< Back to S. 1904 (112th Congress, 2011–2013)

Text of the Welfare Reform Act of 2011

This bill was introduced on November 17, 2011, in a previous session of Congress, but was not enacted. The text of the bill below is as of Nov 17, 2011 (Introduced).

Source: GPO

II

112th CONGRESS

1st Session

S. 1904

IN THE SENATE OF THE UNITED STATES

November 17, 2011

(for himself, Mr. Lee, Mr. Vitter, Mr. Paul, Mr. Sessions, Mr. Graham, Mr. Inhofe, and Mr. Coburn) introduced the following bill; which was read twice and referred to the Committee on Finance

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—Modifications to Food Stamp Program

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

Sec. 202. Work requirements.

Sec. 203. Definition of food.

Sec. 204. 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

Modifications to Food Stamp Program

201.

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

(a)

In general

Effective June 18, 2008, sections 4001 and 4002 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1853) and the amendments made by those sections are repealed.

(b)

Application

The Food Stamp Act of 1977 (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. 1853), shall be applied and administered as if those sections and the amendments made by those sections had not been enacted.

202.

Work requirements

(a)

Declaration of policy

Section 2 of the Food Stamp Act of 1977 (7 U.S.C. 2011) is amended by adding at the end the following: Congress further finds that it should also be the purpose of the food stamp program to increase employment, to encourage healthy marriage, and to promote prosperous self-sufficiency, which means the ability of households to maintain an income above the poverty level without services and benefits from the Federal Government..

(b)

Definitions

Section 3 of the Food Stamp Act of 1977 (7 U.S.C. 2012) is amended by adding at the end the following:

(w)

Able-Bodied, work-Eligible adult

(1)

In general

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

(A)

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

(B)

is not physically or mentally incapable of work; and

(C)

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

(2)

Physically or mentally incapable of work

For purposes of paragraph (1)(B), the term physically or mentally incapable of work means an individual who—

(A)

currently receives benefits under the supplemental security income program established under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.) or another program that provides recurring benefits to individuals because the individual is disabled and unable to work; or

(B)

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 established under title XVI of the Social Security Act (42 U.S.C. 1381 et seq.) or another program that provides recurring benefits to individuals because the individual is disabled and unable to work.

(x)

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 1 or more dependent children who are the biological offspring of the parent; or

(2)

in the absence of a biological parent, a step parent, adoptive parent, guardian, or adult relative who resides with and provides care to the 1 or more children and is lawfully present in the United States.

(y)

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.

(z)

Family with dependent children

(1)

In general

The term family with dependent children means a unit consisting of a family head, 1 or more dependent children, and, if applicable, the married spouse of the family head, all of whom share meals and reside within a single household.

(2)

Multiple families in a household

There may be more than 1 family with dependent children in a single household.

(aa)

Married couple family with dependent children

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

(bb)

Married spouse of the family head

The term married spouse of the family head means the lawfully married spouse of the family head who—

(1)

resides with the family head and dependent children; and

(2)

is lawfully present in the United States.

(cc)

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

(dd)

Monthly potential work activation population

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

(1)

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

(2)

all work-eligible single-headed families with dependent children that 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 that 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.

(ee)

Monthly work activation participants

The term monthly work activation participants means the sum of—

(1)

all able-bodied, work-eligible adults without dependents who have received food stamp benefits and 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 that have received food stamp benefits during the month and include 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 who 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, combined, 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, combined, during the month.

(ff)

Single-Headed family with dependent children

The term single-headed family with dependent children means a family with dependent children that—

(1)

contains a family head residing with the family; but

(2)

does not have a married spouse of the family head residing with the family.

(gg)

Work activation

(1)

In general

The term work activation means—

(A)

supervised job search;

(B)

community service activities;

(C)

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

(D)

workfare under section 20; or

(E)

drug or alcohol treatment.

(2)

Supervised job search

For purposes of paragraph (1)(A), the term supervised job search means a job search program that has the following characteristics:

(A)

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

(B)

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

(C)

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.

(D)

The quantity 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.

(hh)

Work activation ratio

The term work activation ratio means the quotient obtained by dividing—

(1)

the number of work activation participants in a month; by

(2)

the monthly potential work activation population for the month.

(ii)

Work activities

The term work activities means—

(1)

paid employment;

(2)

work activation; or

(3)

a combination of both paid employment and work activation.

(jj)

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 adult; and

(2)

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

(kk)

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.

(ll)

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 that contains at least 1 work-eligible, able-bodied adult who is—

(1)

the family head; or

(2)

the married spouse of the family head.

(mm)

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 that has a family head who is an able-bodied, work-eligible adult.

