42 USC 603 - Grants to States

U.S Code last checked for updates: May 03, 2024

§ 603.

Grants to States

(a)

Grants

(1)

Family assistance grant

(A)

In general

(B)

State family assistance grant

(C)

Appropriation

(2)

Healthy marriage promotion and responsible fatherhood grants

(A)

In general

(i)

Use of funds

(ii)

Limitations

The Secretary may not award funds made available under this paragraph on a noncompetitive basis, and may not provide any such funds to an entity for the purpose of carrying out healthy marriage promotion activities or for the purpose of carrying out activities promoting responsible fatherhood unless the entity has submitted to the Secretary an application (or, in the case of an entity seeking funding to carry out healthy marriage promotion activities and activities promoting responsible fatherhood, a combined application that contains assurances that the entity will carry out such activities under separate programs and shall not combine any funds awarded to carry out either such activities) which—

(I)

describes—

(aa)

how the programs or activities proposed in the application will address, as appropriate, issues of domestic violence; and

(bb)

what the applicant will do, to the extent relevant, to ensure that participation in the programs or activities is voluntary, and to inform potential participants that their participation is voluntary; and

(II)

contains a commitment by the entity—

(aa)

to not use the funds for any other purpose; and

(bb)

to consult with experts in domestic violence or relevant community domestic violence coalitions in developing the programs and activities.

(iii)

Healthy marriage promotion activities

In clause (ii), the term “healthy marriage promotion activities” means the following:

(I)

Public advertising campaigns on the value of marriage and the skills needed to increase marital stability and health.

(II)

Education in high schools on the value of marriage, relationship skills, and budgeting.

(III)

Marriage education, marriage skills, and relationship skills programs, that may include parenting skills, financial management, conflict resolution, and job and career advancement.

(IV)

Pre-marital education and marriage skills training for engaged couples and for couples or individuals interested in marriage.

(V)

Marriage enhancement and marriage skills training programs for married couples.

(VI)

Divorce reduction programs that teach relationship skills.

(VII)

Marriage mentoring programs which use married couples as role models and mentors in at-risk communities.

(VIII)

Programs to reduce the disincentives to marriage in means-tested aid programs, if offered in conjunction with any activity described in this subparagraph.

(B)

Limitation on use of funds for demonstration projects for coordination of provision of child welfare and TANF services to tribal families at risk of child abuse or neglect

(i)

In general

(ii)

Limitation on use of funds

A grant made pursuant to clause (i) to such a project shall not be used for any purpose other than—

(I)

to improve case management for families eligible for assistance from such a tribal program;

(II)

for supportive services and assistance to tribal children in out-of-home placements and the tribal families caring for such children, including families who adopt such children; and

(III)

for prevention services and assistance to tribal families at risk of child abuse and neglect.

(iii)

Reports

(C)

Limitation on use of funds for activities promoting responsible fatherhood

(i)

In general

(ii)

In this paragraph, the term “activities promoting responsible fatherhood” means the following:

(I)

Activities to promote marriage or sustain marriage through activities such as counseling, mentoring, disseminating information about the benefits of marriage and 2-parent involvement for children, enhancing relationship skills, education regarding how to control aggressive behavior, disseminating information on the causes of domestic violence and child abuse, marriage preparation programs, premarital counseling, marital inventories, skills-based marriage education, financial planning seminars, including improving a family’s ability to effectively manage family business affairs by means such as education, counseling, or mentoring on matters related to family finances, including household management, budgeting, banking, and handling of financial transactions and home maintenance, and divorce education and reduction programs, including mediation and counseling.

(II)

Activities to promote responsible parenting through activities such as counseling, mentoring, and mediation, disseminating information about good parenting practices, skills-based parenting education, encouraging child support payments, and other methods.

(III)

Activities to foster economic stability by helping fathers improve their economic status by providing activities such as work first services, job search, job training, subsidized employment, job retention, job enhancement, and encouraging education, including career-advancing education, dissemination of employment materials, coordination with existing employment services such as welfare-to-work programs, referrals to local employment training initiatives, and other methods.

