(a)(10) of this title](/usc/42/609.md?p=a-10) to be remitted by the [State](#b-7) in respect of the payment.
  - (7) **“State” defined—** As used in this subsection, the term “State” means each of the 50 States and the District of Columbia.
  - (8) **Annual reports—** The [Secretary](/usc/42/1301.md?p=a-6) shall annually report to the Congress on the status of the [Fund](/usc/42/12854.md?p=3).
- (c) **Pandemic emergency assistance—**
  - (1) **Appropriation—** In addition to amounts otherwise available, there is appropriated for [fiscal year](/usc/42/619.md?p=3) 2021, out of any money in the Treasury of the [United States](/usc/42/1301.md?p=a-2) not otherwise appropriated, $1,000,000,000, to remain available until expended, to carry out this subsection.
  - (2) **Reservation of funds for technical assistance—** Of the amount specified in [paragraph (1)](#c-1), the [Secretary](/usc/42/1301.md?p=a-6) shall reserve $2,000,000 for administrative expenses and the provision of technical assistance to [States](#c-8-C) and [Indian tribes](/usc/42/619.md?p=4-A) with respect to the use of [funds](/usc/42/12854.md?p=3) provided under this subsection.
  - (3) **Allotments—**
    - (A) **50 States and the District of Columbia—**
      - (i) **Total amount to be allotted—** The [Secretary](/usc/42/1301.md?p=a-6) shall allot a total of 92.5 percent of the amount specified in [paragraph (1)](#c-1) that is not reserved under [paragraph (2)](#c-2) among the [States](#c-8-C) that are not a [territory](#c-8-D) and that are operating a [program](/usc/42/274l–1.md?p=4) funded under this part, in accordance with clause (ii) of this subparagraph.
      - (ii) **Allotment formula—** The [Secretary](/usc/42/1301.md?p=a-6) shall allot to each such [State](#c-8-C) the sum of the following percentages of the total amount described in [clause (i)](#c-3-A-i):
        - (I) 50 percent, multiplied by—
          - (aa) the population of [children](/usc/42/256e.md?p=g-2) in the [State](#c-8-C), determined on the basis of the most recent population estimates as determined by the Bureau of the Census; divided by
          - (bb) the total population of [children](/usc/42/256e.md?p=g-2) in the [States](#c-8-C) that are not [territories](#c-8-D), as so determined; plus
        - (II) 50 percent, multiplied by—
          - (aa) the total amount expended by the [State](#c-8-C) for basic assistance, [non-recurrent short term benefits](#c-8-B), and emergency assistance in [fiscal year](/usc/42/619.md?p=3) 2019, as reported by the [State](#c-8-C) under [section 611 of this title](/usc/42/611.md); divided by
          - (bb) the total amount expended by the [States](#c-8-C) that are not [territories](#c-8-D) for basic assistance, [non-recurrent short term benefits](#c-8-B), and emergency assistance in [fiscal year](/usc/42/619.md?p=3) 2019, as so reported by the [States](#c-8-C).
    - (B) **Territories and Indian Tribes—** The [Secretary](/usc/42/1301.md?p=a-6) shall allot among the [territories](#c-8-D) and [Indian tribes](/usc/42/619.md?p=4-A) otherwise eligible for a [grant](/usc/42/1397j.md?p=10) under this part such portions of 7.5 percent of the amount specified in [paragraph (1)](#c-1) that are not reserved under [paragraph (2)](#c-2) as the [Secretary](/usc/42/1301.md?p=a-6) deems appropriate based on the needs of the [territory](#c-8-D) or [Indian tribe](/usc/42/619.md?p=4-A) involved.
    - (C) **Expenditure commitment requirement—** To receive the full amount of funding payable under this subsection, a [State](#c-8-C) or [Indian tribe](/usc/42/619.md?p=4-A) shall inform the [Secretary](/usc/42/1301.md?p=a-6) as to whether it intends to use all of its allotment under this paragraph and provide that information—
      - (i) in the case of a [State](#c-8-C) that is not a [territory](#c-8-D), within 45 days after March 11, 2021; or
      - (ii) in the case of a [territory](#c-8-D) or an [Indian tribe](/usc/42/619.md?p=4-A), within 90 days after such date.
  - (4) **Grants—**
    - (A) **In general—** The [Secretary](/usc/42/1301.md?p=a-6) shall provide [funds](/usc/42/12854.md?p=3) to each [State](#c-8-C) and [Indian tribe](/usc/42/619.md?p=4-A) to which an amount is allotted under [paragraph (3)](#c-3), from the amount so allotted.
    - (B) **Treatment of unused funds—**
      - (i) **Reallotment—** The [Secretary](/usc/42/1301.md?p=a-6) shall reallot in accordance with [paragraph (3)](#c-3) all [funds](/usc/42/12854.md?p=3) provided to any [State](#c-8-C) or [Indian tribe](/usc/42/619.md?p=4-A) under this subsection that are unused, among the other [States](#c-8-C) and [Indian tribes](/usc/42/619.md?p=4-A) eligible for [funds](/usc/42/12854.md?p=3) under this subsection. For purposes of [paragraph (3)](#c-3), the [Secretary](/usc/42/1301.md?p=a-6) shall treat the [funds](/usc/42/12854.md?p=3) as if included in the amount specified in [paragraph (1)](#c-1).
      - (ii) **Provision—** The [Secretary](/usc/42/1301.md?p=a-6) shall provide [funds](/usc/42/12854.md?p=3) to each such other [State](#c-8-C) or [Indian tribe](/usc/42/619.md?p=4-A) in an amount equal to the amount so reallotted.
  - (5) **Recipient of funds provided for territories—** In the case of a [territory](#c-8-D) not operating a [program](/usc/42/274l–1.md?p=4) funded under this part, the [Secretary](/usc/42/1301.md?p=a-6) shall provide the [funds](/usc/42/12854.md?p=3) required to be provided to the [territory](#c-8-D) under this subsection, to the [agency](/usc/42/1397n–12.md?p=1) that administers the bulk of local human services [programs](/usc/42/274l–1.md?p=4) in the [territory](#c-8-D).
  - (6) **Use of funds—**
    - (A) **In general—** A [State](#c-8-C) or [Indian tribe](/usc/42/619.md?p=4-A) to which [funds](/usc/42/12854.md?p=3) are provided under this subsection may use the [funds](/usc/42/12854.md?p=3) only for [non-recurrent short term benefits](#c-8-B), whether in the form of cash or in other forms.
    - (B) **Limitation on use for administrative expenses—** A [State](#c-8-C) to which [funds](/usc/42/12854.md?p=3) are provided under this subsection shall not expend more than 15 percent of the [funds](/usc/42/12854.md?p=3) for administrative purposes.
    - (C) **Nonsupplantation—** [Funds](/usc/42/12854.md?p=3) provided under this subsection shall be used to supplement and not supplant other Federal, [State](#c-8-C), or tribal [funds](/usc/42/12854.md?p=3) for services and activities that promote the purposes of this part.
    - (D) **Expenditure deadline—**
      - (i) **In general—** Except as provided in [clause (ii)](#c-6-D-ii), a [State](#c-8-C) or [Indian tribe](/usc/42/619.md?p=4-A) to which [funds](/usc/42/12854.md?p=3) are provided under this subsection shall expend the [funds](/usc/42/12854.md?p=3) not later than the end of [fiscal year](/usc/42/619.md?p=3) 2022.
      - (ii) **Exception for reallotted funds—** A [State](#c-8-C) or [Indian tribe](/usc/42/619.md?p=4-A) to which [funds](/usc/42/12854.md?p=3) are provided under [paragraph (4)(B)](#c-4-B) shall expend the [funds](/usc/42/12854.md?p=3) within 12 months after receipt.
  - (7) **Suspension of territory spending cap—** [Section 1308 of this title](/usc/42/1308.md) shall not apply with respect to any [funds](/usc/42/12854.md?p=3) provided under this subsection.
  - (8) **Definitions—** In this subsection:
    - (A) **Applicable period—** The term “applicable period” means the period that begins with April 1, 2021, and ends with September 30, 2022.
    - (B) **Non-recurrent short term benefits—** The term “non-recurrent short term benefits” has the meaning given the term in OMB approved Form ACF–196R, published on July 31, 2014.
    - (C) **State—** The term “State” means the 50 States of the [United States](/usc/42/1301.md?p=a-2), the District of Columbia, and the [territories](#c-8-D).
    - (D) **Territory—** The term “territory” means the Commonwealth of Puerto Rico, the [United States](/usc/42/1301.md?p=a-2) Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