.

(c)

Conditions of participation

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015(d)) is amended by striking subsection (d) and inserting the following:

(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 applied 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, 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 that is at least 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), 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 3 months after the date on which ineligibility began.

(D)

Restoration of eligibility

At the end of the 3-month period of ineligibility under subparagraph (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

(A)

In general

Except as provided in subparagraphs (B) and (C) and notwithstanding any other provision of law, no member of a family shall be eligible to participate in the food stamp program at any time that any able-bodied, work-eligible adult member of the household is on strike as defined in section 501 of the Labor Management Relations Act, 1947 (29 U.S.C. 142), because of a labor dispute (other than a lockout) as defined in section 2 of the National Labor Relations Act (29 U.S.C. 152).

(B)

Prior eligibility

(i)

In general

Subject to clauses (ii), a family unit shall not lose eligibility to participate in the food stamp program as a result of 1 of the members of the family unit going on strike if the household was eligible immediately prior to the strike.

(ii)

No increased allotment

A family unit described in clause (i) shall not receive an increased allotment as the result of a decrease in the income of the 1 or more striking members of the household.

(C)

Refusal to accept employment

Ineligibility described in subparagraph (A) shall not apply to any family unit that does not contain a member on strike, if any of the members of the family unit refuses to accept employment at a plant or site because of a strike or lockout.

.

(d)

Eligibility of students with dependent children

Section 6(e) of the Food Stamp Act of 1977 (7 U.S.C. 2015(e)) is amended by striking paragraph (8) and inserting the following:

(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.

.

(e)

Work requirement

Section 6 of the Food Stamp Act of 1977 (7 U.S.C. 2015) is amended by striking subsection (o) and inserting the following:

(o)

Fulfillment of employment and work activation requirements

(1)

In general

If 1 or more 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 family unit complies with the employment and work activation standards.

(2)

Sanctions and resumption of benefits

If 1 or more 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 comply with the work activation standards, benefits for all members of the family unit—

(A)

shall be terminated in accordance with section 29(c)(1); and

(B)

may be resumed upon compliance with section 29(c)(2).

.

(f)

Exclusion

Section 6 of the Food Stamp Act of 1977 (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 the 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 participating, in the food stamp program as a member of the same household as the child; and

(3)

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

.

(g)

Hearing and determination

Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)(10)) is amended by striking : Provided and all that follows through hearing; at the end and inserting a semicolon.

(h)

Work requirements and activation program

The Food Stamp Act of 1977 (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

(1)

In general

A family unit with adult members that is required to participate in work activation under subsection (b) during a full month of participation in the food stamp program shall fulfill the following levels of work activity during that month:

(A)

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

(B)

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.

(C)

Subject to paragraph (2), in each work-eligible married couple family with dependent children, the family head and married spouse shall be required to perform work activities that when added together for the 2 adults equal at least 120 hours per month.

(2)

Requirements

(A)

Single joint obligation

The 120-hour requirement under paragraph (1)(C) 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.

(B)

Relationship to paid employment and work activation

For purposes of meeting the 120-hour 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 if the sum of the work activities of the 2 individuals equals or exceeds 120 hours per month.

(C)

Options

The work requirement for a work-eligible married couple family with dependent children may be fulfilled—

(i)

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

(ii)

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

(iii)

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

(D)

No separate work activation requirement

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)

In general

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)

Pro-rated work activity standard

For purposes of paragraph (1), the term pro-rated work activity standard means a standard that equals a number of hours of work activity of a family unit that bears the same proportion to the employment and work activation requirement for the family unit for a full month under subsection (a) as the proportion that—

(A)

the pro-rated monthly allotment received by the household for the partial month under section 8(c); bears to

(B)

the full allotment the same household would receive for a complete month.

(3)

Requirement

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 that 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)

Standard

(A)

In general

If 1 or more members of a work-eligible family unit are required to participate in the work activation program under subsection (e) in a calendar month and the 1 or more individuals fail to fulfill the work activity standard under subsection (a) or (b) for that month—

(i)

no member of the family unit shall be eligible to receive food stamp benefits during the subsequent calendar month; and

(ii)

except as provided in subparagraph (B), the State agency shall not provide 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.

(B)

Administrative delay of sanction

(i)

In general

Except as provided in clauses (ii) and (iii), if it is administratively infeasible for the State to not provide the food stamp benefit that would be issued at the beginning of the first month after the month of noncompliance, the State shall not provide 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.

(ii)

Deadline

The sanction of benefits shall occur not later than 32 days after the end of the month of noncompliance.

