H.R. 1167 (112th): Welfare Reform Act of 2011

112th Congress, 2011–2013. Text as of Mar 17, 2011 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

1st Session

H. R. 1167

IN THE HOUSE OF REPRESENTATIVES

March 17, 2011

(for himself, Mr. Scott of South Carolina, Mr. Garrett, Mr. Burton of Indiana, Mr. Gohmert, and Mr. Chaffetz) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on the Budget, Rules, Agriculture, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide information on total spending on means-tested welfare programs, to provide additional work requirements, and to provide an overall spending limit on means-tested welfare programs.

1.

Short title

This Act may be cited as the Welfare Reform Act of 2011.

2.

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

Title I—TANF Reforms

Sec. 101. Short title.

Sec. 102. Elimination of temporary modification of the caseload reduction credit.

Sec. 103. Reduction in funding of State family assistance grants.

Title II—Work Requirements for the Food Stamp Program

Sec. 201. Restoration of Act short title and references to the food stamp program.

Sec. 202. Amendments.

Sec. 203. Termination of benefit increase.

Title III—Reporting of means-tested welfare spending in President’s budget submission

Sec. 301. Additional information in President’s budget submission.

Title IV—Aggregate cap for means-tested welfare spending

Sec. 401. Definition of means-tested welfare spending.

Sec. 402. Reports to budget committees.

Sec. 403. Content of concurrent resolutions on the budget.

Sec. 404. Allocations of means-tested welfare spending.

Sec. 405. Reconciliation.

Title V—Grants to promote self-sufficiency

Sec. 501. Grants to States.

Title VI—Prohibition on funding of abortion

Sec. 601. Prohibition on funding for abortions.

Sec. 602. Prohibition on funding for health benefits plans that cover abortion.

Sec. 603. Prohibition on tax benefits relating to abortion.

Sec. 604. Construction relating to separate coverage.

Sec. 605. Construction relating to the use of non-Federal funds for health coverage.

Sec. 606. Treatment of abortions related to rape, incest, or preserving the life of the mother.

I

TANF Reforms

101.

Short title

This title may be cited as the Welfare Reform Restoration Act.

102.

Elimination of temporary modification of the caseload reduction credit

(a)

In general

Section 407(b)(3)(A)(i) of the Social Security Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by striking (or if the immediately preceding fiscal year is fiscal year 2008, 2009, or 2010, then, at State option, during the emergency fund base year of the State with respect to the average monthly assistance caseload of the State (within the meaning of section 403(c)(9)), except that, if a State elects such option for fiscal year 2008, the emergency fund base year of the State with respect to such caseload shall be fiscal year 2007)).

(b)

Conforming amendments

Section 2101 of the American Recovery and Reinvestment Act of 2009 (123 Stat. 448–449; Public Law 111–5) is amended—

(1)

in subsection (a)(2), by striking , 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; and

(2)

by striking subsection (d)(2).

103.

Reduction in funding of State family assistance grants

Section 403(a)(1)(C) of the Social Security Act (42 U.S.C. 603(a)(1)(C)) is amended by striking 2003 $16,566,542,000 and inserting 2011 and each succeeding fiscal year $15,566,042,000, notwithstanding any other provision of law.

II

Work Requirements for the Food Stamp Program

201.

Restoration of Act short title and references to the food stamp program

Effective on the date of the enactment of this Act, the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), and each provision of law amended by section 4001 or 4002 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1651), are restored as if sections 4001 and 4002 of the Food, Conservation, and Energy Act of 2008 had not been enacted.

202.

Amendments

(a)

Declaration of policy

Section 2 of the Food and Nutrition Act of 2008 (7 U.S.C. 2011) is amended by adding at the end the following:

Congress further finds that it should also be the goal of the food stamp program to increase employment, to encourage healthy marriage, and to promote prosperous self-sufficiency which shall mean the ability of households to maintain an income above the poverty level without Government services and benefits.

.

(b)

Definitions

Section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012) is amended by adding at the end the following:

(w)

Able-Bodied, work-Eligible adult

The term able-bodied, work-eligible adult means an individual who—

(1)

is more than 18, and less than 63, years of age;

(2)

is not physically or mentally incapable of work; and

(3)

is not the full-time caretaker of a disabled adult dependent.

(x)

Physically or mentally incapable of work

The term physically or mentally incapable of work shall mean an individual—

(1)

who currently receives benefits from the Supplemental Security Income program or another program that provides recurring benefits to individuals because the individual is disabled and unable to work; or

(2)

who has been medically certified as physically or mentally incapable of work and who has a credible pending application for enrollment in the Supplemental Security Income program or another program that provides recurring benefits to individuals because the individual is disabled and unable to work.

(y)

Family with dependent children

The term family with dependent children means a unit consisting of a family head, one or more dependent children, and in some cases, the married spouse of the family head, all of whom share meals and reside within a single household. There may be more than one family with dependent children within a single household.