(IV)

Activities to promote responsible fatherhood that are conducted through a contract with a nationally recognized, nonprofit fatherhood promotion organization, such as the development, promotion, and distribution of a media campaign to encourage the appropriate involvement of parents in the life of any child and specifically the issue of responsible fatherhood, and the development of a national clearinghouse to assist States and communities in efforts to promote and support marriage and responsible fatherhood.

(D)

Appropriation

Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for each of fiscal years 2017 and 2018 for expenditure in accordance with this paragraph—

(i)

$75,000,000 for awarding funds for the purpose of carrying out healthy marriage promotion activities; and

(ii)

$75,000,000 for awarding funds for the purpose of carrying out activities promoting responsible fatherhood.

If the Secretary makes an award under subparagraph (B)(i) for fiscal year 2017 or 2018, the funds for such award shall be taken in equal portion from the amounts appropriated under clauses (i) and (ii).

(E)

Preference

(3)

Supplemental grant for population increases in certain States

(A)

In general

Each qualifying State shall, subject to subparagraph (F), be entitled to receive from the Secretary—

(i)

for fiscal year 1998 a grant in an amount equal to 2.5 percent of the total amount required to be paid to the State under former section 603 of this title (as in effect during fiscal year 1994) for fiscal year 1994; and

(ii)

for each of fiscal years 1999, 2000, and 2001, a grant in an amount equal to the sum of—

(I)

the amount (if any) required to be paid to the State under this paragraph for the immediately preceding fiscal year; and

(II)

2.5 percent of the sum of—

(aa)

the total amount required to be paid to the State under former section 603 of this title (as in effect during fiscal year 1994) for fiscal year 1994; and

(bb)

the amount (if any) required to be paid to the State under this paragraph for the fiscal year preceding the fiscal year for which the grant is to be made.

(B)

Preservation of grant without increases for States failing to remain qualifying States

(C)

Qualifying State

(i)

In general

For purposes of this paragraph, a State is a qualifying State for a fiscal year if—

(I)

the level of welfare spending per poor person by the State for the immediately preceding fiscal year is less than the national average level of State welfare spending per poor person for such preceding fiscal year; and

(II)

the population growth rate of the State (as determined by the Bureau of the Census) for the most recent fiscal year for which information is available exceeds the average population growth rate for all States (as so determined) for such most recent fiscal year.

(ii)

State must qualify in fiscal year 1998

(iii)

Certain States deemed qualifying States

For purposes of this paragraph, a State is deemed to be a qualifying State for fiscal years 1998, 1999, 2000, and 2001 if—

(I)

the level of welfare spending per poor person by the State for fiscal year 1994 is less than 35 percent of the national average level of State welfare spending per poor person for fiscal year 1994; or

(II)

the population of the State increased by more than 10 percent from April 1, 1990 to July 1, 1994, according to the population estimates in publication CB94–204 of the Bureau of the Census.

(D)

Definitions

As used in this paragraph:

(i)

Level of welfare spending per poor person

The term “level of State welfare spending per poor person” means, with respect to a State and a fiscal year—

(I)

the sum of—

(aa)

the total amount required to be paid to the State under former section 603 of this title (as in effect during fiscal year 1994) for fiscal year 1994; and

(bb)

the amount (if any) paid to the State under this paragraph for the immediately preceding fiscal year; divided by

(II)

the number of individuals, according to the 1990 decennial census, who were residents of the State and whose income was below the poverty line.

(ii)

National average level of State welfare spending per poor person

The term “national average level of State welfare spending per poor person” means, with respect to a fiscal year, an amount equal to—

(I)

the total amount required to be paid to the States under former section 603 of this title (as in effect during fiscal year 1994) for fiscal year 1994; divided by

(II)

the number of individuals, according to the 1990 decennial census, who were residents of any State and whose income was below the poverty line.