## Footnotes

[^1]: So in original. Probably should be followed by “and”.
[^2]: So in original. Probably should be “entities”.
[^3]: See References in Text note below.
[^4]: So in original. The period probably should be a semicolon.
[^5]: So in original.

## Source credit

(Aug. 14, 1935, ch. 531, title IV, § 403, as added Pub. L. 104–193, title I, § 103(a)(1), Aug. 22, 1996, 110 Stat. 2115; amended Pub. L. 104–327, § 1(b), Oct. 19, 1996, 110 Stat. 4002; Pub. L. 105–33, title V, §§ 5001(a)(1), 5502, 5514(c), Aug. 5, 1997, 111 Stat. 577, 606, 620; Pub. L. 105–78, title VI, § 608, Nov. 13, 1997, 111 Stat. 1522; Pub. L. 105–89, title IV, § 404(a), (b), Nov. 19, 1997, 111 Stat. 2134; Pub. L. 105–200, title IV, § 408, July 16, 1998, 112 Stat. 672; Pub. L. 105–277, div. A, § 101(f) [title I, § 102, title VIII, § 405(d)(30), (f)(22)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–346, 2681–425, 2681–432; Pub. L. 105–306, § 6(a), Oct. 28, 1998, 112 Stat. 2928; Pub. L. 106–113, div. B, § 1000(a)(4) [title VIII, §§ 801(a), (b)(1), (c), 802, 803, 804(b), 805(a)(2), (b), 806], Nov. 29, 1999, 113 Stat. 1535, 1501A–280, 1501A–281, 1501A–283 to 1501A–286; Pub. L. 106–246, div. B, title II, § 2402, July 13, 2000, 114 Stat. 555; Pub. L. 106–554, § 1(a)(1) [title I, §§ 103, 107(a)–(b)(4), (c), title V, § 513], Dec. 21, 2000, 114 Stat. 2763, 2763A–11, 2763A–12, 2763A–71; Pub. L. 107–147, title VI, §§ 616, 617, Mar. 9, 2002, 116 Stat. 62; Pub. L. 108–40, § 3(a), (c)–(e), June 30, 2003, 117 Stat. 836, 837; Pub. L. 108–89, title I, § 101(b)(1), (2), Oct. 1, 2003, 117 Stat. 1131; Pub. L. 108–210, § 2(b), Mar. 31, 2004, 118 Stat. 564; Pub. L. 108–262, § 2(b), June 30, 2004, 118 Stat. 696; Pub. L. 108–308, § 2(b)(1), (2), Sept. 30, 2004, 118 Stat. 1135; Pub. L. 109–4, § 2(b), Mar. 25, 2005, 119 Stat. 17; Pub. L. 109–19, § 2(b), July 1, 2005, 119 Stat. 344; Pub. L. 109–68, § 2(b)(2)(A), (B), Sept. 21, 2005, 119 Stat. 2003; Pub. L. 109–161, § 2(b), Dec. 30, 2005, 119 Stat. 2958; Pub. L. 109–171, title VII, §§ 7101(b)(1), (2), 7103(a), Feb. 8, 2006, 120 Stat. 135, 138; Pub. L. 110–234, title IV, § 4002(b)(1)(A), (B), (2)(V), May 22, 2008, 122 Stat. 1095–1097; Pub. L. 110–246, § 4(a), title IV, § 4002(b)(1)(A), (B), (2)(V), June 18, 2008, 122 Stat. 1664, 1857, 1858; Pub. L. 110–275, title III, § 301(b), July 15, 2008, 122 Stat. 2594; Pub. L. 111–5, div. B, title II, §§ 2101(a), 2102(b), Feb. 17, 2009, 123 Stat. 446, 449; Pub. L. 111–242, § 131(b)(1), (2), Sept. 30, 2010, 124 Stat. 2612; Pub. L. 111–291, title VIII, § 811(b)–(d), Dec. 8, 2010, 124 Stat. 3159; Pub. L. 112–96, title IV, § 4002(a), (b), Feb. 22, 2012, 126 Stat. 194, 195; Pub. L. 112–275, § 9(a), Jan. 14, 2013, 126 Stat. 2465; Pub. L. 113–128, title V, § 512(dd)(1), July 22, 2014, 128 Stat. 1717; Pub. L. 115–31, div. M, title I, § 102(a)(1), (2), (b), (c)(2), May 5, 2017, 131 Stat. 800, 803; Pub. L. 117–2, title IX, § 9201, Mar. 11, 2021, 135 Stat. 124.)

## Notes

### Editorial Notes

### References in Text

Section 603(a)(5)(K) of this title, referred to in subsec. (a)(5)(A)(ii)(I)(ff), was redesignated as section 603(a)(5)(J) by Pub. L. 106–554, § 1(a)(1) [title I, § 107(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–12.