(z)

Family head

The term family head means—

(1)

a biological parent who is lawfully present in the United States and resides within a household with one or more dependent children who are biological offspring; or

(2)

in the absence of a biological parent, a step parent, guardian, or adult relative who resides with and provides care to the child or the children and is lawfully present in the United States.

(aa)

Family unit

The term family unit means—

(1)

an adult residing without dependent children;

(2)

a single-headed family with dependent children; or

(3)

a married couple family with dependent children.

(bb)

Married couple family with dependent children

The term married couple family with dependent children means a family with dependent children which has both a family head and the married spouse of the family head residing with the family.

(cc)

Married spouse of the family head

The term married spouse of the family head means the lawfully married spouse of the family head who resides with the family head and dependent children and is lawfully present in the United States.

(dd)

Member of a family

The term member of a family means the family head, married spouse if present, and all dependent children within a family with dependent children

(ee)

Monthly potential work activation population

The term monthly potential work activation population means the sum of—

(1)

all able bodied work eligible individuals without dependents who have received food stamp benefits and who have maintained less than 60 hours of paid employment during a month;

(2)

all work eligible single-headed families with dependent children which have received food stamp benefits during the month and have maintained less than 120 hours of paid employment by the family head during the month; and

(3)

all work eligible married couples with dependent children which have received food stamp benefits during the month and have maintained less than 120 combined hours of paid employment between the family head and the married spouse, summed together and counted jointly, during the month.

(ff)

Monthly work activation participants

The term monthly work activation participants means the sum of—

(1)

all able bodied work eligible individuals without dependents who have received food stamp benefits and who have maintained—

(A)

less than 60 hours of paid employment during a month; and

(B)

more than 60 hours of combined paid employment and work activation activity during the month;

(2)

all work eligible single-headed families with dependent children which have received food stamp benefits during the month and contain a family head who has maintained—

(A)

less than 120 hours of paid employment during the month; and

(B)

more than 120 hours of combined paid employment and work activation activity during the month; and

(3)

all work eligible married couples with dependent children which have received food stamp benefits during the month, and have maintained—

(A)

less than 120 combined hours of paid employment between the family head and the spouse, summed together and counted jointly, during the month; and

(B)

more than 120 hours of combined paid employment and work activation activity between the family head and the married spouse, summed together and counted jointly, during the month.

(gg)

Single-Headed family with dependent children

The term single-headed family with dependent children means a family with dependent children which contains a family head residing with the family but does not have a married spouse of the family head residing with the family.

(hh)

Supervised job search

The term supervised job search means a job search program which has the following characteristics:

(1)

The job search occurs at an official location where the recipient’s presence and activity can be directly observed, supervised, and monitored.

(2)

The recipient’s entry, time on site, and exit from the official job search location are recorded in a manner which prevents fraud.

(3)

The recipient is expected to remain and undertake job search activities at the job search center except for brief, authorized departures for specified off-site interviews.

(4)

The amount of time the recipient is observed and monitored engaging in job search at the official location is recorded for purposes of compliance with section 29.

(ii)

Work activation

The term work activation means—

(1)

supervised job search;

(2)

community service activities;

(3)

education and job training for individuals who are family heads or married spouses of family heads;

(4)

workfare under section 20; or

(5)

drug or alcohol treatment.

(jj)

Work activation ratio

The term work activation ratio means the number of work activation participants in a given month divided by the potential work activation population for the same month.

(kk)

Work activities

The term work activities means paid employment, work activation, or a combination of both paid employment and work activation.

(ll)

Work eligible family unit

The term work eligible family unit means—

(1)

an able-bodied, work eligible adult without dependent children;

(2)

a work eligible single-headed family with dependent children; or

(3)

a work eligible married couple family with dependent children.

(mm)

Work eligible adult without dependent children

The term work eligible adult without dependent children means an individual who—

(1)

is an able-bodied work eligible individual; and

(2)

is not a family head or the married spouse of a family head.

(nn)

Work eligible married couple family with dependent children

The term work eligible married couple family with dependent children means a married couple with dependent children which contains at least one work eligible adult able-bodied adult who is—

(1)

the family head; or

(2)

the married spouse of the family head.

(oo)

Work eligible single headed family with dependent children

The term work eligible single headed family with dependent children means a single headed family with dependent children which has a family head who is an able bodied work eligible adult.

.

(c)

Conditions of participation

Section 6(d) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)) is amended to read as follows:

(d)

Conditions of participation

(1)

Work requirements

(A)

In general

No able-bodied work eligible adult shall be eligible to participate in the food stamp program if the individual—

(i)

refuses, at the time of application and every 12 months thereafter, to register for employment in a manner prescribed by the Secretary;

(ii)

refuses without good cause to accept an offer of employment, at a site or plant not subject to a strike or lockout at the time of the refusal, at a wage not less than the higher of—

(I)

the applicable Federal or State minimum wage; or

(II)

80 percent of the wage that would have governed had the minimum hourly rate under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) been applicable to the offer of employment;

(iii)

refuses without good cause to provide a State agency with sufficient information to allow the State agency to determine the employment status or the job availability of the individual; or

(iv)

voluntarily—

(I)

quits a job; or

(II)

reduces work effort and, after the reduction, the individual is working less than 30 hours per week, unless another adult in the same family unit increases employment at the same time by an amount equal to the reduction in work effort by the first adult.