(iii)

State

(E)

Appropriation

(F)

Grants reduced pro rata if insufficient appropriations

(G)

Budget scoring

(H)

Reauthorization

Notwithstanding any other provision of this paragraph—

(i)

any State that was a qualifying State under this paragraph for fiscal year 2001 or any prior fiscal year shall be entitled to receive from the Secretary for each of fiscal years 2002 and 2003 a grant in an amount equal to the amount required to be paid to the State under this paragraph for the most recent fiscal year in which the State was a qualifying State;

(ii)

subparagraph (G) shall be applied as if “fiscal year 2011” were substituted for “fiscal year 2001”; 1

 So in original. Probably should be followed by “and”.

(iii)

out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for each of fiscal years 2002 and 2003 such sums as are necessary for grants under this subparagraph.

(4)

Bonus to reward high performance States

(A)

In general

(B)

Amount of grant

(i)

In general

(ii)

Limitation

(C)

Formula for measuring State performance

(D)

Scoring of State performance; setting of performance thresholds

For each bonus year, the Secretary shall—

(i)

use the formula developed under subparagraph (C) to assign a score to each eligible State for the fiscal year that immediately precedes the bonus year; and

(ii)

prescribe a performance threshold in such a manner so as to ensure that—

(I)

the average annual total amount of grants to be made under this paragraph for each bonus year equals $200,000,000; and

(II)

the total amount of grants to be made under this paragraph for all bonus years equals $1,000,000,000.

(E)

Definitions

As used in this paragraph:

(i)

Bonus year

(ii)

High performing State

(F)

Appropriation

(5)

Welfare-to-work grants

(A)

Formula grants

(i)

Entitlement

A State shall be entitled to receive from the Secretary of Labor a grant for each fiscal year specified in subparagraph (H) of this paragraph for which the State is a welfare-to-work State, in an amount that does not exceed the lesser of—

(I)

2 times the total of the expenditures by the State (excluding qualified State expenditures (as defined in section 609(a)(7)(B)(i) of this title) and any expenditure described in subclause (I), (II), or (IV) of section 609(a)(7)(B)(iv) of this title) during the period permitted under subparagraph (C)(vii) of this paragraph for the expenditure of funds under the grant for activities described in subparagraph (C)(i) of this paragraph; or

(II)

the allotment of the State under clause (iii) of this subparagraph for the fiscal year.

(ii)

Welfare-to-work State

A State shall be considered a welfare-to-work State for a fiscal year for purposes of this paragraph if the Secretary of Labor determines that the State meets the following requirements:

(I)

The State has submitted to the Secretary of Labor and the Secretary of Health and Human Services (in the form of an addendum to the State plan submitted under section 602 of this title) a plan which—

(aa)

describes how, consistent with this subparagraph, the State will use any funds provided under this subparagraph during the fiscal year;

(bb)

specifies the formula to be used pursuant to clause (vi) to distribute funds in the State, and describes the process by which the formula was developed;

(cc)

contains evidence that the plan was developed in consultation and coordination with appropriate entitites 2

 So in original. Probably should be “entities”.

in sub-State areas;

(dd)

contains assurances by the Governor of the State that the private industry council (and any alternate agency designated by the Governor under item (ee)) for a service delivery area in the State will coordinate the expenditure of any funds provided under this subparagraph for the benefit of the service delivery area with the expenditure of the funds provided to the State under paragraph (1);

(ee)

if the Governor of the State desires to have an agency other than a private industry council administer the funds provided under this subparagraph for the benefit of 1 or more service delivery areas in the State, contains an application to the Secretary of Labor for a waiver of clause (vii)(I) with respect to the area or areas in order to permit an alternate agency designated by the Governor to so administer the funds; and

(ff)

describes how the State will ensure that a private industry council to which information is disclosed pursuant to section 603(a)(5)(K) 3

 See References in Text note below.

or 654A(f)(5) of this title has procedures for safeguarding the information and for ensuring that the information is used solely for the purpose described in that section.

(II)

The State has provided to the Secretary of Labor an estimate of the amount that the State intends to expend during the period permitted under subparagraph (C)(vii) of this paragraph for the expenditure of funds under the grant (excluding expenditures described in section 609(a)(7)(B)(iv) of this title (other than subclause (III) thereof)) pursuant to this paragraph.