Section 103 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, referred to in subsec. (a)(5)(A)(vi)(I)(bb), (III), (C)(ii)(I), is section 103 of Pub. L. 104–193, which enacted this part, amended sections 602, 603, and 1308 of this title, and repealed provisions formerly set out as this part. For complete classification of section 103 to the Code, see Tables.

The Food and Nutrition Act of 2008, referred to in subsec. (a)(5)(C)(iii)(II)(dd), is Pub. L. 88–525, Aug. 31, 1964, 78 Stat. 703, which is classified generally to chapter 51 (§ 2011 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note set out under section 2011 of Title 7 and Tables.

The Workforce Innovation and Opportunity Act, referred to in subsec. (a)(5)(D)(ii), is Pub. L. 113–128, July 22, 2014, 128 Stat. 1425. Title I of the Act is classified generally to subchapter I (§ 3111 et seq.) of chapter 32 of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 3101 of Title 29 and Tables.

The Job Training Partnership Act, referred to in subsec. (a)(5)(D)(iii), is Pub. L. 97–300, Oct. 13, 1982, 96 Stat. 1322, which was classified generally to chapter 19 (§ 1501 et seq.) of Title 29, Labor, and was repealed by Pub. L. 105–220, title I, § 199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July 1, 2000. Pursuant to former section 2940(b) of Title 29, references to a provision of the Job Training Partnership Act, effective Aug. 7, 1998, were deemed to refer to that provision or the corresponding provision of the Workforce Investment Act of 1998, Pub. L. 105–220, Aug. 7, 1998, 112 Stat. 936, and, effective July 1, 2000, were deemed to refer to the corresponding provision of the Workforce Investment Act of 1998. The Workforce Investment Act of 1998 was repealed by Pub. L. 113–128, title V, §§ 506, 511(a), July 22, 2014, 128 Stat. 1703, 1705, effective July 1, 2015. For complete classification of the Job Training Partnership Act and the Workforce Investment Act of 1998 to the Code, see Tables.

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996, referred to in subsec. (b)(5)(B), is Pub. L. 104–193, Aug. 22, 1996, 110 Stat. 2105. Title IV of the Act is classified principally to chapter 14 (§ 1601 et seq.) of Title 8, Aliens and Nationality. For complete classification of titles IV and VIII of the Act to the Code, see Tables.

### Codification

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

### Prior Provisions

A prior section 603, acts Aug. 14, 1935, ch. 531, title IV, § 403, 49 Stat. 628; Aug. 10, 1939, ch. 666, title IV, § 402, 53 Stat. 1380; Aug. 10, 1946, ch. 951, title V, § 502, 60 Stat. 992; June 14, 1948, ch. 468, § 3(b), 62 Stat. 439; Aug. 28, 1950, ch. 809, title III, pt. 2, § 322(a), pt. 6, § 361(c), (d), 64 Stat. 550, 558; July 18, 1952, ch. 945, § 8(b), 66 Stat. 778; Sept. 1, 1954, ch. 1206, title III, § 303(a), 68 Stat. 1097; Aug. 1, 1956, ch. 836, title III, §§ 302, 312(c), 342, 351(a), 70 Stat. 847, 849, 852, 854; Aug. 28, 1958, Pub. L. 85–840, title V, § 502, 72 Stat. 1048; July 25, 1962, Pub. L. 87–543, title I, §§ 101(a)(2), (b)(2)(A)–(C), 104(a)(3)(C), 108(b), (c), 76 Stat. 174, 180, 185, 190; July 30, 1965, Pub. L. 89–97, title I, § 122, title IV, § 401(c), 79 Stat. 353, 415; Jan. 2, 1968, Pub. L. 90–248, title II, §§ 201(c)–(e)(3), 205(b), 206(a), 207(b), 208, 241(b)(2), (3), 81 Stat. 879, 880, 892–894, 916; June 28, 1968, Pub. L. 90–364, title III, § 301, 82 Stat. 273; July 9, 1969, Pub. L. 91–41, § 3, 83 Stat. 45; Dec. 28, 1971, Pub. L. 92–223, § 3(a)(8), (9), 85 Stat. 805; Oct. 20, 1972, Pub. L. 92–512, title III, § 301(b)–(d), 86 Stat. 946, 947; Oct. 30, 1972, Pub. L. 92–603, title II, §§ 299E(d), 299F, 86 Stat. 1462, 1463; Jan. 4, 1975, Pub. L. 93–647, §§ 3(a)(3), (4), (e)(2), 5(b), 101(c)(6)(A), 88 Stat. 2348–2350, 2360; Aug. 9, 1975, Pub. L. 94–88, title II, § 204, 89 Stat. 435; Nov. 12, 1977, Pub. L. 95–171, § 3(a)(1), 91 Stat. 1354; Dec. 20, 1977, Pub. L. 95–216, title IV, §§ 401, 402(a), 91 Stat. 1559, 1560; June 9, 1980, Pub. L. 96–265, title IV, §§ 401(g), (h), 406(a), 407(c), 94 Stat. 462, 465, 467; Aug. 13, 1981, Pub. L. 97–35, title XXI, §§ 2181(a)(1), 2184(b)(1), title XXIII, §§ 2307(b), 2315(b), 2317(a), 2319(a)–(c), 2353(b)(1), (d), 95 Stat. 815, 817, 848, 855–857, 872; Sept. 3, 1982, Pub. L. 97–248, title I, §§ 154(b), 156(a)–(c), 157(a), 96 Stat. 397–399; July 18, 1984, Pub. L. 98–369, div. B, title VI, § 2663(c)(2), (j)(2)(B)(i), (3)(B)(i), 98 Stat. 1166, 1170, 1171; Aug. 16, 1984, Pub. L. 98–378, § 9(b), 98 Stat. 1316; Nov. 6, 1986, Pub. L. 99–603, title I, § 121(b)(1), 100 Stat. 3390; Dec. 22, 1987, Pub. L. 100–203, title IX, § 9102(c), 101 Stat. 1330–300; Oct. 13, 1988, Pub. L. 100–485, title II, §§ 201(c), (d), 202(b)(4)–(6), 204(b)(2), title III, §§ 302(b)(2), 304(b)(2), title VI, §§ 601(c)(1), 606, 609(a), 102 Stat. 2372, 2377, 2381, 2384, 2393, 2407, 2410, 2424; Dec. 19, 1989, Pub. L. 101–239, title VIII, § 8004(b), 103 Stat. 2460; Nov. 5, 1990, Pub. L. 101–508, title V, § 5081(b), 104 Stat. 1388–235; Aug. 10, 1993, Pub. L. 103–66, title XIII, § 13741(a), 107 Stat. 663; July 27, 1995, Pub. L. 104–19, title I, 109 Stat. 215; Apr. 26, 1996, Pub. L. 104–134, title III, 110 Stat. 1321–355; Aug. 22, 1996, Pub. L. 104–193, title I, § 103(c)(2)(B), 110 Stat. 2161; June 12, 1997, Pub. L. 105–18, title II, 111 Stat. 204, related to payments to States with approved plans for aid and services to needy families with children, prior to repeal by Pub. L. 104–193, § 103(a)(1), as amended by Pub. L. 105–33, title V, § 5514(c), Aug. 5, 1997, 111 Stat. 620, effective July 1, 1997.