(B)

Family unit ineligibility

If an able-bodied work eligible adult is ineligible to participate in the food stamp program because of subparagraph (A), then no other member of the family unit to which that adult belongs shall be eligible to participate.

(C)

Duration of ineligibility

An able-bodied work eligible adult who becomes ineligible under subparagraph (A), and members of the family unit who become ineligible under subparagraph (B), shall remain ineligible for three months after the date at which they became ineligible.

(D)

Restoration of eligibility

At the end of three months of ineligibility under subsection (c), members of a work eligible family unit may have their eligibility to participate in the food stamp program restored, if—

(i)

the family unit is no longer a work eligible family unit; or

(ii)

the adult members of the family unit begin and maintain any combination of paid employment and work activation sufficient to meet the appropriate standards for resumption of benefits in section 29(c)(2).

(2)

Strike against a government

For the purpose of subparagraph (A)(iv), an employee of the Federal Government, a State, or a political subdivision of a State, who is dismissed for participating in a strike against the Federal Government, the State, or the political subdivision of the State shall be considered to have voluntarily quit without good cause.

(3)

Striking workers ineligible

Notwithstanding any other provision of law, no member of a family unit shall participate in the food stamp program at any time that any able-bodied work eligible adult member of such household is on strike as defined in the Labor Management Relations Act, 1947 (29 U.S.C. 142(2)), because of a labor dispute (other than a lockout) as defined in section 2(9) of the National Labor Relations Act (29 U.S.C. 152(9)): Provided, That a family unit shall not lose its eligibility to participate in the food stamp program as a result of one of its members going on strike if the household was eligible immediately prior to such strike, however, such family unit shall not receive an increased allotment as the result of a decrease in the income of the striking member or members of the household: Provided further, That such ineligibility shall not apply to any family unit that does not contain a member on strike, if any of its members refuses to accept employment at a plant or site because of a strike or lockout.

.

(d)

Termination of funding

Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) is amended by striking subsection (h).

(e)

Eligibility of students with dependent children

Section 6(e)(8) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(e)(8)) is amended to read as follows:

(8)

is enrolled full-time in an institution of higher education, as determined by the institution, and—

(A)

is a single parent with responsibility for the care of a dependent child under 12 years of age; or

(B)

is a family head or married spouse of a family head in a married couple family with dependent children and has a dependent child under age 12 residing in the home.

.

(f)

Work requirement

Section 6(o) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)) is amended to read as follows:

(o)

Fulfillment of employment and work activation requirements

(1)

In general

If an adult or adults within a work eligible family unit are required by the State agency to participate in work activation under section 29, no member of the family unit shall be eligible for food stamp benefits unless the employment and work activation standards for the family unit are fulfilled.

(2)

Sanctions and resumption of benefits

If an adult or adults within a work eligible family unit who are required by the State agency to participate in work activation under section 29 during a given month, fail to fulfill the work activation standards, benefits for all members of the family unit will be terminated in accordance with section 29(c)(1) and may be resumed upon compliance with the provisions of section 29(c)(2).

.

(g)

Exclusion

Section 6 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015) is amended by adding at the end the following:

(r)

Minor children

No child less than age 18 years of age may participate in the food stamp program unless that child is a member of a family with dependent children and resides with an adult who is—

(1)

the family head of the same family of which the child is also a member;

(2)

eligible to participate, and is participating, in the food stamp program as a member of the same household as the child; and

(3)

lawfully residing, and is eligible to work, in the United States.

.

(h)

Hearing and determination

Section 11(e)(10) of the Food and Nutrition Act of 2008 (7 U.S.C. 2020(e)(10)) is amended by striking : Provided and all that follows through hearing;, and inserting a semicolon.

(i)

Work requirements and activation program

The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is amended by adding at the end the following:

29.

Work requirements and activation program

(a)

Employment and work activation standards

Family units with adult members that are required to participate in work activation under section 29(b) during a full month of participation in the food stamp program shall be expected to fulfill the following levels of work activity during that month:

(1)

Each able-bodied work eligible adult without dependent children shall be required to perform work activities for at least 60 hours per month.

(2)

Each family head of a work eligible single-headed family with dependent children shall be required to perform work activities for at least 120 hours per month.

(3)

In each work eligible married couple family with dependent children, the family head and married spouse shall be required to perform work activities which when added together for the two adults equal at least 120 hours per month: Provided, That the 120-hour requirement shall be a single joint obligation for the married couple as a whole in which the activities of both married partners shall be combined together and counted jointly.

(A)

For purposes of meeting this requirement the paid employment and work activation of the family head shall be added to the paid employment and work activation of the married spouse, and the requirement shall be fulfilled as long as the sum of the work activities of the two individuals when added together equals or exceeds 120 hours per month.