(III)

The State has agreed to negotiate in good faith with the Secretary of Health and Human Services with respect to the substance and funding of any evaluation under section 613(j) of this title, and to cooperate with the conduct of any such evaluation.

(IV)

The State is an eligible State for the fiscal year.

(V)

The State certifies that qualified State expenditures (within the meaning of section 609(a)(7) of this title

) for the fiscal year will be not less than the applicable percentage of historic State expenditures (within the meaning of

(iii)

Allotments to welfare-to-work States

(I)

In general

(II)

Minimum allotment

(III)

Pro rata reduction

(iv)

Available amount

As used in this subparagraph, the term “available amount” means, for a fiscal year, the sum of—

(I)

75 percent of the sum of—

(aa)

the amount specified in subparagraph (H) for the fiscal year, minus the total of the amounts reserved pursuant to subparagraphs (E), (F), and (G) for the fiscal year; and

(bb)

any amount reserved pursuant to subparagraph (E) for the immediately preceding fiscal year that has not been obligated; and

(II)

any available amount for the immediately preceding fiscal year that has not been obligated by a State, other than funds reserved by the State for distribution under clause (vi)(III) and funds distributed pursuant to clause (vi)(I) in any State in which the service delivery area is the State.

(v)

State percentage

As used in clause (iii), the term “State percentage” means, with respect to a fiscal year, ½ of the sum of—

(I)

the percentage represented by the number of individuals in the State whose income is less than the poverty line divided by the number of such individuals in the United States; and

(II)

the percentage represented by the number of adults who are recipients of assistance under the State program funded under this part divided by the number of adults in the United States who are recipients of assistance under any State program funded under this part.

(vi)

Procedure for distribution of funds within States

(I)

Allocation formula

A State to which a grant is made under this subparagraph shall devise a formula for allocating not less than 85 percent of the amount of the grant among the service delivery areas in the State, which—

(aa)

determines the amount to be allocated for the benefit of a service delivery area in proportion to the number (if any) by which the population of the area with an income that is less than the poverty line exceeds 7.5 percent of the total population of the area, relative to such number for all such areas in the State with such an excess, and accords a weight of not less than 50 percent to this factor;

(bb)

may determine the amount to be allocated for the benefit of such an area in proportion to the number of adults residing in the area who have been recipients of assistance under the State program funded under this part (whether in effect before or after the amendments made by section 103(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first applied to the State) for at least 30 months (whether or not consecutive) relative to the number of such adults residing in the State; and

(cc)

may determine the amount to be allocated for the benefit of such an area in proportion to the number of unemployed individuals residing in the area relative to the number of such individuals residing in the State.

(II)

Distribution of funds

(aa)

In general

(bb)

Special rule

(III)

Projects to help long-term recipients of assistance enter unsubsidized jobs

(vii)

Administration

(I)

Private industry councils

(II)

Enforcement of coordination of expenditures with other expenditures under this part

Notwithstanding subclause (I) of this clause, on a determination by the Governor of a State that a private industry council (or an alternate agency described in clause (ii)(I)(dd)) has used funds provided under this subparagraph in a manner inconsistent with the assurances described in clause (ii)(I)(dd)—

(aa)

the private industry council (or such alternate agency) shall remit the funds to the Governor; and

(bb)

the Governor shall apply to the Secretary of Labor for a waiver of subclause (I) of this clause with respect to the service delivery area or areas involved in order to permit an alternate agency designated by the Governor to administer the funds in accordance with the assurances.

(III)

Authority to permit use of alternate administering agency

(viii)

Data to be used in determining the number of adult TANF recipients

(ix)

Reversion of unallotted formula funds

(B)

Competitive grants

(i)

In general

The Secretary of Labor shall award grants in accordance with this subparagraph, in fiscal years 1998 and 1999, for projects proposed by eligible applicants, based on the following:

(I)

The effectiveness of the proposal in—

(aa)

expanding the base of knowledge about programs aimed at moving recipients of assistance under State programs funded under this part who are least job ready into unsubsidized employment.4

 So in original. The period probably should be a semicolon.