### Amendments

2021—Subsec. (c). Pub. L. 117–2 added subsec. (c).

2017—Subsec. (a)(1)(A). Pub. L. 115–31, § 102(a)(1), substituted “each of fiscal years 2017 and 2018” for “fiscal year 2012”.

Subsec. (a)(1)(B). Pub. L. 115–31, § 102(c)(2), inserted “, reduced by the percentage specified in section 613(h)(1) of this title with respect to the fiscal year,” before “as the amount”.

Subsec. (a)(1)(C). Pub. L. 115–31, § 102(a)(1), substituted “each of fiscal years 2017 and 2018” for “fiscal year 2012”.

Subsec. (a)(2)(D). Pub. L. 115–31, § 102(a)(2), substituted “each of fiscal years 2017 and 2018” for “fiscal year 2012” in introductory provisions and “fiscal year 2017 or 2018” for “fiscal year 2012” in concluding provisions.

Subsec. (b)(2). Pub. L. 115–31, § 102(b), amended par. (2) generally. Prior to amendment, text read as follows: “Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for fiscal years 2013 and 2014 such sums as are necessary for payment to the Fund in a total amount not to exceed $612,000,000 for each fiscal year, of which $2,000,000 shall be reserved for carrying out the activities of the commission established by the Protect our Kids Act of 2012 to reduce fatalities resulting from child abuse and neglect.”

2014—Subsec. (a)(5)(A)(vii)(I). Pub. L. 113–128, § 512(dd)(1)(A), substituted “chief elected official (as defined in section 3 of the Workforce Innovation and Opportunity Act)” for “chief elected official (as defined in section 101 of the Workforce Investment Act of 1998)”.

Subsec. (a)(5)(D)(ii). Pub. L. 113–128, § 512(dd)(1)(B), which directed the substitution of “local workforce development board established for the local workforce development area pursuant to title I of the Workforce Innovation and Opportunity Act, as appropriate” for “local workforce investment board established for the service delivery area pursuant to title I of the Workforce Investment Act of 1998, as appropriate”, was executed by making the substitution for “local workforce investment board established for the service delivery area pursuant to title I of the Workforce Investment Area of 1998, as appropriate” to reflect the probable intent of Congress.

2013—Subsec. (b)(2). Pub. L. 112–275 substituted “for fiscal years 2013 and 2014 such sums as are necessary for payment to the Fund in a total amount not to exceed $612,000,000 for each fiscal year, of which $2,000,000 shall be reserved for carrying out the activities of the commission established by the Protect our Kids Act of 2012 to reduce fatalities resulting from child abuse and neglect.” for “for fiscal years 2011 and 2012 such sums as are necessary for payment to the Fund in a total amount not to exceed, in the case of fiscal year 2011, such sums as are necessary for amounts obligated on or after October 1, 2010, and before December 8, 2010, and in the case of fiscal year 2012, $612,000,000.”

2012—Subsec. (a)(1)(A). Pub. L. 112–96, § 4002(a)(1), substituted “fiscal year 2012” for “each of fiscal years 1996, 1997, 1998, 1999, 2000, 2001, 2002, and 2003”.

Subsec. (a)(1)(B). Pub. L. 112–96, § 4002(a)(2), inserted “(as in effect just before February 22, 2012)” after “subparagraph (C) of this paragraph” and “(as so in effect)” after “State under this paragraph”.

Subsec. (a)(1)(C). Pub. L. 112–96, § 4002(a)(3), substituted “2012” for “2003”.

Subsec. (a)(2)(D). Pub. L. 112–96, § 4002(b), substituted “2012” for “2011” in two places.

2010—Subsec. (a)(2)(A)(i). Pub. L. 111–291, § 811(b)(1)(A), substituted “, (C), and (E)” for “and (C)”.

Subsec. (a)(2)(A)(ii). Pub. L. 111–291, § 811(b)(1)(B), inserted “(or, in the case of an entity seeking funding to carry out healthy marriage promotion activities and activities promoting responsible fatherhood, a combined application that contains assurances that the entity will carry out such activities under separate programs and shall not combine any funds awarded to carry out either such activities)” after “an application” in introductory provisions.

Subsec. (a)(2)(A)(iii)(III). Pub. L. 111–291, § 811(b)(1)(C), added subcl. (III) and struck out former subcl. (III) which read as follows: “Marriage education, marriage skills, and relationship skills programs, that may include parenting skills, financial management, conflict resolution, and job and career advancement, for non-married pregnant women and non-married expectant fathers.”

Subsec. (a)(2)(C)(i). Pub. L. 111–291, § 811(b)(2), substituted “$75,000,000” for “$50,000,000”.

Subsec. (a)(2)(D), (E). Pub. L. 111–291, § 811(b)(3), (4), added subpars. (D) and (E) and struck out former subpar. (D). Prior to amendment, text of subpar. (D) read as follows: “Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated $150,000,000 for each of fiscal years 2006 through 2010, for expenditure in accordance with this paragraph.”

Subsec. (a)(3)(F). Pub. L. 111–291, § 811(d)(1), inserted “(or portion of a fiscal year)” after “a fiscal year” and inserted “(or portion of the fiscal year)” after “the fiscal year” in two places.

Subsec. (a)(3)(H)(ii). Pub. L. 111–291, § 811(d)(2), added cl. (ii) and struck out former cl. (ii) which read as follows: “subparagraph (G) shall be applied as if ‘the date specified in section 106(3) of the Continuing Appropriations Act, 2011’ were substituted for ‘fiscal year 2001’; and”.

Pub. L. 111–242, § 131(b)(1), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “subparagraph (G) shall be applied as if ‘fiscal year 2010’ were substituted for ‘fiscal year 2001’; and”.

Subsec. (b)(2). Pub. L. 111–291, § 811(c), substituted “such sums as are necessary for amounts obligated on or after October 1, 2010, and before December 8, 2010,” for “$506,000,000” and struck out “, reduced by the sum of the dollar amounts specified in paragraph (6)(C)(ii)” before period at end.