(B)

The work requirement for married couple with dependent children may be fulfilled by—

(i)

120 or more hours of work activity by the family head;

(ii)

120 or more hours of work activities by the married spouse; or

(iii)

the combined work activities of the family head and married spouse which when added together equal or exceed 120 hours.

(C)

Neither the family head nor the married spouse in a married couple with dependent children shall be subject to a separate work activation requirement as individuals.

(b)

Pro rata reduction in employment and work activation standard during a partial month

(1)

A work eligible family unit shall be subject to a pro-rated work activity standard, if the family unit—

(A)

receives a pro-rated monthly allotment during the initial month of enrollment under section 8(c); and

(B)

is required by the State to participate in the work activation program during that month.

(2)

The pro-rated work activity standard shall be a number of hours of work activity having a value which bears the same ratio to the employment and work activation requirement for that family unit for a full month under subsection (a) as the ratio of the pro-rated monthly allotment received by the household for the partial month under section 8(c) bears to the full allotment the same household would receive for a complete month.

(3)

For purposes of fulfilling the pro-rated work activity requirement during an initial month of enrollment in the food stamp program, only those hours of adult work activity which occurred during the portion of the month in which the family unit was participating in the food stamp program shall be counted.

(c)

Sanction for noncompliance

(1)

In general

If a member or members of a work eligible family unit are required to participate in the work activation program under subsection (e) in a given calendar month and the individual or individuals fail to fulfill the work activity standard under subsection (a) or (b) for that month, then no member of the family unit shall be eligible to receive food stamp benefits during the subsequent calendar month.

(A)

Administration of sanction

If a member or members of a work eligible family unit is required to participate in the work activation program under subsection (e) in a given calendar month and the individual or individuals fail to fulfill the work activity standard for that month, then the State agency must eliminate the food stamp benefit payment for all members of the family unit that otherwise would have been issued at the beginning of the next month except as provided in subparagraph (B).

(B)

Administrative delay of sanction

If it is administratively infeasible for the State to eliminate the food stamp benefit that would be issued at the beginning of the first month after the month of noncompliance, then the State must eliminate the payment to all members of the family unit that otherwise would have been made at the beginning of the second month after the month of noncompliance: Provided, That the sanction of benefits must occur no later than 32 days after the end of the month of noncompliance, and: Provided further, That at least one monthly payment to all members of the family unit must be eliminated for each month of noncompliance under paragraph (1).

(2)

Resumption of benefits after sanction

(A)

In general

If a family unit has had its monthly benefit eliminated due to noncompliance with a work activity requirement under subsection (b) then the family unit shall not be eligible to receive future benefits under the food stamp program, until—

(i)

the work eligible member or members of the family unit have participated in the work activation program under subsection (e) for four consecutive subsequent weeks and fulfilled the work activity standard for the family unit for that same four week period; or

(ii)

the family unit no longer contains any able bodied work eligible adults.

(B)

Limitation

The resumed benefits cannot restore or compensate for the benefits that were eliminated due to the sanction imposed in subsection (c)(1).

(d)

Work activation is not employment

Participation in work activation activities under this section shall not be deemed employment and shall not be subject to any law pertaining to wages, compensation, hours, or conditions of employment under any law administered by the Department of Labor.

(e)

Work activation program

(1)

Program

States will run a work activation program.

(2)

Purpose

The goal of the program shall be to increase the employment of work eligible able-bodied adult food stamp recipients. To accomplish this goal, each State shall require able-bodied adult food stamp recipients who are unemployed or under-employed to engage in work activation.

(3)

Target work activation ratios

(A)

In general

Commencing no later than six months after the effective date of this section, the State shall engage able-bodied food stamp recipients in work activation each month in sufficient numbers to meet the following monthly target work activation ratios:

(i)

In 2012 the monthly target work activation ratio shall be 4 percent.

(ii)

In 2013 and in subsequent years the monthly target work activation ratio shall be 7 percent.

(B)

Limitation on education and training as a component of work activation

For purposes of compliance by the State with the work activation ratios, not more than 20 percent of the monthly work activation participants counted by the State may be engaged in employment and training as a means of fulfilling their employment and work activation standards.

(4)

Work activation priority populations

(A)

In general

In operating the work activation program, States shall give priority to participation by the following recipient groups:

(i)

Work eligible adults without dependent children.

(ii)

Work eligible adults who are also recipients of housing assistance.

(iii)

Other work eligible recipients at the time of initial application for benefits.

(B)

Participation share

Except as provided in paragraph (C), at least 80 percent of the participants in work activation should belong to the three priority groups listed in paragraph (A).

(C)

Exception

The numeric requirement in paragraph (B) shall not pertain if the number of recipients in the three priority groups in paragraph is insufficient to meet that requirement, but in those circumstances, the State will continue to give priority to any recipients who belong to the three priority groups.