(bb)

moving recipients of assistance under State programs funded under this part who are least job ready into unsubsidized employment; and

(cc)

moving recipients of assistance under State programs funded under this part who are least job ready into unsubsidized employment, even in labor markets that have a shortage of low-skill jobs.

(II)

At the discretion of the Secretary of Labor, any of the following:

(aa)

The history of success of the applicant in moving individuals with multiple barriers into work.

(bb)

Evidence of the applicant’s ability to leverage private, State, and local resources.

(cc)

Use by the applicant of State and local resources beyond those required by subparagraph (A).

(dd)

Plans of the applicant to coordinate with other organizations at the local and State level.

(ee)

Use by the applicant of current or former recipients of assistance under a State program funded under this part as mentors, case managers, or service providers.

(ii)

Eligible applicants

(iii)

Determination of grant amount

(iv)

Consideration of needs of rural areas and cities with large concentrations of poverty

(v)

Funding

For grants under this subparagraph for each fiscal year specified in subparagraph (H), there shall be available to the Secretary of Labor an amount equal to the sum of—

(I)

25 percent of the sum of—

(aa)

the amount specified in subparagraph (H) for the fiscal year, minus the total of the amounts reserved pursuant to subparagraphs (E), (F), and (G) for the fiscal year; and

(bb)

any amount reserved pursuant to subparagraph (E) for the immediately preceding fiscal year that has not been obligated; and

(II)

any amount available for grants under this subparagraph for the immediately preceding fiscal year that has not been obligated.

(C)

Limitations on use of funds

(i)

Allowable activities

An entity to which funds are provided under this paragraph shall use the funds to move individuals into and keep individuals in lasting unsubsidized employment by means of any of the following:

(I)

The conduct and administration of community service or work experience programs.

(II)

Job creation through public or private sector employment wage subsidies.

(III)

On-the-job training.

(IV)

Contracts with public or private providers of readiness, placement, and post-employment services, or if the entity is not a private industry council or workforce investment board, the direct provision of such services.

(V)

Job vouchers for placement, readiness, and postemployment services.

(VI)

Job retention or support services if such services are not otherwise available.

(VII)

Not more than 6 months of vocational educational or job training.

Contracts or vouchers for job placement services supported by such funds must require that at least ½ of the payment occur after an eligible individual placed into the workforce has been in the workforce for 6 months.

(ii)

General eligibility

An entity that operates a project with funds provided under this paragraph may expend funds provided to the project for the benefit of recipients of assistance under the program funded under this part of the State in which the entity is located who—

(I)

has received assistance under the State program funded under this part (whether in effect before or after the amendments made by section 103 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 first apply to the State) for at least 30 months (whether or not consecutive); or

(II)

within 12 months, will become ineligible for assistance under the State program funded under this part by reason of a durational limit on such assistance, without regard to any exemption provided pursuant to section 608(a)(7)(C) of this title that may apply to the individual.

(iii)

Noncustodial parents

An entity that operates a project with funds provided under this paragraph may use the funds to provide services in a form described in clause (i) to noncustodial parents with respect to whom the requirements of the following subclauses are met:

(I)

The noncustodial parent is unemployed, underemployed, or having difficulty in paying child support obligations.

(II)

At least 1 of the following applies to a minor child of the noncustodial parent (with preference in the determination of the noncustodial parents to be provided services under this paragraph to be provided by the entity to those noncustodial parents with minor children who meet, or who have custodial parents who meet, the requirements of item (aa)):

(aa)

The minor child or the custodial parent of the minor child meets the requirements of subclause (I) or (II) of clause (ii).

(bb)

The minor child is eligible for, or is receiving, benefits under the program funded under this part.

(cc)

The minor child received benefits under the program funded under this part in the 12-month period preceding the date of the determination but no longer receives such benefits.

(dd)

The minor child is eligible for, or is receiving, assistance under the Food and Nutrition Act of 2008 [7 U.S.C. 2011 et seq.], benefits under the supplemental security income program under subchapter XVI of this chapter, medical assistance under subchapter XIX of this chapter, or child health assistance under subchapter XXI of this chapter.