Pub. L. 111–242, § 131(b)(2)(A), substituted “fiscal years 2011 and 2012” for “fiscal years 1997, 1998, 1999, 2000, 2001, 2002, and 2003” and “, in the case of fiscal year 2011, $506,000,000 and in the case of fiscal year 2012, $612,000,000” for “$2,000,000,000”.

Subsec. (b)(3)(C)(ii). Pub. L. 111–242, § 131(b)(2)(B), substituted “fiscal year 2011 and 2012, respectively, shall not exceed the total amount appropriated pursuant to paragraph (2) for each such fiscal year” for “fiscal years 1997 through 2010 shall not exceed the total amount appropriated pursuant to paragraph (2)”.

2009—Subsec. (a)(3)(H)(ii). Pub. L. 111–5, § 2102(b), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “subparagraph (G) shall be applied as if ‘fiscal year 2009’ were substituted for ‘fiscal year 2001’; and”.

Subsec. (c). Pub. L. 111–5, § 2101(a)(2), struck out subsec. (c) which related to the Emergency Contingency Fund for State TANF Programs.

Pub. L. 111–5, § 2101(a)(1), added subsec. (c).

2008—Subsec. (a)(3)(H)(ii). Pub. L. 110–275 amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “subparagraph (G) shall be applied as if ‘fiscal year 2008’ were substituted for ‘fiscal year 2001’; and”.

Subsec. (a)(5)(C)(iii)(II)(dd). Pub. L. 110–246, § 4002(b)(1)(B), (2)(V), substituted “Food and Nutrition Act of 2008” for “Food Stamp Act of 1977”.

Subsec. (b)(5)(B). Pub. L. 110–246, § 4002(b)(1)(A), (2)(V), substituted “supplemental nutrition assistance program” for “food stamp program” wherever appearing.

2006—Subsec. (a)(2). Pub. L. 109–171, § 7103(a), amended heading and text of par. (2) generally. Prior to amendment, text related to bonus grant to reward decrease in illegitimacy ratio and defined for purposes of par. (2) terms “eligible State”, “bonus year”, and “illegitimacy ratio”.

Subsec. (a)(3)(H)(ii). Pub. L. 109–171, § 7101(b)(1), which directed substitution of “fiscal year 2008” for “December, 31, 2005”, was executed by making the substitution for “December 31, 2005” to reflect the probable intent of Congress.

Subsec. (b)(3)(C)(ii). Pub. L. 109–171, § 7101(b)(2), substituted “2010” for “2006”.

2005—Subsec. (a)(3)(H)(ii). Pub. L. 109–161, which directed substitution of “March 31, 2006” for “December 31, 2005”, could not be executed due to amendment by Pub. L. 109–171, § 7101(b)(1). See 2006 Amendment note above and Effective Date of 2006 Amendment note below.

Pub. L. 109–68, § 2(b)(2)(A), substituted “December 31” for “September 30”.

Pub. L. 109–19 substituted “September 30” for “June 30”.

Pub. L. 109–4 substituted “June 30” for “March 31”.

Subsec. (b)(3)(C)(ii). Pub. L. 109–68, § 2(b)(2)(B), substituted “2006” for “2005”.

2004—Subsec. (a)(3)(H)(ii). Pub. L. 108–308, § 2(b)(1), substituted “March 31, 2005” for “September 30, 2004”.

Pub. L. 108–262 substituted “September 30” for “June 30”.

Pub. L. 108–210 substituted “June 30” for “March 31”.

Subsec. (b)(3)(C)(ii). Pub. L. 108–308, § 2(b)(2), substituted “2005” for “2004”.

2003—Subsec. (a)(1)(A). Pub. L. 108–40, § 3(a)(1), substituted “2002, and 2003” for “and 2002”.

Subsec. (a)(1)(B) to (E). Pub. L. 108–40, § 3(a)(2), added subpars. (B) and (C) and struck out former subpars. (B) to (E) which related to, in subpar. (B), definition of “State family assistance grant”, in subpar. (C), definition of “total amount required to be paid to the State under former section 603 of this title”, in subpar. (D), information to be used in determining amounts of grants for fiscal years 1992 to 1995, and, in subpar. (E), appropriations for fiscal years 1996 to 2002.

Subsec. (a)(2)(C)(ii). Pub. L. 108–40, § 3(c)(1), substituted “2002, and 2003” for “and 2002”.

Subsec. (a)(2)(D). Pub. L. 108–40, § 3(c)(2), substituted “2003” for “2002”.

Subsec. (a)(3)(H). Pub. L. 108–40, § 3(d)(1), and Pub. L. 108–89, § 101(b)(1)(A), amended subpar. identically, striking out “of grants for fiscal year 2002” after “Reauthorization” in heading.

Subsec. (a)(3)(H)(i). Pub. L. 108–40, § 3(d)(2), substituted “each of fiscal years 2002 and 2003” for “fiscal year 2002”.

Subsec. (a)(3)(H)(ii). Pub. L. 108–89, § 101(b)(1)(B), substituted “March 31, 2004” for “2003” and “fiscal year 2001” for “2001”.

Pub. L. 108–40, § 3(d)(3), substituted “2003” for “2002”.

Subsec. (a)(3)(H)(iii). Pub. L. 108–40, § 3(d)(4), substituted “each of fiscal years 2002 and 2003” for “fiscal year 2002”.

Subsec. (b)(2). Pub. L. 108–40, § 3(e)(1), substituted “2002, and 2003” for “and 2002”.

Subsec. (b)(3)(C)(ii). Pub. L. 108–89, § 101(b)(2), substituted “2004” for “2003”.

Pub. L. 108–40, § 3(e)(2), substituted “2003” for “2002”.

2002—Subsec. (a)(3)(H). Pub. L. 107–147, § 616, added subpar. (H).

Subsec. (b)(2). Pub. L. 107–147, § 617(1), substituted “2001, and 2002” for “and 2001”.

Subsec. (b)(3)(C)(ii). Pub. L. 107–147, § 617(2), substituted “2002” for “2001”.

2000—Subsec. (a)(5)(A)(i). Pub. L. 106–554, § 1(a)(1) [title I, § 107(b)(1)], substituted “subparagraph (H)” for “subparagraph (I)” in introductory provisions.

Subsec. (a)(5)(A)(iv)(I)(aa). Pub. L. 106–554, § 1(a)(1) [title I, § 107(b)(2)(A)], substituted “(H)” for “(I)” and “and (G)” for “(G), and (H)”.