(5)

Reimbursable expenses of participants

(A)

The State agency shall provide payments or reimbursements to participants in work activation carried out under this section for—

(i)

the actual costs of transportation and other actual costs (other than dependent care costs) that are reasonably necessary and directly related to participation in the work activation components of the program; and

(ii)

the actual costs of such dependent care expenses that are determined by the State agency to be necessary for the participation of an individual in the work activation components of the program (other than an individual who is the caretaker relative of a dependent in a family receiving benefits under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.)) in a local area where an employment, training, or education program under title IV of such Act (42 U.S.C. 601 et seq.) is in operation, except that no such payment or reimbursement shall exceed the applicable local market rate.

(B)

In lieu of providing reimbursements for dependent care expenses under clause (i), a State agency may, at its option, arrange for dependent care through providers by providing vouchers to the household allowing the recipient to choose between all lawful providers. The value of the voucher shall not exceed the average local market rate.

(C)

The value of any dependent care services provided for or arranged under paragraph (1) or (2), or any amount received as a payment or reimbursement under (1), shall—

(i)

not be treated as income for the purposes of any other Federal or federally assisted program that bases eligibility for, or the amount of benefits on, need; and

(ii)

not be claimed as an employment-related expense for the purposes of the credit provided under section 21 of title 26.

(6)

Penalties for inadequate State performance

If, in a given month, a State fails to engage food stamp recipients in work activation in sufficient numbers to meet or exceed the appropriate work activation ratio provided in subsection (e)(3), the Federal food stamp funding provided to the State in a subsequent penalty month will be reduced as follows: Provided, That, the month in which the State failed to engage food stamp recipients in work activation in sufficient numbers to meet or exceed the appropriate target work activation ratio shall be designated the non-performance month, and: Providedfurther, That the month in which the State is penalized shall be designated the penalty month:

(A)

The penalty month shall be no later than four months after the non-performance month.

(B)

The amount of Federal food stamp funding the State shall receive for the penalty month shall equal the amount of Federal food stamp funds the State would otherwise have received multiplied by a fraction equaling—

(i)

the actual monthly work activation ratio achieved by the State in the penalty month; divided by

(ii)

the target monthly work activation ratio for the penalty month.

(7)

Rewards to States for reducing government dependence

If, in any future year, a State reduces its food stamp caseload below the levels which existed in calendar year 2006, the State shall receive a financial reward for reducing dependence.

(A)

The reward shall equal one quarter of the savings to the Federal Government for that year that resulted from the caseload reduction.

(B)

The State may use its reward funding for any purpose it chooses that provides benefits or services to individuals with incomes below 200 percent of the Federal poverty level, improves social outcomes in low-income populations, encourages healthy marriage, or increases self-sufficiency and reduces dependence.

(8)

Authorization of funding

(A)

In general

In fiscal year 2012, and in each subsequent fiscal year there is authorized to be appropriated $2,500,000,000 to be provided to State governments for the purpose of administering a work activation program in accordance with this section.

(B)

Allocation among States

The sum provided in subparagraph (A) shall be allocated to the States in proportion to each State’s share of total funding for the food stamp program under this Act in fiscal year 2007.

.

(j)

Conforming amendments

The Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) is amended—

(1)

in section 5—

(A)

in subsection (a) by striking , 6(d)(2),,

(B)

in subsection (d)(14) by striking 6(d)(4)(I) and inserting 29,

(C)

in subsection (e)(3)(B)(iii) by striking section (d)(3) and inserting section 29, and

(D)

in the 1st sentence of subsection (g)(3) by striking 6(d) and inserting 29,

(2)

in section 7(i)(2) by striking 6(o)(2) and inserting 6(o),

(3)

in section 11(e) by striking paragraph (19),

(4)

in section 16—

(A)

in subsection (b)(4) by striking 6(d) and inserting 29, and

(B)

by striking subsection (h),

(5)

in section 17—

(A)

in subsection (b)—

(i)

in paragraph (1)(B)(iv)(III) by striking item (bb),

(ii)

in paragraph (2) by striking the 2d sentence, and

(iii)

in paragraph (3)(B) by striking 6(d) and inserting 29, and

(B)

by striking subsection (g),

(6)

in section 20—

(A)

in subsection (b)—

(i)

by striking paragraph (1), and

(ii)

by redesignating paragraphs (2) through (6) as paragraphs (1) through (5), respectively, and

(B)

by striking subsection (f), and

(7)

in section 22(b) by striking paragraph (4).

203.

Termination of benefit increase

Section 101(a)(2) of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 120), as amended by section 442 of Public Law 111–296 (124 Stat. 3183, 3265), is amended by striking after October 31, 2013 and inserting on the date of the enactment of the Welfare Reform Act of 2011.

III

Reporting of means-tested welfare spending in President’s budget submission

301.

Additional information in President’s budget submission

Section 1105(a) of title 31, United States Code, is amended by adding at the end the following new paragraph:

(37)

the total level of spending on means-tested welfare programs by the Federal Government and the total level of spending on means-tested welfare programs by all State and local governments and the Federal Government for the most recent fiscal year for which such data is available and estimated levels for the fiscal year during which the budget submission of the President is made, for the fiscal year beginning on October 1 of the calendar year during which the budget submission is made, and for each of the nine ensuing fiscal years, and for purposes of this paragraph, means-tested welfare programs shall mean those programs defined in section 401 of the Welfare Reform Act of 2011.