(III)

In the case of a noncustodial parent who becomes enrolled in the project on or after November 29, 1999, the noncustodial parent is in compliance with the terms of an oral or written personal responsibility contract entered into among the noncustodial parent, the entity, and (unless the entity demonstrates to the Secretary that the entity is not capable of coordinating with such agency) the agency responsible for administering the State plan under part D, which was developed taking into account the employment and child support status of the noncustodial parent, which was entered into not later than 30 (or, at the option of the entity, not later than 90) days after the noncustodial parent was enrolled in the project, and which, at a minimum, includes the following:

(aa)

A commitment by the noncustodial parent to cooperate, at the earliest opportunity, in the establishment of the paternity of the minor child, through voluntary acknowledgement or other procedures, and in the establishment of a child support order.

(bb)

A commitment by the noncustodial parent to cooperate in the payment of child support for the minor child, which may include a modification of an existing support order to take into account the ability of the noncustodial parent to pay such support and the participation of such parent in the project.

(cc)

A commitment by the noncustodial parent to participate in employment or related activities that will enable the noncustodial parent to make regular child support payments, and if the noncustodial parent has not attained 20 years of age, such related activities may include completion of high school, a general equivalency degree, or other education directly related to employment.

(dd)

A description of the services to be provided under this paragraph, and a commitment by the noncustodial parent to participate in such services, that are designed to assist the noncustodial parent obtain and retain employment, increase earnings, and enhance the financial and emotional contributions to the well-being of the minor child.

(iv)

Targeting of hard to employ individuals with characteristics associated with long-term welfare dependence

An entity that operates a project with funds provided under this paragraph may expend not more than 30 percent of all funds provided to the project for programs that provide assistance in a form described in clause (i)—

(I)

to recipients of assistance under the program funded under this part of the State in which the entity is located who have characteristics associated with long-term welfare dependence (such as school dropout, teen pregnancy, or poor work history), including, at the option of the State, by providing assistance in such form as a condition of receiving assistance under the State program funded under this part;

(II)

to children—

(aa)

who have attained 18 years of age but not 25 years of age; and

(bb)

who, before attaining 18 years of age, were recipients of foster care maintenance payments (as defined in section 675(4) of this title) under part E or were in foster care under the responsibility of a State;

(III)

to recipients of assistance under the State program funded under this part, determined to have significant barriers to self-sufficiency, pursuant to criteria established by the local private industry council; or

(IV)

to custodial parents with incomes below 100 percent of the poverty line (as defined in section 9902(2) of this title, including any revision required by such section, applicable to a family of the size involved).

To the extent that the entity does not expend such funds in accordance with the preceding sentence, the entity shall expend such funds in accordance with clauses (ii) and (iii) and, as appropriate, clause (v).

(v)

Authority to provide work-related services to individuals who have reached the 5-year limit

(vi)

Relationship to other provisions of this part

(I)

Rules governing use of funds

(II)

Rules governing payments to States

(III)

Administration

(vii)

Prohibition against use of grant funds for any other fund matching requirement

(viii)

Deadline for expenditure

(ix)

Regulations

(x)

Reporting requirements

(D)

Definitions

(i)

Individuals with income less than the poverty line

For purposes of this paragraph, the number of individuals with an income that is less than the poverty line shall be determined for a fiscal year—

(I)

based on the methodology used by the Bureau of the Census to produce and publish intercensal poverty data for States and counties (or, in the case of Puerto Rico, the Virgin Islands, Guam, and American Samoa, other poverty data selected by the Secretary of Labor); and

(II)

using data for the most recent year for which such data is available before the beginning of the fiscal year.

(ii)

Private industry council

(iii)

Service delivery area

(E)

Funding for Indian tribes

(F)

Funding for evaluations of welfare-to-work programs

(G)

Funding for evaluation of abstinence education programs

(i)

In general

(ii)

Authority to use funds for evaluations of welfare-to-work programs

(iii)

Deadline for outlays

(iv)

Interim report

(H)

Appropriations

(i)

In general

Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated for grants under this paragraph—

(I)

$1,500,000,000 for fiscal year 1998; and

(II)

$1,400,000,000 for fiscal year 1999.