Subsec. (a)(5)(A)(iv)(I)(bb). Pub. L. 106–554, § 1(a)(1) [title I, § 107(b)(2)(B)], substituted “subparagraph (E)” for “subparagraph (F)”.

Subsec. (a)(5)(B)(v). Pub. L. 106–554, § 1(a)(1) [title I, § 107(b)(3)], substituted “subparagraph (H)” for “subparagraph (I) ” in introductory provisions.

Subsec. (a)(5)(B)(v)(I)(aa). Pub. L. 106–554, § 1(a)(1) [title I, § 107(b)(2)(A)], substituted “(H)” for “(I)” and “and (G)” for “(G), and (H)”.

Subsec. (a)(5)(B)(v)(I)(bb). Pub. L. 106–554, § 1(a)(1) [title I, § 107(b)(2)(B)], substituted “subparagraph (E)” for “subparagraph (F)”.

Subsec. (a)(5)(C)(viii). Pub. L. 106–554, § 1(a)(1) [title I, § 103)], substituted “5 years” for “3 years”.

Subsec. (a)(5)(E). Pub. L. 106–554, § 1(a)(1) [title I, § 107(a), (b)(4)], redesignated subpar. (F) as (E), substituted “subparagraph (H)” for “subparagraph (I)”, and struck out former subpar. (E), which established a set-aside for successful performance bonuses.

Subsec. (a)(5)(F). Pub. L. 106–554, § 1(a)(1) [title I, § 107(a), (b)(4)], redesignated subpar. (G) as (F) and substituted “subparagraph (H)” for “subparagraph (I)”. Former subpar. (F) redesignated (E).

Pub. L. 106–246, § 2402(1), substituted “$15,000,000” for “$1,500,000”.

Subsec. (a)(5)(G). Pub. L. 106–554, § 1(a)(1) [title V, § 513], which directed the amendment of subpar. (H) by substituting “2005” for “2001” in cl. (iii) and adding cl. (iv), was executed by making amendments to subpar. (G), to reflect the probable intent of Congress and the redesignation of subpar. (H) as (G) by Pub. L. 106–554, § 1(a)(1) [title V, § 107(a)]. See below.

Pub. L. 106–554, § 1(a)(1) [title I, § 107(a), (b)(4)], redesignated subpar. (H) as (G) and substituted “subparagraph (H)” for “subparagraph (I)” in cl. (i). Former subpar. (G) redesignated (F).

Pub. L. 106–246, § 2402(2), substituted “$9,000,000” for “$900,000”.

Subsec. (a)(5)(H). Pub. L. 106–554, § 1(a)(1) [title I, § 107(a), (c)], redesignated subpar. (I) as (H) and substituted “$1,400,000,000” for “$1,450,000,000” in cl. (i)(II). Former subpar. (H) redesignated (G).

Pub. L. 106–246, § 2402(3), substituted “$3,000,000” for “$300,000” in cl. (i).

Subsec. (a)(5)(I) to (K). Pub. L. 106–554, § 1(a)(1) [title I, § 107(a)], redesignated subpars. (J) and (K) as (I) and (J), respectively. Former subpar. (I) redesignated (H).

1999—Subsec. (a)(5)(A)(ii)(I)(ff). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 805(b)], added item (ff).

Subsec. (a)(5)(C)(i)(IV). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 803], inserted before period at end “, or if the entity is not a private industry council or workforce investment board, the direct provision of such services”.

Subsec. (a)(5)(C)(i)(VII). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 802], added subcl. (VII).

Subsec. (a)(5)(C)(ii). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 801(a)], amended heading and text of cl. (ii) generally, substituting provisions relating to general eligibility for provisions relating to required beneficiaries.

Subsec. (a)(5)(C)(iii). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 801(b)(1)(B)], added cl. (iii). Former cl. (iii) redesignated (iv).

Subsec. (a)(5)(C)(iv). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 801(c)], inserted “hard to employ” before “individuals” in heading, substituted “clauses (ii) and (iii) and, as appropriate, clause (v)” for “clause (ii)” before period at end of concluding provisions, added subcls. (II) to (IV), and struck out former subcl. (II) which read as follows: “to individuals—

“(aa) who are noncustodial parents of minors whose custodial parent is such a recipient; and

“(bb) who have such characteristics.”

Pub. L. 106–113, § 1000(a)(4) [title VIII, § 801(b)(1)(A)], redesignated cl. (iii) as (iv). Former cl. (iv) redesignated (v).

Subsec. (a)(5)(C)(v) to (ix). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 801(b)(1)(A)], redesignated cls. (iv) to (viii) as (v) to (ix), respectively.

Subsec. (a)(5)(C)(x). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 804(b)], added cl. (x).

Subsec. (a)(5)(E)(i). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 806(c)], substituted “award” for “make” and inserted “, but shall not make any outlay to pay any such grant before October 1, 2000” before period at end.

Subsec. (a)(5)(E)(iv)(I)(bb), (vi). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 806(a)], substituted “$50,000,000” for “$100,000,000”.

Subsec. (a)(5)(F). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 806(b)(1)], inserted “$1,500,000” before “of the amount so specified for fiscal year 1999”.

Subsec. (a)(5)(G). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 806(b)(2)], inserted “$900,000” before “of the amount so specified for fiscal year 1999”.

Subsec. (a)(5)(H)(i). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 806(b)(3)], inserted “$300,000” before “of the amount so specified for fiscal year 1999”.

Subsec. (a)(5)(I)(i). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 806(b)(4)], substituted “for grants under this paragraph—” and subcls. (I) and (II) for “$1,500,000,000 for each of fiscal years 1998 and 1999 for grants under this paragraph.”

Subsec. (a)(5)(K). Pub. L. 106–113, § 1000(a)(4) [title VIII, § 805(a)(2)], added subpar. (K).

1998—Subsec. (a)(5)(A)(iv)(II). Pub. L. 105–306 substituted “, other than funds reserved by the State for distribution under clause (vi)(III) and funds distributed pursuant to clause (vi)(I) in any State in which the service delivery area is the State” for “or sub-State entity”.

Subsec. (a)(5)(A)(vii)(I). Pub. L. 105–277, § 101(f) [title VIII, § 405(f)(22)(A)], struck out “described in section 103(c) of the Job Training Partnership Act or” before “defined in section 101 of the Workforce”.

Pub. L. 105–277, § 101(f) [title VIII, § 405(d)(30)(A)], substituted “(as described in section 103(c) of the Job Training Partnership Act or defined in section 101 of the Workforce Investment Act of 1998)” for “(as described in section 103(c) of the Job Training Partnership Act)”.

Subsec. (a)(5)(A)(ix). Pub. L. 105–277, § 101(f) [title I, § 102], added cl. (ix).