.

IV

Aggregate cap for means-tested welfare spending

401.

Definition of means-tested welfare spending

Section 3 of the Congressional Budget and Impoundment Control Act of 1974 is amended by adding at the end the following new paragraph:

(11)
(A)

The term means-tested welfare spending refers to any Federal program that is designed to specifically provide assistance or benefits exclusively to low-income Americans, but is not such a program if it—

(i)

is based on earned eligibility;

(ii)

is not need-based;

(iii)

is a program designed exclusively or primarily for veterans of military service; or

(iv)

offers universal or near universal eligibility to the working population and their dependents.

Community and economic development programs targeted to low-income communities or populations shall be considered means-tested welfare programs for purposes of this paragraph.
(B)

For purposes of subparagraph (A), the following Federal programs shall be considered to be means-tested welfare spending:

(i)

Cash and general programs

(I)

Supplemental Security Income.

(II)

Earned Income Tax Credit (Refundable Portion).

(III)

Refundable Child Credit.

(IV)

Temporary Assistance to Needy Families.

(V)

Title IV–E Foster Care.

(VI)

Title IV–E Adoption Assistance.

(VII)

General Assistance to Indians.

(VIII)

Assets for Independence.

(ii)

Medical

(I)

Medicaid.

(II)

State Children’s Health Insurance Program.

(III)

Indian Health Services.

(IV)

Consolidated Health Centers/Community Health Centers.

(V)

Maternal and Child Health.

(VI)

Healthy Start.

(VII)

Refundable Premiums and Out of Pocket Subsidies under the Patient Protection and Affordable Health Care Act (PPACA).

(iii)

Food

(I)

Food Stamps Program.

(II)

School Lunch Program.

(III)

Women, Infant and Children (WIC) Food Program.

(IV)

School Breakfast.

(V)

Child Care Food Program.

(VI)

Nutrition Program for the Elderly, Nutrition Service Incentives.

(VII)

Summer Food Service Program.

(VIII)

Commodity Supplemental Food Program.

(IX)

Temporary Emergency Food Program.

(X)

Needy Families.

(XI)

Farmer’s Market Nutrition Program.

(XII)

Special Milk Program.

(iv)

Housing

(I)

Section 8 Housing (HUD).

(II)

Public Housing (HUD).

(III)

State Housing Expenditures.

(IV)

Home Investment Partnership Program (HUD).

(V)

Homeless Assistance Grants (HUD).

(VI)

Rural Housing Insurance Fund (Agriculture).

(VII)

Rural Housing Service (Agriculture).

(VIII)

Housing for the Elderly (HUD).

(IX)

Native American Housing Block Grants (HUD).

(X)

Other Assisted Housing Programs (HUD).

(XI)

Housing for Persons with Disabilities (HUD).

(v)

Energy and Utilities

(I)

Low-Income Home Energy Assistance.

(II)

Universal Service Fund—Subsidized Phone Service for Low-Income Persons.

(III)

Weatherization.

(vi)

Education

(I)

Pell Grants.

(II)

Title I Grants to Local Education Authorities.

(III)

Special Programs for Disadvantaged (TRIO).

(IV)

Supplemental Education Opportunity Grants.

(V)

Migrant Education.

(VI)

Gear-Up.

(VII)

Education for Homeless Children and Youth.

(VIII)

Leveraging Educational Assistance Partnership (LEAP) Program.

(IX)

Even Start.

(vii)

Training

(I)

Job Corps.

(II)

Youth Opportunity Grants (under the Workforce Investment Act).

(III)

Adult Employment and Training (under the Workforce Investment Act).

(IV)

Senior Community Service Employment.

(V)

Food Stamp Employment and Training Program.

(VI)

Migrant Training.

(VII)

YouthBuild.

(VIII)

Native American Training.

(viii)

Services

(I)

Title XX Social Services Block Grant.

(II)

Community Service Block Grant.

(III)

Social Services for Refugees, Asylees, and Humanitarian Cases.

(IV)

Title III Aging Americans Act.

(V)

Legal Services Block Grant.

(VI)

Family Planning.

(VII)

Emergency Food and Shelter.

(VIII)

Healthy Marriage and Responsible Fatherhood Grants.

(IX)

Americorps VISTA.

(ix)

Child Care and Child Development

(I)

Headstart.

(II)

Childcare and Child Development Block Grant.

(III)

Child Care Block Grant (under Temporary Assistance to Needy Families Program).

(x)

Community Development

(I)

Community Development Block Grant.

(II)

Economic Development Administration.

(III)

Appalachian Regional Development.

(IV)

Empowerment Zones, Enterprise Communities, Renewal Communities.

(V)

Urban Development Block Grant.