(ii)

Availability

(I)

Worker protections

(i)

Nondisplacement in work activities

(I)

General prohibition

(II)

Prohibition against violation of contracts

(III)

Other prohibitions

An adult participant in a work activity engaged in under a program operated with funds provided under this paragraph shall not be employed or assigned—

(aa)

when any other individual is on layoff from the same or any substantially equivalent job;

(bb)

if the employer has terminated the employment of any regular employee or otherwise caused an involuntary reduction in its workforce with the intention of filling the vacancy so created with the participant; or

(cc)

if the employer has caused an involuntary reduction to less than full time in hours of any employee in the same or a substantially equivalent job.

(ii)

Health and safety

(iii)

Nondiscrimination

(iv)

Grievance procedure

(I)

In general

(II)

Hearing

(III)

Remedies

The procedure shall include remedies for violation of clause (i), (ii), or (iii), which may continue during the pendency of the procedure, and which may include—

(aa)

suspension or termination of payments from funds provided under this paragraph;

(bb)

prohibition of placement of a participant with an employer that has violated clause (i), (ii), or (iii);

(cc)

where applicable, reinstatement of an employee, payment of lost wages and benefits, and reestablishment of other relevant terms, conditions and privileges of employment; and

(dd)

where appropriate, other equitable relief.

(IV)

Appeals

(aa)

Filing

(bb)

Final determination

(v)

Rule of interpretation

(vi)

Nonpreemption of State law

(J)

Information disclosure

(b)

Contingency Fund

(1)

Establishment

(2)

Deposits into fund

(3)

Grants

(A)

Provisional payments

(B)

Payment priority

(C)

Limitations

(i)

Monthly payment to a State

(ii)

Payments to all States

(4)

“Eligible month” defined

(5)

Needy State

For purposes of paragraph (4), a State is a needy State for a month if—

(A)

the average rate of—

(i)

total unemployment in such State (seasonally adjusted) for the period consisting of the most recent 3 months for which data for all States are published equals or exceeds 6.5 percent; and

(ii)

total unemployment in such State (seasonally adjusted) for the 3-month period equals or exceeds 110 percent of such average rate for either (or both) of the corresponding 3-month periods ending in the 2 preceding calendar years; or

(B)

as determined by the Secretary of Agriculture (in the discretion of the Secretary of Agriculture), the monthly average number of individuals (as of the last day of each month) participating in the supplemental nutrition assistance program in the State in the then most recently concluded 3-month period for which data are available exceeds by not less than 10 percent the lesser of—

(i)

the monthly average number of individuals (as of the last day of each month) in the State that would have participated in the supplemental nutrition assistance program in the corresponding 3-month period in fiscal year 1994 if the amendments made by titles IV [8 U.S.C. 1601 et seq.] and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout fiscal year 1994; or

(ii)

the monthly average number of individuals (as of the last day of each month) in the State that would have participated in the supplemental nutrition assistance program in the corresponding 3-month period in fiscal year 1995 if the amendments made by titles IV and VIII of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 had been in effect throughout fiscal year 1995.

(6)

Annual reconciliation

(A)

In general

Notwithstanding paragraph (3), if the Secretary makes a payment to a State under this subsection in a fiscal year, then the State shall remit to the Secretary, within 1 year after the end of the first subsequent period of 3 consecutive months for which the State is not a needy State, an amount equal to the amount (if any) by which—

(i)

the total amount paid to the State under paragraph (3) of this subsection in the fiscal year; exceeds

(ii)

the product of—

(I)

the Federal medical assistance percentage for the State (as defined in section 1396d(b) of this title, as such section was in effect on September 30, 1995);

(II)

the State’s reimbursable expenditures for the fiscal year; and

(III)

¹⁄₁₂ times the number of months during the fiscal year for which the Secretary made a payment to the State under such paragraph (3).