(iii)

Relationship of payments to members of the family unit

At least 1 monthly payment to all members of the family unit shall be not provided for each month of noncompliance under subparagraph (A).

(2)

Resumption of benefits after sanction

(A)

In general

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

(i)

the 1 or more work-eligible members of the family unit have participated in the work activation program under subsection (e) for at least 4 consecutive subsequent weeks and fulfilled the work activity standard for the family unit for that same 4-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 not provided due to the sanction imposed under paragraph (1).

(d)

Work activation is not employment

Participation in work activation activities under this section shall—

(1)

not be considered to be employment; and

(2)

not be subject to any law pertaining to wages, compensation, hours, or conditions of employment under any law administered by the Secretary of Labor.

(e)

Work activation program

(1)

Program

Each State participating in the food stamp program shall carry out a work activation program.

(2)

Purpose

(A)

In general

The goal of each work activation program shall be to increase the employment of able-bodied, work-eligible adult food stamp recipients.

(B)

Requirement

To accomplish the 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

Beginning on the date that is 180 days after the date of enactment of this section, a 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 each subsequent year, 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 the employment and work activation standards of the participants.

(4)

Work activation priority populations

(A)

In general

In carrying out the work activation programs, a State 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 food stamp benefits.

(B)

Participation share

Except as provided in subparagraph (C), at least 80 percent of the participants in a work activation program shall belong to at least 1 of the 3 priority groups listed in subparagraph (A).

(C)

Exception

(i)

In general

The percentage requirement in subparagraph (B) shall not apply if the number of recipients in the 3 priority groups in the State is insufficient to meet that requirement.

(ii)

Priority

In circumstances described in clause (i), the State shall continue to give priority to any recipients who belong to 1 of the 3 priority groups.

(5)

Reimbursable expenses of participants

(A)

In general

A 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 as 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 in which an employment, training, or education program under title IV of that Act (42 U.S.C. 601 et seq.) is in operation, on the condition that no such payment or reimbursement shall exceed the applicable local market rate.

(B)

Vouchers

(i)

In general

In lieu of providing reimbursements for dependent care expenses under subparagraph (A)(ii), a State agency may, at the option of the State agency, arrange for dependent care through providers by providing vouchers to the household to allow the recipient to choose between all lawful providers.

(ii)

Value of vouchers

The value of a voucher shall not exceed the average local market rate.

(C)

Value of services

The value of any dependent care services provided for or arranged under subparagraph (A) or (B), or any amount received as a payment or reimbursement under subparagraph (A), 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 the Internal Revenue Code of 1986.

(6)

Penalties for inadequate State performance

(A)

Definitions

In this paragraph:

(i)

Non-performance month

The term non-performance month means a month in which a State fails to engage food stamp recipients in work activation in sufficient numbers to meet or exceed the appropriate target work activation ratio under paragraph (3).

(ii)

Penalty month

The term penalty month means a month in which a State is penalized for the failure.

(B)

Penalty

If, in a month, a State fails to engage food stamp recipients in work activation in sufficient numbers to meet or exceed the appropriate work activation ratio under paragraph (3), the Federal food stamp funding provided to the State in a subsequent penalty month shall be reduced in accordance with this paragraph.

(C)

Timing

The penalty month shall be not later than 4 months after the non-performance month.

(D)

Reduction

The amount of Federal food stamp funding a State shall receive for the penalty month shall equal the product obtained by multiplying—

(i)

the amount of Federal food stamp funds the State would otherwise have received; and

(ii)

the quotient obtained by dividing—

(I)

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

(II)

the target monthly work activation ratio for the penalty month.

(7)

Rewards to States for reducing government dependence

(A)

In general

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

(B)

Amount

The reward shall equal 1/4 of the savings to the Federal Government for that year that resulted from the caseload reduction.

(C)

Use of reward

A State may use reward funding under this paragraph for any purpose chosen by the State that—

(i)

provides benefits or services to individuals with incomes below 200 percent of the Federal poverty level;

(ii)

improves social outcomes in low-income populations;

(iii)

encourages healthy marriage; or

(iv)

increases self-sufficiency and reduces dependence.

(8)

Authorization of funding

(A)

In general

There is authorized to be appropriated to the Secretary to provide funds to State governments for the purpose of carrying out work activation programs in accordance with this section $2,500,000,000 for fiscal year 2012 and each subsequent fiscal year.

(B)

Allocation among States

The total amount appropriated under subparagraph (A) for a fiscal year shall be allocated among the States in accordance with the proportion of each State’s share of total funding for the food stamp program under this Act in fiscal year 2007.

.