(C)

For purposes of this paragraph, the term means-tested welfare spending shall not include—

(i)

the Social Security Disability Insurance program;

(ii)

Medicare;

(iii)

retirement insurance benefits and survivor benefits under the Social Security program;

(iv)

any program designed exclusively or primarily for veterans of military service;

(v)

unemployment insurance benefits provided under title K; and

(vi)

programs designed specifically to provide benefits to workers to compensate for job-related injuries or illnesses.

(D)

For purposes of this paragraph, the term spending on means-tested welfare programs shall mean the full cost of benefits and services provided by the program, as well as the administrative costs for operating the program, subject to the limitations in subparagraph (E).

(E)
(i)

For purposes of this paragraph only the refundable portion of the following tax credits shall be counted as means-tested welfare expenditures:

(I)

The earned income tax credit.

(II)

The child tax credit.

(III)

The making work pay tax credit.

(ii)

For purposes of this paragraph only the refundable portion of the premium and out of pocket health care subsidies to be paid under the Patient Protection and Affordable Health Care Act shall be counted as means-tested welfare expenditures; the refundable portion of these subsidies shall mean the portion of the credit which is paid to an individual in excess of the amount of Federal income tax owed by the individual.

(iii)

For purposes of this paragraph only the costs of the free and reduced price segments of the school lunch and school breakfast programs shall be included.

(F)

For purposes of this paragraph expenditures by state and local governments of funds that are:

(i)

obtained by the State and local government from taxes, fees, or other sources of revenue established by the State or local government; and

(ii)

are not received as any form of grant from the Federal Government,

shall not be considered as Federal means-tested welfare spending even if such state and local expenditures take the form of contributions to Federal programs listed or defined in subparagraphs (A) and (B).

.

402.

Reports to budget committees

Section 202(e)(1) of the Congressional Budget Act of 1974 is amended by inserting (A) after (1) and by inserting at the end the following new subparagraph:

(B)

Beginning with the first fiscal year that begins after the date of enactment of this subsection and after any monthly rate of unemployment during the immediately preceding fiscal year is below 6.5 percent, the Director shall include in each report submitted to the Committees on the Budget of the House of Representatives and the Senate under subparagraph (A) the following information for the fiscal year commencing on October 1 of the year in which the report is submitted and for each of the ensuing 4 fiscal years:

(i)

The Congressional Budget Office baseline level of Federal spending for aggregate means-tested welfare programs.

(ii)

The aggregate level of Federal means-tested welfare spending computed by taking the aggregate level of means-tested welfare spending for fiscal year 2007 and adjusting that for inflation using the Consumer Price Index for All Urban Consumers, U.S. City Average, All Items, Not Seasonally Adjusted (CPI–U), as computed by the Bureau of Labor Statistics, for all fiscal years occurring after fiscal year 2007 and before the applicable fiscal year.

.

403.

Content of concurrent resolutions on the budget

Section 301 of the Congressional Budget Act of 1974 is amended by adding at the end the following new subsection:

(j)

Means-Tested welfare spending

Beginning with the first fiscal year that begins after the date of enactment of this subsection and after any monthly rate of unemployment during the immediately preceding fiscal year is below 6.5 percent, the concurrent resolution on the budget for the applicable fiscal year shall set forth the appropriate level for aggregate means-tested welfare spending for the first fiscal year of that concurrent resolution and for at least each of the 4 ensuing fiscal years. Such level shall not exceed the aggregate level of Federal means-tested welfare spending for fiscal year 2007, adjusted for inflation using the Consumer Price Index for All Urban Consumers, U.S. City Average, All Items, Not Seasonally Adjusted (CPI–U), as computed by the Bureau of Labor Statistics, for all fiscal years occurring after fiscal year 2007 and before the applicable fiscal year.

.

404.

Allocations of means-tested welfare spending

(a)

In general

Section 302 of the Congressional Budget Act of 1974 is amended by adding at the end the following new subsection:

(h)

Means-Tested welfare spending limit

(1)

Further division of amounts

For any concurrent resolution on the budget for which levels for aggregate means-tested welfare spending are set forth under section 301(j), in the House of Representatives and the Senate, the amounts allocated under subsection (a) shall be further divided to establish an allocation of—

(A)

total new budget authority and total outlays for discretionary means-tested welfare spending in appropriation measures for the first fiscal year of the resolution on the budget; and

(B)

total new budget authority and total outlays for mandatory means-tested welfare spending for the first fiscal year of the resolution on the budget and at least each of the ensuing 4 fiscal years to all other committees of the House of Representatives and the Senate that have jurisdiction over legislation providing mandatory means-tested welfare spending.

(2)

Point of order

It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, or amendment if—

(A)

the enactment of such bill or resolution as reported;

(B)

the adoption and enactment of such amendment; or

(C)

the enactment of such bill or resolution in the form recommended in such conference report,

would cause the applicable allocation of new budget authority or outlays made under subparagraph (A) or (B) of paragraph (1) for a fiscal year to be exceeded.

.

(b)

Conforming amendment

Section 302(b) of the Congressional Budget Act of 1974 is amended by striking under subsection (a) and inserting under subsections (a) and (h).