Subsec. (a)(5)(C)(ii). Pub. L. 105–200, § 408(1), struck out “of minors whose custodial parent is such a recipient” after “noncustodial parents” in introductory provisions.

Subsec. (a)(5)(C)(ii)(I). Pub. L. 105–200, § 408(2), inserted “or the noncustodial parent” after “recipient” in introductory provisions.

Subsec. (a)(5)(C)(ii)(II). Pub. L. 105–200, § 408(3), substituted “The recipient or the minor children of the noncustodial parent—” for “The individual—” in introductory provisions.

Subsec. (a)(5)(D)(ii). Pub. L. 105–277, § 101(f) [title VIII, § 405(f)(22)(B)(i)], struck out “the Job Training Partnership Act or” before “title I of the Workforce Investment”.

Pub. L. 105–277, § 101(f) [title VIII, § 405(d)(30)(B)(i)], substituted “means, with respect to a service delivery area, the private industry council or local workforce investment board established for the service delivery area pursuant to the Job Training Partnership Act or title I of the Workforce Investment Area of 1998, as appropriate” for “means, with respect to a service delivery area, the private industry council (or successor entity) established for the service delivery area pursuant to the Job Training Partnership Act”.

Subsec. (a)(5)(D)(iii). Pub. L. 105–277, § 101(f) [title VIII, § 405(f)(22)(B)(ii)], struck out before period at end “shall mean a local area as defined in section 101 of the Workforce Investment Act of 1998, as appropriate”.

Pub. L. 105–277, § 101(f) [title VIII, § 405(d)(30)(B)(ii)], substituted “shall have the meaning given such term for purposes of the Job Training Partnership Act or shall mean a local area as defined in section 101 of the Workforce Investment Act of 1998, as appropriate” for “shall have the meaning given such term (or the successor to such term) for purposes of the Job Training Partnership Act”.

1997—Pub. L. 105–33, § 5514(c), made technical amendment to directory language of Pub. L. 104–193, § 103(a)(1), which enacted this section.

Subsec. (a)(2). Pub. L. 105–33, § 5502(b)(1), inserted “ratio” after “illegitimacy” in heading.

Subsec. (a)(2)(A). Pub. L. 105–33, § 5502(b)(2), struck out “for which the State demonstrates a net decrease in out-of-wedlock births” after “bonus year”.

Subsec. (a)(2)(B). Pub. L. 105–33, § 5502(a)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows:

“(i) If 5 eligible States.—If there are 5 eligible States for a bonus year, the amount of the grant shall be $20,000,000.

“(ii) If fewer than 5 eligible States.—If there are fewer than 5 eligible States for a bonus year, the amount of the grant shall be $25,000,000.”

Subsec. (a)(2)(C)(i)(I)(aa). Pub. L. 105–33, § 5502(b)(3)(A)(i), substituted “illegitimacy ratio of the State for” for “number of out-of-wedlock births that occurred in the State during” and “illegitimacy ratio of the State for” for “number of such births that occurred during”.

Pub. L. 105–33, § 5502(a)(2), inserted at end “In the case of a State that is not a territory specified in subparagraph (B), the comparative magnitude of the decrease for the State shall be determined without regard to the magnitude of the corresponding decrease for any such territory.”

Subsec. (a)(2)(C)(i)(I)(bb). Pub. L. 105–33, § 5502(c)(1)(A), substituted “the calendar year for which the most recent data are available” for “the fiscal year” and “calendar year 1995” for “fiscal year 1995”.

Subsec. (a)(2)(C)(i)(II). Pub. L. 105–33, § 5502(c)(1)(B), substituted “calendar” for “fiscal” wherever appearing.

Subsec. (a)(2)(C)(i)(II)(aa). Pub. L. 105–33, § 5502(b)(3)(A)(ii), substituted “illegitimacy ratio of” for “number of out-of-wedlock births that occurred in” in two places and “calculate the illegitimacy ratio” for “calculate the number of out-of-wedlock births”.

Subsec. (a)(2)(C)(ii). Pub. L. 105–33, § 5502(c)(2), substituted “calendar years” for “fiscal years”.

Subsec. (a)(2)(C)(iii). Pub. L. 105–33, § 5502(b)(3)(B), added cl. (iii).

Subsec. (a)(3)(C)(ii). Pub. L. 105–33, § 5502(d), substituted “1998” for “1997” in heading.

Subsec. (a)(5). Pub. L. 105–33, § 5001(a)(1), added par. (5).

Subsec. (a)(5)(A)(i)(I), (ii)(II). Pub. L. 105–78 substituted “during the period permitted under subparagraph (C)(vii) of this paragraph for the expenditure of funds under the grant” for “during the fiscal year”.

Subsec. (b)(2). Pub. L. 105–89, § 404(a), inserted “, reduced by the sum of the dollar amounts specified in paragraph (6)(C)(ii)” before period.

Subsec. (b)(4), (5). Pub. L. 105–33, § 5502(e)(2), redesignated pars. (5) and (6) as (4) and (5), respectively, and struck out former par. (4) which required each State to remit to the Secretary at the end of each fiscal year certain excess amounts paid to the State under par. (3) during the fiscal year.

Subsec. (b)(6). Pub. L. 105–33, § 5502(e)(3), added par. (6).

Pub. L. 105–33, § 5502(e)(2), redesignated par. (6) as (5).

Pub. L. 105–33, § 5502(e)(1), substituted “paragraph (4)” for “paragraph (5)” in introductory provisions.

Subsec. (b)(6)(C). Pub. L. 105–89, § 404(b), added subpar. (C).

Subsec. (b)(7). Pub. L. 105–33, § 5502(f), amended heading and text of par. (7) generally. Prior to amendment, text read as follows: “As used in this subsection:

“(A) State.—The term ‘State’ means each of the 50 States of the United States and the District of Columbia.

“(B) Secretary.—The term ‘Secretary’ means the Secretary of the Treasury.”

1996—Subsec. (b)(4)(A)(i)(II). Pub. L. 104–327, § 1(b)(1), struck out “minus any Federal payment with respect to such child care expenditures” after “for fiscal year 1994”.

Subsec. (b)(4)(A)(ii)(I). Pub. L. 104–327, § 1(b)(2), inserted “the sum of” before “the expenditures” and “, and any additional qualified State expenditures, as defined in section 609(a)(7)(B)(i) of this title, for child care assistance made under the Child Care and Development Block Grant Act of 1990” before “; exceeds”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2014 Amendment

Amendment by Pub. L. 113–128 effective on the first day of the first full program year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as an Effective Date note under section 3101 of Title 29, Labor.