(B)

Definitions

As used in subparagraph (A):

(i)

Reimbursable expenditures

The term “reimbursable expenditures” means, with respect to a State and a fiscal year, the amount (if any) by which—

(I)

countable State expenditures for the fiscal year; exceeds

(II)

historic State expenditures (as defined in section 609(a)(7)(B)(iii) of this title), excluding any amount expended by the State for child care under subsection (g) or (i) of section 602 of this title (as in effect during fiscal year 1994) for fiscal year 1994.

(ii)

Countable State expenditures

The term “countable expenditures” means, with respect to a State and a fiscal year—

(I)

the qualified State expenditures (as defined in section 609(a)(7)(B)(i) of this title (other than the expenditures described in subclause (I)(bb) of such section)) under the State program funded under this part for the fiscal year; plus

(II)

any amount paid to the State under paragraph (3) during the fiscal year that is expended by the State under the State program funded under this part.

(C)

Adjustment of State remittances

(i)

In general

The amount otherwise required by subparagraph (A) to be remitted by a State for a fiscal year shall be increased by the lesser of—

(I)

the total adjustment for the fiscal year, multiplied by the adjustment percentage for the State for the fiscal year; or

(II)

the unadjusted net payment to the State for the fiscal year.

(ii)

Total adjustment

As used in clause (i), the term “total adjustment” means—

(I)

in the case of fiscal year 1998, $2,000,000;

(II)

in the case of fiscal year 1999, $9,000,000;

(III)

in the case of fiscal year 2000, $16,000,000; and

(IV)

in the case of fiscal year 2001, $13,000,000.

(iii)

Adjustment percentage

As used in clause (i), the term “adjustment percentage” means, with respect to a State and a fiscal year—

(I)

the unadjusted net payment to the State for the fiscal year; divided by

(II)

the sum of the unadjusted net payments to all States for the fiscal year.

(iv)

Unadjusted net payment

As used in this subparagraph, the term, “unadjusted net payment” means with respect to a State and a fiscal year—

(I)

the total amount paid to the State under paragraph (3) in the fiscal year; minus

(II)

the amount that, in the absence of this subparagraph, would be required by subparagraph (A) or by section 609(a)(10) of this title to be remitted by the State in respect of the payment.

(7)

“State” defined

(8)

Annual reports

(c)

Pandemic emergency assistance

(1)

Appropriation

(2)

Reservation of funds for technical assistance

(3)

Allotments

(A)

50 States and the District of Columbia

(i)

Total amount to be allotted

(ii)

Allotment formula

The Secretary shall allot to each such State the sum of the following percentages of the total amount described in clause (i):

(I)

50 percent, multiplied by—

(aa)

the population of children in the State, determined on the basis of the most recent population estimates as determined by the Bureau of the Census; divided by

(bb)

the total population of children in the States that are not territories, as so determined; plus

(II)

50 percent, multiplied by—

(aa)

the total amount expended by the State for basic assistance, non-recurrent short term benefits, and emergency assistance in fiscal year 2019, as reported by the State under section 611 of this title; divided by

(bb)

the total amount expended by the States that are not territories for basic assistance, non-recurrent short term benefits, and emergency assistance in fiscal year 2019, as so reported by the States.

(B)

Territories and Indian Tribes

(C)

Expenditure commitment requirement

To receive the full amount of funding payable under this subsection, a State or Indian tribe shall inform the Secretary as to whether it intends to use all of its allotment under this paragraph and provide that information—

(i)

in the case of a State that is not a territory, within 45 days after March 11, 2021; or

(ii)

in the case of a territory or an Indian tribe, within 90 days after such date.

(4)

Grants

(A)

In general

(B)

Treatment of unused funds

(i)

Reallotment

(ii)

Provision

(5)

Recipient of funds provided for territories

(6)

Use of funds

(A)

In general

(B)

Limitation on use for administrative expenses

(C)

Nonsupplantation

(D)

Expenditure deadline

(i)

In general

(ii)

Exception for reallotted funds

(7)

Suspension of territory spending cap

(8)

Definitions

In this subsection:

(A)

Applicable period

(B)

Non-recurrent short term benefits

(C)

State

(D)

Territory

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

cite as: 42 USC 603

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