(i)

Conforming amendments

(1)

Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) is amended—

(A)

in subsection (a), in the second sentence, by striking , 6(d)(2),;

(B)

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

(C)

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

(D)

in the first sentence of subsection (g)(3), by striking section 6(d) and inserting section 29.

(2)

Section 7(i)(1) of the Food Stamp Act of 1977 (7 U.S.C. 2016(i)(1)) is amended by striking section 6(o)(2) and inserting section 6(o).

(3)

Section 11(e) of the Food Stamp Act of 1977 (7 U.S.C. 2020(e)) is amended—

(A)

by striking paragraph (19); and

(B)

by redesignating paragraphs (20) through (23) as paragraphs (19) through (22), respectively.

(4)

Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is amended—

(A)

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

(B)

by striking subsection (h).

(5)

Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is amended—

(A)

in subsection (b)—

(i)

in paragraph (1)(B)(iv)(III)—

(I)

by striking item (bb); and

(II)

by redesignating items (cc) through (jj) as items (bb) through (ii), respectively;

(ii)

in paragraph (2), by striking the second sentence; and

(iii)

in paragraph (3)(B), in the first sentence, by striking section 6(d) and inserting section 29,; and

(B)

by striking subsection (g).

(6)

Section 20 of the Food Stamp Act of 1977 (7 U.S.C. 2029) is amended—

(A)

in subsection (b)—

(i)

by striking paragraph (1); and

(ii)

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

(B)

by striking subsection (f); and

(C)

by redesignating subsection (g) as subsection (f).

(7)

Section 22(b) of the Food Stamp Act of 1977 (7 U.S.C. 2031(b)) is amended by striking paragraph (4).

(8)

Section 26(f)(3)(E) of the Food Stamp Act of 1977 (7 U.S.C. 2036(f)(3)(E)) is amended by striking (22), and (23) and inserting (21), and (22).

(9)

Section 501(b)(2)(E) of the Workforce Investment Act of 1998 (20 U.S.C. 9271(b)(2)(E)) is amended by striking section 6(d) and all that follows through the end and inserting section 29 of the Food Stamp Act of 1977..

(10)

Section 112(b)(8)(A)(iii) of the Workforce Investment Act of 1998 (29 U.S.C. 2822(b)(8)(A)(iii)) is amended by striking section 6(d)(4) and all that follows through (7 U.S.C. 2015(d)(4)) and inserting section 29 of the Food Stamp Act of 1977.

(11)

Section 121(b)(2)(B)(ii) of the Workforce Investment Act of 1998 (29 U.S.C. 2841(b)(2)(B)(ii)) is amended by striking section 6(d)(4) and all that follows through the end and inserting section 29 of the Food Stamp Act of 1977;.

203.

Definition of food

Section 3(k) of the Food Stamp Act of 1977 (7 U.S.C. 2012(k)) is amended by inserting before the period at the end the following: , except that a food, food product, meal, or other item described in this subsection shall be considered a food under this Act only if it is a bare essential (as determined by the Secretary).

204.

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; 124 Stat. 2394; 124 Stat. 3265) is amended by striking after October 31, 2013 and inserting on the date of 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).
(12)

The limits established by this paragraph shall not be in effect in a fiscal year if the average monthly unemployment rate in the preceding fiscal year exceeded 7.5 percent.

.

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)

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 information described in clause (ii) beginning on the earlier of—

(i)

the first fiscal year that begins after the date of enactment of this subparagraph and after any monthly rate of unemployment during the immediately preceding fiscal year is below 7.5 percent; or

(ii)

fiscal year 2015.

(C)

The Director shall include 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 according to the procedures specified in clause (iii).

(D)

In preparing the report required by this subparagraph—

(i)

spending on means-tested medical assistance programs shall be adjusted for inflation according to the price index for personal consumption expenditures for health products and services as calculated by the Bureau of Economic Analysis; and

(ii)

spending for all other means-tested programs shall be adjusted for inflation according to the weighted price index for personal consumption expenditures excluding health products and services as calculated by the Bureau of Economic Analysis.

.

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

(1)

In general

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 beginning on the earlier of—

(A)

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 7.5 percent; or

(B)

fiscal year 2015.

(2)

Setting level

The level described in paragraph (2) shall not exceed the aggregate level of Federal means-tested welfare spending for fiscal year 2007, adjusted for inflation as follows:

(A)

Spending on means-tested medical assistance programs shall be adjusted for inflation according to the price index for personal consumption expenditures for health products and services as calculated by the Bureau of Economic Analysis.

(B)

Spending for all other means-tested programs shall be adjusted for inflation according to the weighted price index for personal consumption expenditures excluding health products and services as calculated by the Bureau of Economic Analysis.

.

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.