405.

Reconciliation

Section 310(a) of the Congressional Budget Act of 1974 is amended as follows:

(1)

Strike or at the end of paragraph (3) and strike the period at the end of paragraph (4) and insert ; and.

(2)

Redesignate paragraph (4) as paragraph (5), and in paragraph (5) as redesignated, strike and (3) and insert (3), and (4).

(3)

After paragraph (3), insert the following new paragraph:

(4)

specify the total amount by which new budget authority for such fiscal year for mandatory means-tested welfare spending contained in laws, bills, and resolutions within the jurisdiction of a committee is to be changed and direct that committee to determine and recommend changes to accomplish a change of such total amount, which amount shall be the amount by which the Congressional Budget Office baseline level of spending for aggregate mandatory means-tested welfare programs exceeds the allocation made pursuant to section 302(h)(1)(B) for such fiscal year.

.

V

Grants to promote self-sufficiency

501.

Grants to States

(a)

Purpose

The purpose of this title is to encourage States to develop policies to promote self-sufficiency and prosperity and to reduce poverty and Government dependence.

(b)

Grants

The Social Security Act is amended by adding at the end the following:

XXII

Grants to States to Promote Self-Sufficiency and Prosperity and to Reduce Dependence

2201.

Grants to States

(a)

In general

The Secretary may provide grants to States to reward reductions in poverty and Government dependence and increases in self-sufficiency.

(b)

Allocation of grants to states

For each fiscal year for which funds are made available under subsection (e), the Secretary shall make a grant in an amount equal to $100,000,000 to each of the 3 States with the greatest percentage increases in the self-sufficiency ratio of the State for the preceding fiscal year over the self-sufficiency ratio of the State for fiscal year 2007, as compared with the changes in that ratio for each other State, subject to subsection (c).

(c)

Limitation on eligibility for grants

A State shall not be eligible for a grant under this title for a fiscal year unless the self-sufficiency ratio of the State for the fiscal year is greater than the self-sufficiency ratio of the State for fiscal year 2007.

(d)

Definitions

In this title:

(1)

The term self-sufficient family means a family (including a 1-person family) whose combined income, excluding receipt of means-tested welfare spending (as defined in section 3(11)(A) of the Congressional Budget and Impoundment Control Act of 1974), exceeds the poverty line (within the meaning of section 673(2) of the Omnibus Budget Reconciliation Act of 1981, including any revision required by such section applicable to a family of the size involved).

(2)

The term self-sufficiency ratio means, with respect to a State and a fiscal year—

(A)

the number of self-sufficient families residing in the State during the fiscal year that are headed by able-bodied individuals who have not attained 63 years of age; divided by

(B)

the total number of families residing in the State during the fiscal year that are headed by able-bodied individuals who have not attained 63 years of age.

(3)

The term State means the 50 States and the District of Columbia.

(e)

Limitations on authorization of appropriations

For grants under this title, there are authorized to be appropriated to the Secretary $300,000,000 for fiscal year 2012 and each succeeding fiscal year.

.

VI

Prohibition on funding of abortion

601.

Prohibition on funding for abortions

No funds authorized or appropriated by Federal law, and none of the funds in any trust fund to which funds are authorized or appropriated by Federal law, shall be expended for any abortion.

602.

Prohibition on funding for health benefits plans that cover abortion

None of the funds authorized or appropriated by Federal law, and none of the funds in any trust fund to which funds are authorized or appropriated by Federal law, shall be expended for health benefits coverage that includes coverage of abortion.

603.

Prohibition on tax benefits relating to abortion

For taxable years beginning after the date of the enactment of this section, no credit shall be allowed under the internal revenue laws with respect to amounts paid or incurred for an abortion or with respect to amounts paid or incurred for a health benefits plan (including premium assistance) that includes coverage of abortion.

604.

Construction relating to separate coverage

Nothing in this title shall be construed as prohibiting any individual, entity, or State or locality from purchasing separate abortion coverage or health benefits coverage that includes abortion so long as such coverage is paid for entirely using only funds not authorized or appropriated by Federal law and such coverage shall not be purchased using matching funds required for a federally subsidized program, including a State's or locality's contribution of Medicaid matching funds.

605.

Construction relating to the use of non-Federal funds for health coverage

Nothing in this title shall be construed as restricting the ability of any non-Federal health benefits coverage provider from offering abortion coverage, or the ability of a State or locality to contract separately with such a provider for such coverage, so long as only funds not authorized or appropriated by Federal law are used and such coverage shall not be purchased using matching funds required for a federally subsidized program, including a State's or locality's contribution of Medicaid matching funds.

606.

Treatment of abortions related to rape, incest, or preserving the life of the mother

The limitations established in this title shall not apply to an abortion—

(1)

if the pregnancy is the result of an act of rape or incest; or

(2)

in the case where a woman suffers from a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the woman in danger of death unless an abortion is performed, including a life-endangering physical condition caused by or arising from the pregnancy itself.