### Effective Date of 2012 Amendment

Pub. L. 112–96, title IV, § 4002(j), Feb. 22, 2012, 126 Stat. 195, provided that: “This section [amending this section and sections 609, 612 to 614, 618, and 1308 of this title] and the amendments made by this section shall take effect on the date of the enactment of this Act [Feb. 22, 2012].”

### Effective Date of 2009 Amendment; Savings Provision

Pub. L. 111–5, div. B, title II, § 2101(a)(2), Feb. 17, 2009, 123 Stat. 448, provided that: “Effective October 1, 2010, subsection (c) of section 403 of the Social Security Act (42 U.S.C. 603) (as added by paragraph (1)) is repealed, except that paragraph (9) of such subsection shall remain in effect until October 1, 2011, but only with respect to section 407(b)(3)(A)(i) of such Act [42 U.S.C. 607(b)(3)(A)(i)].”

### Effective Date of 2008 Amendment

Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, except as otherwise provided, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture.

Amendment by section 4002(b)(1)(A), (B), (2)(V) of Pub. L. 110–246 effective Oct. 1, 2008, see section 4407 of Pub. L. 110–246, set out as a note under section 1161 of Title 2, The Congress.

### Effective Date of 2006 Amendment

Pub. L. 109–171, title VII, § 7701, Feb. 8, 2006, 120 Stat. 155, provided that: “Except as otherwise provided in this title [amending this section and sections 607, 608, 609, 611, 618, 622, 629f, 629h, 652, 653, 654, 655, 657, 664, 666, 671 to 673, 674, 1383, and 1383b of this title and section 6402 of Title 26, Internal Revenue Code, repealing section 1675c of Title 19, Customs Duties, enacting provisions set out as notes under sections 607, 608, 652, 654, 655, 657, 664, 666, and 1383 of this title and section 1675c of Title 19, and amending provisions set out as a note under section 1169 of Title 29, Labor], this title and the amendments made by this title shall take effect as if enacted on October 1, 2005.”

### Effective Date of 2003 Amendment

Pub. L. 108–40, § 8, June 30, 2003, 117 Stat. 838, provided that: “The amendments made by this Act [amending this section and sections 606, 609, 612, 614, 618, 710, 1308, 1320a–9, 1396a, and 1396r–6 of this title] shall take effect on July 1, 2003.”

### Effective Date of 2000 Amendment

Pub. L. 106–554, § 1(a)(1) [title I, § 107(d)], Dec. 21, 2000, 114 Stat. 2763, 2763A–12, provided that: “The amendments made by subsections (a), (b), and (c) of this section [amending this section and section 612 of this title] shall take effect on October 1, 2000.”

### Effective Date of 1999 Amendment

Pub. L. 106–113, div. B, § 1000(a)(4) [title VIII, § 801(e)], Nov. 29, 1999, 113 Stat. 1535, 1501A–283, provided that: “The amendments made by this section [amending this section and sections 604 and 612 of this title]— shall be effective January 1, 2000, with respect to the determination of eligible individuals for purposes of section 403(a)(5)(B) of the Social Security Act [42 U.S.C. 603(a)(5)(B)] (relating to competitive grants); shall be effective July 1, 2000, except that expenditures from allotments to the States shall not be made before October 1, 2000— with respect to the determination of eligible individuals for purposes of section 403(a)(5)(A) of the Social Security Act [42 U.S.C. 603(a)(5)(A)] (relating to formula grants) in the case of those individuals who may be determined to be so eligible, but would not have been eligible before July 1, 2000; or for allowable activities described in section 403(a)(5)(C)(i)(VII) of the Social Security Act [42 U.S.C. 603(a)(5)(C)(i)(VII)] (as added by section 802 of this title) provided to any individuals determined to be eligible for purposes of section 403(a)(5)(A) of the Social Security Act (relating to formula grants).”

### Effective Date of 1998 Amendments

Pub. L. 105–306, § 6(b), Oct. 28, 1998, 112 Stat. 2928, provided that: “The amendment made by subsection (a) [amending this section] shall take effect as if included in the enactment of section 5001 of the Balanced Budget Act of 1997 [Pub. L. 105–33].”

Amendment by section 101(f) [title VIII, § 405(d)(30)] of Pub. L. 105–277 effective Oct. 21, 1998, and amendment by section 101(f) [title VIII, § 405(f)(22)] of Pub. L. 105–277 effective July 1, 2000, see section 101(f) [title VIII, § 405(g)(1), (2)(B)] of Pub. L. 105–277, set out as a note under section 3502 of Title 5, Government Organization and Employees.

### Effective Date of 1997 Amendments

Amendment by Pub. L. 105–89 effective Nov. 19, 1997, except as otherwise provided, with delay permitted if State legislation is required, see section 501 of Pub. L. 105–89, set out as a note under section 622 of this title.

Amendment by section 5502 of Pub. L. 105–33 effective as if included in section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. 104–193, at the time such section 103(a) became law, see section 5518(a) of Pub. L. 105–33, set out as a note under section 602 of this title.

Amendment by section 5514(c) of Pub. L. 105–33 effective as if included in the provision of Pub. L. 104–193 amended at the time the provision became law, see section 5518(d) of Pub. L. 105–33, set out as a note under section 862a of Title 21, Food and Drugs.

### Effective Date of 1996 Amendment

Pub. L. 104–327, § 1(d), Oct. 19, 1996, 110 Stat. 4003, provided that: “The amendments made by this section [amending this section and provisions set out as a note under section 601 of this title] shall take effect as if included in the provisions of and the amendments made by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 [Pub. L. 104–193].”

### Effective Date

Subsec. (a)(1)(C), (D) of this section effective Oct. 1, 1996, and remainder of this section effective July 1, 1997, with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and proceedings commenced before such date, rules relating to closing out of accounts for terminated or substantially modified programs and continuance in office of Assistant Secretary for Family Support, and provisions relating to termination of entitlement under AFDC program, see section 116 of Pub. L. 104–193, as amended, set out as a note under section 601 of this title.

### Regulations

Pub. L. 106–113, div. B, § 1000(a)(4) [title VIII, § 801(f)], Nov. 29, 1999, 113 Stat. 1535, 1501A–284, provided that: “Interim final regulations shall be prescribed to implement the amendments made by this section [amending this section and sections 604 and 612 of this title] not later than January 1, 2000. Final regulations shall be prescribed within 90 days after the date of the enactment of this Act [Nov. 29, 1999] to implement the amendments made by this Act to section 403(a)(5) of the Social Security Act [42 U.S.C. 603(a)(5)], in the same manner as described in section 403(a)(5)(C)(ix) of the Social Security Act (as so redesignated by subsection (b)(1)(A) of this section).”